Presentation about the increasing use of milk or powder milk in China. Are there possibilities for Dutch Cheese brands?

1. DUTCH CHEESE
&
CHINA?

2. DUTCHMAN HENK TEROL IS THE OWNER OF MARKETING
AND COMMUNICATION
CONSULTANCY ADMARCOM.
WITH OVER FORTY YEARS OF EXPERIENCE IN MARKETING
AND DEVELOPMENT, HENK VISITED CHINA NUMEROUS
TIMES. ONE OF HIS PROJECTS WAS THE INTRODUCTION
OF GREEK GOURMET PRODUCTS IN THE RAPIDLY
MATURING CHINESE RETAIL MARKET.
WHILE TRAVELING THROUGH CHINA, HE WORKED EXTENSIVELY WITH
DISTRIBUTORS, RETAILERS AND OTHER STAKEHOLDERS. AND SOON HE WAS
ASKED TO BECOME MASTER OF CEREMONIES OF ONE OF HIS BUSINESS
PARTNERS. TODAY HENK IS YOUR MASTER OF CEREMONIES.

3. Content
• Why China? • Sustainable food
• Consumers • Say Cheese, Say China
• Internet • Retail in China
• Food & Beverages
• Marketing & Distribution
• Questions

4. WHY CHINA?

5. Why China?

6. Population Developments CHINA

7. Economic Grew CHINA

8. Chinese Economic Stats & Realities 1

9. Chinese Economic Stats & Realities 2

10. Chinese
Consumers

11. Consumer Trends China

12. Young Chinese consumers

13. INTERNET

14. Internet

15. Internet use

16. Online shopping

17. FOOD & BEVERAGES

18. Chinese are interest in European taste

19. What’s going on?

20. Developments in consumption

21. Trends

22. Consumer requests

23. New food concepts
Top issues of the Chinese (young) people?

24. XTC world innovation Trends Tree

25. Top categories worldwide

26. XTC outlook food trends 2011
• Ultra…. extremes
• New combinations
• Keep it simple…
• Natural & Risk free
• Transparency
• Explicit health benefits
• Appearance and control
• Sustainability
• Credibility
• New technology

27. Opportunities

28. What we can deliver

29. SUSTAINABLE FOOD
IN CHINA

30. China’s sustainable opportunities

31. Forecast 2013-2018

32. Is China ready for Cheese?

33. Summary
• Some presumptions
• Facts & Figures of dairy consumption
• How Chinese dairy brands are exploiting the cheese
market
• Market prospects: key drivers and development
• Why cheese is not popular in China?
• USPs of Dutch cheese and marketing mix
• Consumer developments & Retail strategy in China
• Insights in packaging and product concept

34. • Chinese won’t like/eat cheese
• They can’t stand the taste of it
• Some Chinese can’t digiest
milk, so they won’t eat cheese
either
• We have to wait 20 years to
sell Cheese to China (quoted
from a dutch cheese producer)

35. Thanks to the urbanization, growing middle class and
the China’s own dairy industry, the consumption of
milk, yoghurt and wine has been growing rapidly.
Why not cheese?

37. Imports of Powdered & Condensed Milk in China,
2005-2010

38. • Urbanization
• Growing middle-class
• The government stimulation
– Education campaigns: Dairy is healthy
– School milk plan
– Milk+Yogurt+Cheese plan
• Fast development of China’s own dairy industry

39. The status of the Chinese dairy market
Fresh milk, yoghurt and milk powder (especially baby formular) has become main
stream dairy products in China. Below are some advertisement to get an
impression how mainstream they are.
Targeted on the whole family
Emphasis on the quality and natural image
School milk plan: for a stronger generation
Chinese new year version: target on childeren
Sponsor of the Chinese Olympic team
But some Chinese can’t drink milk due to lactose intolerence.

41. • Chinese have little knowledge about Cheese,
same like wine.
• Most people mixed it up with cream and butter
• Cheese=FAT
• Most people have only “eaten” cheese in
McDonald’s and Pizzahut, so they don’t have any
idea about the taste of cheese
• The Cheese is not well positioned in the market

42. • Cheese and red wine combination (wine consumption is growing
fast in China, again thanks to the growing middle class and the
healthier appeal of red wine)
• 1 kilo cheese = 10 kilo milk= All the goodies of milk ( but not
enough milk in China) so imported Cheese has potential
• Healthy and beauty benefits
• Chinese likes to snack = Cheese is healthier alternative to other
snacks
• The quality of Dutch milk is well known (safe)
• 100% natural product imported from Holland with little food
additives

43. • The cheese consumption grows at 30% per year
• Cheese has higher margin than milk
• Chinese brands are eager to learn the art of cheese making
• China will follow the same trend in Japan, Korea and Taiwan to
consume more cheese after milk and yoghurt have become popular
• Yearly consumption: 11,000 tons. 90% are imported cheese sold to
the bakeries, restaurants and cafes.
• So Chinese brands have little competition from imported cheese
• Chinese have almost no exposure to authentic Cheese
• Dutch imported cheese can differentiate itself from its quality and taste

44. • Product (cheese) varieties
• Marketing campaigns
• Online marketing (consumer experience, blogs, (brand) heritage,
cooking recipes, education, etc.)
• Use of social media, user generated content
• French and UK imported brands already present
• Gouda cheese is produced and sold in China
• Imported cheese can be purchased online, small scale import?

48. • Smelly bean curd, smoked meats, preserved bean curd
• 56 ethnical groups, great diversity
• Herbal: healthy, wellbeing
• Dairy: strong, calcium
• Chinese don’t eat cheese, maybe it’s just a pre-occupied
idea? Have they tried the authentic cheese?
• Chinese are more adventurous than Dutch in terms of
food

51. • Claim: Chinese brands are developed for the chinese
taste
• Shanghai Bright all information, recipes about cheese
• Mengniu Blog: the same
• Yili has launched 3 types of imported cheese in its
premium range
• Mogolian dairy snacks
• All kinds of cheese can be purchased online
• Free lunch campaign using chinese twitter

52. According to an online survey out of over 435
respondents, consumers think the appearance,
packaging, taste, nutritional value and the price
are important factors to consider if they’re going
to purchase cheese. It’s worth to mention that
friends and family members can be influential
too. Finally, people prefer biological products
without additives which is not the case for
the current Chinese domestic brands, which
are reproduced cheese.

53. • General Public: Made from 100% Dutch milk, nutritional, vitamins
and minerals, fermented dairy product (easy digestion), it’s an art
to make cheese, associate with wine.
• For office ladies: healthy snack/lunch/Weight control
• For older ladies: high calcium, healthy breakfast for the family
• For children: high protein and calcium, grow taller and stronger
• For young children: one kilo cheese=10 kilo Dutch milk
• For young men: high protein, healthy snack on the go
• For successful, mature business man: red wine together with old
cheese.

54. • Product: simple and basic product
• Place: Beijing, Shanghai and other costal cities
– Hypermarkets, supermarkets, special supermarkets (City Shop)
• Price: 30-50% more expensive than Chinese brands, the
best quality = higher price
• Packaging: packed in small packages.
– Green and gold: pure and premium quality
– Green and black: for old cheese
– Gold and red: festival packages for Chinese New Year and National Day
• PR campaign: Story telling

55. • Vrouw Antje
• Give aways
• Cheese tasting
• Sponsorship
• Coupons in magazines
• Chinese festivals

56. DISTRIBUTION
CHANNELS

57. Who’s are the distribution channels build up?

60. Sims

61. Arla & Sims
Platform for Product Know-how and Market Insights

62. Developments food & beverages retail China
http://www.researchinchina.com/FreeReport/PdfFile/634000115899375000.pdf

63. Carrefour
http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR246.htm
http://www.express.be/business/nl/economy/carrefour-succesvol-china-dankzij-lokale-orientatie/83898.htm

64. City Shop

65. City Shop

66. AND WE?
WHERE ARE WE?
WHAT ARE WE GOING
TO DO?
WHERE IS OUR SPIRIT?

67. Asia, the future for growth

69. 同义词

70. CHINA
Thanks for your attention and I
wish that you can now make a
step forwards to reach your aims
HENK TEROL
Mobile: +31(0) 654 977 703
Voor meer China: http://www.slideshare.net/quita1954