asian & middle-east market opportunities · food hall, tops markets, tops superstore, superoom,...
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Asian & Middle-East market
opportunities
by Pierre Escodo, editor of EUROFRESH DISTRIBUTION magazine 2017 June 10 , Italy ©2017 www.eurofresh-distribution.com
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MARKET ACCESS, THE NEXT DOORS TO BE OPENED
by CSO market expert, Simona Rubbi
RAISING STANDARDS AND DRIVING NEW CUSTOMERS
IN THE UAE by ELITE AGRO VP sales, James Varghese
INDIAN MARKET REALITY AND OPPORTUNITIES
by Suri Agro Fresh Jt. Managing Director, Hitin Suri
ONLINE & OFFLINE, NEW RETAIL PHENOMENON IN CHINA
by HEMA SUPERMARKET (ALIBABA) head of procurement, Paul Sheh
ASIA & MIDDLE EAST MARKET OPPORTUNITIES
by EUROFRESH DISTRIBUTION editor, Pierre Escodo
PREMIUM PRODUCE, A RISING DEMAND IN THE GULF
by DANUBE SUPERMARKETS head of procurement, Ahmed Ali
CHINA RETAIL, PRIORITY AND GROWTH WITH IMPORTED BRANDS
by CR VANGUARD head of perishables procurement, Mike Li
OMNICHANNEL SOLUTIONS & HOW TO TAKE ADVANTAGE
OF THE KOLs by ARCTIC SOLUTIONS CEO Bjorn vd Veen
MARKETING STRATEGY FOR ONLINE & OFFLINE
IN CHINA by FRUTACLOUD CEO George Liu
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Asian & Middle-East markets
0. Global perspectives
2. Apple, grape and kiwi
demand in Asia
3. China
6. Malaysia
7. South Korea
1. Middle East
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8. Thailand
4. Japan
5. Singapore
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Asian & Middle East : fast
changing markets
1. Demand for fresh food continues
upstream
2. Continuous urbanization (to double
within 15 years, +250 millions)
3. Growing middle-class
4. Rising per Capita income (2017
forecasts : Middle-Eastern GDP:
+2,9%, South Asia : +7%)
5. Innovative business
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MIDDLE EAST
by Pierre Escodo, editor of EUROFRESH DISTRIBUTION magazine 2017, May 10th in Rimini
Which perspectives beyond 2020 ?
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Dubai building the future
1. Expo 2020, investing in long term
infrastructures.
2. Expecting 20 million tourists per year
3. A US$10 Billions F&V market in the
Gulf, 50% in the UAE
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Al Aweer, unique market to support global trade
MIDDLE EAST
€100,000 millions modernizing the market (coldstorage, infrastructure, cooled buildings)
5,500 licenced companies, a model for the region
Adopting food standards, global player
Greater transparency, inspiring on Australia and Holland
Proximity with the port, future electric trucs
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ASIAN REGION How to improve market access?
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Strong demand in Asia: +24%
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0
50000
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150000
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300000
Ton
s
Evolution of apples imports in South East Asia, 20015vs2016
2015
2016
APPLES
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Kiwi imports in Asia:
strong rise in every country (+30%) KIWI
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0
20000
40000
60000
80000
100000
120000
140000
China HK India Japan Korea Taipei Singapore Thailand
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European kiwi:
China and Taiwan the top-importers KIWI
In 2016, China imported €21.54 million, Taiwan €12.35 million, Hong Kong €3.6, India €2,3 million, Singapore €1,8 million and South Korea €1.3 million
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0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
EU kiwi : top-importing countries in Asia
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Kiwi imports in Asia:
Italy third supplier KIWI
72% from New Zealand, 15% from Chile and 8% from Italy.
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New Zealand Chile Italy Greece
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Grapes imports in Asia:
Nearly 500,000 tons to China and HK GRAPES
Total Asian imports: 911,045 tons (+12%).
Origins: Chile 31%, USA 18%, Peru 16% and Australia 14%
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0
50.000
100.000
150.000
200.000
250.000
300.000
China HK Japan Korea Thailand
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EU Stone fruit to Hong-Kong and India
STONE FRUIT
In 2016, HK imported €1,5 million, India € 704,364, Malaysia €435,613 and Singapore €397,915.
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200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
1.800.000
HONGKONG
INDIA MALAYSIA SINGAPORE
EU stone fruits: top-importing countries in Asia
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EU Berries to China and Taiwan
BERRIES
In 2016, China imported €22.83 million, Taiwan €12.35 million, Hong Kong €4.38 million, Singapore €3.17 million, Malaysia € 1.8, South Korea €1.34 million and Indonesia €1.19 million.
©2017 www.eurofresh-distribution.com
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
CHINA HONGKONG
SINGAPORE TAIWAN
EU berries : top-importer in South East Asia
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China: the most powerful market
CHINA
1,4 billion people in 2016
“In 2016, China surpassed the US to become the world’s largest retail market with total sales of $4.886 trillion, compared with $4.823 trillion in the US” Source: eMarketer’s retail forecast
42% Fresh produce in food expenses : 14% of capita consumption in fresh fruits and 28% of capita consumption in fresh vegetables.
©2015 www.eurofresh-distribution.com
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E-commerce Grocery food sales >50% experience
(vs <10% in the US and the EU)
Fresh food sales 40% consumers experienced fresh food online
High potential Low Internet penetration rate in China (52%)
Many promotional campaigns
& services offered: delivery, payment facility, credit, …
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Chinese retail : international vs national
CHINA
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International Share Others
1. Wal-Mart 6,4% Carrefour
2. China Resources Vanguard
NC RT-Mart
3. Yonghui 3.6% Lianhua
4. Sun-Art Group
0.3% Haihang
Bubugao
Wumart
AEON China
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Chinese retail : concentrated and online
CHINA
Types Number of
outlets
Hypermarket 9,481
Supermarket 33,202
Department store 4,689
Convenience store 16,832
Warehouse club 108
Specialty store 108,809
Discount store 577
Specialized fruit stores (as Pagoda, Zianfeng) are competing with the Online fruit platforms (fruitday.com, Yiguo.com, JD.com, …)
Biggest retailers are in the top 4 mega cities : Shenzhen, Guangzhou, Shanghai, Beijing.
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2nd China fruit chain
Hangzhou Qunfeng Since 2004
1100 stores, annual turnover US $300 million.
O2O model (online to offline), highly professional fruit brand operators.
5 major brands : Fruit Wharf for wholesale and distributors, XianFeng Fruit Co. and Mr. K Fruit for end consumers, Yang Guopu for dried fruit, Fruit Terminals for fresh cut fruit.
©2015 www.eurofresh-distribution.com
CHINA
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2017: FRESH FRUIT IMPORTS REMAIN STABLE
JAPAN
Fresh fruits imports in Japan reached 81,756,905 ¥ in January 2017
Banana : +30-40% in total imports since 2012
Banana : 60% of total fresh fruits imports
0
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April 2016 July 2016 sept-16 nov-16 January 2017
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Highly concentrated Retail sector
JAPAN
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Retailers
Food sales
% sales
with food
AEON $1,07 billion 49%
ITO-YOKADO $601,672 million
UNY $501,236 million
66%
LIFE $518,178 million
66%
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Bio C’Bon new organic stores by AEON
JAPAN
June 2016: AEON launched BIO C’BON organic food chain in Tokyo, in partnership with France’s Marne & Finance Europe (CARREFOUR group)
« AEON aims to see organic foods become a popular part of daily meals – instead of being ‘special’ line – by priority to customer satisfaction and sustainable business growth.”
©2015 www.eurofresh-distribution.com
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MATURE RETAIL SECTOR
$1,3 Billion retail sales of Singapore retail in 2015
$2,3 Billion proyected Retail sales by 2025
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Retailers Nb outlets
Share %
NTUC Fare Price 100 33%
Dairy Farm Int Holdings
123 10%
Sheng Siang Supermarkets
38 9,3%
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Retail: a recent start in high-value segment
MALAYSIA
Just started, most chains in high-value segment, mainly Deli Shops and Food Halls.
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Retailers Number of outlet
Village Grocer 8
Jaya Grocer 20
Big Group RHD 34
MBG Shop
Isetan Japan
GCH Retail Dairy Farm
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Apple as a top imported fruit
South African apples represent more than half of imported volume.
Top categories : Gala and Granny
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Imported apples in Malaysia by origin, 2016
South Africa China USA NZ France
MALAYSIA
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Distribution : One of the most developed in South East Asia
SOUTH KOREA
2018 : total retail sales reached $529,91 billion. (+6,13%)
E-commerce on the rise : e-retail sales accounted for 11.2% of all retail sales in South Korea, this figure is expected to reach 14.7% in 2019.
Fresh fruits imports reached 863,660 tons in 2016 (615,680 tons in 2015)
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Retailers Turnover
E-Mart Forecast 2017 $1,2 billion
Central Food Retail Co.
Lotte
Eland
Costco Wholesale
KACM
Mega Mart
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Apples & pears on the rise
Total fruit consumption in 66,5 kg/year (+8%)
Strong evolution of pear (+77%) and apple (+19%) consumption over the last 3 years.
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0
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20
30
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50
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Total Apple Pears Grapes
2013 2014 2015
SOUTH KOREA
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Distribution : One of the most developed in South East Asia
THAILAND
Thailand retail includes both wholesale, retail & R&C.
Big C : 150 hypermarkets, 160 supermarkets, 400 shops
Central Food Retail Co. is a distribution holding with 6 under-brands : Central Food Hall, Tops Markets, Tops Superstore, Superoom, Tops Daily, Eathai.
Still high import duties +10%
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Retailers Nb of outlet
Makro Cash & Carry
Central Food Retail Co. 6 chains
Tesco 400
The Mall
Villa Market ( High value) 33
Big C 710
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Grapes nº1 imported fruit
SINGAPORE
$525 million imported fruit in 2016.
Top imported fruits : Grapes, oranges, strawberries and apples.
US China Malaysia Australia
$431 Million Vegetables imports
Malaysia China Australia Thailand US
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Thank You!
Pierre Escodo, editor [email protected] www.eurofresh-distribution.com mobile +34.661.324.134
@EUROFRESHD