An improvement in living standards has meant that Chinese people are demanding high quality foods. Snack food is no exception. According to statistics from China Customs, Chinese people consumed 300 billion RMB worth of imported food in 2015, and snack food accounted for 40% of the total volume of imported food sold online in 2015, far higher than general foods and dietary supplements. So what makes an imported snack food popular in China? Below is a basic tick list of the key components to snack food market success here in China.
1. The Foundation for Success: A good tasting snack
No surprise here, good taste is the first thing Chinese people consider when buying imported snacks. Popular products are usually products which from a taste perspective are broadly appealing and acceptable by most people.
2. Healthy Snacks
The “healthy” snack is a global trend which is gaining significant traction amongst Chinese consumers. Added value snacks fortified with nutrients and/or supperfoods or low calorie/low sodium/ low fat/ low carb etc. are beginning to attract attention as China embraces global health and wellness trends. The guilt free, tasty snack is the Holy Grail for both manufacturers and consumers alike. Dried roasted seaweed, such as “Tao Kae Noi” crispy seaweed sheets, sells extremely well in China. According to advertisements, dry roasted seaweed, is not only low in calories but also offers a variety of nutritional benefits. In contrast chocolate which was one of the most popular gifts has seen a slump in sales. According to an analysis made by CBNData based on online shopping data from Taobao and Tmall, chocolate sales have been hit hard and have been in significant decline since 2013. Hershey has already expanded its healthy snack line by launching the SoFit brand. Mondelez, the parent company of Oreo and Cadbury, announced that it is focusing 70% of new product-development efforts in the next five years on healthy goods.
3. Product differentiation, geographical origin and storytelling
In China snack foods hold particular cultural significance. Different regions have different traditions and different cultures. Local snack foods are literally a taste of the cultural diversity of an area and include an element of storytelling. Snacks are often a symbol of local culture and tradition. The origin of a snack really matters in China. Chinese people are eager to learn more about the outside world. Eating imported snacks is also a way to satisfy their curiosity about foreign countries. A good snack will not only please consumers’ taste buds, but also gives them food for thought, it allows them to imagine the country where it comes from. Due to geographical proximity and similarities in food culture, snacks from East Asia and Southeast Asia are obviously more popular. In East Asia, many Japanese snacks are popular in China due to a long history of food gift giving. Korean snacks have also made their way into China’s markets. As for Southeast Asia, some of the bestselling products are Tao Kae Noi crispy seaweed sheets, Richeese Nabati cheese flavored wafer and Tipo dry bread.
4. Don’t Forget the Bottom Line - Low Price
Low price is still a very effective method of grabbing market shares in China especially for the online ecommerce market. Most bestselling snacks are quite affordable. Many Chinese people would pick imported snacks over locally produced ones in the pursuit of better quality. Food safety has long been a big concern for Chinese people. According to Asia Pacific Food Forward Trends Report II co-published by Weber Shandwick and Qualtrics in 2015, 43% of Chinese respondents ranked quality as the primary influence in food purchasing. This ratio is far higher than Korea (33%), Australia (20%), etc. By comparison, only 7% of Chinese respondents cared most about price, but respondents from Australia (35%) and Singapore (27%) did not think the same way.
5. Understand the secret to gain popularity fast: Creating a buzz
Although there are numerous imported snacks to choose from, the market is actually dominated by a few food enterprises. Furthermore, a few flagship products have helped these enterprises capture the market. This is caused by the impact of word of mouth marketing. According to Asia Pacific Food Forward Trends Report II, 47% of Chinese respondents admitted recommendation from a friend or family member as the main reason for them buying a new food product. Also, 73% of Chinese respondents said they were more likely to buy a product or visit a restaurant on account of its endorsement by a celebrity chef or brand ambassador. Only 6% said they would not be influenced by such an endorsement. Therefore, for a food enterprise new to Chinese market, sometimes having a star product works better than launching a wide range of products at the very beginning.
Disclaimer: the above is the author's personal opinion and is not the opinion or policy of Chemlinked.
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