Chile aims to tap into Chinese avocado market potential
![Chile aims to tap into Chinese avocado market potential Chile aims to tap into Chinese avocado market potential](https://cdn.freshfruitportal.com/2016/11/IMG-20161108-WA0011-1024x682.jpg)
The Chilean avocado industry is exploring new ways to penetrate the Chinese market and reach more consumers, amid a sharp increase in exports to the Asian country.
Market access was gained two years ago and while just 20 metric tons (MT) were shipped in 2014, it is estimated that 10,000MT will be exported this season - twice the figure achieved during the last campaign.
"Avocado is a relatively new fruit for Chinese consumers, but it has a lot of potential in the Chinese market," Chilean Hass Avocado Committee managing director Juan Enrique Lazo told www.freshfruitportal.com.
"China is a market where consumers are trying hard to integrate the consumption of avocados into their daily lives. However, the demand is increasing month by month, and we are adding a little pressure into the market right now."
According to Lazo, since the start of the season two months ago, China has so far received 7,000MT of Chilean avocados, while its competitor, Mexico, has shipped only 3,000MT so far. Last week alone 80% of the avocado supply in the Chinese market was of Chilean origin.
"Mexico is our biggest competitor since both our avocado seasons fall within the same months, but their supply is being affected right now, resulting in more Chilean avocados in China," explains Lazo.
With this huge increase in volumes, the Hass Avocado Committee is now stepping up its marketing strategy in China. Among its plans is a significant expansion on the country's e-commerce platforms.
"E-commerce is growing exponentially every year in China, and day by day it is gaining in importance. We started selling through e-commerce last year, on Singles’ Day, and the sales for this year’s Singles’ Day was also very good," Lazo said.
"650 million people in China today buy their products through the internet and 560 million people do their purchases through mobile phones.
"For us it is very important to be on e-commerce because it is a means of promotion to a wider audience, where everyone can see our avocados online wherever they are."
However, he explained that avocado e-commerce sales would take time to grow as Chinese consumption of the fruit continues to evolve.
"One thing I have learnt during my recent trip to China is that people who buy avocados online are experienced buyers who already know about the fruit," Lazo said.
"Unlike new buyers in supermarkets, it is not a novelty for these online buyers, so the way we brand Chilean avocados on e-commerce platforms has to be very different from the kind of marketing we do in supermarkets.
"The good thing is younger people are more daring and willing to try avocados, compared to their parents."
The representative said e-commerce was also being used to reach China's 2nd and 3rd tier cities, which only started seeing avocados in its markets this year.
"Shanghai is the main city of avocado consumption due to the large expat community there, where lots of restaurants now have avocados in their menus," Lazo said.
"You can find Chilean avocados in 2nd and 3rd tier cities in China, but the amount is still little, and the promotion efforts are still mainly focused on 1st tier cities, largely because the consumption of avocados is still considered unique to most Chinese consumers.
"The Chinese are not so used to avocados since they are neither juicy nor sweet, unlike other more traditional fruits such as apples and grapes."
Along with online promotions such as advertorial banners, the association is also participating in a major culinary competition and visits to restaurants in various cities to promote the product.
The campaign also includes hiring promoters in supermarkets and offering gifts to the media and restaurants, as well as expanding its presence in wholesale markets.
"We are spending a good budget on promotional activities, and we have seen how purchases in supermarkets increase with the presence of promoters," Lazo said.
"This year we focused our marketing efforts on Shanghai and Shenzhen because of the profile of the consumers, and then subsequently extended it to Guangzhou. Most of these efforts are in restaurants that sell western cuisine or sushi. But next year, we want to expand into cities like Beijing, Hangzhou, Dalian."
While marketing to the food service sector has generally been to non-traditional restaurants, Lazo said that was about to change.
"This year, we focused on non-traditional restaurants because the customers there are more likely to try different or new flavours, but the next step is to teach the Chinese how to integrate the use of avocado into typical Chinese cuisine, like soups for instance," he said.
It may seem like there is a lot more work to be done before avocados become a main staple in the diets of Chinese consumers, but Lazo remains optimistic.
"The prices of avocados are very low now, an average around RMB10 (US$1.45) per avocado in the market, which is very low compared to last year (RMB20 to RMB30) when it was only made available to the upper class Chinese in higher-end supermarkets" Lazo said.
"Today, they are also in other middle-end supermarkets, making the purchases of avocados accessible to everyone. I have also heard that mothers and pregnant women are now starting to buy avocados for their children, because they know the benefits the fruit can bring to their health."