Transcript Foreign food how to enter chinese market

How To Enter The Chinese
Market
Shanghai Import Food Enterprise
Association (SIFEA)
Mr. Guan Rong
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Our Association - SIFEA





Provide information to members
Government liaison and coordination
Trade promotion
Conduct activities
Participate in trade exhibitions
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Outline
1. The Imported Food Market in Shanghai
2. Major Products and Exporting Countries
3. China’s Current Import Requirements
4. Impact of the Global Economic Situation?
5. Suggestions to Your China Strategy
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Imported Food in Shanghai
Weight(Kilo-Ton)
Amount(USD Million)
2006
475
1410
2007
766
2446
2008
1035
3621
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Breakdown of Products (2008)
(USD Million)
Grain, 156 , 4%
Edible oil, 175 , 5%
Other, 911 , 26%
Candy, 145 , 4%
Food Additives, 760 , 21%
Vegetable and Fruit, 109 ,
3%
Dairy, 522 , 14%
Wine and Beverage, 843 ,
23%
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Products and Exporting Countries (2008)
Food category
Major Foods Export Countries to Shanghai
Food additives
USA, Japan
Wine
France, Australian , Italy, Spain, Chile, USA
Liquor
France, England, USA
Dairy products
Australian, New Zealand, USA, France, Italy, Japan,
Olive oil
Italy, Spain, Greece
Chocolate
France, Belgium, Switzerland, Japan, USA, Germany
Biscuit and
Cookies
USA, Japan, Denmark, England, Germany, Italy
Beverage and
Mineral water
France, Italy, England, USA, Canada
Meat and meat
products
USA, Canada, Denmark, France, Ireland, Australian, New Zealand,
Confectionery
Japan, Switzerland, England, Germany
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2008 Major Exporting Countries to Shanghai
－USA US$ 518 Million (#1)
－Japan US$ 392 Million (#2)
－Singapore US$ 339 Million (#3)
……
－Canada US$ 17.7 Million (#20)
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Major Rejections and Reasons
USD7+ million of imported food products (0.2% of total import) are found
unqualified in Shanghai port in 2008 – main reasons:
1. Snack food - pigment, additives and total bacteria count exceeding
2. Dairy product - Enterobacter Sakazakii and the other bacteria detected
3. Wine and liquor - preservatives and methanol exceeding
4. Chinese Label - not correctly indicating the additives in the ingredient,
additives do not conform to Chinese National Standard GB2760-2007.
5. Other reasons: Exceeding the period of quality assurance. Can not
provide required certificate of imported foods. No date of production on
the package, etc.
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The market shares of imported liquors in Shanghai
2008
Johnnie Walker
Remy Martin
12%
Hennessy
26%
12%
`
Chivas
RIO
Bacardi
1%
3%
12%
Martell
Abosolute
3%
Royal Salute
9%
6%
7%
9%
Ballantine
Others
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The market shares of beer in Shanghai 2008
Suntory
25%
Budweiser
* Tsingdao
34%
Heineken
Asahi
1%
1%
Stein Lager
3%
Carlsberg
5%
Other Chinese Brands
12%
19%
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The market shares of milk powder in Shanghai 2008
* Bright
23%
25%
Nestle
Nutricia
Anlene
4%
Anman
5%
Dumex
26%
7%
10%
Other Chinese brands
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The market shares of infant milk powder in
Shanghai 2008
Dunmex
Wyeth
20%
31%
3%
Abbott
Meadjohnson
4%
Nestle
4%
Meiji
10%
15%
13%
Scient
Chinese Brands
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The market shares of cheese in Shanghai 2008
* Bright
19%
Pikfou
Land O'lakes
Suki
2%
2%
2%
President
48%
2%
2%
Kerrygold
Kraft
3%
3%
Canola
Mamazhixuan
3%
14%
Beqa
Others
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The market shares of chocolate in Shanghai
2008
Dove
22%
Ferrero
Meiji
Lotte
45%
2%
2%
Cadbury
UHA
3%
Nestle
4%
Banuo
5%
Chinese Brands
6%
11%
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Food Products Entering China
-
-
Agent & Importer
Self-import
OEM (Private Label)
Local Manufacturing
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The Administration System in China for Import
Food Inspection and Quarantine
AQSIQ
General Administration of Quality Supervision, Inspection and
Quarantine of the People's Republic of China (AQSIQ) is a ministerial
administrative organ directly under the State Council of the People's
Republic of China in charge of national quality, metrology, entry-exit
commodity inspection, entry-exit health quarantine, entry-exit animal
and plant quarantine, import-export food safety, certification and
accreditation, standardization, as well as administrative lawenforcement.
With purpose to perform the function of entry-exit inspection and
quarantine, AQSIQ has set up in total 35 Entry-Exit Inspection and
Quarantine Bureaus (CIQ) in China's 31 provinces, near 300 branches
and more than 200 local offices across the country, with employees
totaled over 30,000 in goods distributing center at sea ports, land ports
and airports. AQSIQ provides direct leadership to all the CIQ.
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Food Safety Management
The recent Chinese National People’s Congress has approved the
Chinese Food Safety Law which is to become effective June 1, 2009.
AQSIQ is responsible for inspecting, supervising and administering
the safety, hygiene and quality of the imported and exported foods and
cosmetics.
1. It is AQSIQ that should inspect, quarantine, supervise and manage
the imported foods, food additive, food container, packaging material,
instrument and equipment for food production.
2. Pre-warning System for Entry-exit Food Inspection and
Quarantine Risk and Quick Response System have been established by
AQSIQ with the view to take preventive safeguarding and treating
measures against the possible risk or potential harm caused by
imported and exported food.
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China’s Current Import Requirements
Imported
foods
Category
Plant
Agricultural products
products
Animal
products
living
Seafood
products
Frozen
products
Dairy
products
Pre-packaged Alcoholic
products
drink and
Beverage
Snack
food
Fish, Shrimp, Crab
√
√
AQSIQ
Quarantine
permission
√
√
Raw √
Cooked ×
√
Fish, Shrimp, Crab
×
√
Cheese, yoghurt, Butter, milk,
Milk powder
Wine, Spirits, Beer, Fruit drink,
Mineral water, sparkling water,
Coffee drink, Function drink,
Chocolate, Succade, Candy,
Biscuit, Dried nut, Honey, Jam,
Flavoring, Olive oil
×
Products
Grain, soybean
Fruit, Vegetable
raw or cooked meat and poultry
Note: “√ ”means necessary
Bilateral
government
agreement
√
√
√
AQSIQ
Registrati
on
√
√
√
Relevant
Export
certificate
√
√
√
Chinese
Label
√
√ or ×
√
×
×
√
√ or ×
×
×
√
√
×
×
×
×
√
×
×
×
×
√
“×” means not necessary
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Chinese Label Regulation
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Chinese labels must include: Food Name, Ingredients, Net
Weight, Country of Origin, Date of Production
(Year/Month/Day), Expiration date (Year/Month/Day), Store
Condition, Distributor Name and Address.

Chinese label must be covered over the foreign language package
in the designated position of the package surface, or printed on
the package surface directly, this method can help the goods to
pass the inspection procedure rapidly. Imported food products
can not be permitted into the Chinese retail market without
Chinese labels.
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The local CIQ is in charge of the Chinese label inspection and
keeps records according to the Chinese National Standards.
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Impact of Global Economic Situation to Shanghai Food
Industry (Survey to 90 companies)
Profit of 2008
Sales of 2008
80%
70%
60%
50%
40%
30%
20%
10%
0%
76%
70%
50%
40%
30%
30%
20%
20%
9%
10%
4%
0%
Increase
Same as in
2008
Increase
Decrease
60%
53%
Decrease
57%
60%
50%
42%
40%
40%
30%
30%
20%
20%
5%
10%
Same as in
2008
The Range of Profit Increase in
2008
The Range of Sales Increase in
2008
50%
61%
60%
31%
12%
10%
0%
0%
< 10%
10%-20%
20%-50%
< 10%
10%-20%
20%-50%
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2009 Shanghai Food Industry Forecast (90 companies)
Profit Forecast of 2009
Sales Forecast of 2009
100%
80%
70%
60%
50%
40%
30%
20%
10%
0%
89%
80%
60%
40%
20%
11%
26%
3%
Increase
0%
Increase
Same as in 2008
The Range of Sales Increase
Forecast in 2009
60%
52%
70%
Same as in
2008
Decrease
The Range of Profit Increase
Forecast in 2009
58%
60%
50%
50%
40%
40%
30%
20%
71%
19%
30%
19%
10%
10%
20%
17%
17%
8%
10%
0%
0%
< 10%
10%-20%
20%-50%
> 50%
< 10%
10%-20%
20%-50%
> 50%
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Peak Selling Period – the Chinese New Year
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Suggestions to Your China Strategy
1. Right products for right customers
2. Be innovative and flexible
3. Co-operation with your Chinese partner
4. Your local presence will make a difference
5. Thinking Long term
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Questions？
Thank you
Mr. Guan Rong
Email: [email protected]
Tel/Fax: 86-21-64398189
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