china research project update aca meeting august 2010
TRANSCRIPT
China Research Project Update
ACA meeting August 2010
“ANALYSIS OF PRODUCT DIFFERENTIATION OPPORTUNITIES FOR AUSTRALIAN WILD CAUGHT ABALONE IN CHINA”
In Market ResearchMAP Research Reports 2007/2008
Consumer Restaurant Importer
Grey Group/Moisson – “In Market research” – 2009/2010
Shanghai “In Market” Research Report – University of the Sunshine Coast: Dr Joanne Freeman, April 2010
Beijing “In Market” Research Report – USC – September 2010
China Research Project Focus
Business to Business B2B
Business to consumer B2C
B2B – Premium Restaurants – First Tier Cities Shanghai Guangzhou Beijing
B2C – Emerging affluent class in First Tier Cities Restaurants Premium Food Retail Outlets
Channel Penetration by Phase
Club/ High-end restaurant/Private Kitchen/Fusion
54%
Sea Food Hot pot
27%
Premium Sea food
9%
Club high end restaurant/Private Kitchen/Fusion
41%
Sea Food Hot pot
25%
Premium Sea food +
Chinese Abalone
Restaurant
12%
Club high end restaurant/Private Kitchen/Fusion
47%
Sea food Hot pot
21%
Premium Sea food + Chinese Abalone
Restaurant
7%
Phase 150 Restaurants
Phase 2120 Restaurants
Phase 3210 Restaurants(Accumulated)
Japanese Restaurant
9%
Japanese Restaurant
20%
Japanese Restaurant
23%
Abalone in Shanghai – situation analysis
* Premium restaurants in Shanghai generally do not use live Abalone due to variable quality
* Premium restaurateurs generally travel to Hong Kong on a monthly basis to purchase Dry Abalone
* There is little known about Australian Abalone other than it exists in the live market
* Restaurateurs were unaware of an Australian Dry Abalone product in the market
Abalone in Shanghai – situation analysis
Supply chain service levels are low – if you want abalone, go to the wet market - Tong Chuan is major market for abalone in all forms – larger restaurants and hotels utilise services of a trusted seafood supplier/distributor
Prices are volatile for all abalone product forms
Market education is required – poor understanding of Australian Wild abalone product portfolio
The Australian Abalone industry has not engaged the premium restaurant segment and expected product quality is continually undermined by the dumping of alternate product within the Shanghai market
Abalone in Shanghai – situation analysis
High end hotels report a preference for direct channel products with HACCP certificates required on all products – hotels are heavily regulated in purchasing behaviour both from a government regulatory perspective (Food safety and hygiene) and self imposed constraints to maintain high standards and image.
COO (Country of origin) and HACCP (health) certificates are enforced by regular government inspections
Smaller restaurants have greater flexibility with product sourcing as they are not subject to regular government inspections that require COO and HACCP certificates
Research Opportunities• For directly imported product, the key market segment
is within 5 star hotels and prestige restaurants – specifically establishments with stringent quality, health and hygiene standards
• Customisation and value adding to save cooking preparation time - opportunity for ready to cook packaged product placement in premium retail food sector
• Stability in quality, pricing and supply is welcome
• There is a desire for authentic, safe, quality product that meets all certification requirements for both restaurant and premium retail food outlets
• Opportunity to impart product knowledge to chefs and F&B managers
Where to from hereDevelopment of a working relationship with Chinese
import authorities is the key to expediting friendly import environment for direct channel imports
Establishment of a “direct import abalone product portfolio” with COO and HACCP certification
Establishment of a restaurant and consumer focused promotional strategy for the Australian Wild Abalone product portfolio
Seek out suitable Chinese entity to engage in restaurant recruitment, sales and product supply functions
Development of product variants customised to suit top end restaurant and food service sector
Progress to date Engagement of Chinese partners for Research management,
Promotional, PR and Data management functions (Grey Group, Moisson and MAP)
Ongoing development of “direct import” Australian Wild Abalone product portfolio
Recruitment of 6 “flagship” restaurants in Shanghai
Foundation discussions with a further 40 restaurants in Shanghai and Guangzhou re likely recruitment
Shanghai Trade Launch event planned and ready for execution on 25th of August 2010
Guangzhou Trade Launch event planned and ready for execution on 15th of September 2010
Contact established with key Chinese Import Regulatory Authorities
EXTENDING THE FOOTPRINT
EXTENDING THE FOOTPRINT
APPLICATION OF TRADEMARK
Industry Endorsement – Q A (Heart Foundation √)
Geographic Indicator – Appellation (Product adopts Geography)
Place Of Origin Brand – Supply Chain Management and Marketing Model
PROJECT LAUNCH
25th August 2010
The Lan Club Shanghai