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BIZCHINA / Overseas Investment
Campbell finding the right ingredients to serve China market
By Debasish Roy Chowdhury (China Daily)
Updated: 2007-07-17 16:15
According to a Euromonitor International study on the mainland soup
industry, the market leader is Unilever China, with a 33.3 percent share
of the 221 million yuan market, followed by Shanghai McCormick with 12.8
percent and Nestle China with 7.2 percent.
Apart from their smart brand positioning and marketing strategies, these
highly localized foreign food companies have also been feeding on the
growing income of the Chinese, which spawns a need for convenience on the
one hand and quality consciousness on the other.
Campbell, for example, will position its broths as a healthy option, made
from natural ingredients, 97 percent fat-free and with no added MSG. It
has already started a low-sodium drive for its existing brands.
These, exactly, are the concerns of a new China, and will mark the new
marketing battle lines in the food industry as in almost everything else,
rather than mere price competitions.
Campbell's entry thus carries two vital lessons: one, there is still
enough room to grow in the market as the market itself is constantly
growing, which is why it keeps drawing new players; two, moving up the
value chain to create product differentiation is key to making room in
this dynamic market.
Any Chinese company planning to wrest the market in traditional products
from multinationals will easily soup up its sales if it takes these
lessons to heart.
(For more biz stories, please visit Industry Updates)
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