There is no “magic” formula to cracking the Chinese export market, but Australian brands still stand to benefit by positioning their goods as “premium” quality, says a recent exhibitor at China’s largest international export conference.
Pendleton Olive Estate, a South Australian producer of high-quality olive oils, vinegars, and infusions, was one of nearly 250 Australian brands represented at November’s China International Import Expo in Shanghai.
The annual event’s significance was underscored by the attendance of Prime Minister Anthony Albanese and Trade Minister Don Farrell, during an international visit focused on normalising trade relations between the two nations.
Speaking to SmartCompany, Pendleton Olive Estate executive director Nick Whiting outlined some of the key factors that have helped the company build its presence in China over the past 10 years.
Differentiation from existing products is key, he said, noting the fact that Australian olive oils compete against European products, which have a long-established cache on the international market.
“European oils dominate markets pretty much across the world, but also in China,” he said.
However, focusing on the perception of Australian produce as a clean and high-quality alternative has yielded benefits for the brand.
Australian products are highly-regarded internationally for their quality, Whiting continued, giving local producers an edge when it comes to premium branding.
Australian producers can benefit further by offering products otherwise lacking in the Chinese domestic market, so long as brands can clearly differentiate themselves from existing offerings.
“If there’s a product that you can fill in with a local brand over there that is able to do the same thing — some local brands can do quite high-quality stuff — then that’s quite tough,” he said.
“There’s probably not a big appetite for that kind of product.”
Cracking the market is not as simple as having a compelling product, Whiting continued.
Knowing the right people in-market, who can guide product strategy, is vital.
“Connections are obviously an important factor,” he said.
“It’s important in every market, but probably a little bit more in the Chinese market as well.”
That is a view shared by Aromababy founder Catherine Cervasio, who has previously told SmartCompany about the need to reach local industry leaders.
Cervasio said it took five years of meetings and relationship-building exercises, including with healthcare professionals, to help Aromababy products stand out in the Chinese market.
“We’re not just a business selling a product,” she said in 2016.
“We care about the formulation, [and] educating health professionals and consumers about the benefits in general.”
While winning the confidence of Chinese consumers is vital, Whiting said there is still a deep appetite for Australian products, despite the suite of tariffs driving up the price of products like imported Australian wine.
“I think there’s still a lot of demand for Western products in general that are providing something different to the local offering,” he said.
Albanese and Farrell’s visit was more than just a trade show visit, with Farrell in December declaring his confidence that China could drop the wine tariff in early 2024.
While wine producers wait patiently for the chance to quench the Chinese export market at pre-2020 levels, local brands can consider how best to stand out from the crowd — and champion Australian premium branding abroad.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
