In recent years, China has seen
significant changes in eating habits, shopping behaviours, and lifestyle
habits, as consumer behaviour responds to Western influences. Consumer packaged
goods providers will capitalise on the trend of Westernisation for new
experiences and integrate more Western groceries onto their shelves, Canadean
predicts.
As the Westernisation of the
retail market is fairly new, products that are considered to be mid-range are
more likely to be offered as premium products in China. Western commodities
also serve as symbols of modernisation and provide a sense of elevated status
for consumers. As a result, Western brands of products such as fragrances,
chocolates, coffee, cheese, ice cream, and carbonated soft drinks are becoming
prevalent in Chinese retail markets.
Packaging manufacturers need to keep abreast of changes in the market
A typical Chinese supermarket in
a developed urban area will stock more varied products in comparison to an
equivalent US or Japanese store, thus increasing the choice available and
offering more opportunities to choose Western products. This is an important
trend for packaging companies. Also, domestic companies need to match the
standards of Western packaging so they stand out against their counterparts.
According to Catherine O’Connor,
senior analyst at Canadean: “Despite China’s growing interest in Western
brands, foreign offerings do not always find it easy to integrate into the
Chinese retail market. Earlier this year, Revlon and L’Oréal both pulled back
from China, misunderstanding the needs of this lucrative market.” Consumer
Packaged Goods' (CPG) providers will attract more custom by localising products
to Chinese tastes, for example, KFC has introduced a ranged of breakfast soups,
and Oreos are altered in China to have flavours such as green tea, as consumers
found the originals too sweet.
As well as reformulating products
for the Chinese market, companies need to modify packaging to influence them at
the shelf edge. O’Connor explains: “In particular, the use of colours is of
paramount importance for the Chinese. Yellow is seen as royal colour and red is
chosen for good luck and happiness. However, these bright colours are mostly
preferred for food products, while pastel or white shades are preferred for
household items and personal care products.”
