Asian & Middle-East market opportunities · Food Hall, Tops Markets, Tops Superstore, Superoom,...

Asian & Middle-East market

opportunities

by Pierre Escodo, editor of EUROFRESH DISTRIBUTION magazine 2017 June 10 , Italy ©2017 www.eurofresh-distribution.com

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

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

©2017 www.eurofresh-distribution.com

8. Thailand

4. Japan

5. Singapore

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


MIDDLE EAST

by Pierre Escodo, editor of EUROFRESH DISTRIBUTION magazine 2017, May 10th in Rimini

Which perspectives beyond 2020 ?


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


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


ASIAN REGION How to improve market access?


Strong demand in Asia: +24%


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Evolution of apples imports in South East Asia, 20015vs2016

2015

2016

APPLES

Kiwi imports in Asia:

strong rise in every country (+30%) KIWI


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China HK India Japan Korea Taipei Singapore Thailand

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


0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

EU kiwi : top-importing countries in Asia

Kiwi imports in Asia:

Italy third supplier KIWI

72% from New Zealand, 15% from Chile and 8% from Italy.


New Zealand Chile Italy Greece

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%


0

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100.000

150.000

200.000

250.000

300.000

China HK Japan Korea Thailand

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.


0

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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

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.


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CHINA HONGKONG

SINGAPORE TAIWAN

EU berries : top-importer in South East Asia

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.



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, …

Chinese retail : international vs national

CHINA


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

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.

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.


CHINA

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

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April 2016 July 2016 sept-16 nov-16 January 2017

Highly concentrated Retail sector

JAPAN


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%

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.”


MATURE RETAIL SECTOR

$1,3 Billion retail sales of Singapore retail in 2015

$2,3 Billion proyected Retail sales by 2025


Retailers Nb outlets

Share %

NTUC Fare Price 100 33%

Dairy Farm Int Holdings

123 10%

Sheng Siang Supermarkets

38 9,3%

Retail: a recent start in high-value segment

MALAYSIA

Just started, most chains in high-value segment, mainly Deli Shops and Food Halls.


Retailers Number of outlet

Village Grocer 8

Jaya Grocer 20

Big Group RHD 34

MBG Shop

Isetan Japan

GCH Retail Dairy Farm

Apple as a top imported fruit

South African apples represent more than half of imported volume.

Top categories : Gala and Granny


Imported apples in Malaysia by origin, 2016

South Africa China USA NZ France

MALAYSIA

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)


Retailers Turnover

E-Mart Forecast 2017 $1,2 billion

Central Food Retail Co.

Lotte

Eland

Costco Wholesale

KACM

Mega Mart

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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Total Apple Pears Grapes

2013 2014 2015

SOUTH KOREA

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%


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

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

Thank You!

Pierre Escodo, editor [email protected] www.eurofresh-distribution.com mobile +34.661.324.134

@EUROFRESHD

Asian & Middle-East market opportunities · Food Hall, Tops Markets, Tops Superstore, Superoom,...

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Transcript of Asian & Middle-East market opportunities · Food Hall, Tops Markets, Tops Superstore, Superoom,...