challenges and opportunities for imported mangoes in the ...challenges and opportunities for...
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Challenges and opportunities for
imported mangoes in the Shanghai markets
Xinjian Chen1, Alec Zuo2 & Wen-e Qi3
2 The University of Adelaide, 1Guangxi University & 3South China Agricultural University
19 – 21 March 2019
© Griffith University 2018 2
Overview
Introduction
Market overview
Methodology
Results
Conclusion
References
© Griffith University 2018 3
Introduction
Develop an in-depth understanding of key issues in supply and
demand of imported mangoes, challenges and opportunities
across market segments in Shanghai, China.
Conduct in-depth interviews with 26 stakeholders in the supply
chain of imported mangoes in Shanghai.
Undertake a detailed analysis of the interview transcripts and
identify the key challenges and opportunities for market access
and export growth for targeted partner countries and Australia.
© Griffith University 2018 4
Market overview
China has been identified as a priority market given the rapid expansion in its middle class population and is close to most of the major mango producing nations in the Asia-Pacific region.
Shanghai is the largest city in China and a major consumer market for imported fruits. However, little information is known about the complex and rapidly evolving market requirements, barriers and opportunities in as the Chinese market.
To understand the comparative advantages and implications for growers in Australia and throughout Asia, this report provides detailed information regarding imported mango in the Chinese market by conducting a case study in Shanghai.
© Griffith University 2018 5
Methodology
Semi-structured interviews were undertaken with
key stakeholders including customs and
quarantine officials, importers, wholesalers,
traditional and new retailers, supermarkets,
specialised fruit shops and restaurant managers in
Shanghai.
Interview documents were analysed through an
inductive method like the general inductive
approach described in grounded theory analysis.
© Griffith University 2018 6
Research
Importer Retailer Retailer-E Retailer-S Wholesaler Restaurant Market
Ouheng
Company/欧恒进出口代理有限公司
IVSUN Store/
爱泽阳光水果直营店
YIGUO E-
commerce/上海易果电子商务有限公司
Ole
Supermarket/Ol
e精品超市
Jianong
Company/佳农农产品有限公司
Madam
Goose-
Michelin/米其林餐厅
XijiaoInternational/
西郊国际水果批发市场
Yibo
Company/上海翼博贸易有限公司
Lianhua Store/
联华小超市
Fruitday E-
commerce/上海天天鲜果电子商务有限公司
Lilian
Company/上海利莲国际贸易有限公司
Linzhen
Company/上海林臻投资发展有限公司
Sunfucoo
Company/上海新弗国际贸易有限公司
No name fruit
store/无名水果摊
Citysuper
Supermarket/Ci
tysuper超市
Ivsun
company/爱泽阳光水果批发
Golden Fruit
(Fruita Cloud)/
金果集团水果云
Dazhong Fruit
store/大众果园
Wal-Mart
Supermarket/沃
尔玛超市
Luli Xiaoxing/
泸利小邢果品行
Dole
company/都乐中国
Fruitwell
company/诚实果品水果连锁
Zhu xuan
boutique/祝玄水果精品店
Xianfeng Fruit
Company/鲜丰水果Pagoda
Company/百果园水果连锁Hao & Lian
Fruit Shop/好阿廉水果店
© Griffith University 2018 7
Results 1
Current situation and trends
Note: N=26 respondents
0
2
4
6
8
10
12
Huge market space Small market chance Hard to say Falling market trend
© Griffith University 2018 8
Results 1
Positive trends
Some respondents predicted that the demand is growing:
quality, appearance and taste of imported mango is good.
income and consumption level of consumers in Shanghai is increasing
rapidly, more and more people are willing to pay a price premium to ensure
the quality and safety of food.
eliminated tariffs of imported mangoes under the China-ASEAN and China-
Australia Free Trade Agreement (Australian Mangoes, 2014).
Some respondents concerned about the mango import market:
Some importers and retailers indicated that the imported mango market is
falling in recent years as it faces the domestic mango competition.
© Griffith University 2018 9
Results 2
Major varieties and country of origin
The major varieties of imported mangoes in Shanghai include:
the R2E2 from Australia, the Kent from Peru, the Narcissus
from Thailand, and Green mangoes from Vietnam.
A small proportion of imported mangoes are from the
Philippines (Luzon Carabao), Ecuador (Kent) and Myanmar
(Sein Ta Lone).
Green mangoes,
Vietnam
R2E2,
AustraliaKent,
Peru
Narcissus,
Thailand
© Griffith University 2018 10
Results 2
Seasonal supply and origins
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AU AU AU
Peru Peru Peru Peru
China China China China China China China China
VN VN VN VN VN VN VN
TH TH TH TH TH TH TH TH TH TH TH TH
PH PH PH PH PH PH PH PH PH PH PH PH
MM MM MM
Origin of imported mangoes and seasonal supply, Shanghai, China, 2017-2018
CountryQuantity
(tons)
Share
%
Value
(USD1000)
Share
%
Taiwan 1830 35.7 5330 28.7
Australia 907 17.6 4554 24.5
Thailand 817 15.9 3604 19.4
Peru 597 11.6 2094 11.3
Vietnam 226 4.4 85 0.5
Philippines 102 1.9 830 4.4
Top 5 total mango imports, mainland China (by
country & volume), 2017
© Griffith University 2018 11
Results 3
Key quality issues that affected the mango businesses
0
2
4
6
8
10
12
14
Difficult to controlripening
Not good taste Not goodappearance
Biosecurity issues Big seeds
Key Quality issues of imported mangoes (N=26)
© Griffith University 2018 12
Results 3
Mango Origin Quality advantages Main quality disadvantages
Australian
(R2E2)
Nice skin with round shape; good
taste, with high sweetness and less
fibre
Difficult to control ripening
Peru
(Kent)Good shape and good taste Difficult to control ripening
Thailand
(Narcissus)Good appearance; strong fragrance
Difficult to control ripening;
Not good taste
Vietnam
(Green)
Big size and good shape;
Green Skin
Difficult to control ripening; Not good
taste; Bio-security issues;
large seeds
Philippines
(Carabao)
Nice yellow skin and long strips;
Very sweet and less fibre
Difficult to control ripening;
large seeds
Myanmar
(Sein Ta Lone)Big size with round shape
Not good taste; large seeds;
Bio-security issues
Chinese consumers like mangoes with high sweetness levels and low fibre content.
‘If the imported mango is sour, or has a big seed, it will not suit the Chinese consumer’s preference,’ one importer commented.
© Griffith University 2018 13
Results 4
Supply chain issues
15% damage and loss
are most likely to
occur in the wholesale
and retail stage. 1%
3%
5%
12%
0%
2%
4%
6%
8%
10%
12%
14%
Exporter Importer Wholesaler Retailer
0
1
2
3
4
5
6
7
8
9
10
Not sold intime
Temperature Overripe Long supplychain
Package Other
Timing
Shelf-life
Damaged
products
© Griffith University 2018 14
Results 4
Supply chain issues
02468
10121416
0
1
2
3
4
5
6
7
8
9
High income Young people Women Seeking safeand highquality
Men For gift
Key barriers of imported mangoes in
Shanghai (respondents, N=26).
Consumer
characteristics of
imported mangoes
(respondents, N=26).
© Griffith University 2018 15
Results 5 & 6
0
2
4
6
8
10
12Marketing
Supply chainrelationship
Post-harvest, Storageand Transportation
Trade negotiation
Variety improvement
Quality guarantee
Respondents’
recommendations to
address challenges
and barriers
© Griffith University 2018 16
Results 5 & 6
Imported
originsCompetitiveness
Australia
Good appearance
Good taste
Good supply season (Chinese Spring Festival
season).
Thailand
All year supply
Taste good and strong fragrance;
Low cost.
Vietnam
Low price
Geographical proximity
Long supply season.
Peru
Look similar to Australian mango, but cheaper
Good supply season
Good taste and quality.
The
Philippines
Very sweet and less fibre
Year-round supply
Nice yellow skin.
02468
10
High-endsupermarket
or store
New retailmodels
Multipledistributionchannels
First to third-tier cities
Successful market segment counts commended by
respondents, N=26.
Summary of key competitiveness of top 5 imported mangoes
in Shanghai.
© Griffith University 2018 17
Implications
Some respondents concerned about the mango import market:
Some importers and retailers indicated that the imported mango
market is falling in recent years as it faces the domestic mango
competition.
© Griffith University 2018 18
Conclusion
Imported mangoes in Shanghai market are mainly from Australia,
Peru, Vietnam, Thailand and the Philippines.
Imported mangoes have huge potential market space.
Quality issues include:
poor appearance
short shelf-life
damage caused by difficulties in controlling ripeness and during storage.
© Griffith University 2018 19
Conclusion
Key challenges and barriers for imported mangoes in
Shanghai include:
high cost/price
quality issues
Although imported mangoes are suitable for different market
sectors and have competitive advantages, still encounter
competition from domestic mangoes.
© Griffith University 2018 20
Conclusion cont.
Main consumers of imported mango:
young people with high incomes
high-end specialty supermarkets and fruit stores
new retail models, which will also bring market opportunities for
imported mangoes.
Consumer purchasing power in second- and third-tier cities is
growing, which will also bring huge market opportunities for
imported mangoes.
© Griffith University 2018 21
References
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collection/2014/12/16/mango-tariffs-to-china-tobe-eliminated>.
2. Bo, Yang, Yu Yue, Yi-wen Wang,etl. 2009. 'Market disease pathogens detection of imported fruits in Shanghai', Agricultural Sciences in China, 8: 1087-96.
3. Corbin, J., Strauss, A., 1998. Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. SAGE, Los Angeles.
4. Dan Siekman. 2018.Carrefour Steps into China's "New Retail" Fray. At <http://www.producereport.com/article/carrefour-steps-chinas-new-retail-fray>
5. Evans, E. A., Ballen, F. H., & Siddiq, M. (2017). Mango production, global trade, consumption trends, and postharvest processing and nutrition. Handbook of
Mango Fruit: Production, Postharvest Science, Processing Technology and Nutrition, 1.
6. Freshplaza.2016. Strong Chinese demand for Manbulloo mangoes. At <http://www.freshplaza.com/article/163718/Strong-Chinese-demand-for-Manbulloo-
mangoes>
7. Galán Saúco, V. (2017). Trends in world mango production and marketing. Acta Hortic. 1183, 351-364
8. Iresearch. 2018. China Fresh E-Commerce Consumption Report 2018. At <http://report.iresearch.cn/report_pdf.aspx?id=3123>
9. Matt Brann.2018.Australian mango and dragon fruit growers set to face competition from Indonesian imports. At <http://www.abc.net.au/news/rural/2018-02-
21/indonesian-mangoes-set-to-be-imported-by-australia/9466770>
10. Produce Marketing Association. 2016. Exporting Fresh Fruit and Vegetables to China: A Market Overview and Guide for Foreign Suppliers. At<
https://www.pma.com/~/media/pma-files/research-and-development/exporting-fresh-fruit-and-vegetables-to-china.pdf>
11. Robin Roberts,Tiago Wandschneider.2015.Vietnam Mango Export Opportunities in Hong Kong and Shanghai.At<https://www.adelaide.edu.au/global-
food/research/smallholder-inclusive/Vietnam_Mango_Export_Opportunities_in_Hong_Kong_and_Shanghai.pdf>
12. Sun, Ximing. 2016. 'Opportunities and challenges relating to the export of fruit and vegetable products from Queensland to Asian Countries'.
13. Thomas, D.R., 2006. A general inductive approach for analyzing qualitative evaluation data. Am. J. Eval. 27, 237e246.
14. World Bank Group. 2018. China overview. At <http://www.worldbank.org/en/country/china/overview>
15. Yun Yang Zi. 2017.Hema Fresh: A Case Study in New Retail. At <http://www.ceibs.edu/alumni-magazine/hema-fresh-case-study-new-retail>