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Market report in China

Author Archives: Cherry Wang

daxue consulting rapid growth

26 Friday May 2017

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In 2016, daxue consulting reached a team size of more than 30 consultants and its offices host up to 50 people in Beijing and Shanghai. The consulting team delivered more than 300 projects over the last 5 years and growth is three-digit every year since inception. The revenues of daxue reached the range of 1-5 million USD in the world including its French and HK offices. With the new segments created, daxue consulting aims at exceeding the 5-million USD. turnover and reach the range of 10-20 million USD within the next 5 years.

Daxue Consulting: skills building with more project leaders in China

27 Monday Feb 2017

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When you are ready to engage in the Chinese market for the expansion of your business or even for creation, it is important to know that there are different options to understand, as well as various items to consider. Elements and options that you will most need for decision-making. If Daxue Consulting is not in the best position to make the right choice, then you can have all the data and information you need about the nature of your project.

Project Leaders in China: Team of experts to ensure the best treatment of your projects

Daxue Consulting proves to be your best partner for your entry and development in the Chinese market. Since 2009 to date, the company has already completed nearly 100 projects whose clients have been amply satisfied with the results. The strength and high quality of service provided by Daxue Consulting are based on the composition of its teams, each of which is composed of a senior project manager, two project managers and a few field assistants who will be chosen according to The nature and scope of your project. Teams made up of experts in foreign project management, each profile of which is selected according to specialization and also by sector of the industry. To satisfy as many clients as possible, the company recruited more project managers to complete their teams in each of the offices in Shanghai, Beijing, and Beijing. At Daxue Consulting, project managers estimate the average processing time for a project within 4 to 6 months, a time that may seem long enough for clients, but which is nevertheless necessary to ensure proper collection Data and analysis to better understand each project and provide excellent results. Also, project managers consistently receive refresher training to ensure their high level of competence. The methodologies applied by the company have already proved themselves and have already convinced a hundred clients who have already entrusted their project to Daxue Consulting.

Project Leaders in China: A rising market and more liberalization in China

The Chinese market is on the rise again, a finding made particularly in the level of the stock exchanges for the last months of 2016. An increase that should not know the limit for a period of time of time according to the experts. Concrete examples of this rise are the upturns in the real estate sector, a booming industry currently in China and which has even led to inflation in the prices of materials in the retail market. There is also the automotive industry, of which a 20% increase in the sale of cars for private individuals was observed for the last year. Growth in the car market which is forecast for a minimum of 13% this year. This is proof that the Chinese market is booming. Details of the data and the different elements influencing the market for each sector can be given to you by Daxue Conseils after the data collection and analysis has been carried out according to your project and nature. The film industry also represents a significant market share in China, the second largest market in the world after the United States. The latest news in the country also announced the liberalization of some areas of the market, such as finance, and in particular for bankers, insurers, stock exchanges and rating agencies among others. The education, Internet, unconventional oil and gas and telecom sectors will also undergo major reforms to encourage foreign investors to commit themselves.

French Regional Food Products in China

30 Monday Jan 2017

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French regional food in China is Booming

Household consumption is picking up in France, but some food producers are not satisfied with it. They are therefore looking for new outlets in more promising markets. This is especially the case of French producers and suppliers of regional food (or product du terroir in French). This category of products has neither proper definition nor official label, but it represents the food specificities from each region of France. With an emerging middle class of more than 110 million of potential consumers at the end of 2015, China is a dream for many entrepreneurs. It has even become one of the favorite destination for French regional food exports.

Champagne, wine and foie gras, the three local products the most appreciated in China

Indeed, numerous producers are exporting French food and beverage like wine, champagne, raw meat delicatessen, sweet grocery products and milk products to China. But some category of products is more successful than others. For instance, the two French producers of wine and spirits, LVMH and Pernod Ricard, were able to grasp around 70% of the champagne market share in 2013. Even though sales of champagne lowered with the anti-corruption campaign launched at the end of 2012 by the Chinese government, their annual average growth rate could still reach 22.7% for the period 2014 – 2019, a study from the specialized website Mon Viti reports. Moreover, champagne is benefiting from a 2013 governmental policy that exclusively recognizes the title of “champagne” to the sparkling wines produced in the French Champagne region. This system helped to clearly differentiate Chinese wines from “authentic” champagne and therefore strengthen the latter.

Just beside champagne bottles on stores’ shelves, Chinese consumers can also find a great variety of French wine, which is becoming a more and more popular drink.  Since 2014, China is France’s third customer for this product: according to Business France, 95% of French wine exported (in value) to China is red wine, and 71% bears the label “Appellation d’Origine Protégée” (AOP) which protects the origin of the products. In China, a bottle of imported wine out of two comes from France. More precisely, wines from Bordeaux, Languedoc-Roussillon, Bourgogne and Côtes-du-Rhône can be found. But if French wine exports are doing well, brands are facing an enhanced competition from local producers and especially those coming from the wine-growing holding region of Ningxia (宁夏) in the North of China.

Going hand in hand with wine, French raw meat delicatessen is also trying to break into the Chinese market. For the company Delpeyrat which obtained in March 2015 an export approval for its dry-cured ham, China represents a significant outlet. The producer implanted in the South West Périgord region hopes to sell some 50,000 pieces in the year. In the category of products made from meat, the duck meat dish foie gras surpassed raw meat delicatessen in conquering the Chinese market. The enthusiasm of consumers for this product is such that in 2014, the cooperative Euralis launched the construction of a plant covering the whole chain of production of foie gras, with a capacity of 500,000 ducks to be grown in 2017 and twice that amount in 2020, explains its CEO to the newspaper Les Echos. But here again, the competition of Chinese products is broadly established: the group Jilin Zhenfang alone gathers half of the market shares by selling its production to private households, while French producers mainly target restaurants.

Numerous administrative and cultural obstacles remain, preventing a massive arrival of regional products in China

Accessing the Chinese market and its consumers are not easy for French regional food. Beyond the success of some star products quoted before, there exist many obstacles, among which the regulation of food product imports in China. For instance, some products which contain pork must obtain an export approval that can be very long to receive. This was the case for dry sausage exports until the producer Salaisons et conserves du Rouergue (SACOR) obtained the approval just a year ago. The familial enterprise based in the South East Aveyron region is the first French company to be allowed to export sausages in China.

To face administrative difficulties and provide advice in such complicated situation, different structures were created, that gather small producers. Since 2012, theMaisons Sud Ouest France (MSO, or in English, “South West France Houses”) sell products that are certified by a French label for quality in brick and mortar stores in China. Chen Di Partners has the same objective. In 2013, the company launched the challenge “Best of Origin” for the regions Midi-Pyrénées and Aquitaine, with the goal of commercializing products from three hundred French middle and small enterprises in China within two years. To complete the offer of MSO and to better promote local French food on the Chinese territory, Chen Di Partners associated with the Chinese e-commerce group Beexi and created an online dedicated shop, beexibox.com. However, despite the efforts of the MSO “90% of South West French products are not exportable”, deplores the MSO coordinator Magali Bladier in an interview to La Chine au présent.

Finally, the last obstacle adds up to these regulation problems: the taste. A significant part of French regional food is unknown from Chinese consumers and learning to appreciate these products will take them time. For French producers willing to export, this requires a great marketing effort. “Integrated exportation” is one of the solutions that has been adopted by foie gras makers and which consists in associating French products with typical Chinese recipes.

Taobao and Flash Sales

24 Monday Oct 2016

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Who Does not want to buy easily and directly online? Indeed, became very popular in the business world, the buying service Tabao is very convenient for consumers to get a major promotion on items sold. What to know about the process? What products are on sale and how it works? This article delivers you all you need to know about flash sales in China.

Tabao and Flash Sales in China, the concept and procedure of purchase

Tabao is a platform that was created to facilitate flash sales in China to millions of buyers and sellers. Indeed, this system favors somehow the liquidation of goods and services directly between individuals. Acting as an intermediary, Tabao is the ideal medium of exchange between individuals. In addition, it offers the opportunity for individuals to open an online store on its website as long as they still meet certain formalities. It was founded in 2003 by Alibaba.com, which is the largest Chinese online sales site for businesses worldwide. This platform continues to increase day by day with a boom on the web market. So if flash sales in China interested in, nothing more simple to use than Tabao. Simply create an account, choose a product and then move to the purchase. The site is in Chinese, but certainly there is a possibility to translate into French or other languages if you do not understand Mandarin. Your French Visa / MasterCard works very well to buy the product you have chosen. Your address, name, nationality and will be useful to verify your identity. The more you spend time on the site, the more you will understand the steps that are easy to digest.

What kind of products and activities on Tabao?

Tabao is the largest flash sales site in China that we offer a multitude of products you will not find anywhere else. All sorts of things are sold at bargain prices in all other merchant locations. service agents will take care of delivering your packages china to your home. So you will have nothing to worry about the safety of your business. Chinese accessories, Asian directly from China factory are offered on Tabao. On this platform, you can find anything and you will discover undoubtedly the most cared for handmade products. So if you are short of gift ideas, please feel free to poke around and make a purchase on various creative and unique accessories. You will surely find something to offer as a keepsake your loved to surprise. You will be spoiled for choice on clothes, shoes and bags of all kinds without talking of the most advanced computer gadgets. Cosmetic products are also appointments visit the site and you identify a seller or a quality shop knowing look that suits you. And to avoid scams and check the quality of a good seller, you trust the reviews before buyers. However, take the time to look yourself comments and translate. This will help you compare the number of positive and negative reviews to get an idea. For more tranquility, it is also possible to interact directly with the seller and ask about the details of the items you wish to purchase.

See also digital strategy in China.

The jewelry market in China adapts its business strategy

01 Thursday Sep 2016

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Tags

fashion brands in china, fashion in china, Jewerly in china, shopping in china

The fashion jewelry market is one of the representations of the fashion industry. It used to be the nobleness, eternity and status symbol of the owners. Today, jewelry is still perceived as a symbol of wealth and status. Here are the new trends of the fashion jewelry market in China.

Jewelry market in China overview: from global to China

The worldwide jewelry industry seems poised for a glittering future. According to Euromonitor, the jewelry market is the best-performed market among the overall accessory industry in 2016, which the transaction volume is predicted to realize $316 billion. Another survey from Daxue Consulting , china consulting, reported that annual global sales of €148 billion in 2014 are expected to grow at a healthy clip of 5 to 6 percent each year, totaling €250 billion by 2020. However, consumer appetite for jewelry, which was dampened by the global recession, now appears more voracious than ever.

The jewelry market in China seems not affected by the global industry recession. The industry takes up approximately 30% shares of the global market and maintained a stable development in the past years. The Chinese jewelry industry has undergone a sustainable growth since 2011. The overall sales volume of the industry was 520 billion yuan in 2015, which was 3.85% increase compare to the previous year. Whereby gold, including platinum, and diamond submarkets increased by 68.81% and 11% respectively, while jade subsector suffered 20% decline in 2015. In fact, these achievements are not the true reflection of the Chinese jewelry market.

Jewelry market in China: Future trends

Since consequential changes are under way, both in consumer behavior as well as in the industry itself, jewelry players must be alert and responsive to important trends and developments or else risk being left behind by more agile competitors.

Adapt your business strategy to Chinese customer preference transformation

Apart from traditional jewelry consumption share for a wedding of about 80% overall sales, the recent major jewelry lovers are people whose age is less than 25, which became an important part for jewelry companies to target. However, because young people’s tastes are changing, jewelry companies should pay more attention to study and make a correct business strategy.

One of the characteristics of these people is that they label themselves as fashion followers in China. Thus, jewelry designers are searching for innovation in styles and features to meet the preference of customers and adapt their business strategy in China. For example, the latest “dark mental” concept is becoming popular in design. The combination of this concept with other factors, such as punk and tribal style, is the mainstream of the current fashion jewelry market. In addition, celebrity effect is another feature that attracts young customers. For instance, Scarlett Johansson, one of the top Hollywood actresses, used to adorn a necklace from Bazaar “Over Size” series in the Oscar award ceremony. Quickly, this jewelry brand in china became the hottest fashion symbol in this market. It is a great example of relevant business strategy led by China-based strategy advisory firm. Since young people have limited financial capacity, the polarization situation is obvious in the current market. That is luxury jewelry is still dominant while the consumption volume of low-end brands, lower than 5,000 yuan, is rapidly increasing.

Strategy for jewelry market in China: E-commerce business pattern

With the development of e-commerce, the jewelry market in China is also on the stage of transformation from offline to online strategy in China. Unique styles from independent designers or sellers are preferred by customers. Thus, C2C channels through WeChat or other new media are widespread. Viewing this good business opportunity, e-commerce platform including T-mall and JD.com developed online jewelry transaction module and the well-established transaction system successfully attract a large number of customers. Furthermore, in order to satisfy customers’ integrate shopping experience, some of the brands, such as Chow Tai Fook and CHJ, transformed into O2O business pattern. Whereby, KELA diamond is the leader of this new trial, which has opened many experience physical stores in different cities. Although the current transformation of the industry is successful currently, since competition in brands is becoming severe, the overall market may require a shuffle in the future.

To conclude, the jewelry market in China entered a stable development stage. Besides, the fast-changed tastes of customers require jewelry companies to improve their quality, design and brand images to satisfy the demands. The success of its business strategy will require strong local advisory and access to networks in Beijing and Shanghai.

Written by our partners of DaxueDoxa advisory China

Air Pollution in China: Market Report

06 Wednesday Jul 2016

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Air purifier in 2013: 151 brandsAir purifier in 2014: 556 brands

September 15, 2015: new national standard for air purifier “GB / T 18801-2015” was announced

March 1, 2016: new national standard for air purifier “GB / T 18801-2015” formally began to implement

Clean Air Delivery Rate (CADR)

The new national standard definitions:

CADR refers to the amount of clean air, the total output of clean air after the purification filter (m³ / h), containingparticulatematterCADRandformaldehydeCADR.

The new national standard analysis:

1-hour production of the volume of clean air, this is the main measure of the purification efficiency of the air purifier.

Particular matter CADR 500m³ / h: using the air purifier for one hour for purifying particular matter, it can purify 500m³ofparticularmatter

Formaldehyde CADR of 200m³ / h: using the air purifier for one hour for purifying formaldehyde, it can purify 500m³offormaldehyde

Cumulate Clean Mass (CCM)

 The new national standard definitions:

When CADR value declines to 50%, the cumulative total purified pollutants (particulate matter or formaldehyde) are counted in mg.

Particulate matter CCM is denoted by P and is divided into four levels, P1, P2, P3, and P4, from low to high respectively. These correspond to the total weight of the purified particles: 3000-5000mg, 5000-8000mg, 8000-12000mg, 12000mg and more, and the most advanced being P4.

Formaldehyde CCM is denoted by F and is divided into four levels, F1, F2, F3, and F4, from low to high respectively.  These correspond to the total weight of formaldehyde purification: 300-600mg, 600-1000mg, 1000-1500mg, 1500mg and more, and the most advanced being F4.

The new national standard analysis:

CCM represents the purification capacity of pollutants. Air purifier with only high efficiency in CADR level does not mean it is efficient, both CADR and CCM level need to be high in order to prove that the air purifier has fast and efficient purification system with a strong purification outcome and a longer life filter.

Noise

The new national standard definitions:

The sound level of the air purifier produces when its CADR reaches the maximum value.

The new national standard:

When CADR≤150m³ / h, thenoisethatthemachineproducesshouldbe≤55

When 50<CADR≤300m³/h, thenoisethatthemachineproducesshouldbe≤61

When CADR 300m³ / h, thenoisethatthemachineproducesshouldbe≤66

When CADR>450m³ / h, thenoisethatthemachineproducesshouldbe≤70

The new national standard analysis:

When the CADR value gets higher, the fan inside the machine must increase its speed, hence, the noise will follow this increase too. Therefore, a truly effective air purifier requires strong capacity, with efficiency in the purification process, and the noise level needs to be as low as possible.

Purifying energy efficiency

The new national standard definitions:

Purification energy-efficiency definitions: CADR air volume and the power rate ratio divides into two parts: particle removal efficiency and energy formaldehyde removal efficiency.

Particle removal energy efficiency:

When the value reaches 2, it is at qualified level

When the value reaches 5, it is at efficient level

For formaldehyde purification energy efficiency:

When the ratio reached 0.5, it is at qualified level

When the ratio reached 1, it is at efficient level

The new national standard analysis:

An air purifier needs to be effective and energy saving at the same time.

A high-quality air purifier with high CADR value should also have high CCM value, high purification energy efficiency, and low noise level. (Three-High-One-Low)

See also:

  • Market report in Indonesia
  • Market report in China
  • Perfume market in China

THE MOST AMAZING PLACES IN SHANGHAI

21 Tuesday Jun 2016

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Many tourists come every year to visit Shanghai because it is a unique city with 2 sides: the economical one and the traditional one.In this city full of surprises ,some places have become essential. I will show you the most amazing ones in the article.

  • The Old Town: In this area, there are magnificent side streets transformed into commercial areas for many tourists, and other narrow and fragrant alleys where people live in a rathers part comfort. At the heart of the old city, there is one of the most beautiful gardens in China , the Yu Garden.
  • Market Lu Jia bang tissues: You will be able to do almost all clothing and linens like curtains at a great price and measure! Shape with the colors through the size of pockets ,you ‘ll be able to give life to your most illusory clothes. Moreover , I advise you to print photos of clothes and linens that will envy you . This will allow you to directly show the model that you want to create , and there will be less likely to get a totally shifted result.
  • The Bund with bars : This is a very wide promenade situated along the river with stunning views of the towers of Pudong. The Bund is one of the most recognizable architectural symbols of Shanghai. The Shanghai Bund symbolizes the pride of the city. Every morning , people gather on the boulevard to exercise and each night , lovers come to walk and enjoy the beautiful view . The Bund displays showcase encouraging developments for Shanghai.
  • FakeMarket: Imagine a place where you can buy Swatch products, Van’s , Abercrombie , and other brands known in the West at prices up to 90 % cheaper than in France . This place , or rather those places ,are part of the  fake market in Shanghai ! Hereyoucanbuyalmosteverythingyouwant to mind-blowing price !
  • Oriental Pearl: An imposing tower located in the new Pudong area , the television Tower The Oriental Pearl will be the symbolic monument of Shanghai. The towering 468 meters high , is the tallest TV tower in Asia and the third in the world after the Tour of Toronto 553.33 meters high in Canada and the TV Tower in Moscow 533 meters high , Russia. The tower consists of 15 spheres of different sizes at different levels creating an artistic conception ,giving the illusion that ” large and small pearls flow on a jade plate .” It has become a symbolic architecture and a wonderful place for tourists to Shanghai.
  • Jing a temple : Jing’an Temple is one of the Most famous temples in Shanghai situated in the West Nanjing Road, the flourishing downtown area of Shanghai. In 1983, it was put on the list of national key protection. Tourists love this temple because it is a traditional element placed in a very modern area.

Perfume Imitation in China online retails

25 Wednesday May 2016

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Counterfeiters in China

Counterfeiters in China take the advantage of online retails’s boom. Luxury brands such as Chanel, Rabanne Paco, and Lauren Ralph are the main brand of perfume counterfeiting. The number of Chinese counterfeit products accounted for 70% of the global market. Counterfeit products mainly come from some developing country with a strong manufacturing base and low-income levels.

Counterfeit perfume products are sold in a variety of forms, from the finished product to the empty bottles, labels, and packaging and other homemade perfumes materials. Website of electronic business in China, including Gumtree, Alibaba, and eBay all may sell fake products.

Daxue Conseil - Le marché du cosmétique en Chine

Market Research

Recent research made by Daxue Consulting finds that the total sales of high-end beauty products in the United State are $16 billion, of which the perfume accounted for 1/3. In 2014, counterfeit perfume makes companies perfume sales decreased by $1 billion. If companies took the right measures, it is possible to avoid such online sales fraud. In order to achieve this goal, the first step is to establish an online brand protection strategy as soon as possible and continue to dig and clean up fakes. The electronic business website needs to pay more attention to corporate ethics and establish related counterfeiting mechanism, in order to intensify the crackdown on the website and business.

Contact our consultant to know more about the different market in China 

Avocado Market in China: A growing trend

18 Wednesday May 2016

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The growth of the export in China

With Climate and soil conditions along the Peruvian coast positively contribute to the growth of the avocado. The Hass variety of avocado is very well known and very popular, representing nearly 80 percent of all avocados consumed worldwide, due to the fact that it is slightly nutty, creamy flavor, and also its long lifetime.

The Hass avocado contains 11 of the 13 known vitamins, not only helps to fight against a range of diseases but also contains nearly twice the amount of cholesterol-lowering monounsaturated fats than salmon.

The recent signing of an agreement with the Chinese government will allow access for Peruvian Hass avocado Hass avocado in the Chinese market, resulting in the short term, additional exports of about 10,000 to 15,000 tons annually.

In 2014, exports of Mexican avocados to China were estimated at $ 8.35 million. representing an increase of nearly 351 percent. Thanks to the higher income available for food purchases and changes in eating habits, demand is increasingly high. The avocado also experienced a big hit with nutritionists because of its high content of unsaturated fatty acids and vitamin E, which many interested young generation aware of health.

Also in 2015, avocado Imports have grown substantially. From January to March, Mexico exported 2,600 tons firm in China with a value of $ 5.5 million. This represents an increase of 486 percent in 2014 over the same period.

Increase of the consumption

Although the avocado consumption is increasing, people in China who are willing to try avocado, consumers are generally concentrated in the capital and in the southern part of the country. The biggest markets today are avocados Shanghai and Guangzhou.

It is the reason why, last year the Chinese Lantao fruit distributor has partnered with Mission Produce, for introducing Mexican avocados in the second-tier cities. Companies target several provincial capitals such as Henan Zhengzhou, Harbin, and Shenyang in Liaoning, Heilongjiang Province. The major challenge for retailers is to present avocado in the supermarkets. Mexican producers as they try to increase consumption of counsel by promoting health benefits.

Avocado Market in China

With Climate and soil conditions along the Peruvian coast positively contribute to the growth of the avocado. The Hass variety of avocado is very well known and very popular, representing nearly 80 percent of all avocados consumed worldwide, due to the fact that it is slightly nutty, creamy flavor, and also its long lifetime.

The Hass avocado contains 11 of the 13 known vitamins, not only helps to fight against a range of diseases but also contains nearly twice the amount of cholesterol-lowering monounsaturated fats than salmon. The recent signing of an agreement with the Chinese government will allow access for Peruvian Hass avocado Hass avocado in the Chinese market, resulting in the short term, additional exports of about 10,000 to 15,000 tons annually.

Imports & Exports

In 2014, exports of Mexican avocados to China were estimated at $ 8.35 million. representing an increase of nearly 351 percent. Thanks to the higher income available for food purchases and changes in eating habits, demand is increasingly high. The avocado also experienced a big hit with nutritionists because of its high content of unsaturated fatty acids and vitamin E, which many interested young generation aware of health.

Also in 2015, avocado Imports have grown substantially. From January to March, Mexico exported 2,600 tons firm in China with a value of $ 5.5 million. This represents an increase of 486 percent in 2014 over the same period. Although the avocado consumption is increasing, people in China who are willing to try avocado, consumers are generally concentrated in the capital and in the southern part of the country. The biggest markets today are avocados Shanghai and Guangzhou.

It is the reason why, last year the Chinese Lantao fruit distributor has partnered with Mission Produce, for introducing Mexican avocados in the second-tier cities. Companies target several provincial capitals such as Henan Zhengzhou, Harbin, and Shenyang in Liaoning, Heilongjiang Province.

The major challenge for retailers is to present avocado in the supermarkets. Mexican producers as they try to increase consumption of counsel by promoting health benefits.

See also:

  • The rising demand of Avocado in China 

 

Demand of #avocado should increase along with the development of its production in China. https://t.co/35aCJZn0rM pic.twitter.com/dai94xtC1C

— Daxue Consulting (@DaxueConsulting) April 15, 2016

 

The demand for the avocado in china

11 Wednesday May 2016

Posted by Cherry Wang in Uncategorized

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Demand for the avocado in China is significantly lower, due to the growing trend as a food popular among the middle class is now an important product in China’s supermarkets. However, in early 2000, avocados were just sold in major cities, such as Guangzhou, Beijing, and Shanghai, where there was a large number of foreigners. And only a small selection of large hotels with expatriates cooks associate counsel their menu.

China started to import the avocados in 2013, this time, the sale of avocados in China were specially designed to trade in the hotels. With the urbanization and rising living standards of Chinese, Western food has become more popular in China, and the avocado ended up on the shopping lists of half the country’s middle class.

Avocado Market in China

Mexico and Chile are the main importers of avocados. But with the increase in demand, many exporters are called to take part in China market. Indeed, countries like New Zealand and Peru also expressed a desire to sell their excess production in China. Despite, Mexico remains the largest supplier firms with nearly 58 percent of total world production, and its exports to China rose to three digits in recent years.

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