To stand out among Chinese consumers in a very competitive context where there are many pitfalls, Quebec companies are counting on the Canadian identity of their brand.
It must be said that China is a priority market for Quebec and Quebec biofood companies, according to the Ministry of International Relations.
“China’s purchasing power is so great that everyone wants to go there. In a grocery store, there is not just one aisle of chips, there are three, and there are four times as many kinds of flavors,” says Arctica Food President and CEO Lory Wang. As businesses everywhere rush there to get their piece of the pie, it takes a solid marketing strategy, she says.
The Brossard company sends almost all of its sea cucumbers there, a marine animal caught off the coast of Gaspésie and prized in the Middle Kingdom. On its logo and advertisements, a small red maple leaf is prominently displayed. While reworking the packaging for the dried sea cucumbers, Ms.me Wang intends to rely on this origin.
In finished products
“’Made in Canada’ has a reputation for good quality in the Chinese market,” says the entrepreneur.
The same goes for the dried cranberry exporter Fruit d’Or. To differentiate itself from its Chinese and international competitors, it relies on its organic certification and its Canadian origin.
“A section of the Chinese population is extremely confident in Canadian products in terms of the list of ingredients, the way it has been processed, the health rules applied in Canada. Some people are fearful of what can end up in the finished products, so they prefer to import,” explains Fruit d’Or co-founder and vice-president of business development, Sylvain Dufour.
According to the 2020-2021 survey of the Canada-China Business Council (CACC) published on October 28, 2021, 87% of companies that have business ties with China have given a role, in their business development, to “a brand strategy focused on being a Canadian company”.
Several stakeholders observe that Chinese consumers are not significantly put off by the bilateral tensions of recent years. Evidenced by the expansion in China of the Ontario chain Tim Hortons, which highlights symbols of Canada in its branches, such as plaid shirts and maple leaves. After opening its first restaurant in Shanghai in 2019, it now operates, according to its website, more than 340 stores in 20 cities.
China’s purchasing power is so great that everyone wants to go there.
The Citadelle maple producers’ cooperative says it has benefited from a 15% growth in sales in China in 2021. Among other things, its partners sell their maple syrup to consumers through e-commerce platforms.
“We have distributors in China who take care of product marketing themselves,” says Jean-Damien Cangelosi, overseas sales director for Citadelle. These include social networks via influencers, taking atmospheric photos in Canadian settings, modifying labels in Chinese […]. »
Highs and lows
Several companies, however, avoid putting all their eggs in the Chinese basket, given the instability of this market. Bilateral tensions, the U.S.-China trade war, COVID-19, and China’s political and economic developments have negatively impacted business, according to the CACC.
Mme Wang reports that his exports have declined significantly since the start of the pandemic. Some partners have backtracked on noticing border and supply chain delays, cost increases, as well as very strict sanitary measures that can cause problems with customs clearance. The local production of sea cucumbers then increased significantly and allowed the Chinese population to consume products from home.
At Fruit d’Or, we have made similar observations regarding the obstacles to exporting and processing cranberries in China, which has developed recently. “There are ups and downs,” says Mr. Dufour. China represents less than 10% of our exports, by choice. We don’t want it to become too important, because we don’t want to expose ourselves to political decisions. »
Mme Wang is hopeful that by improving its product offering and working on its brand image, it will be able to recover the ground lost in China. The Chinese, she is convinced, have not lost their appetite for foreign products, especially Canadian ones.