Accessing the China Market

Transcription

1 Accessing the China Market For Australian Food Products Peter Verry Managing Director Peloris Global Sourcing Pty Ltd

2 Agenda Introduction China Market Strategy China Market Access 1

3 Introduction Background: Peloris established in 2011, offices in Australia, Malaysia and China Provide paddock to plate China market access solutions for premium food & beverages Specialise in cold chain logistics and border clearance for short shelf life perishable foods Pioneered China Green Lane border clearance for fresh milk in 2014 Fast track border clearance protocols in place with three China Ports: Shanghai, Suzhou and Chongqing 3M+ litres of fresh milk imported into China with zero quality or compliance failures Key Contacts: Peter Verry Peloris Managing Director (Australia) and business founder 25 years experience in finance, supply chain management & logistics Extensive regional management experience with China and SE Asia based multi-national corporation Alex Wang Peloris Executive Director (China) and business founder 20 years experience in procurement, supply chain management & logistics Extensive senior management experience with China and SE Asia based multi national corporation 2

4 Introduction China Market Strategy China Market Access 3

5 Understanding the Market Social Imperatives Clean Green Health & Safety Provenance Political Imperatives Free Trade Transparency Integrity Commercial Imperatives Quality Assurance Traceability Cost Effective 4

6 Identifying Stakeholder Expectations Brand Owner Expectations Consumer Expectations Brand reputation Product integrity Integrity Transparency Health & safety Product provenance Quality assurance Financial viability China Food Imports Product authenticity Product availability Market sustainability Competitive pricing Compliance Regulatory Authority Expectations Accountability & responsibility Product & label compliance Shipment compliance Traceability and transparency 13

7 Developing an Export Strategy Deliverables Drivers Enablers Return on Investment Brand Positioning Profit Margin Market Share Product distribution Product range Product pricing Product promotion Export Strategy Risk Mitigation Brand Reputation Product Quality Market compliance Product integrity Process transparency Financial Security Terms of trade 5

8 Determining Market Position China Product Price Positioning Product Perception High Value add Premium price point General imports Standard price point Locally produced Budget price point Price driven Value driven Ego driven Purchase Decision China Retail Price Range: CNY??? CNY??? 6

9 Introduction China Market Strategy China Market Access 8

10 Understand China Food Import Regulations China Import Regulatory Bodies Key China Import Laws CHINA FOOD SAFETY LAW (2015) OF THE PEOPLES REPUBLIC OF CHINA Described at the time it was introduced as the strictest food safety law in Chinese history. Reflects the proactive approach of the Chinese government in cracking down on food scandals Scope includes both domestically produced and imported foods More emphasis on the supervision and control of every step of food production, supply chain, distribution, product sale, and recall. Special provisions for high risk including dairy, infant formula, baby food, health and wellness products Addressed food sold on third-party trading platforms and food imported through e-commerce channels. E-COMMERCE LAW OF THE PEOPLES REPUBLIC OF CHINA (2018) (scheduled to be implemented 1 Jan 2019) Focuses on consumers privacy and rights and more emphasis on the obligations and responsibilities of the e-commerce platforms. Promotes e-commerce development whilst ensuring its convergence with other trade channels (e.g. tax collection) 9

11 Selecting the Optimal China Import Pathway(s)... General Trade Entity, ingredients, product & label compliance Storage & handling costs Product integrity Production quality control Border clearance lead times Business to Business Product Compliance Export Logistics Bonded Storage Customs Clearance Compliance Testing Product Distribution Supply chain management Shipment lead times Shipment track & traceability Tariffs & taxes Product integrity Process transparency Business to Customer 7

12 Selecting the Optimal China Import Pathway(s)... Cross Border ecommerce (CBEC): Export strategy Individual transaction & annual spend limits Production flexibility Storage & handling costs Pick & pack costs Customer delivery lead times Economies of scale Product quality control Tariffs & taxes Market access approval Last mile delivery Product integrity Pick & Pack (Origin) Online Order General Storage Pick & Pack Export Logistics Customs Clearance Customer Delivery Pick & Pack (Destination) Export Logistics Bonded Storage Online Order Pick & Pack Customs Clearance Customer Delivery 7

13 Managing Non Tariff Measures Entity Compliance Shipment Compliance Legal structure Licenses & accreditations Intellectual property Infrastructure & facilities Product testing Export preparation Export / import documentation Customs / quarantine clearance Sustainable Market Access Ingredients Formulation Labelling Product provenance Supply chain transparency Product recall Product Compliance Market Compliance 10

14 Understanding the Consequences of Non Compliance Non Compliance Consequences Example: China Customs (CIQ) Monthly Blacklist HS Code CIQ No. Product Name Full Cream Fresh Milk 嘉仕堡巴氏杀菌乳 Fresh milk Country of Origin 澳大利亚 Australia 新西兰 New Zealand Manufacturer's name Importer Name Weight(KG) Unqualified Reasons 超出保质期 More than shelflife 大肠菌群超标 excessive levels of bacteria Treatments Types Imported Port 上海 Shanghai 广东 Guangd ong Imported Date(MM/YY) Indicates poor temperature control during transit 嘉仕堡巴氏杀菌乳 Fresh milk 新西兰 New Zealand Indicates incorrect documentation 大肠菌群超标 excessive levels of bacteria 广东 Guangd ong 脱脂乳粉 Skimed Milk Powder 新西兰 New Zealand 包装不合格 Unqualified package 浙江 Zhejia ng 宝莱牌脱脂调制乳 Pura recombined milk 澳大利亚 Australia 超出保质期 More than shelflife 上海 Shanghai 嘉仕堡巴氏杀菌乳 Fresh milk 新西兰 New Zealand 大肠菌群超标 excessive levels of bacteria 广东 Guangd ong 全脂原味酸乳粉 Whole Milk yoghurt powder 新西兰 New Zealand 超出保质期 More than shelflife 上海 Shanghai 脱脂原味酸乳粉 skimmed yoghurt powder 地中海原味酸乳粉 unsweetened Greek style yogurt powder 新西兰 New Zealand 新西兰 New Zealand Indicates delayed border clearance 超出保质期 More than shelflife 超出保质期 More than shelflife 上海 Shanghai 上海 Shanghai 11

15 Thank You...Any Questions? 11