Why China's local brands outsmart foreign food companies

25 August 2017

China’s food and beverage (F&B) brands are outsmarting foreign companies despite consumer distrust in China’s local food and beverage products (resulting from past food scandals). Even local Chinese brands with inferior and less-trusted products are selling in greater quantities and for greater prices than their foreign competition. This is due to Chinese F&B brands having a better understanding of Chinese consumer needs and serving those needs accordingly. They have a better understanding of Chinese consumer lifestyle needs, such as preferring smaller packaging for their small fridges, and localising their products, as lifestyles and tastes can vary greatly between Chinese cities. Chinese brands adapt their products to consumer emotional cues, for example by using animals as mascots in product images and videos, and they also use digital savvy, as Chinese consumers prefer interactive and entertaining mobile content. In order to compete with Chinese brands, foreign F&B companies need to invest in understanding rapidly shifting consumer needs and trends, and adapt their products to suit them.

Read the full article on the Exporter Today website.

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