Headquarter: Chemical Industry Park, Economic Development Zone,  JiNan City,  ShanDong Province, China.

Phone +86-152 8958 7728

Angela@BlueSkytcca.com

Cautious Chinese travellers: Food and beverage brands need to … – FoodNavigator-Asia.com

Or wait…
Headlines
Processing & Packaging
Formulation
Food safety
Business
Markets
Policy
Promotional Features
Site Archive
Multimedia
Regions
All Asia-Pacific
East Asia
South Asia
South East Asia
Oceania
Middle East
Site Archive
Multimedia
Trends
Meat
COVID-19
Alternative proteins
Asian tastes
Clean label
Fortification
Healthy living
Industry growth
Plant-based development
Prepared foods
Sugar reduction
Supply chain
Sustainability
Site Archive
Multimedia
Resources
Type of resources
China 中国
Japan 日本
Middle East
Events
All Events
Shows & Conferences
Online Events
Editorial Webinars
Events

– Last updated on GMT
Related tags China COVID-19 experience Travel retail
With China finally having opened its borders earlier this year, the travel retail industry is pinning many of its growth aspirations on the resurgence of the Chinese traveller.
However, it is well-known that Chinese consumers place a great deal of importance on sensory experience when it comes to making purchases – a factor that combined with increased post-pandemic consumer caution is likely to emerge as a key issue for food and beverage brands in the industry.
“There is no doubt that with Chinese consumers having basically had the longest hiatus in the world from duty free shopping with its borders closing the earliest and opening the latest, there is a lot of pent-up demand there,”​ Pi Insight Managing Director Stephen Hillam told the floor at the recent Tax Free World Association (TFWA) Conference in Singapore.
“Our data has revealed that there is very high interest in duty free products [including] high demand for alcohol (61%) and confectionery (47%).
“However, it is also likely that when some of the Chinese shoppers return, there is likely to be a renewed level of concern or some caution when it comes to certain activities in our stores – [this includes] activities such as sampling or tasting alcohol or confectionery products.
“Indeed, our surveys have shown that a good 53% of Chinese shoppers have highlighted that they are far less likely to sample products when travelling – [a situation that could have ramifications for] products that rely on sampling as an experiential component in-store.

“As such, it will be crucial for food and beverage brands to implement supporting, innovative measures in order to drive reassurance around this area and still provide consumers with a good, enjoyable shopping experience.”
The importance of solving this dilemma becomes even clearer when noting the amount of revenue likely to be brought by Chinese shoppers – 51% stated plans to spend more time in store than in previous trips, and 38% to spend more compared to previous trips, which translates into a lot of potential sales.
“It is no longer enough to simply create and sell the product that the Chinese shopper is looking for – so high quality alone is no longer enough,”​ he added.
“There is that potential to really capitalise on their desire to spend more or have an increased basket size or ‘revenge spend’ such as we have seen in other regions and amongst other nationalities – but all the aspects need to be right.
“So the key is to provide both the product of interest and also the reassurance surrounding the in-store experience, especially for food and beverage items, in order to secure those purchases.”
Another major insight presented was that travel retail consumers today are far more likely than in 2019 to make impulsive purchases, yet another factor backing the importance of creating a good shopping experience.
“A total of 55% of consumers in 2022 planned their purchases during travel, as compared to 62% in 2019 – which means a 7% decrease,”​ Hillam said.
“This shows that duty free shopping in APAC is becoming much more impulsive and less planned out – although we also have seen that the core purchasing drivers that were important then remain important now such as quality, brands, pricing and so on so these need to be maintained.”
Copyright - Unless otherwise stated all contents of this web site are © 2023 - William Reed Ltd - All Rights Reserved - Full details for the use of materials on this site can be found in the Terms & Conditions
Related topics Markets All Asia-Pacific Asian tastes Supply chain Industry growth Beverages Confectionery
Show more
Functional Beverage Market Insights in ASPAC
Content provided by Glanbia Nutritionals | 06-Jul-2023 | Product Brochure
High growth ahead for protein beverages makes Asia Pacific (ASPAC) the market to watch. Consumer research shows new usage occasions, key consumption barriers,...
The latest plant-based beverage trends in SEA
Content provided by Tetra Pak | 27-Mar-2023 | White Paper
Data shows that consumers’ liking and thirst for plant-based beverages is growing rapidly, especially in Malaysia, Singapore, Philippines and Indonesia....
More promotional features

source

Leave a Reply

Your email address will not be published.

*