BC Beef Market Development Research Project for Asian Markets in Greater Vancouver Prepared by Dr. Warveni Jap Thompson Rivers University School of Business and Economics Kamloops, British Columbia, Canada Saturday, April 20, 2013
Table of Content The Summary of the Research Findings Canada Demographic Trends Canada population trends Chinese population trends Chinese Diet & Food Consumption Chinese Consumer Behavior in Canada Chinese Consumer Behavior on Beef Demand Research Findings Conclusion Recommendations Q & A
The Summary of the Research Findings
# of Research Trips /Contacts to Greater Vancouver in 2012 --- 1/2 2 visits in October 2012 to approach the necessary Chinese connectors and preliminary surveys & contacts with Chinese meat distributors 6 different contacts October 5-7, 2012 October 19-21, 2012 total 6 days
# of Research Trips \Contacts to Greater Vancouver in 2012 --- 2/2 1 visit on December 5-23, 2013 (19 days) For preliminary approaching & networking with the Chinese middle-upper end restaurants Head Chefs, Purchasing Managers, and Restaurant Owners to build better relationship (or guanxi ) For understanding further about their business needs & wants on beef products 13 contacts For conducting surveys & interviews with them
Overview Findings from the Trips in December 2012 --- 1/4 Unaware the existence of BC Beef they assumed all Canadian beef are from Alberta Would strongly support BC beef to foster BC local economy to offer better & healthier beef to their Chinese consumers Those relatively large scale Chinese restaurants prefer to have daily delivery except Sundays
Overview Findings from the Trips in December 2012 --- 2/4 To maintain the freshness & high quality beef Limited storage space in their restaurants due to high daily sales turnover with high inventory turnover For better communication, they highly appreciate if the sales rep can speak fluent either Chinese Mandarin or Chinese Cantonese, preferably Chinese Cantonese.
Overview Findings from the Trips in December 2012 --- 3/4 Do not mind to pay higher price with much higher quality beef Provide consistent and sustainable high-quality beef if the Chinese markets accept it very well The introduction of BC beef gives them new business opportunities from new menu development
Overview Findings from the Trips in December 2012 --- 4/4 Samples are needed & necessary for internal experiments and initial trials with their close & loyal customers for seeking their feedbacks Seemed very enthusiastically willing to try BC beef samples ASAP Superior & mutual trust customer services with Chinese restaurants are crucial for establishing lucrative, long-term, and sound relationship
Demographics Canadian Population Trends
Canada Population Note: Population estimates as of July 1. Source: Statistics Canada, CANSIM table 051-0005. 1996 2006 2011 p number Canada 29,610,218 32,576,074 34,482,779 Newfoundland and Labrador 559,698 510,313 510,578 Prince Edward Island 135,737 137,920 145,855 Nova Scotia 931,327 938,010 945,437 New Brunswick 752,268 745,674 755,455 Quebec 7,246,897 7,631,552 7,979,663 Ontario 11,082,903 12,665,346 13,372,996 Manitoba 1,134,196 1,184,031 1,250,574 Saskatchewan 1,018,945 992,122 1,057,884 Alberta 2,775,133 3,421,253 3,779,353 British Columbia 3,874,317 4,243,580 4,573,321 Yukon 31,387 32,276 34,666 Northwest Territories 41,741 43,198 43,675 Nunavut 25,669 30,799 33,322 p preliminary
Canada Population Growth Source: Statistics Canada, CANSIM table 051-0004.
Immigrants who landed from 2001 to 2006, by region of origin Source: Statistics Canada, 2006 Census of Population.
Population projection, by visible minority group 2006 2031 1 thousands % thousands % Total population 32,522 100.0 42,078 100.0 All visible minorities 5,285 16.3 12,855 30.6 Chinese 1,269 3.9 2,714 6.4 South Asian 1,320 4.1 3,640 8.7 Black 815 2.5 1,809 4.3 Filipino 427 1.3 1,020 2.4 Latin American 317 1.0 733 1.7 Southeast Asian 250 0.8 449 1.1 Arab 276 0.8 930 2.2 West Asian 164 0.5 523 1.2 Korean 148 0.5 407 1.0 Japanese 85 0.3 142 0.3 Other visible minorities Source: Statistics Canada, Catalogue no. 91-551-X. 213 0.7 489 1.2 Rest of the population 27,237 83.7 29,222 69.4
Demographics Chinese Population Trends in Canada
Chinese Immigrants/Population in Canada --- 2010 Description Population Size Remarks Canada 34,000,000 approximately Chinese Population in Canada 1,269,000 4% of total Canada popul. 30% of BC popul. BC Population 4,473,321 13% of Canada popul. BC Immigrants 831,265 Chinese Immigrants 381,535 46% of BC Immigrants; Mostly live in Greater YCR
Chinese Population Distribution in Canada Rank Province Population 1 Ontario 596,980 2 British Columbia 407,225 3 Alberta 120,275 4 Quebec 79,830 Total 1,204,310
Greater Vancouver Map
Chinese Population Distribution in Canadian Major Cities ---2006 City Population Remarks Toronto 486,330 Vancouver 381,535 Montreal 72,105 38% Calgary 66,375 Edmonton 47,200 Ottawa 32,445
Year Chinese Population Size in BC & Canada Population Size In British Columbia Population Size In Canada 2010 407,225 1,204,310 2017 600,000 1,800,000
Chinese Population Distribution in Greater Vancouver --- 2006 City Population % of Total Population of the City Vancouver 168,215 29.4 Richmond 75,725 43.6 Burnaby 60,765 30.3
Chinese Diet & Food Consumption
Chinese Consumer Behavior in Canada Avg. household income: $104,000 Middle-aged Travel abroad frequently Drive luxury cars Attend investment shows Go to a lot of classical music concerts Active in community affairs Donate $$$ to political & cultural groups Mostly universityeducated consumers Early adopters Patronize high-end stores for the latest in fashion & technology
Chinese Consumer Behavior & Perception on Demand
Chinese Consumer Behavior on Beef Demand Freshness Hygine & Food Safety Convenience Fat / Tenderness Price: very price sensitive Internal Organs Other Consideration/ Consumption Highest in winter Lowest in summer Is thought to increase strength & stamina often considered a man s food Consumed by women & children is encouraged as a healthier alternatives to other protein options
Research Findings
Q #1: What is the value of the following attributes of locally produced beef to you and your guests eating experience? (n= 11) Attributes Highly Valued Valued Slightly Valued Taste & juiciness 64 % 27 % 9 % - Consistent tenderness 73 27 - - Supporting the local economy 36.5 45.5 18 No Value Reducing food miles 18.5 45.5 9 27 Health aspects (no antibiotics & growth implants) Environmental sustainability of production systems 45.5 54.5 - - 28 36 18 18 Dry aging 14 days 18 37 27 18
Which sample (different levels of finish) would you prefer in buying BC Beef? Types of Samples % Tenderloin 50 Short loin 28.6 Striploin 14.3 Boneless 7.1 Other Kobee Beef, AAA
If Okanagan s Finest or a similar BC Beef Brand can offer all of the items you have chosen as having value, what % premium are willing to pay over the commodity brands? % Yes ( % ) No ( % ) Remarks 5 10 - - Depends upon the price is a generic answer. 10 15 - - 15 20 - - 25 30 - - Other - -
The BRAND name of the supplier is very important for our business Yes (%) No (%) 100 -
Do you currently know the origin of the beef you are buying? Yes ( % ) No ( % ) 36 64
Have you heard of any brands of BC Beef that have been grown, finished, and processed in BC and are free of antibiotics and growth implants? Yes ( % ) No ( % ) 27 73
Appropriate MEAT CUTs are very important for our business Yes ( % ) No ( % ) 91 9
We buy the following types of beef Types of Beef Minimum ( lbs / week ) Maximum ( lbs / week ) nin nan (Chinese stew) 10 60 Shanks - 20 Stir Fried Beef 20 100 Short Beef (thick meat, short bones) - 30 Tripe 15 30 Beef Tendon 30 40 Ground Beef - -
PACKING SIZES are very important for our business (1/2) Yes ( % ) No ( % ) 100 -- Remarks Prefer: 10 lbs/pack 25 lbs/pack
PACKING SIZES are very important for our business (2/2) Preferred Size Yes ( % ) No ( % ) SMALL 36.5 - MEDIUM 45.5 - STANDARD 18 -
Prefer Package with Yes ( % ) No ( % ) Does Not Matter ( % ) 55.5-44.5
Customer Services Description Prefer sales & service directly from the producer brand Yes ( % ) 55.5 Prefer sales & service thru our existing distributor 64 Prefer the sales rep can speak Cantonese with us 82 Prefer the sales rep can speak Mandarin with us 82 Would you be willing to work with a BC Brand, and to accept frozen product to assist them in growing their capacity 82 No ( % )
Customer Service: Delivery 1-2 Times/Week Daily (except Sundays) 63 % 37 %
Payment Preferred Method of Payment Yes ( % ) No ( % ) TT (electronic bank transfer) - - Cheque 91 - Cash - - Other - - Preferred Payment Due Date Preferably within 30 60 days after delivery
Any Comments or suggestions to BC Beef Industry for better business relationship with your company? --- (1/3) Fair & reasonable prices High quality products Good and sustainable delivery Chinese sales service appreciated Strongly support BC beef
Any Comments or suggestions to BC Beef Industry for better business relationship with your company? --- (2/3) Ask food experts to make menu to promote Advertise BC Beef in both languages (i.e., English and Chinese) The Association should sponsor the Annual BC Chef of the Year for promotion Interested in trying the sample from the Association
Any Comments or suggestions to BC Beef Industry for better business relationship with your company? --- (3/3) BC Beef needs to be promoted more aggressive Look forward to the samples Open to have new relationships with other beef supplier
Conclusion
Conclusion --- 1/2 Chinese population in BC is growing rapidly that consists of 30% of Greater Vancouver s population They are affluent & educated consumers High-quality lifestyle oriented The beef demand for Chinese markets in Greater Vancouver is untapped and significant
Conclusion --- 2/2 The high-end Chinese restaurants are eager to try and promote BC beef to their business, and also are willing to support local economy Unaware of BC beef products and brand Prefer to have Chinese sales rep Look forward to establishing sound & longterm relationship with BC Beef Industry based on mutual trust and benefits
Recommendations
Recommendations --- 1/4 Unaware of BC Beef brands & products can be perceived as an excellent business opportunity to expand BC Beef brands & products to Chinese markets in Greater Vancouver if proper brand management and delivery services are implemented strategically and professionally.
Recommendations --- 2/4 Adopt niche marketing strategy for differentiation strategy and profit optimization Chinese put a great deal of loyalty and mutual trust & benefits in their business relationship
Recommendations --- 3/4 Develop bilingual (i.e., English & Chinese) meat chart + code number Provide the requested samples timely for their trials and developing new menus with BC Beef Eventually, may need a strategic-alliance distribution center in Lower Mainland for providing better services and logistic coordination to the Chinese clients
Recommendations --- 4/4 Design and create the concept of green marketing, event marketing, and buzz marketing activities to promote BC Beef brand awareness to Chinese Asian markets in Greater Vancouver successfully, efficiently, effectively, and profitably. Actively participate and sponsor in BC Beef Day to create and promote BC Beef brand
Event Marketing 1. Greater Vancouver Oliver ranches 2. BC Beef Association reps Greater Vancouver