- Nada Young, Director, INCITE
- 17 Jul 2018
Why it’s not always a good idea to go with the first distributor that comes along.
Why it’s not always a good idea to go with the first distributor that comes along.
Imported beer sales has been exhibiting steady growth in Korea in recent times thanks to competitive pricing, possibly as a result of tax loopholes.
The golden trinity of exporting is product, price and distribution – but getting them into perfect alignment from the first container is a rare thing indeed.
There is nothing more frustrating to an exporter than out of stock issues. You have already jumped through six flaming hoops to get your product to market only to have your sales stymied because your product is out of stock.
Major Korean F&B exporters have recognised the importance of the halal food market by ramping up production of halal certified goods for their international customers. Shinsegae Food, a leading food and beverage manufacturer, is actively developing halal certified products in order to penetrate into Southeast Asia countries with large Islamic populations.
Ubereats is bravely penetrating an already saturated food delivery market in Korea. Worth an USD $15 billion, Korea’s food delivery market is dominated by strong local businesses. Ubereats is vying for a slice of the app based delivery pie which is currently worth USD $4.5 billion.
Negotiating an export deal in the food and beverage sector in Asia is a lot like playing soccer, except there are a lot of defenders and very few strikers. In the game of exporting, defenders come in all shapes and sizes from trade barriers to poor communicators.
In the western world a great deal of importance is given to first impressions and presentation. Prestige and professionalism are judged not only by a company or individual’s achievements, but also by the way they present themselves to the world. This is not the case in Asia where looks can be deceiving.
Online shopping has become the fastest growing channel in Taiwan, with about 45% of all purchases from the average consumer being web based.
Hosted by KOTRA, Seoul Food 2018 will be held at KINTEX, in Goyang-si, Gyeonggi-do from 1st - 4th May. The event is the largest F&B expo on the Korean calendar and one of only four major food exhibitions in Asia.
The number of food safety incidents in Taiwan in recent years has been a blessing and a curse for exporters around the world.
It’s Cherry Blossom season in Korea right now and clever brands are releasing Limited Edition offers in a trend that is becoming a key strategy to drive sales. Emphasising scarcity with ‘Now or Never’ marketing stimulates action and compels purchasing.
In order to survive the rapidly changing business environment in Korea leaders in the food sector are searching for new growth by forming alliances. Lotte Confectionary has made a bold move into the Korean cereal market by partnering with Pepsi Co. to manufacture Quaker under license.
Taiwan’s aging population is driving a shift in the type of products being carried by F&B retailers. With the number of senior shoppers exceeding 20% for the first time, retailers are offering a more diverse range of items that cater to the needs of this aging consumer group.
Leading industry stakeholders in Hong Kong say the pastry sector hasn’t see a “wow product” since the popular cheese tart, two years ago. Product heroes like the cheese tart often start with a limited time offer (LTO) launch by a leading group, such as Maxims cake shop and are quickly...
Cooking seems to have become a national obsession in Korea. Celebrity chefs enjoy the kind of fame you would normally associate with pop stars. One of the most popular TV shows on air at the moment is a cooking show that brings together celebrity chefs like Gordon Ramsey and local...
The F&B sector in Malaysian is facing significant challenges at the moment and a number of top industry players are starting to feel the pinch.
The Winter Olympics in PyeongChang, Korea, attracted more than star athletes this year. Enterprising F&B companies were quick to take advantage of the thousands of hungry tourists with cleaver gimmicks and well placed pop up restaurants.
The biggest event in the F&B calendar in Asia is happening 24-27 April; Food and Hotel Asia (FHA).
Skipping breakfast in favour of more sleep before the hectic commute to work has become common practice for Koreans. The irony is that people are increasingly aware of the importance of breakfast for their health and performance.
'Thumb shoppers’ takes 61% of whole market.
Changing consumer habits due to a fast paced lifestyle has propelled 7-Eleven into the largest chain "restaurant" in Taiwan. With over 5,500 outlets in strategic locations and plenty of ready-to-eat meal options it is by far the most convenient choice for a quick bite.
Domestically produced meat, although much more expensive than imported meat, has been a popular gift item in Korea for many years. Its is perceived to have a higher value than imported meat. However, with new regulations forbidding giving gifts with a value over KRW 100,000 to business acquaintances, the sales...
The Malaysian government has introduced new requirements on wine imports that have significantly slowed down entry of imported wines into the market. Import licenses for all alcohol importers in Malaysia expired on 31 December 2017 and it could take as long as three to four months for importers to obtain...
Taiwan's foodservice industry can be seen moving into M-shaped development as both premium and economical outlets proliferate while the number of middle-tier operators decreases.
Ice creams, sweet pastries and other sticky treats have long been marketed towards women. However, in recent years, consumption of deserts escalated significantly among men in Korea. In the categories of ice cream, jelly, candy and slush, the consumption was higher for men in their 30s than women.
F&B sector is increasingly numbers driven.
Asian markets remain a key focus for New Zealand food and beverage companies wanting to grow their export business. While growth prospects remain high over the long-term, challenges exist. Here are some insights gained from F&B distribution partners we work with across Asia on the state of business in each country.
There’s no doubt that New Zealand companies create great food and beverage products. We’ve got access to excellent raw materials, fresh water and clean air. We have sophisticated technology and we’re innovative.
Hong Kong is intense. Just navigating its teeming sidewalks and constant noise can put you on edge. It's a city of Alfa men and women moving from one opportunity to the next, deftly dodging setbacks as they advance towards the next ‘big thing’.
Export packaging disrobed. A wise man by the name of Sam Ham (yes, that's his real name) once taught me that people are either Streakers, Browsers or Students. Sam Ham is a world renowned Professor of Communication Psychology at the University of Idaho.
"Let the Golden Goose live." New Zealand’s Food and Beverage (F&B) companies looking for new markets in Asia often view China as the nexus of international trade, but for some, it is a Golden Goose. Motivated by visions of gleaming golden eggs by the container load, some exporters force their way inside...
It’s easy to drown in data. Statistics about an export market’s GPD, population growth, buying patterns and consumer trends are merely a click way. And yet, extrapolating the relevant information you need to validate new export markets can be extremely difficult.
According to a recent paper by Citigroup Inc economist Willem Buiter, “the chances of a China lead global slowdown” are precariously high.
The Four Asian Tigers; South Korea, Singapore, Hong Kong and Taiwan, are resilient, free markets with a thriving middle class and a thirst for international goods. They sit apart from their Asian neighbours as role models for growth and prosperity.
On 12-15 April, F&B buyers and suppliers from around the world descend on Singapore, in their masses, for the most important international food show in Asia; Food and Hotel Asia (FHA) 2016.
Tariffs on New Zealand exports to Korea have tumbled under the NZ-Korea Free Trade Agreement that finally entered into force in December 2015. From duties in excess of 300% on some goods to well below 10% or even zero on key export items.
Food and beverage is an exciting sector in the high growth markets of Southeast Asia and the East Asian Tigers (Taiwan, Hong Kong and South Korea). The trouble is, we are not the only nation vying for a piece of the action.
The drastically lower New Zealand dollar was a dark cloud over New Zealand in September 2015, but its wasn't all bad news. The silver lining was that our Food and Beverage (F&B) sector rapidly became much more competitive in the global market place.
The signing of the New Zealand – Korea FTA is welcome news for New Zealand exporters. South Korea is New Zealand’s fifth largest export market and the FTA will bring tariff savings to a range of sectors that have been suffering under high Korean import tariffs.
A controversial Goods and Services Tax will take effect from 1 April next year in Malaysia. The rate is fixed at 6 per cent and the existing Sales Tax and Service Tax will be abolished.
Let’s be honest. Volume is the major driver in the food service industry. We all want it and for good reason.
For Incite’s Nada Young, flying from city to city across Asia to meet with F&B importers and distributors provides a unique perspective on local market activity and trade flows in the sector.
Plan ahead. Get your meetings lined up at least four weeks in advance of your trip. Focus on the capitals. Most business is conducted in the major city of each country so plan your itinerary accordingly. Give yourself enough time.
It’s easy to get giddy when you think about the potential of Indonesia as an export market. Some 250 million people, a rising middle class and a GDP of 5.1%, which is among the highest in the region.
Our monthly newsletter is packed full of important news and market insights that impact the F&B sector across high growth markets of Southeast Asia, Hong Kong, Taiwan and Korea
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