Incite has released its latest distributor survey report, uncovering opportunities for brands across the Southeast and North Asian export markets. The primary challenges for brands wishing to enter these markets are intertwined with their foundations. These markets have high growth rates and are fast-paced. Coupled with savvy consumers and retailers with rapidly changing preferences, understanding the needs of consumers and retailers in these markets is crucial for brand success.
With data drawn from the Phillippines, Singapore, Malaysia, Hong Kong, Indonesia, Taiwan, South Korea, Thailand and Vietnam, Incite's report provides comprehensive export opportunities in Southeast and North Asian markets.
According to Incite, 95 percent of importers and distributors are currently reviewing new food and beverage opportunities. However, shelf space is limited, with new products undergoing comparative studies with current products in the market for their viability and suitability for store.
Over 84 percent of distributors are pitched new opportunities weekly to monthly, so having a clear and precise understanding of customers and the needs within the market brands wish to export to is imperative. Seventy-five percent of distributors said that less than 25 percent of the opportunities they are presented with converting to partnerships.
Distributors both focused on sourcing new products for supermarket shelves and are equally interested in assessing a brand's potential to sustain its listing and achieve sales growth over time, particularly by responding effectively to local market demand.
To stand out amid the noise and competition, brands must craft compelling and meticulously thought-out commercial propositions considering the local market's specific dynamics. This strategic approach is essential for securing a place on the shelves and ensuring long-term success and growth.
Sixty-four percent of distributors surveyed import products from Europe (64 percent). The US and Australia also ranked at 59 and 51 percent, respectively. New Zealand follows on, taking a share of 41 percent.
Consumers in these markets are searching for value and affordable products without compromising quality and taste, with price competitiveness being the leading factor considered in distribution opportunities, followed closely by taste and quality.
Grocery buyers in these markets said promotions were the most important for grocery brands, with demos, sampling and social media marketing also ranking highly.
Traditional in-store activations, such as price promotions, demos, and sampling, remain significant, particularly during the initial phases of launching a brand in a new market. These in-store strategies are crucial in creating awareness and engaging consumers directly within the physical retail environment.
Simultaneously, the landscape of digital marketing has evolved significantly. Market activation in the digital realm is vital in educating consumers online, where they explore, gather information, and make purchase decisions. A comprehensive marketing strategy ideally integrates both in-trade and digital marketing efforts, ensuring these approaches complement and work in synergy.
This collaborative approach enhances the brand's visibility and engagement, providing optimal results in reaching and influencing the target audience across various channels, which is precisely what grocery buyers in these markets seek.
Input and operational costs were the distributors' most significant challenges in 2023, reflecting the many challenges in the FMCG industry. However, retailers and the grocery sector have a positive outlook anticipated for the next twelve months.
Moving into 2024, consumers in these export markets are primarily driven towards purchasing snacks (47 percent) and dairy products (46 percent), followed by frozen food (37 percent) and confectionery (35 percent).
To succeed in these markets, Incite's report reflected the need to do the proper due diligence in understanding the nuances specific to the market brands and want to export to.
See more insights from the 2024 Buyer's Guide below:
