|By PR Newswire||
|November 20, 2012 01:36 PM EST||
NEW YORK, Nov. 20, 2012 /PRNewswire/ -- Rabobank has published a new research report on China's potential as a growth market for European and North American processed food brands, and the importance of distribution channels as the means of doing so.
In a new report, Rabobank's Food & Agribusiness Research and Advisory group says that mastering distribution strategies will be key to the efforts of North American and European food processing companies to win over Chinese customers.
Rabobank analyst Ivan Choi says in the report, "The Chinese economic miracle is now part of business folklore and the conventional wisdom is that, if you are not operating in China already, then you have missed out on a massive economic opportunity. However, Rabobank believes that within the processed food sector, there are still opportunities for European and North American brands facing flat growth at home. The key to winning over Chinese consumers is mastering distribution strategies."
The confectionery market can be seen as a microcosm of the wider processed food industry in China and illustrates why it is not too late to enter the market. Annual growth in some areas of the country is at 10 percent, and despite market growth of 150 percent in the last decade, Rabobank believes high growth potential remains. Currently, the Chinese consume less than 1.2 kg of confectionery per person every year, against a global average of 2.1 kg, and buy mainly during the festive seasons, rather than all year round as in other markets. The key for foreign brands entering this market can be distilled down to tactics applied for specific sizes of cities within the country.
China's 22 largest cities, which include Shanghai, Beijing and provincial capitals, offer a market of 54 million households, with a confectionery sector of Rmb37 billion (4.6 billion euro). Sophisticated urban consumers want premium confectionery products from North America and Europe, which benefit from the perception that they are higher quality and 'safe' product. In the big cities, foreign brands can also take advantage of modern retail networks.
In the 3.1 billion euro market of smaller cities where networks are less established, local brands have a stronger position and the key to success is to choose the right distribution network. With a relatively low penetration of modern retailers, traditional stores are still where the majority of customers shop. It requires a large network of distributors and middlemen, or a large in-house distribution capacity, to get products into shops. Companies such as Nestle have successfully partnered with local brands that have established distribution networks, but an equity stake is the key to getting the most out of such deals.
Ivan Choi says; "In China, where consumers have limited brand loyalty and distribution channels are fragmented, the main competitive differentiator is making products available to a wider selection of consumers. While distribution is the key to foreign companies' success in the confectionery sub segment, its importance is also evident in the broader processed foods sector. This is partly due to the Chinese retail market being so large and fragmented, with the top five retailers holding only a small percentage of the market."
Brands must tailor their strategy to the different sub-markets within the country. Provinces in China vary greatly in their taste preferences, spoken languages and cultural practices as well as having different distribution chains. "Foreign confectionery brands should view different provinces as different markets and adjust products accordingly when contemplating a 'China' market entry strategy," Choi advises.
In a market where consumers place brand name as a secondary decision factor, European and North American brands are in better position to trump local Chinese brands with their perceived premium brand position and safe quality image, but all this will hinge on these companies identifying their optimal distribution strategy to succeed in China.
The Rabobank report on the Chinese market potential for European and North American processed food brands is available to media upon request.
Rabobank Group is a global financial services leader providing wholesale and retail banking, asset management, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries. In North America, Rabobank is a premier bank to the food, beverage and agribusiness industry. Rabobank's Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture. www.Rabobank.com
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Oct. 8, 2015 04:45 PM EDT Reads: 107
Between the compelling mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how busine...
Oct. 8, 2015 04:45 PM EDT Reads: 231
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, al...
Oct. 8, 2015 04:45 PM EDT Reads: 109
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
Oct. 8, 2015 04:30 PM EDT Reads: 7,452
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete en...
Oct. 8, 2015 04:30 PM EDT Reads: 226
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Oct. 8, 2015 04:30 PM EDT
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes.
Oct. 8, 2015 04:30 PM EDT Reads: 188
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Oct. 8, 2015 04:00 PM EDT Reads: 459
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
Oct. 8, 2015 04:00 PM EDT Reads: 219
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Oct. 8, 2015 04:00 PM EDT Reads: 297
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
Oct. 8, 2015 04:00 PM EDT Reads: 1,062
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
Oct. 8, 2015 04:00 PM EDT Reads: 162
In their session at DevOps Summit, Asaf Yigal, co-founder and the VP of Product at Logz.io, and Tomer Levy, co-founder and CEO of Logz.io, will explore the entire process that they have undergone – through research, benchmarking, implementation, optimization, and customer success – in developing a processing engine that can handle petabytes of data. They will also discuss the requirements of such an engine in terms of scalability, resilience, security, and availability along with how the archi...
Oct. 8, 2015 04:00 PM EDT Reads: 388
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Oct. 8, 2015 03:30 PM EDT Reads: 211