Ivan Choi says; "In China, where consumers have limited brand loyalty and distribution channels are fragmented, the main competitive differentiator is making products available to a wider selection of consumers. While distribution is the key to foreign companies' success in the confectionery sub segment, its importance is also evident in the broader processed foods sector. This is partly due to the Chinese retail market being so large and fragmented, with the top five retailers holding only a small percentage of the market."Brands must tailor their strategy to the different sub-markets within the country. Provinces in China vary greatly in their taste preferences, spoken languages and cultural practices as well as having different distribution chains. "Foreign confectionery brands should view different provinces as different markets and adjust products accordingly when contemplating a ' China' market entry strategy," Choi advises.
Rabobank Report: Growth Of Food Brands In China
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