Q&A with the UK-ABC

Headlining the UK-ASEAN Business Council Digital Export Series - Episode 7, Incite was recently invited to share our knowledge about launching food and beverage brands into ASEAN export markets. 

Here are the highlights from the Q&A session, chaired by Ross Hunter, Executive Director at the UK-ASEAN Business Council, and answered by Cameron Gordon, Partner + Head of Client Growth at Incite.

How important is consistent shelf pricing across the region given the difference in tariffs and duties for each country?

In short, it’s not. You need to look at each country on a case-by-case basis. While ASEAN is a regional group of countries, every country is different. You only need to look at Singapore and Malaysia; you can drive between the capitals of these two countries in 4 hours, yet they are so different in terms of consumers, spending dynamics, taste preference, economics, and for this reason, each market must be treated individually, in particular for finding the correct price position within your product category.

Do UK brands have a market outside of expat consumers? What’s the demand?

It comes down to the category and your price position within it. If you are priced so far out of range of the median of the category, of course you’re only going to be relevant to expats who can traditionally afford to pay top dollar. The more competitive you are priced within the category, the more consumers you are going to be relevant to.

Tell us how labelling works in the region; do we need to adapt our labels for each country?

Even though it is presumed you need to change your labels, generally speaking you don’t need to change your packaging at all when exporting to ASEAN markets. Typically, across all of our markets, all that is required is a small sticker to be applied that provides distributor details and any information that is required to meet additional in country regulations.

You don’t need to develop any new packaging; keep it simple – in a lot of cases, the distributor will attach the over label when the shipment arrives. Regarding Halal, I’d say don’t print it on the packaging – Halal is quite a political world and in some cases certification bodies can come in and out of favour, so if you have printed a Halal logo from one specific certifier on your packaging you may run into problems in the future if that certifier is no longer approved within the market.

Is Halal certification required?

For the food service sectors in Singapore, Malaysia and Indonesia Halal certification can be very important as many kitchens are Halal only kitchens. However, in the grocery business, you need to ask yourself who is your end consumer? In a lot of cases, British, New Zealand and Australian products are relatively premium and not always relevant to a Halal consumer. In Singapore for example, if you are selling into Tier 1 or Tier 2 grocery channels, I’d argue that Halal is not necessarily crucial, but it does depend on the category. However, in places like Indonesia it’s more important, so I would say, make sure you understand your consumer and talk to your distributor to decide if Halal certification is really required for each market based on your product.

Can you help with B2B raw materials?

Yes we can. The food service sector is doing it tough everywhere, however we are still seeing good gains in the B2B food ingredients sector. We work with a large rice producer who mills off rice bran (a highly nutritious ingredient) and we’re able to broker partnerships with distributors and end customers.

Is there benefits for setting up in country manufacturing to obtain a better price position over exporting from the UK?

There is a strong competitor proposition for UK, Australia or New Zealand origin manufacturing due to a reputation for quality, high food safety standards and origin recognition, but if you are a company that is more interested in a volume play then, yes. A lot of thought and impeccable execution is required, as if you get it wrong, it is very difficult to undo the reputational damage.

What is the process of working with Incite?

We provide three core functions for our clients. Firstly, the initial piece is helping our client understand their category, price positioning, target channels and required investment in each export market. Secondly, brokering distribution for our clients is our core business. We go out and engage distribution partners on our client’s behalf, we bring in distribution plans, appoint distributors and manage retail listings in conduit with the appointed distributor. Finally, we manage distributors on behalf of our clients, conducting regular reviews and providing support to distributors that is required to optimise sales.

The full video of the presentation can be viewed here.