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1 PAGE/ Interpretation on opportunities and consumers' demands of nutritional and health food market in China 2019-2020
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Interpretation on opportunities and consumers' demands of nutritional and health food market in China
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CONTENTSSuggestions on Australian and New Zealand’s nutritional and health products entering the China market
Case studies: new features of the consumer market in China
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Case studies: new features of the consumer market in China
Part 01
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Case One: new features and trends of consumer market in China as observed at the opening of Costco
- Amazing purchasing power in China
- Evolution of the consumer market
Amazing Market！
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NONGFU SPRING——demographic
segmentation, scene segmentation
For high-end consumers →→→ High-end glass bottle
For babies →→→ Baby water
For the elderly →→→ Lithium water
Feature One of the consumer market in China: personalized segmental demands
Sales 18% increasein 2018
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Feature Two of the consumer market in China: social media driven and content marketing
1. The consumption-driven “Content + Social Media” mode replaces “Search on Platforms” mode
2. 35% of Chinese consumers were heavy online + mobile media users as at 2018
3. Chinese consumers spend 3.8 hours per day on mobile apps and use 30 mobile apps per month.
New features of Chinese consumers:
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Breakthrough One: Alibaba + RT-Mart
1. RT-Mart has preliminarily recovered its
performance in 2019
2. Both RT-Mart and Auchan stores have access to
O2O distribution service
3. Product lines expanded by Taobao Xinxuan,
HiShop and other new retail modes, to meet
demands of the young consumer group
Feature Three of the consumer market in China: online and offline
unbounded integration , “New Retail”
breakthrough on the existing retail mode
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Breakthrough Two: Suning acquires Carrefour China
1. Suning is the only enterprise in China that equally
develops online and offline retail
2. Suning completed business layout integration of omni-
channel and omni-scene by mergers and acquisitions in
2019, consolidating complementary advantages of
different business modes
Feature Three of the consumer market in China : online and offline unbounded integration,
“new retail”
Smart retail creates further potential
Conclusion on China Market New Features:
Embrace Change Scene
segmentation
Demographic segmentation
Content marketing
becomes new growth engine Omni-channel
growth mode:E-commerce +
Brick and Mortar Store commerce
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Case Two: See new opportunity of consumer market from Pinduoduo
1. Consumption of Chinese residents has been upgraded, which
is reflected in the change of consumption structure, consumers
are becoming more rational and their demands more diversified.
Chinese consumers born in the 1970s, 1980s and 1990s have
different consumption demands.2. The consumption is penetrating towards third and fourth-
tier cities and even fifth and sixth-tier cities. The proportion of
buyers in lower-tier cities is gradually increasing, consumption
of low-income groups is upgraded from low-end to middle-end.
3. According to analysis from a supply chain perspective,
Pinduoduo and other new types of business have little similarity
to Alibaba.Conclusion: The upgrade and penetration of Chinese
consumption bring new opportunities to services and
products such as healthcare and health foods.
Case Study Two:
Analysis and conclusion
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Some suggestions on Australian and New Zealand’s nutritional and health products entering the China market
Part 02
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---CCCMHPIE
Figures of China’s Imports of Nutritional and Health Food in 2008-2018Unit: Million $
Trends and Features of Imports of Nutritional and Health Food
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Trends and Features of Nutritional and Health Food Imports
Shares of China’s Nutritional and Health Food Imports in 2018, 2019.01-06
---CCCMHPIE
2018 Jan.-Jun., 2019
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Imports of nutritional and health products from Australia and New Zealand to China
Australia: 340 mil USD, increased by 32.98% New Zealand: 33.44 mil USD, increased by 61%
2018 & Jan.-Jun., 2019
Jan.-Jun., 2019 Jan.-Jun., 2019
---CCCMHPIE Unit: Million $
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The order is based on keyword search of brand names.
--CCCMHPIE
No. Brand1 Swisse2 BioIsland 佰澳朗德
3 Nutrilite纽崔莱 Doublex倍立健
4 Doppelherz 双心
5 Schiff MoveFree旭福维骨力
6 Melaleuca美乐家
7 BLACKMORES8 TongRenTang同仁堂
9 Centrum善存
10 HealthyCare11 Metamucil美达施
12 GNC健安喜
13 Swanson 斯旺森
14 Elevit爱乐维
15 ISDG
Major import brands in 2018
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Current Situation of Food Nutritional Supplement Industry in China
1 The number of products approved during the policy adjustment period declined significantly.
2. The top five approved health food functions are:
increasing immunity, relieving physical fatigue, assisting in reducing blood fat, oxidation resistance and relaxing
the bowels. It can be clearly seen from the figure that increasing immunity accounts for the highest proportion
among the approved health food function, which is 31.9%; the second is relieving physical fatigue and assisting
in reducing blood fat, products with other functions approved are relatively few.
3. Much attention has been paid to the health food filing system.
Health Food Approved Quantity Chart 1996-2018
Distribution Map of Health Food Functions
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Some suggestions for enterprises entering China market
1. From Current Regulatory Environment of ChinaHealth Products Market: Government strengthensthe regulation of health foods and crack down illegalmarketing. Please refer to:Opinions of the State Council on Deepening Reformand Strengthening Food Safety;Opinions of the State Council General Office onPromoting the Development of Pension Services2. As for policy, Management Measures of HealthFood Raw Materials Directory and FunctionsDirectory was issued and officially implemented onOctober 1. They provide more opportunities toaccess for offline channels.3. E-commerce channel becomes the new growthengine for China’s nutritional and health productindustry, and new marketing channels providedifferent opportunities for both big and small brands.4. Most importantly: the China market is massive,with great potential for growth.
--——from SAMR official web-site
After implementation, in the future the raw ingredients directory
and the functions directory will continue to develop, and new
additions will be released one by one. As the directory
continues to expand, product filing will increase, and product
registration will decrease ……
The "Measures" will be officially implemented on 1 October, 2019.
Suggestion 1: Overseas enterprises need to be prepared for long-term strategic investment. Remain optimistic and also implement prudently.
Exhibit in the top health one-stop international platform held by CCCMHPIE.
Healthplex Expo 2019 Review
Total area 140,000+㎡
Overseas exhibition 11,000+㎡
The exhibitors 1800+Overseas exhibitors increased 37%
over 2018
Audience 65,000
On-site Activities 60+
Note: space, visitors shared with co-located Food series show
Suggestion 2: Join the best platform to enter into China market.
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First-tier Nutraceutical Brand Manufacturers进入中国市场最优的场景与品牌
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2019 On-site Activities Review
10thAnniversary Gala Dinner
Ten-year efforts
Achievements
第六届营养保健产业发展论坛
——海外保健品进入中国中国医药保健品进出口商会
