Beyond trust: how foreign brands can truly connect in China
To quote Spanish wine maestro Eduardo Sáinz Marotías: “China is a market that is changing constantly – every year you go there and it has changed as much as some markets change in 25 years.” It’s fair to say that China’s food and beverage sector is one of the most dynamic on the planet. Tradition meets innovation, and global influences intertwine with local preferences. In many ways, these characteristics could be applied just as easily to fashion, health, beauty, lifestyle, sports, and nearly every other consumer category in China.
Chinese consumers are still regularly reminded that not all Chinese products can be trusted. Most recently, the concern was around dodgy sanitary pads and diapers. Last year’s big exposé involved edible oil being transported in tankers left uncleaned after previously carrying coal-derived fuel. Foreign brands still largely hold the trust and safety cards, but often squander this advantage by failing to localize in ways that are relevant or meaningful to their Chinese target audience.
Success in China isn’t just about trading on safety credentials and dropping a wad of cash on Key Opinion Leaders. It requires an understanding and embrace of the nuances of Chinese consumer behaviour, sales ecosystems, regional preferences, and regulatory frameworks.
Hyperlocal Innovation: A Key to Consumer Engagement
Chinese consumers are renowned for their discerning palates and deep appreciation for flavours that resonate with their cultural and regional identities. Recent trends indicate a growing preference for products that incorporate hyperlocal ingredients and offer reinvented versions of classic flavours. For example, the traditional citrus flavour has evolved to feature local varieties such as the sweet-tart Orah mandarin, a fruit grown only in China. Similarly, for savoury foods, there's rising demand for products infused with indigenous herbs and spices like Litsea cubeba from Yunnan province. These preferences underscore the importance of localizing product offerings to align with regional tastes and cultural nuances.
Brands Making Localisation Sweet
Honeymoon Dessert and Ah-Ma Handmade have distinguished themselves in China’s competitive dessert market through strategic localization – but in two quite different ways. Honeymoon Dessert has blended authentic local flavours with modern convenience, developing shelf-stable versions of their traditional dine-in products, which can be sold through e-commerce and retail chains. While now nationally scalable, its dine-in experiences remain localized by city, reinforcing the brand’s “taste of home” positioning, and fostering a personal, emotional connection with consumers.
Conversely, Ah-Ma Handmade adopts a hyper-localized strategy, tailoring each of its 60 stores to reflect the cultural nuances of their respective cities. By incorporating local ingredients, dialects, and historical elements into store design and storytelling, Ah-Ma creates a personalized experience that fosters a strong sense of community and belonging. This deliberate focus on emotional resonance over rapid expansion has cultivated a loyal customer base that values authenticity and cultural relevance.
Though very different in execution, both strategies have proven successful because they make consumers feel like the products and marketing were created specifically for them – not just a generic offering you could find in Beijing, Barcelona or Boston.
The Products and Marketing May Resonate, But Do They Comply?
Another critical factor in product development and marketing in China is ensuring compliance with the country’s sometimes unique regulatory environment. Any seasoned brand in China will know this, but they should also be aware of the recent overhaul of food safety standards. Among the most notable updates is a ban on labels such as “no additives” or “zero additives.” There are also new requirements for clearer labelling of allergens and expiration dates. These changes reflect the government’s commitment to enhancing transparency and preventing misleading claims.
China’s position as the world’s largest food importer presents immense opportunities for foreign companies. The well-known statistic that China has just 10% of the world’s arable land to feed 20% of the world’s population, suggests that its food deficit will persist for some time.
This opens up opportunities for exporters across the spectrum, from agricultural commodities to consumer brands. But success requires more than just a presence; brands need to be willing to invest in understanding and adapting to China’s unique landscape. By prioritizing localization, staying compliant with regulations, and strategically navigating the sales and marketing ecosystem, foreign brands can position themselves for long-term success. China Skinny can assist with that.
