China market of coffee

China market of coffee has been growing these recent years. It is in main part because of the development of coffee shop in China. Afterward, big companies as Nestlé encouraged the exploitations of coffee, in particular in the province of Yunnan.

Market of coffee is growing in China

The regions of production of coffee are Yunnan, Hainan and Fujian.

All these regions benefit from a good organization and from an effective frame on behalf of the government and from big multinational companies which continue to invest for the increase of the production.

The total exports of Chinese coffee were on average 369 000 bags a year between 1998 and 2012. In absolved value the exports strongly increased in passing by 137 000 bags in 1998 in 1, 1 million bags in 2012.

The part of the instant coffee in the exports of China fell from 67,2 % in 1998 to 4,6 % in 2012. The importation are mainly sourcing coffee shop in China.

Germany, Japan, the United States, Belgium and Saudi Arabia are the first destinations of the exports of all the forms of coffee by China.

The production of China was always so weak as it was considered as being an importer country. The imports were practically non-existent till the end of 1980s.

China market has a growing consumption in coffee shop

China still not were a member of the international coffee organisation, it is difficult to collect the national statistical data on the sector of the coffee although reliable data are available for the imports and the exports.

During the period from 1998 to 2012 the average imports concerned a volume of 533 000 bags a year. We note an important increase of the annual imports of 232 000 bags in 1998 in 1,1 million bags in 2011 than in 1,4 million bags in 2012.

The estimations of the consumption of coffee in China (including Hong-Kong and Macao) are complicated by the lack of reliable statistics. However, the rise of coffee shop in China is a good trend to evaluate this evolution.

The consumption on the coffee market in China in 2012 is estimated at 1,1 million bags and knows a growth of more than 10 % a year since 1998. With a total population of 1,3 billion inhabitants, the per capita consumption in China is only 50-70 grams, even if we consider that it is superior in urban areas.

For example, the per capita consumption in the urban region of Hong-Kong is estimated at approximately 2,2 kilos per person every year.

The total consumption of coffee in China could reach 2,8 million bags in 2020. It is equivalent more or less to the current consumption in the United Kingdom, what makes the China market particularly attractive for the world trade of the coffee.

http://www.sjgrand.cn/investing-china

http://daxueconsulting.com/coffee-shops-in-china-2/

www.thestorecheckers.com

A failure of market entry strategy in China

The western brands regularly knew bitter failures on their market entry Strategy in China. These failures often result from a lack of adaptation to expectations and to local modes of consumption. Return on the example of the American group Of Levi Strauss and its brand Denizen.

It is on the occasion of the presentation of the figures of 3 first quarters 2012 that Of Levi announced the stop of the brand Denizen in Asia. Initially the result of a market entry in China, the brand then tried to become established on other high-growth markets, unsuccessfully. Officially pulled by a will to put the focus on the main brand, this retreat marks a real commercial failure.

A willingness of enter China market and on emerging markets

In 2010, Of Levi who is then already present on the Chinese market (about 620 stores) tries to position on the segment of bottom of the range. The launch is realized on the occasion of a big show in Shanghai, openings of dedicated shops are planned (about twenty first year), a logo is created, and the head office and the offices of creation of the brand are for the first time the history of the group outside the American territory, in Hong-Kong. Everything is made to impose the new brand and not leave it in the shade of her impressive " big American sister ". The market entry was really exciting in China

At the level of the group, this failure in the market entry in China of the brand caused an important backward movement because after years of growth, Levi knew a decrease of its sale in 3 % volume. Furthermore, the retreat of Denizen meant the impossibility to develop in a long-lasting way in Asia, and thus to set up growth drivers on emerging markets, what was the unconfessed objective of the group. In 2012, its sales volume has still moved back of 13 % in Asia.

Market entry strategy

http://www.ft.com/cms/s/0/2345e5c2-648a-11e0-a69a-00144feab49a.html

http://adage.com/china/article/china-news/levis-creates-denizen-brand-for-emerging-markets-like-china/145544/

China Rises - Getting Rich (New York Times Television)

Toursim market in China

The modern tourism in China originated at the beginning of the 50s. In 1954, the State established the Agency of the international tourism of China, and settled 14 branches in Beijing, Shanghai, Guangzhou and other cities. In 1964, was created the national Administration of the tourism of China. Since the reform and the opening in 1978, the Chinese tourism developed very quickly. In 1999, China welcomed 72,8 million overseas tourists among whom 8,43 million foreigners, what represented a 14,1 billion US dollar recipe is respectively 40 times and 54 times more than in 1978.

Tourism market in China is one of the most important in Asia

At present, China is in Asia one of the most important tourist destinations and the fifth big tourist country. In a parallel to the development of the international tourism, the domestic tourism also took a considerable development. In 1999, we counted 719 million travelers inside the country, and a 283,2 billion yuan income, is a respective increase of 14,3 % and 105,9 % compared with 1995. With the rise of the standard of living of the population, many are those who wish to travel abroad. These last years, the Chinese citizens chose the regions of the South-East Asia and Europe as tourist destination.

Increase of the tourism market in China

China is spirit to make all its efforts to become one of the big tourist countries of the world, by improving the installations and the services. According to the planned plan, the tourism market in China increased until has to become a tourist top-grade destination and the fourth big tourist country as for the number of tourists.

According to SJ Grand, since the reform and the opening, China built a large number of hotels of various levels to answer the need for the tourism and of the tourism market in China. At present, China counts more than 3 000 classified hotels; the most famous 5-star hotels are the Luxury hotel Hotel, the China World Hotel, the Shangri-La hotel in Beijing; the Hilton hotel, the Garden Hotel, the Xinjinjiang hotel in Shanghai; the Hotel of the white Swan, the China Hotel, the Hotel of the East to Guangzhou; Furama Hotel to Dalian and the Nanhai hotel to Shenzhen. The functional hotels distributed in the big and average cities and on places of interest can welcome a large number of Chinese and foreign tourists.

http://www.daxueconsulting.com.hk/?page_id=104

http://www.sjgrand.cn/wfoe-china

http://www.globaltimes.cn/content/833387.shtml