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Snacking in China: How to break in with a good Market Entry Strategy
July 7, 2021 at 2:00 PM
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The China export market is a very competitive yet profitable scene. It can seem very challenging to newcomers, but with a good Market Entry Strategy to break in, you will succeed.

It is a very rewarding business experience. Knowing this, many companies have tried to go in, unsuccessfully. But the bad outcome hasn’t stopped them from trying again, this time with a better plan.

In the next few paragraphs, we will present you with a couple of case scenarios of companies that tried a second time, successfully. What can you learn from them and their Sustainable Growth strategies? Keep reading to find out!

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Market Entry Strategy #1: The Eat Real Case

Eat Real is a UK-based company that focuses on delivering healthy snack alternatives to its consumers. A couple of years ago they tried to enter the China market for the first time but ended up retiring in 2020. The first strategy wasn’t strong enough, due to a distribution plan that confused consumers. This threatened the long-term Sustainable Growth of the whole strategy.

Now, the brand has a better understanding of the market and a unique and well-chosen distribution partner. They have also chosen, as a part of their Market Entry Strategy, to only insert a very specific range of snacks in China. These snacks will be the ones that are closest to the Chinese palate, texture-wise, hence having better chances of success.

Under the guidance of International Consulting experts, they have become aware of the healthy consumption trend currently dominating the scene. They will apply a Strategy that addresses this and other trends as well.

Although following trends is good in some regards, breaking the standards is also good in others. For example, another part of Eat Real’s Market Entry Strategy is to make packaging different from the other styles present in the competition. This will help them stand out amongst the others, with a simpler presentation. In this way, they will also entice the consumers to read the labels, finding all the information on the health benefits.

If this Strategy shows to have a solid Sustainable Growth rhythm, Eat Real will start planning to market towards other countries in Asia as well.

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Market Entry Strategy #2: The Frutetto Case

Frutetto is an Italian frozen fruit snack company. It has already entered other Asian markets successfully, which is a good start towards launching in China this year.

Their products are being marketed as a healthy alternative to its competitors, which usually
contain high quantities of sugar.

Within their Market Entry Strategy, they tackle two different aspects that are relevant to the consumers. The first being the health and wellness side, which is included in the product labels, and the second is the sustainability aspect.

Frutetto is being marketed as an ambient product despite being a frozen treat. This is an effort that is being made for the consumer to take it and put it in the freezer when they get home. It is also being done with the purpose of a more environmentally sustainable shipping process when exported overseas.

All of this is also positive for the long-term Sustainable Growth of the company. They have already experienced a sales growth of 650% from 2020 in comparison to 2019 despite the pandemic. They have been having a good reception in other competitive markets of the Asian sector such as Japan and South Korea, which always means good news when tackling a challenging market such as China.

According to their International Consulting experts, a good way to meet the company’s expectations of further expansion is finding funding options. The brand plans to manufacture the product in new ways and varieties to tackle other health trends. This would be less challenging with the help of investors.

What can you learn from these companies Market Entry Strategy

Here at Eliasan, in our expertise as an International Consulting firm, we can break down for you the teachings of both these case studies:

  • The Chinese market is one of the most rewarding in Asia
  • If you tried before and didn’t succeed, you can always go in again with a better Market Entry Strategy
  • Find well-thought Alliances with trade and distribution partners
  • Study the market trends and consumer preferences thoroughly
  • You need a carefully thought plan always considering your brand’s long-term Sustainable Growth
  • Look at the competition and think of ways to pop out in the eyes of the consumers
  • Make sure the consumer knows what good you’re doing through your product
  • Funding is very helpful for international expansion.

What can Eliasan as an International Consulting firm do for you?

Market Entry Strategy & Development

Eliasan Consulting will help you craft a good strategy, always backed up with a complete market analysis. This includes analyzing the competition, audience, possible challenges, and more. We will help you decide which are the markets in which your product has the best potential and develop a plan to gather the following and engagement you need to succeed.

Grant Writing & Management

As an International Consulting firm, we know how important it is to fund your project. With our expert USDA Grant writing strategy, we can help you secure State and Federal Funding. Our team is experienced with several different USDA programs such as the following:

  • Market Access Program (MAP)
  • Agricultural Trade Promotion Program (ATP)
  • Foreign Market Development Program (FMD)
  • Global Broad-Based Initiatives (GBI)
  • Emerging Markets Program (EMP)
  • Quality Samples Program (QSP)
  • Value-Added Grant Program (VAPG)
  • Specialty Crop Block Grant Program (SCBGP)

B2B Matchmaking

We will make sure you choose the right partners with our B2B matchmaking services. Choosing the right list of candidates and seeing what are the requirements and needs of your brand is our priority. Then our team will arrange the meetings between you and the candidates, so you only focus on making the deal.

To get to know what other services we can offer you and your company, visit our services page here. If you feel you’re ready to tackle China’s market or any other is in your interest, schedule a consultation today! And we’ll help you expand overseas.

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