Opportunities for Singaporean brands in China on the rise: Mintel

Research by Mintel shows that following food scares like the 2008 milk scandal, and with demand for foreign brands at a premium, Chinese consumers are paying more attention to the country of origin of products.

It said a lack of trust in domestic products has led to a recent upswing in the sales of foreign companies across the food sector, pointing to a 400 per cent growth in the premium baby food category in the past six years.

“Singapore has very tight laws on food safety as does Malaysia, and I think that is a real advantage for companies based in this region to use that as a strength in marketing their products in China,” said Matthew Crabbe, Mintel’s director of Asia Pacific research.

Mintel said as many as 67 per cent of urban Chinese consumers say looking at the name and address of the manufacturer and distributor is an important factor of purchase. A further two-thirds claim they check for an industry certification label.

For Singaporean companies eyeing the massive market opportunity in China, it might be the right time to consider entry, it said.

But Crabbe added that foreign brands must move carefully, warning that he has seen “a lot of very big companies make some very big mistakes” in the market.

"If companies are serious about moving into China I think they have to move pretty quickly," he said. "But they also have to decide exactly what it is they are going to do. They really need to understand the market properly before they go wading in."

Crabbe added that value for money remains key, but innovation, improvement and individualisation are increasingly what differentiates brands to succeed among the mass of competitors.