KEY POINTS:
Shanghai's growing middle-class are nibbling on samples of New Zealand food products as they browse the aisles of the city's Parkson supermarket.
It is part of a six-month-old initiative by New Zealand Trade and Enterprise to give local food and beverage products a toe-hold in the Chinese market.
The China Retail Channel Development Project operates boutique "shops within shops" in two high-end Shanghai supermarkets, which are part of the 42 store Parkson chain.
NZTE's food and beverage project manager for North Asia, Sharon-May McCrostie, said the boutique gives companies a low-risk, low-cost option to access the Chinese market.
McCrostie said the beauty of the project is it allowed companies to check to see whether their packaging is suitable, the price-point was right or if they needed different product sizes for the Chinese market.
"It's a platform that companies can test their product in the retail environment and then decide whether they need to adapt their product for the market and whether in fact there is potential," she said.
NZTE employs staff to promote the products through in-store displays and tastings, which has proved successful in encouraging repeat purchases, said McCrostie.
Getting feedback from Chinese consumers sampling manuka honey, kiwifruit and chocolate flavoured biscuits was critical for Huntly's River Mill Bakeries understanding of the market.
"We actually learnt more than we thought we would and the response from consumers has been better than we thought it would be," said River Mill's export manager Mike Dephoff.
He said the project allowed River Mill to check the brand and taste preferences of the well-heeled Chinese consumers they were targeting with their premium brand of shortbread.
"Up 'till then we know a lot of markets throughout Asia have responded very well to our packaging and our taste and the quality of the product. But we didn't know about China," said Dephoff.
The good news for the company was that their product was a hit and they expect to shortly begin distribution to a selection of stores in Shanghai, extending their Asian export markets outside of Japan, Hong Kong, Singapore, Thailand and Malaysia.
HOW TO GET INVOLVED:
* Your company needs to be committed to growth in the North Asian market.
* Retail-ready packaged food and beverage products are suited to this promotion.
* Contact NZTE - 0800 555 888 or refer to the website for more information: www.marketnewzealand.com/chinaretail
* You will be required to submit some information on your product and pricing.
* The next step will be an introduction to logistics provider, Heng Tai Consumables, who will do an initial evaluation of the product - they assess suitability for the Chinese market, pricing and packaging.
* Costs will include the cost of the product, documentation fees and the small cost to get a label prepared for China.
