Lexi Webster
Australian brands are becoming increasingly popular in China, with a growing middle class of consumers seeking more 'international' products. Chinese consumers are drawn to Australian products for various reasons, including their reputation for quality and safety, the pristine image of Australia, and the alignment of certain products with traditional Chinese values and ingredients. In recent years, Australian companies have successfully carved out a strong reputation in sectors like health and wellness, beauty, food and beverage, and wine.
| Characteristics | Values |
|---|---|
| Dairy products | 58% of Chinese online shoppers view them as world-class |
| Health supplements | 39% view them as world-class |
| Baby products | 31% view them as world-class |
| Skincare products | 25% view them as world-class |
| Fresh seafood and meat | 24% view them as world-class |
| Fresh fruit and vegetables | 20% view them as world-class |
| Wine | 20% view them as world-class |
| Leather goods | NA |
| Alcohol | NA |
| Health products | NA |
| Beauty products | NA |
| Fashion | NA |
| Snacks | NA |
| Food products | NA |
| Honey | NA |
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What You'll Learn
Health and beauty products
Australian health and beauty products are highly regarded in China, with a reputation for quality and safety. This positive perception has led to Australian brands becoming market leaders in China, with consumers actively seeking out their products.
Health Products
The health product sector in China has been impacted by scandals involving local products, leading to a shift in consumer preferences towards international options. Australian health products have benefited from their reputation as "clean and green", which appeals to Chinese consumers. The 'daigou' phenomenon, where personal shoppers buy goods overseas for consumers in China, has further solidified the popularity of Australian health products.
Australian health brands like Swisse and Blackmores have successfully tapped into the Chinese market. For example, Blackmores is a top-selling brand on Tmall Global, an influential Chinese e-commerce platform. These brands have utilised strategic partnerships and digital engagement to connect with Chinese consumers.
Beauty Products
Australian beauty brands have also made significant inroads into the Chinese market, leveraging their reputation for high-quality, natural ingredients and sustainable practices. The growing demand for natural and organic beauty products in China has aligned with the strengths of Australian brands.
Australian beauty companies have effectively utilised digital marketing and social media platforms, such as Weibo and Xiaohongshu, to increase their visibility and build brand loyalty. They have also collaborated with Key Opinion Leaders (KOLs) and influencers, who are heavily relied on by Chinese consumers for product recommendations.
Additionally, the preference for natural products in China has extended to skincare, with Australian brands like Australian Creams, owned by G & M Cosmetics, gaining recognition for their organic, cruelty-free formulas featuring Australian ingredients. The brand has been ranked the "most recognised Australian brand in China" and is widely available in the country.
Overall, Australian health and beauty products have successfully tapped into the Chinese market by offering premium, natural, and trustworthy options, leveraging digital strategies, and understanding the preferences of Chinese consumers.
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Dairy products
In recent years, there has been a growing trend among Chinese consumers to purchase Australian products online, with 81% of surveyed Chinese online shoppers having bought at least one Australian product in the past. This shift towards online shopping has made it easier for Australian businesses to export their products to China and reach a wider customer base.
Australian dairy brands such as Maxigenes and Devondale are particularly popular in China, with their milk powders being top picks on Chinese e-commerce platforms like Tmall. Other well-known Australian milk brands that are owned internationally include Dairy Farmers, Masters, Pura Milk, Dare, Farmers Union, Big M, Vitasoy, and Yoplait. These brands offer a range of dairy products, including fresh milk, flavoured milk, soy milk, coconut milk, and yoghurt.
China's growing demand for dairy products can be attributed to several factors. Traditionally, dairy was not a significant part of the Chinese diet due to lactose intolerance, but changing times and tastes have led to an increase in dairy consumption, especially among the younger generation. Additionally, the tragic milk poisoning scandal in 2008, which resulted in the illness and death of many children, has made Chinese consumers more cautious about the safety of domestic dairy products.
To meet the increasing demand for dairy products in China, Australian dairy companies have invested significant capital in upgrading their infrastructure. This expansion is strategically aimed at increasing production for the export market in Asia, with China as the primary focus. By investing in new and upgraded dairy factories, Australian dairy companies are well-positioned to capture the growing demand for quality and safe milk products in China.
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Baby formula
The demand for Australian baby formula in China has resulted in a lucrative industry, with tins that retail for around $25 to $30 in Australia selling for upwards of $45 online and up to $100 in China. This price discrepancy has attracted resellers, who make substantial profits by purchasing formula in Australia and shipping it to China. The demand is so high that it has resulted in shortages in Australian supermarkets, causing frustration among local parents who are unable to find formula for their children. This issue has led to confrontations between Australian shoppers and Chinese personal shoppers, who are buying in bulk.
To address the issue, Australian supermarkets have implemented purchase limits on baby formula, with the maximum number of cans allowed being reduced from eight to two. However, these limits have been challenging to enforce, and there have been reports of Chinese personal shoppers flouting the restrictions. The demand from China has also resulted in increased competition among Australian logistics companies specialising in shipping food products to China, with many offering cheap shipping rates.
Australian baby formula manufacturers have recognised the opportunity presented by the Chinese market and have taken steps to increase their exports to China. For example, Bubs Australia, a maker of premium baby food and goat milk-based formula, signed a distribution deal with QianJiaWanPu Co., China's largest distributor of infant nutrition products. This deal will make Bubs' products available in 80,000 Mother & Baby Stores (MBS) across China. Additionally, brands like Bellamys have started exporting heavily to China, reducing the reliance on Daigou shoppers, who buy formula in Australia and send it to China.
To summarise, baby formula is a highly desired Australian product in China due to concerns about the safety of domestic dairy products. This demand has resulted in a grey market, bulk buying, and reselling, leading to tensions with Australian shoppers and retailers. However, it has also created opportunities for Australian manufacturers to expand their exports and capitalise on the demand for their products in China.
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Beef
China's demand for high-quality beef is growing, fuelled by a growing middle class with a preference for premium-grade meat. This shift in taste has led to a surge in demand for Australian beef, with Chinese buyers increasingly seeking alternatives to US beef.
Australian beef is well-regarded for its quality, taste, and safety, and the country has a large productive capacity to meet the demands of Chinese consumers. The perception of Australian beef as superior to American beef in terms of taste and price has contributed to its popularity in China.
In addition, the China-Australia Free Trade Agreement (ChAFTA) has played a significant role in facilitating the export of Australian beef to China. ChAFTA, which came into force in December 2015, addressed the competitive disadvantage faced by Australian exporters due to tariffs, giving them a significant advantage over competitors like the US.
The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) predicts that China's demand for agricultural products will more than double by 2050, indicating a positive outlook for Australian beef exports.
While some concerns about potential inflation due to the increasing demand for Australian beef in China have been raised, the overall trend suggests a growing preference for Australian beef among Chinese consumers.
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Organic food
Chinese consumers have a strong preference for Australian-made products, particularly in the FMCG sector, where the safety and standard of ingredients are important. Australian products are widely regarded as premium quality, value for money, and trustworthy. This perception has led to the success of Australian brands in China, where they are not just participating but leading the way in various industries, including health, beauty, and food and beverage.
One of the key factors driving the demand for Australian organic food in China is the concern over food safety and health. China has experienced several food scandals, including high levels of heavy metals in rice and the use of growth hormones and steroids in meat production. As a result, Chinese consumers are seeking cleaner and greener food options, and Australian organic food is perceived as meeting these requirements.
To capitalize on this demand, Australian organic food brands need to understand the drivers behind the organic food trend in China and partner with savvy distributors and local customer service representatives. Marketing plays a crucial role, and companies need to localize their efforts to communicate effectively the organic and authentic nature of their products.
Some specific examples of Australian organic food products that are popular in China include honey, baby formula, and wine. Chinese consumers value Australian honey for its perceived natural healing abilities and authenticity. Baby formula is another sought-after product, with over half of Chinese mothers preferring Australian options due to their quality and organic choices. Wine is also a notable export, with Australia claiming the top spot as the leading imported wine origin in mainland China.
In addition to these, other Australian organic food products, such as gluten-free ramen noodles, cacao powder, and various health and wellness supplements, are also finding success in the Chinese market, catering to the growing demand for healthy and natural options.
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Frequently asked questions
Popular Australian products in China include dairy, honey, baby formula, health supplements, skincare, wine, gourmet food, and cosmetics.
Australian products are often perceived as trustworthy, safe, and of higher quality compared to local alternatives. The country's pristine image and association with cleanliness make its products appealing to Chinese consumers seeking healthy and natural options.
Australian brands have a positive reputation among Chinese consumers. A survey found that 81% of Chinese online shoppers aged 18 to 44 in major cities had purchased at least one Australian product online. Many respondents cited the appealing Australian way of life, value for money, and product safety as reasons for their preference.
Australian brands often leverage digital marketing strategies and a keen understanding of Chinese consumer preferences. They emphasize natural and ethical production, and some incorporate Australian ingredients that echo traditional Chinese medicine, adding a layer of familiarity and trustworthiness.
