China Market Research

China Market Research

How To Make A Fortune In China Avocado Market

How To Make A Fortune In China Avocado Market

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

China avocado market is taking off.

The passion for avocados started from affluent Chinese consumers in 1st tier cities.

Chinese consumers call avocado as “Niu you Guo”, literally “butter fruit” for its taste. This fruit is thought to be nutritionally dense and good for health.

The Growth of the Avocado Market in China

How Did Avocados Become Popular Here?

Thirty years ago, it was impossible to find a single avocado in China.

Nowadays, you can easily find such cuisine or drinks with avocados everywhere.

Avocados show up in restaurants, liquor stores, or supermarket shelf, along with its high price.

We can see it in salads, milkshake, pasta dishes, and juices.

The Introduction

The initial introduction of avocados into Chinese market is in the year 2005 from Mexico.

The variety called ”Hass” is a total failure.

Most of Chinese people couldn’t accept its taste.

It is different from other tropical fruits like oranges, kiwi fruits, mango, etc.

Some Chinese customers even regarded the fruit as grenade at their first glance.

High price accounted for the main reason why people did not buy.

With the total tax taking up to 40% with tariff of 25% and VAT among 13% to 17%, avocados could only show up in high-end supermarkets.

People stay away from these USD23/kg avocados.

That’s why the fruit remained nameless for many years.

The Boom

The turning point came in 2014.

Chile is the country that the market success should be attributed to.

  • With up to four-year-time business negotiation,
  • continuous popularization on retailing market network,
  • setting up booths at various exhibitions
  • and organizing popular talks to promote the awareness and the nutrition of avocado,

Chile had exported 528 tonnes of “Hass” to China’s market within two-month-time, before it obtained the market entry license.

In the next following year, Peru opened up its market in China as well, enjoying zero tariff preferential treatment as Chile did.

And as Chile increased its production by 35%, the China avocado market became abundant hence the price became acceptable by the majority.

Mexico Avocado in a retail fruit store in Shanghai

Mexico Avocado in a retail fruit store in Shanghai

Where Do Chinese Import Avocados From?

Nowadays, China generally imports most of its Avocados from

  • Mexico, 
  • New Zealand, 
  • Australia, 
  • Chile 
  • and Peru, 

with Mexico as its biggest supplier.

What Drives the Sales of Avocado?

This exotic fruit is now reputable in China, esp. in 1-2 tier China cities, thanks to its nutritive value, containing fats, proteins, vitamins, minerals and other elements.

Nowadays, family health care premiums exceeding income has become a biggest concern. More Chinese people are willing to purchase healthy food.

In addition, supermarkets and local importers make efforts to educate customers

  • how to maximize the benefits of avocado,
  • how to select the ripe ones,
  • and how to make various dishes with them.

People always share their photos online with different recipes.

Higher exposure rate makes web surfers familiar with the fruit.

China Avocado Market: Chances for Avocado Growers

Explosive growth in the China market

The demand for avocados is currently focused in developed countries.

Avocado consumption is on the rising trend, not only in the US and Europe.

Many avocado growers found China is a new market with great potential.

Statistics show that the import quantum of China was only 31.8 tonnes in 2011. In the year 2014, the number rose up to 4,700 tonnes. And the overall import volume rocketed to 1,4980 tonnes in 2016.

2014 is an important year. Avocado imports grew by 376% in 2014, and Chinese people’s consumption of avocados has soared 127-fold between 2010 and 2014. In the first quarter of 2015, Chinese companies imported 486% more avocados from Mexico than in the same period of 2014.

Similar as pecan market growth in China, the demand for avocados in China market will undoubtedly continue to increase.

China avocado distributors and retailers are optimistic about this unstoppable market growth.

The chances for overseas avocado growers are extremely large.

Local Avocado Production in China

The shortage could be foreseeable in the next 10 to 15 years if the Chinese market continues to grow.

The avocado is now also cultivated in China, mainly in the regions of Guangxi, Hainan, Yunnan, Guangdong, Guizhou, Fujian, Zhejiang (Wenzhou) and Sichuan (Panzhihua city) in China. However, China so far does not make a very large commercial production.

Local commercial production of avocado is still in its infancy and the planting area is very limited.

China avocado market will depend on imports for a predicted long time.

Challenges for Your China Market Entry

Right Marketing Strategy Rules

Whether China avocado market is a lasting success relies on the right marketing.

There are two major concerns for Chinese consumers.

  • Taste

As the flavor is neither sweet nor sour, avocados seemed less popular than other tropical fruits like mango or kiwifruits. But people start to prefer its taste as time passing by, since I always hear people say, avocados can be of any flavor depending on the mixture.

  • High Fat Content

An avocado contains 250 calories in average, which becomes a main reason for many people to reject it.

But actually it’s only a matter of knowledge obstruction, given the fact that the calories contained in avocados attribute so little to people’s weight.

Education is the key.

We’ve witnessed the success in big cities as Shanghai, Beijing, Guangzhou, where consumers are open to new things.

With the right China marketing strategy and Chinese Social Media Marketing, it’s likely to be successful in a wider market in the next few years.

Sell to the Right China Importers and Buyers

It is a big challenge to find long-term trustful buyers.

We all know that an ideal customers should be powerful enough to place big orders consistently.

We’ve been successful in matching decent buyers with reputable overseas buyers.

It is both big business for you and China buyers.

Effective communication is the key and face to face negotiations are necessary in most cases.

SinoStep China Business Development and China Sales Starter services are your perfect choices to start selling in China.

We help you visit China local buyers in person, check their facilities, verify their capabilities and help you sell more.

You can see my personal purchase tour in USA and Mexico for Pecan business.

Pecan Purchase Tour in USA and Mexico

Conclusion

The Chinese avocado market is booming and it offers real opportunities NOW to both China domestic importers, distributors, but also overseas avocado growers.

Selling to trustful China buyers is a big challenge, but a right market entry partner will make it easier.

Find Target Customers in China for Your Online Store

Find Target Customers in China for Your Online Store

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

They Are The Most Valued Chinese Consumers 

China Cross-border online shoppers are most valued pioneer consumers.

Compared to average online shoppers on domestic eCommerce websites in China, they are early adopters of new things and can afford to buy more from overseas.

Let’s picture them:

  • Elder
  • Higher income
  • Higher education
  • Mainly white-collar employees and business owners
  • More than half are parents
  • Most live in the 1st, and 2nd tier cities in the coastal area.
  • Lower frequency of purchase
  • Higher basket size

They are seed customers of cross-border eCommerce, they influence the market and lead the market.

The number of these people is still not huge, and has a full potential to increase.

 

Three Typical Types of Online Shoppers

We can tell three typical Chinese cross-border online shoppers as follows:

1. Trend-setter

They always know what is the fashion in the world.

Haitao brings all the possibilities for them.

Find Target Customers in China for Your Online Store: 1. Trend-Setter

Find Target Customers in China for Your Online Store: 1. Trend-Setter (picture: Leo’s tour in MET, New York, USA)

Leo, business owner of a trading company, has a wide knowledge of all the famous brands, and he has a really good taste.

Online shopping is definitely a hobby for him.

His loves Lanvin and St Lauren from France, Prada from Italy, and many small designer brands.

He is also a father, now he starts buying apparels, toys for his son too.

What do they buy?

  • Cosmetics and skin care products
  • Makeup products
  • Apparel
  • Shoes
  • Hats
  • Bags and Suitcases, accessories
  • Perfume

2. Mommies & Daddies

Trust western brands considering safety and quality.

Find Target Customers in China for Your Online Store: 2. Moms and Daddies

Find Target Customers in China for Your Online Store: 2. Mommies and Daddies (picture: Chao and his daughter: Emily)

Chao, yes, it is me, bought many things from overseas websites, and visits a lot of foreign ecommerce sites.

What do they often buy?

  • Mother and Baby
  • Health supplement products
  • Milk powder and food supplement
  • Food
  • Toys
  • Apparels

3. Explorers

Willing to try new things, esp. new digital products, and they are early adopters of new inventions.

Find Target Customers in China for Your Online Store: 3. Explorers

Find Target Customers in China for Your Online Store: 3. Explorers

Yaya, A freelance writer, runs a small business in Beijng.

Her hobby is to travel around the world. She visits Amazon Global the most, and her favorite brand is Aigle from France and Keen from USA.

What do they often buy?

  • Digital products
  • Outdoors Sports

 

Please Help Build My Profile in China

Please Help Build My Profile in China

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

Build my profile in China

In China, football is on it’s way up and many overseas independent contractors want to be a part of it.

Pedro, A previous professional football player in England come to me for a proper China market entry strategy and some advice.

Pedro wants to build his own profile and expand his personal business in the China market. Currently he is working for the Premier League by going to different football teams for professional development for players and coaches.

Chinese kids Playing football

Chinese kids Playing football

After checking his website and details of his services.

I listed some points to be included in his business plan:


1.) Find a partner to work together

Pick someone who will be a longterm partner, he should be capable and experienced in marketing strategy in China.
Only in this way, You can quickly solve your communication problems with potential partners and clients here in China.

It is not only about language but also about cultural and psychological.

2.) Prepare your profile for the Chinese market

You need to persuade your potential partners and clients to trust you.

List your case studies and testimonials, point out your selling points.


3.) Understand the market and Localize your service

China market is different, what the market needs? what can you do? why do they need you? where is you target market?
You need a good market research and understand what it happens here.

For an independent contractor, it is wise to find a suitable niche market to start.

 

4.) Increase your visibility

Build your personal brand here in China and you can establish direct communication channel easier with local potential clients.

Be wise to do this.

You can make full use of Chinese digital marketing platforms.

 

5.) Business development

Find potential clients and get in touch with them and start the conversation.
Your goal is to grow your business in China, and this is the key step to close deals.

Build and expand your own network.

For your business, phone calls and face to face meetings are more efficient, and find important contacts through referrals.

Video: China Cross Border Consultant Featured by Paypal

Paypal-Chengchao

Video: China Cross Border Consultant Featured by Paypal

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

As a China cross border consultant, I was invited by Paypal to shoot this video sharing my career life and experience of receiving overseas payments.

I started using Paypal in 2004 when I was building on my own web store then. It is quite early for Chinese merchants and it brought me initial foreign client.

Chao's interview video in Paypal China Merchants' Homepage

Chao’s interview video in Paypal China Merchants’ Homepage

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New IOS 10: What Do Chinese Consumers Care The Most

New IOS 10: What Do Chinese Consumers Care The Most

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

You heard the Chinese terms of “Didi”, “Dianping” from the lips of speakers in Apple’s WWDC 2016.

We can see a number of updates and new features aimed at China users.

IOS10

Very soon, Siri can support sending messages to wechat, Apple watch can recognize Chinese characters, Apple Maps can book rides on Didi, and you can get spam call alert.

Chinese developers are also very excited about the opening up services of Siri, iMessage and Maps.

Continue reading

All You Need to Know about China City Tiers

book-China City Tiers

All You Need to Know about China City Tiers

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

China city tier system is the first thing to understand before deciding your China market entry strategy.

You can follow my 7-Step Formula in Ultimate Guide to Finding Your Profitable Niche Market in China to uncover your profitable business opportunities in China.

From what cities to start your China business is a big concern in deciding your niche.

  • Case Study
  • Unbalanced China Market
  • China City Tiers Matter
  • Lacking Standardized Criteria
  • Typical Classification
    • 1st Tier
    • 2nd Tier
    • 3rd Tier
    • 4th and 5th Tier
  • Prioritize Your Target China Cities

 

People always came to me to consult where they should start.

And they often ask what China cities belong to tier 2, and what cities are under tier 3, and what are under tier 4.

I need to explain again and again and again since it is quite difficult to provide an absolutely accurate answer in a very short time.

But it’s quite interesting and it is important.

Let’s take a look at a real case first.

Case Study: Market Prioritization Analysis for a Global Medical Group

We have been helping quite a few overseas companies understand the China market with our China Market Research. Continue reading

How to Establish Your China Distribution Network Effectively

How to Establish Your China Distribution Network Effectively

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

Selling to the rapidly expanding market in China is a great opportunity for most global businesses.

While many business owners may be very excited by the market potential in China, it’s very difficult for them to start with the strategy and establish distribution channels in the Chinese market.

Sinostep had helped a variety of international companies develop and manage their China distribution networks in China with China market entry services. we have gained valuable experiences in the process for overseas business entering the Chinese market.

Products including but not limited to the following

  • Imported Food: Chocolate, Ham, Pecans, Olive Oils, etc.
  • Nuts: Pecans, Pistachios, Macadamias, Cashews, Walnuts, Pine nuts.
  • Wine: Red wine, Liquor, Whiskey, Beer, etc.
  • Frozen Products: Pork, Beef
  • Fashion: Women Apparels, Bags, etc.
  • Baby Products: Baby shoes, Infant formula milk powder, etc
  • Medical: Medical Equipments, etc.
How to Establish Your China Distribution Network Effectively: (Photo by Chao, City SuperMarket at IFC, Shanghai)

How to Establish Your China Distribution Network Effectively: (Photo by Chao, City SuperMarket at IFC, Shanghai)

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Failures of Global Companies in China: Ignorance of the Market Differences in China

Failures of Global Companies in China: Ignorance of the Market Differences in China

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

In the past decade, we can see so many overseas companies are coming into China with high hopes to develop a market but they failed to live up to their expectations.

It seems interesting, No one expected it to be this way especially for most American cutting-edge technology giants, Yahoo, Ebay, MySpace, Facebook, Twitter, Groupon, etc.

They came here armed with cash, intellectual property and an ability to manage complex networks and introverted workers, however, there is no one who has dominated its field in China, not even close to be the leader.

Even Google, by some measures is the world’s largest Internet market can not avoid the fate. Many experts thought Google would be the first to break the myth.

While each failure has been different, most blamed on the government blocking and censorship.

The truth is, the ignorance of the market differences in China leads to the failures of them.

And these did not only happen in the Internet industry, we can see other examples of failures on Bestbuy, Mattel, McDonald, etc. Continue reading

Booming Private Investment in China Healthcare Market

Booming Private Investment in China Healthcare Market

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

Current situation of China Healthcare Market

China Healthcare Market is still in an early stage, and Chinese people are expecting more diversified medical service supply.

Currently the healthcare contributes about 5% of the GDP in China, which is pretty low in the world.

  • Limited entry to the market
  • Unhealthy monitoring mechanism
  • Imbalanced medical resources lead to insufficient supply and waste of resources
PUMC, One of the top Chinese Public Hospital (Beijing, China)

PUMC, One of the top Chinese Public Hospital (Beijing, China)

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The Facts of Successful Branding in China

The Facts of Successful Branding in China

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Latest posts by Chao Cheng (see all)

Lately I was frequently asked about questions on how to establish a strong branding in the China market.

I’d like to share some ideas here and please raise your opinions.

 

Get a Good Chinese Brand Name

Before trying to get a branding success, it’s more easy to get a poor brand name if this issue does not get enough attention.

a typical error

  • Peugeot (Biao zhi) sounds enough like the Chinese slang for “prostitute” (biaozi) that in southern China, where the pronunciations are especially close, the brand has inspired dirty jokes.

Good Chinese Brand name needs insights to the Chinese culture and business expertise.

Continue reading

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