Food.
Franchise Sectors
Demand for higher quality imported food is on the rise due to
consumer economics and recent food scares. There is a trend of
specialty import shops opening and supermarkets are looking to
differentiate themselves by offering a wider range of imported foods.
In addition, Chinese consumers perceive international brands as higher
quality products and the status of eating imported food outwardly
portrays a certain level of lifestyle.
Food Forward Trends 2014 reports that 42% of Chinese consumers
shop at specialty foreign supermarkets, confirming that consumers are
open to trying new foreign foods. Consumers are more knowledgeable
than before and better quality produce or ingredients are held in high
regard. This has resulted in a marked rise in organic foods and produce
with advertised provenance.
Global foods are expected to have a big impact in lower tier cities as
consumers are exposed to new products and their tastes adapt. Mintel
expects higher premium goods to lead the growth in this sector but
other global foods such as cheese, pasta, sweet bakery and bread
products have grown at a rate of over 30% from 2008 to 2013.
In summary, the general trend for success is for foreign foods that have
high quality ingredients and are authentic to their countries of origin.
Ready-meals are another interesting food sector worth a quick
mention. Very much an emerging sector it is difficult to predict the
future growth. The base consumer trend is there and the change in
retailers, particularly convenience stores who now offer a range of
ready-meals, would support the trend but has to be balanced against
the Chinese culture which has little experience of ready-meals and
value cooking at home.
Assuming the market follows the pattern in other countries combined
with purchase drivers of lack of time and the need for convenience, this
sector will flourish. To reduce the risks of this emerging market make
sure a qualified franchise consultant is employed.