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2019 DAXUE CONSULTING
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THEHEALTHY
SNACKSMARKETIN
CHINA
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Healthy snacks are becoming more popular in China
The demand for healthy snacks is sharply
increasing
Small and personalized packages are
becoming popular
Large domestic brands (three squirrels and
etc.) are leading the healthy snacks market
E-commerce platforms (Tmall/Taobao, JD and
etc.) are the dominant sales channel
Social media (Weibo and WeChat) and popular TV
shows are important promotion channels
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History of the
healthy snacks
market in China
In China, many healthy snacks are from Chinese medicine
(such as walnuts and Chinese date), but some of them are
not popular among young consumers for their lighter flavors.
Chinese people consume healthy snacks for reasons such as
weight loss, boosting the immune system, and disease
prevention.
After the reform
and opening up in
1978
1990’s
The 21st century
International brands entered
Chinese market after the reform
and opening up, but they mainly
provided common snacks (sweets,
cookies and etc.).
More healthy snacks have been
appeared in China, but common
snacks were still popular than
healthy snacks for their better
tastes, and Chinese consumers
haven’t had strong health
consciousness.
Due to the growth of the importance of
healthy habits, more Chinese consumers
started to choose healthy snacks, some
people eat fresh fruit as snacks. Besides,
more types of healthy snacks have been
accepted by consumers (such as dry fruit).
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Market drivers for international brands in China
1.
2.
3.
4.
5.
Huge demand for healthy snacks
Increasing health awareness among Chinese people
Quickly attracting much attention by using Chinese celebrities as
spokesmen
E-commerce platforms (Taobao/Tmall, JD and etc.) reduce market barrier
Social media platforms (Weibo and WeChat) allow effective interaction
with consumers
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CONSUMPTION
ANALYSIS
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Consumption and
market size in China
As one of the most popular healthy snacks, nuts perfectly fit
Chinese people’s rising demand for healthy eating, therefore,
the nuts’ market size has been rapidly growing for several
years in China.
Yogurt is also a popular healthy snacks, its market size has
continuously increased with around 18% growth rate. But,
consumers only can find sugar-free yogurt in import stores
and specialized yogurt shops in China.
Source: Bosidata.com
55.6
64.4
72.8
88
0
10
20
30
40
50
60
70
80
90
100
2014 2015 2016 2017
BillionRMB
Market size of nuts in China
(billion RMB–2014-2017)
101.0
119.2
140.0
2016 2017 2018F
The market size of yogurt in China
(billion RMB– 2016-2018)
Source: Askci.com
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Before purchasing healthy snacks, Chinese consumers prefer
to do their own research using as tools word of mouth
(asking their friends / relatives) and search on online
platforms, such as WeChat, Weibo, Zhihu, Xiaohongshu (小红
书) and etc. On the platforms, opinions and experience
mainly comes from KOLs, celebrities and other healthy
snacks buyers.
Desire for
healthier snacks
Family’s and friends’
opinions
Social media
(WeChat and Weibo)
Q&A platforms
(Zhihu)
Life-sharing apps
(Xiaohongshu)
Purchase of
healthy snacks
Offline stores
(supermarket, brands
stores and etc.)
E-commerce
(Taobao/Tmall, JD
and etc.)
Consumer analysis:
Chinese people’s
purchase journey for
healthy snacks
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Baidu Index –
Interest trends
toward the
segments (1/2)
The number of searches of healthy snacks
reached the lowest point in February 2018
during the Spring Festival.
The number of searches of dry fruit sharply
increased early February and reached the
highest point in the Spring Festival, since dry
fruit is one of the desired gifts for the Chinese
New Year.
The search frequency of
“healthy snacks” in 2018 on
Baidu index
The search frequency of “dry
fruit” in 2018 on Baidu index
Baidu is the #1 search
engine in China. The
volume of search
(more than ¾ of the
total search made on
Chinese Internet)
exhibits the market
digital trends
The Spring
Festival in China
The week of the Spring
Festival in China
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Baidu Index –
Interest trends
toward the
segments (2/2)
The number of searches of nuts reached the
highest point in May 2018 when the well-
known snacks brand QiaQia (洽洽食品)
launched its new arrivals (nuts).
The search index of yogurt showed fast
increasing from February to March 2018 when
various new arrivals (yogurt products) were
launched by Chinese brands.
The search frequency of “nuts”
in 2018 on Baidu index
The search frequency of
“yogurt” in 2018 on Baidu
index
Baidu is the #1 search
engine in China. The
volume of search
(more than ¾ of the
total search made on
Chinese Internet)
exhibits the market
digital trends
New arrivals launched
by QiaQia
Chinese brands launched
some new arrivals
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Baidu Index –
Semantic analysis
(1/2)
The most related keywords to
“Healthy snacks” are “office
snacks”, “healthy snacks for
kids”, “top 10 healthy snacks
list” and “what are healthy and
tasty snacks”
The most related keywords to
“Dry fruit” are “dry fruit
stores”, “different types of dry
fruit”, “nuts”, “pictures of dry
fruit” and “pictures of 50 types
of dry fruit”.
Dry fruit
Health snacks
What are
healthy
and tasty
snacks
Health
snacks
for kids
Office snacks
Top 10 healthy
snacks list
The list of
healthy
snacks
What are healthy snacks
for kids
Cashew
Nuts
Pictures of
50 types of
dry fruit
The types of dry fruit
Pictures
of dry
fruit
Snacks
What are
types of Dry
fruit stores
Dry fruit
stores
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Baidu Index –
Semantic analysis
(2/2)
The most related keywords to
“Peanuts” are “peanuts shells”,
“price”, “the effects and
functions of peanuts” and
“current price of peanuts”.
The most related keywords to
“Chestnuts” are “the effects
and functions of chestnuts”,
“the chestnut tree”, “how to
peel chestnuts”, “price of
chestnuts” and “stewed
chicken with chestnuts”.
Peanuts
Price
Chestnuts
Peanuts
shells
Current price of peanuts
Functions
The effects
and functions
of peanuts
Price of
peanuts
Peanuts
Chestn
ut tree
The effects and
functions of chestnuts
How to peel
chestnuts
Prices of
chestnuts
Stewed
chicken
with
chestnutsEffectsPrice
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Consumer
Questions
On Zhihu and other platforms, the
main questions about healthy
snacks consist of the following:
• What are tasty and healthy
snacks for office staff, elderly
and kids?
• Where can you purchase
healthy snacks (different types)?
• How to choose healthy snacks
in our daily lives?
“Low calories and sugar”
frequently shows up in many
questions. They are important
features of healthy snacks.
Are there any tasty,
healthy and low-calorie
snacks for the office?
dry fruit, such as dried
strawberries, dried apples,
dried blueberries and dried
apricots can replace
candy. Highly recommend
diced apples and
strawberries crisps.
Quest bar, different tastes
with different calories.
60g per quest bar, 160
calories, 20g protein, 17g
dietary fibber, 6g fat and
3g net carbs.
Are there any healthy
snacks on Taobao?
1. dry fruit, such as
dried bananas, dried
pineapple, dried
strawberries and
etc.
2. Dehydrated
vegetables
3. Preserved fruit and
plums
Zhihu is the first Q&A website. in China, and
has transitioned to a social media sharing
platform gathering more than 100 million
answers on various topics. The platform is
especially relevant to reach higher-, well-
educated social classes
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Consumer positive
feedback
On social media (Weibo and WeChat) positive
feedback/ posts about healthy snacks focuses
on the following aspects:
• Most of them are nutritious
• Replenish electrolytes quickly
• Effectively restrains the growth of bad
bacteria
These five types of healthy snacks, they are tasty
and have lots of calcium
1. Nori with original tastes 2. Black Sesame Drink
3. Dried vegetables 4. Cheese 5. Black soybean
milk
The post has 14,789 views and 45 likes on WeChat.
The healthy snacks of middle-aged and elderly people
1. Peanuts, they can quickly enriching blood
Peanuts contain lots of iron, they can promote the
blood generation ability of the marrow.
2. Yogurt, it can inhibit bacteria
Yogurt contains lactobacillus that can protect intestines
and create biologic barrier to suppress bad bacteria in
the intestines of the growth.
Wechat is the #1
social media in
China and an
absolute must-have
for a market entry
promotion. It
accounts for over 1
billion active users
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Consumer negative
feedback
On social media (Weibo and WeChat) negative
feedback/ posts about healthy snacks focuses
on the following aspects:
• They may have unhealthy properties
• Nutrition loss during processing (dry fruit
looses its original nutrition)
• Too much food additives
Eating too many nuts can seriously harm your health
Although nuts contain high amounts of vitamins, proteins and
trace elements, but nuts also have lots of fats. It is said that
“50g peanuts have 50g oil, 50g melon seeds have 100g oil”.
Besides, some kinds of nuts contain carbohydrates, such as
starch and sugar. If people eat too many nuts, their blood
sugar can raise easily
Exposing false healthy food! Yogurt, juice, dry fruit…… they
are not that healthy!
If you are a fan of various kinds of yogurt, please notice that
yogurt contains lots of sugar, otherwise, it will be too sour to
eat, despite it has less fat than ice cream. Besides, frozen
yogurt is more unhealthy, it is called frozen yogurt, but it
actually is more like ice cream. If you really like yogurt, please
buy a yogurt maker to control its sugar.
Sina Weibo is a
microblogging site
with nearly 400
million monthly users,
and is a well
leveraged platform to
spread marketing
campaign on Chinese
Internet
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Context of
consumption in
China
Based off information from
Weibo and WeChat, Chinese
consumers primarily consume
healthy snacks in the following
three ways:
1. Gifting to family and friends
during holidays, such as the
Chinese New Year.
2. Eating healthy snacks when
they are watching videos and
reading.
3. Eating healthy snacks during
a trip, like in train, aircraft
and etc.
The picture has been
taken from a buyer’s
home and shared on
Weibo. He bought
the healthy snacks
in a exquisite gift
box to his family and
friends as new year
gifts.
The pictures have
been taken from a
buyer’s home and
shared on Weibo.
The buyer is sharing
healthy snacks with
her daughter.
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Online trends :
Consumer
perception
On Tmall/Taobao and JD, other than good flavor, other
positive feedback includes recent production date/
freshness, fast delivery and low price.
Negative feedback focuses more on bad tastes, passing
the expiration date, high price and slow delivery.
The snacks are delicious and sweet. The snacks have a
vey good taste, my child and I both like the snacks. I will
buy it again.
I’m very satisfied with the quality of the banana chips,
the package is also very nice,. The production date is
new, I gave a good review.
This kind of snacks is very delicious, the price is
reasonable during the Double 12 (popular online
shopping day launched by Taobao.) The snacks are
cheap and they are made by fresh fruit. Can’t stop
eating them. I will buy it again.
The dried vegetables taste terrible, I threw them away
after I tasted them. The products have a strange smell
like alcohol.
The taste of the snacks has changed, probably because
the snacks have spoilt.
The snacks are not tasty at all. The packaging looks
cheap, but there are not a lot of the snacks in it.
Besides, it smells bad too.
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COMPETITION
ANALYSIS
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Market shares in
China
More than 60% of the market share of yogurt and nuts are
occupied by large domestic brands, which means nuts and
yogurt markets are both dominated by Chinese leading
players, since those brands have built high-end images (by
cool packages and using celebrities as spokesmen) and
their snacks’ flavors are more suitable to Chinese
consumers.
BESTORE
20% Three
squirrels
15%
QiaQia
12%
Laiyifen
11%
Bcw.com
7%
Others
35%
Market shares of nuts brands in
China (2017-2018)
Source: chyxx.com
Yili
27%
Mengniu
21%
Brightdairy
.com
15%
Others
37%
Market shares of yogurt brands by
sales revenue (early 2018)
Source: Forward-The Economist
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Competition
analysis: Nuts
The sales of domestic brands are much higher than
international brands on Taobao/Tmall.
For international brands, American and European brands
usually have relatively high prices. Asian brands (South
Korea, Japan and etc.) are cheap, but sales are quite a bit
lower than Chinese brands.
Brands
International
vs Domestic
Presence on
Tmall/Taobao
and JD
Sales on
Tmall/Taobao in
December 2018
Top seller
price on
Tmall
Price range on
Tmall/Taobao
(RMB)
QiaQia
(洽洽食品)
Domestic Yes 921,512 items 59.9 RMB 10.9 to 298
Kam Yuen
(甘源)
Domestic Yes 514,595 items 64.9 RMB 10.1 to 149.9
Kirkland
Signature
(柯克兰)
International Yes 48,964 items 189 RMB 79 to 535
Tom’s farm
(汤姆农场)
International Yes 45,790 items 47.8 RMB 7.9 to 184
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Competition
analysis: dry fruit
and vegetables
On Taobao/Tmall, the most sales of dry fruit and
vegetables come from domestic brands, even though
some international brands also have low prices.
Since Chinese brands (large brands) already have a good
reputation, they have been competitive players for years.
Brands
International
vs Domestic
Presence on
Tmall/Taobao
and JD
Sales on
Tmall/Taobao in
December 2018
Top seller
price on
Tmall
Price range on
Tmall/Taobao
(RMB)
Haoxiangni
(好想你)
Domestic Yes 823,548 items 38.8 RMB 18.8 to 500
Xiyumeinong
(西域美农)
Domestic Yes 436,676 items 15.1 RMB 9.9 to 109
Henry
Morgan
(亨利摩根)
International Yes 56,945 items 18.8 RMB 12.5 to 128
Jinzhentou
(金枕头)
International Yes 34,550 items 36 RMB 29 to 285
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Competition
analysis: Fruit and
veggie chips
For fruit and veggie chips, the healthy snack market's growth
are also higher than international brands on Taobao/Tmall.
In the context of the healthy snacks market, fruit and veggie
chips have relatively low sales, which means they haven't
been popular in China as healthy snacks.
Besides, most international brands come from Southeast
Asia, such as Vietnam, Thailand and Philippines.
Brands
International
vs Domestic
Presence on
Tmall/Taobao
and JD
Sales on
Tmall/Taobao in
December 2018
Top seller
price on
Tmall
Price range on
Tmall/Taobao
(RMB)
Elvish Bear
(熊孩子)
Domestic Yes 13,114 items 13.8 RMB 13.8 to 61
Xianjee
(鲜记)
Domestic Yes 29,851 items 22.9 RMB 7.8 to 37.5
SABAVA
(沙巴哇)
International Yes 4,731 items 35.9 RMB 10.8 to 109
DaGi
(道吉草)
International Yes 27,724 items 27.8 RMB 5.9 to 59.9
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E-commerce
landscape of the dry
fruit
As one of the most common
healthy snacks, dry fruit has a
big price range on Tmall.
Products with high sales
usually have relatively low
price, which means price is still
a important criteria for buying
dry fruit on Tmall
Most expensive SKU Cheapest SKU
Top seller SKU
•Three squirrels (三只松鼠)
•29.9 RMB
Top selling SKU
•9.9 RMB
•291.6 RMB
Price range of
the category
•0.37
•Market is still driven by price
Ratio top
selling price vs
average price
•80.8 RMBAverage price
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Business cases – Three Squirrels (三只松鼠)
Digital activity
As one of the most popular
snack brands in China, Three
Squirrels is known by its nuts
products. By using cute squirrels,
the brand successfully uses an
adorable image to sell nuts.
The content of its website
consists of brand introduction,
main products, recruitment
information and related events.
The brand quickly attracted a
large amount of Chinese
consumers by its packages
designs with cute squirrel
cartoons and the continually
updated tastes of snacks.
http://www.3songshu.com/
Platform Presence
Official
account
Volume (sales, product reviews
or traffic)
3songshu.com Yes Yes 14,778 visits per month
Taobao/ Tmall Yes Yes
20.8 million items in December
2018
JD.com Yes Yes More than 4 million comments
Kaola Yes Yes 32,791 followers
Pinduoduo Yes Yes 50,750 items per day
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Business cases – Three Squirrels (三只松鼠)
E-reputation in China
The most related keywords of
“Three squirrels” are “Three
squirrels flagship stores”,
“Three squirrels offline stores”,
“The quality problem of Three
squirrels was revealed”,
“official website of Three
squirrels” and “The logo of
Three squirrels”.
The brand usually released
advertising videos, new arrivals
introductions and discount
activities on its WeChat and
Weibo accounts.
Platform Presence Followers
Posting frequency in
December 2018
WeChat Yes 242,730 7 posts
Weibo Yes 762,391 43 posts
Three squirrels
Three squirrels
offline stores
The logo of Three
squirrels Three squirrels flagship stores
Three
squirrels
company is
listed
Official website of Three
squirrels
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Business cases – BESTORE (良品铺子)
Digital activity
BESTORE is a famous Chinese
high-end snacks brand, its
products cover most types of
snacks (includes healthy snacks).
By using popular famous
Chinese actors as spokesmen,
such as Kris Wu (吴亦凡),
BESTORE quickly raised their
brand awareness among
Chinese consumers. Its relatively
smaller packages make buyers
easily carried healthy snacks
during their journey.
The website of BESTORE
generally releases content about
new arrivals, important events
and brand stories.
http://www.517lppz.com/#page1
Platform Presence
Official
account
Volume (sales, product reviews
or traffic)
517lppz.com Yes Yes 8,198 visits per month
Taobao/Tmall Yes Yes
10.9 million items in December
2018
JD.com Yes Yes More than 2 million comments
Kaola Yes Yes 59,280 followers
Pinduoduo Yes Yes 3,091 items per day
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Business cases – BESTORE (良品铺子)
E-reputation in China
The most related keywords of
“BESTORE” are “BESTORE’s
official website”, “BESTORE’s
logo”, “How much is the
franchise of BESTORE” and
“Three squirrels”.
The brand posts lots of info
about new arrivals, discount/
lucky draw activities, its mobile
app, new spokesmen and
many videos of popular
Internet drama that sponsored
by BESTORE on its Weibo and
WeChat accounts.
Platform Presence Followers
Posting frequency
in December 2018
WeChat Yes 936,750 10 posts
Weibo Yes 680,631 90 posts
BESTORE BESTOR
E official
website
BESTORE’
s logo
Three squirrels
How much is the
franchise of BESTORE
Why BESTORE’s
products are so
expensive
Franchising
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Business cases – Be & Cheery (百草味)
Digital activity
Be & Cheery is a well-known
snacks and processed food brand
in China, it provides all types of
snacks to consumers.
The brand’s website mainly offer
info about its products (snacks),
brand stories, news and mobile
app.
Be & Cheery is focusing on online
sales and promotion channels,
around 80% of it’s sales revenue
came from online stores in 2017.
Besides, the brand achieved
significant exposure through
advertisements implanting in
China’s popular TV series
https://www.vipbcw.com/
Platform Presence
Official
account
Volume (sales, product reviews
or traffic)
Vipbcw.com Yes Yes 21,330 visits per month
Taobao/Tmall Yes Yes
13 million items in December
2018
JD.com Yes Yes More than 3 million comments
Kaola Yes Yes 15,963 followers
Pinduoduo Yes Yes 6,210 items per day
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Business cases – Be & Cheery (百草味)
E-reputation in China
The most related keywords of
“Be & Cheery” are “Be &
Cheery logo", "The official
website of Be & Cheery", " Be
& Cheery flagship stores" and
"Pagoda" (a popular fruit
brand in China).
Be & Cheery frequently posts
advertising videos and info
about its new arrivals, discount
accounts and company events
on WeChat and Weibo to
engage with its consumers
and followers in China.
Platform Presence Followers
Posting frequency
in December 2018
Wechat Yes 569,440 10 posts
Weibo Yes 612,638 135 posts
Be & Cheery
offline franchise
stores
The official
website of
Be & Cheery
Be & Cheery
flagship stores
Be &
Cheery
logo
Pagoda
Pictures
of Be &
Cheery
BESTORE
Be &
Cheery
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Comparing online
interest for leading
brands
On Baidu index, Three squirrels showed the highest search
frequency, BESTORE had the second highest search
frequency, however its search frequency was significant high
in August 2018 when the brand disclosed its strict food
safety detection process.
On WeChat index, BESTORE showed the highest search
frequency and reached the highest point in January 2019 for
the brand used the famous Chinese actor KRIS (吴亦凡) as its
new spokesman.
The search brands are
Three squirrels
BESTORE
Be & Cheery
Xiyumeinong
QiaQia
The search brands are
Three squirrels
BESTORE
Be & Cheery
Xiyumeinong
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Advertising –
case study
The advertising video was
released by a well-known snacks
(red date) brand Haoxiangni (好想
你). The brand focuses on
providing healthy and processed
red date to Chinese consumers.
Red date is a Chinese traditional
healthy fruit/snack and it has the
functions of enriching blood
(based on Chinese medicine),
resisting fatigue and etc. By using
different scenes and age groups,
the video effectively showed the
benefits to Chinese consumers
and highlighted the (processed)
date products from Haoxiangni
are also healthy.
https://v.youku.com/v_show/id_XMTY0NDc3Mjc3Ng=
=.html?spm=a2h0k.11417342.soresults.dtitle
This is a advertising video about red date (red date) launched by a Chinese snacks
brand Haoxiangni (好想你).
The video introduced the product (red date) as healthy snacks by 4 scenes.
1. Students eat red date when they ‘re reading 2. Family (kids and elderly) shares a
pack of red date 3 A woman eat a pack of red date in her office 4. Young people share
a pack of red date during their trip.
The video impliesthat Haoxiangni‘s red date can be eaten in different life scenes and
will be favoured by different age groups.
Only for the audience in
China
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Brand naming –
case studies
The Chinese names of healthy
snacks brands generally
contain two meanings:
1. Implies the types of snacks
provided by the brand.
2. Highlights the brand’s
(healthy) snacks have good
quality and taste.
Most Chinese names of
healthy snacks brands are easy
to remember (for consumers)
and they usually highlight
some advantages (quality,
tastes and etc.) of those
brands.
•“三只松鼠” is the Chinese name of “three
squirrels”.
•The name created a cute image for the brand
and implies that nuts are the main products of
the brand (nuts are the food of squirrels).
三只松鼠
(Three
squirrels)
•“良品” means “good quality items” and “铺子”
is a ancient name of “shops” in China.
•The Chinese name implies the brand only
provides high-quality snacks to Chinese buyers.
良品铺子
(BESTORE)
Justification /
reason /
detail #1
•About the brand’s name, “百” means hundred,
“草” means grass, “味” means flavor.
•The brand’s name highlights that it has a
myriad of flavors and options
百草味
(Be & Cheery)
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DISTRIBUTION&
PROMOTION
ANALYSIS
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Online retail
Coverage in China
The number of healthy snacks
brands on JD are far more than
Tmall/Taobao, mainly due to
the higher requirements and
deposit from Tmall for those
brands want to enter the
platform.
Many healthy snacks brands
already started to launched
discount activities and new
arrivals for the Spring Festival
in February 2019.
Market
segments
Number of brands
selling on
Tmall/Taobao
Number of
brands selling on
JD
Nuts 204 960
dry fruit and
vegetables
174 197
Fruit chips 169 253
Beef jerky 204 622
Dried
seaweed
204 644
Yogurt
199 288
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Offline retail:
Coverage in
Shanghai
Healthy snacks are mainly sold in supermarket, brand
stores, part of convenience stores (such as Family Mart),
import stores and specialized snacks shops. We use them
as examples of distribution channels for healthy snacks in
Shanghai.
Stores chains
Number of
stores in
Shanghai
Supermarket 1,169
Import
snacks store
639
Snacks
stores
1,489
Family Mart 1,238
Baidu Map: 1,169 results Dianping: 636 results
Supermarket
chains Import snacks
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On-the-shelf:
representation of the
category in stores
In China, consumers usually
purchase healthy snacks from
convenient stores, supermarket,
import stores and snacks brands
stores.
The prices of nuts are generally
higher than other healthy
snacks in offline stores. Many
brands are using smaller
packages that make healthy
snacks be easily carried.
In some stores, healthy snacks
have QR codes on their price
tags for consumers to scan (with
smart phone) and pay by
WeChat or Alipay.
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Online sales:
volume assessment
Sunflower seeds and peanuts both showed very high
sales in December 2018 on Taobao/Tmall.
For dry fruit, dry mangos had the highest sales on
Taobao/Tmall, which means mangos are very popular
fruit among Chinese consumers.
Nuts
Main brands
Way of ranking: general, popularity, new arrivals, sales and
price
Categories 2.34
5.38
2.58 3.10
Pecans Sunflower seeds Walnuts Peanuts
Sold items of nuts on Taobao/Tmall
(million–December 2018)
1.28
3.56
2.51
Dry strawberries Dry mangos Raisins
Sold items of dry fruit on Taobao/Tmall
(million–December 2018)
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Promotion channels to
leverage for international
brands in China
Dedicated Websites/Apps:
Lingshi.com (中国零食网)/
Lingshi.com app
LingshiKong.com (零食控)/
LingshiKong.com app
Xiaochanmao.net (小馋猫)/
Xiaochanmao.net app
Specialized Magazines:
DIET (饮食科学)
Food and Life (食品与生活)
Food and Health (食品与健康)
Lingshi.com (中国
零食网)is
specialized snacks
website, the
platform offers
most types of daily
snacks to
consumers, which
includes healthy
snacks.
DIET (饮食科学) is
a popular Chinese
food magazine, it
mainly provides
the knowledge of
healthy food and
snacks to Chinese
readers.
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KOL landscape in
China
For international brands, KOLs
are a huge part of modern
Chinese snacks promotions,
and healthy snacks consumers
are influenced by KOL’s shared
opinions and experiences.
China’s KOLs, who usually post
content about healthy snacks
on Weibo, mainly consist of
food/ snacks KOLs, health
KOLs and sports/ body
building KOLs.
This is a well-
known food KOL’s
Weibo account.
The KOL mainly
posts info about
different types of
snacks on Weibo
and healthy snacks
are an important
parts of her posts.
Her Weibo account
has 124,581
followers.
This is a well-
known health KOL
and writer. He
frequently posts
info/ knowledge
about health food
on Weibo, which
includes healthy
snacks. His Weibo
account has
691,110 followers.
The Key Opinion Leader (KOL), or influencers, are a
major part of the Chinese online journey, and therefore
of the online marketing funnels for international brands
in China. KOL will especially be as relevant to target
niche audience (micro-KOL) and mainstream consumers
(mass-market)
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MARKETTREND
ANALYSIS
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MARKETTRENDS
Increasing variety of healthy snacks
• For increasing competitiveness in China’s healthy snacks market, many
brands have started to provide multiple types of healthy snacks,
especially those brands only focus on a single type of healthy snacks in
the past.
More promotion through popular TV series/dramas
• Except advertising videos, large healthy snack brands (such as
BESTORE) are also trying to raising their awareness by implanting
brands’ names and logos in popular Chinese TV series.
Package design is becoming important
• In order to attract more attention from consumers and build brand
images, more Chinese brands have been working on personalized and
small package design that can show their features and be easily carried
by consumers.
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The healthy snacks market in China by Daxue consulting

  • 1.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Add cover picture 2019 DAXUE CONSULTING ALL RIGHTS RESERVED THEHEALTHY SNACKSMARKETIN CHINA
  • 2.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Healthy snacks are becoming more popular in China The demand for healthy snacks is sharply increasing Small and personalized packages are becoming popular Large domestic brands (three squirrels and etc.) are leading the healthy snacks market E-commerce platforms (Tmall/Taobao, JD and etc.) are the dominant sales channel Social media (Weibo and WeChat) and popular TV shows are important promotion channels
  • 3.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED History of the healthy snacks market in China In China, many healthy snacks are from Chinese medicine (such as walnuts and Chinese date), but some of them are not popular among young consumers for their lighter flavors. Chinese people consume healthy snacks for reasons such as weight loss, boosting the immune system, and disease prevention. After the reform and opening up in 1978 1990’s The 21st century International brands entered Chinese market after the reform and opening up, but they mainly provided common snacks (sweets, cookies and etc.). More healthy snacks have been appeared in China, but common snacks were still popular than healthy snacks for their better tastes, and Chinese consumers haven’t had strong health consciousness. Due to the growth of the importance of healthy habits, more Chinese consumers started to choose healthy snacks, some people eat fresh fruit as snacks. Besides, more types of healthy snacks have been accepted by consumers (such as dry fruit).
  • 4.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Market drivers for international brands in China 1. 2. 3. 4. 5. Huge demand for healthy snacks Increasing health awareness among Chinese people Quickly attracting much attention by using Chinese celebrities as spokesmen E-commerce platforms (Taobao/Tmall, JD and etc.) reduce market barrier Social media platforms (Weibo and WeChat) allow effective interaction with consumers
  • 5.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED CONSUMPTION ANALYSIS
  • 6.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Consumption and market size in China As one of the most popular healthy snacks, nuts perfectly fit Chinese people’s rising demand for healthy eating, therefore, the nuts’ market size has been rapidly growing for several years in China. Yogurt is also a popular healthy snacks, its market size has continuously increased with around 18% growth rate. But, consumers only can find sugar-free yogurt in import stores and specialized yogurt shops in China. Source: Bosidata.com 55.6 64.4 72.8 88 0 10 20 30 40 50 60 70 80 90 100 2014 2015 2016 2017 BillionRMB Market size of nuts in China (billion RMB–2014-2017) 101.0 119.2 140.0 2016 2017 2018F The market size of yogurt in China (billion RMB– 2016-2018) Source: Askci.com
  • 7.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Before purchasing healthy snacks, Chinese consumers prefer to do their own research using as tools word of mouth (asking their friends / relatives) and search on online platforms, such as WeChat, Weibo, Zhihu, Xiaohongshu (小红 书) and etc. On the platforms, opinions and experience mainly comes from KOLs, celebrities and other healthy snacks buyers. Desire for healthier snacks Family’s and friends’ opinions Social media (WeChat and Weibo) Q&A platforms (Zhihu) Life-sharing apps (Xiaohongshu) Purchase of healthy snacks Offline stores (supermarket, brands stores and etc.) E-commerce (Taobao/Tmall, JD and etc.) Consumer analysis: Chinese people’s purchase journey for healthy snacks
  • 8.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Baidu Index – Interest trends toward the segments (1/2) The number of searches of healthy snacks reached the lowest point in February 2018 during the Spring Festival. The number of searches of dry fruit sharply increased early February and reached the highest point in the Spring Festival, since dry fruit is one of the desired gifts for the Chinese New Year. The search frequency of “healthy snacks” in 2018 on Baidu index The search frequency of “dry fruit” in 2018 on Baidu index Baidu is the #1 search engine in China. The volume of search (more than ¾ of the total search made on Chinese Internet) exhibits the market digital trends The Spring Festival in China The week of the Spring Festival in China
  • 9.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Baidu Index – Interest trends toward the segments (2/2) The number of searches of nuts reached the highest point in May 2018 when the well- known snacks brand QiaQia (洽洽食品) launched its new arrivals (nuts). The search index of yogurt showed fast increasing from February to March 2018 when various new arrivals (yogurt products) were launched by Chinese brands. The search frequency of “nuts” in 2018 on Baidu index The search frequency of “yogurt” in 2018 on Baidu index Baidu is the #1 search engine in China. The volume of search (more than ¾ of the total search made on Chinese Internet) exhibits the market digital trends New arrivals launched by QiaQia Chinese brands launched some new arrivals
  • 10.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Baidu Index – Semantic analysis (1/2) The most related keywords to “Healthy snacks” are “office snacks”, “healthy snacks for kids”, “top 10 healthy snacks list” and “what are healthy and tasty snacks” The most related keywords to “Dry fruit” are “dry fruit stores”, “different types of dry fruit”, “nuts”, “pictures of dry fruit” and “pictures of 50 types of dry fruit”. Dry fruit Health snacks What are healthy and tasty snacks Health snacks for kids Office snacks Top 10 healthy snacks list The list of healthy snacks What are healthy snacks for kids Cashew Nuts Pictures of 50 types of dry fruit The types of dry fruit Pictures of dry fruit Snacks What are types of Dry fruit stores Dry fruit stores
  • 11.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Baidu Index – Semantic analysis (2/2) The most related keywords to “Peanuts” are “peanuts shells”, “price”, “the effects and functions of peanuts” and “current price of peanuts”. The most related keywords to “Chestnuts” are “the effects and functions of chestnuts”, “the chestnut tree”, “how to peel chestnuts”, “price of chestnuts” and “stewed chicken with chestnuts”. Peanuts Price Chestnuts Peanuts shells Current price of peanuts Functions The effects and functions of peanuts Price of peanuts Peanuts Chestn ut tree The effects and functions of chestnuts How to peel chestnuts Prices of chestnuts Stewed chicken with chestnutsEffectsPrice
  • 12.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Consumer Questions On Zhihu and other platforms, the main questions about healthy snacks consist of the following: • What are tasty and healthy snacks for office staff, elderly and kids? • Where can you purchase healthy snacks (different types)? • How to choose healthy snacks in our daily lives? “Low calories and sugar” frequently shows up in many questions. They are important features of healthy snacks. Are there any tasty, healthy and low-calorie snacks for the office? dry fruit, such as dried strawberries, dried apples, dried blueberries and dried apricots can replace candy. Highly recommend diced apples and strawberries crisps. Quest bar, different tastes with different calories. 60g per quest bar, 160 calories, 20g protein, 17g dietary fibber, 6g fat and 3g net carbs. Are there any healthy snacks on Taobao? 1. dry fruit, such as dried bananas, dried pineapple, dried strawberries and etc. 2. Dehydrated vegetables 3. Preserved fruit and plums Zhihu is the first Q&A website. in China, and has transitioned to a social media sharing platform gathering more than 100 million answers on various topics. The platform is especially relevant to reach higher-, well- educated social classes
  • 13.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Consumer positive feedback On social media (Weibo and WeChat) positive feedback/ posts about healthy snacks focuses on the following aspects: • Most of them are nutritious • Replenish electrolytes quickly • Effectively restrains the growth of bad bacteria These five types of healthy snacks, they are tasty and have lots of calcium 1. Nori with original tastes 2. Black Sesame Drink 3. Dried vegetables 4. Cheese 5. Black soybean milk The post has 14,789 views and 45 likes on WeChat. The healthy snacks of middle-aged and elderly people 1. Peanuts, they can quickly enriching blood Peanuts contain lots of iron, they can promote the blood generation ability of the marrow. 2. Yogurt, it can inhibit bacteria Yogurt contains lactobacillus that can protect intestines and create biologic barrier to suppress bad bacteria in the intestines of the growth. Wechat is the #1 social media in China and an absolute must-have for a market entry promotion. It accounts for over 1 billion active users
  • 14.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Consumer negative feedback On social media (Weibo and WeChat) negative feedback/ posts about healthy snacks focuses on the following aspects: • They may have unhealthy properties • Nutrition loss during processing (dry fruit looses its original nutrition) • Too much food additives Eating too many nuts can seriously harm your health Although nuts contain high amounts of vitamins, proteins and trace elements, but nuts also have lots of fats. It is said that “50g peanuts have 50g oil, 50g melon seeds have 100g oil”. Besides, some kinds of nuts contain carbohydrates, such as starch and sugar. If people eat too many nuts, their blood sugar can raise easily Exposing false healthy food! Yogurt, juice, dry fruit…… they are not that healthy! If you are a fan of various kinds of yogurt, please notice that yogurt contains lots of sugar, otherwise, it will be too sour to eat, despite it has less fat than ice cream. Besides, frozen yogurt is more unhealthy, it is called frozen yogurt, but it actually is more like ice cream. If you really like yogurt, please buy a yogurt maker to control its sugar. Sina Weibo is a microblogging site with nearly 400 million monthly users, and is a well leveraged platform to spread marketing campaign on Chinese Internet
  • 15.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Context of consumption in China Based off information from Weibo and WeChat, Chinese consumers primarily consume healthy snacks in the following three ways: 1. Gifting to family and friends during holidays, such as the Chinese New Year. 2. Eating healthy snacks when they are watching videos and reading. 3. Eating healthy snacks during a trip, like in train, aircraft and etc. The picture has been taken from a buyer’s home and shared on Weibo. He bought the healthy snacks in a exquisite gift box to his family and friends as new year gifts. The pictures have been taken from a buyer’s home and shared on Weibo. The buyer is sharing healthy snacks with her daughter.
  • 16.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Online trends : Consumer perception On Tmall/Taobao and JD, other than good flavor, other positive feedback includes recent production date/ freshness, fast delivery and low price. Negative feedback focuses more on bad tastes, passing the expiration date, high price and slow delivery. The snacks are delicious and sweet. The snacks have a vey good taste, my child and I both like the snacks. I will buy it again. I’m very satisfied with the quality of the banana chips, the package is also very nice,. The production date is new, I gave a good review. This kind of snacks is very delicious, the price is reasonable during the Double 12 (popular online shopping day launched by Taobao.) The snacks are cheap and they are made by fresh fruit. Can’t stop eating them. I will buy it again. The dried vegetables taste terrible, I threw them away after I tasted them. The products have a strange smell like alcohol. The taste of the snacks has changed, probably because the snacks have spoilt. The snacks are not tasty at all. The packaging looks cheap, but there are not a lot of the snacks in it. Besides, it smells bad too.
  • 17.
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  • 18.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Market shares in China More than 60% of the market share of yogurt and nuts are occupied by large domestic brands, which means nuts and yogurt markets are both dominated by Chinese leading players, since those brands have built high-end images (by cool packages and using celebrities as spokesmen) and their snacks’ flavors are more suitable to Chinese consumers. BESTORE 20% Three squirrels 15% QiaQia 12% Laiyifen 11% Bcw.com 7% Others 35% Market shares of nuts brands in China (2017-2018) Source: chyxx.com Yili 27% Mengniu 21% Brightdairy .com 15% Others 37% Market shares of yogurt brands by sales revenue (early 2018) Source: Forward-The Economist
  • 19.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Competition analysis: Nuts The sales of domestic brands are much higher than international brands on Taobao/Tmall. For international brands, American and European brands usually have relatively high prices. Asian brands (South Korea, Japan and etc.) are cheap, but sales are quite a bit lower than Chinese brands. Brands International vs Domestic Presence on Tmall/Taobao and JD Sales on Tmall/Taobao in December 2018 Top seller price on Tmall Price range on Tmall/Taobao (RMB) QiaQia (洽洽食品) Domestic Yes 921,512 items 59.9 RMB 10.9 to 298 Kam Yuen (甘源) Domestic Yes 514,595 items 64.9 RMB 10.1 to 149.9 Kirkland Signature (柯克兰) International Yes 48,964 items 189 RMB 79 to 535 Tom’s farm (汤姆农场) International Yes 45,790 items 47.8 RMB 7.9 to 184
  • 20.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Competition analysis: dry fruit and vegetables On Taobao/Tmall, the most sales of dry fruit and vegetables come from domestic brands, even though some international brands also have low prices. Since Chinese brands (large brands) already have a good reputation, they have been competitive players for years. Brands International vs Domestic Presence on Tmall/Taobao and JD Sales on Tmall/Taobao in December 2018 Top seller price on Tmall Price range on Tmall/Taobao (RMB) Haoxiangni (好想你) Domestic Yes 823,548 items 38.8 RMB 18.8 to 500 Xiyumeinong (西域美农) Domestic Yes 436,676 items 15.1 RMB 9.9 to 109 Henry Morgan (亨利摩根) International Yes 56,945 items 18.8 RMB 12.5 to 128 Jinzhentou (金枕头) International Yes 34,550 items 36 RMB 29 to 285
  • 21.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Competition analysis: Fruit and veggie chips For fruit and veggie chips, the healthy snack market's growth are also higher than international brands on Taobao/Tmall. In the context of the healthy snacks market, fruit and veggie chips have relatively low sales, which means they haven't been popular in China as healthy snacks. Besides, most international brands come from Southeast Asia, such as Vietnam, Thailand and Philippines. Brands International vs Domestic Presence on Tmall/Taobao and JD Sales on Tmall/Taobao in December 2018 Top seller price on Tmall Price range on Tmall/Taobao (RMB) Elvish Bear (熊孩子) Domestic Yes 13,114 items 13.8 RMB 13.8 to 61 Xianjee (鲜记) Domestic Yes 29,851 items 22.9 RMB 7.8 to 37.5 SABAVA (沙巴哇) International Yes 4,731 items 35.9 RMB 10.8 to 109 DaGi (道吉草) International Yes 27,724 items 27.8 RMB 5.9 to 59.9
  • 22.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED E-commerce landscape of the dry fruit As one of the most common healthy snacks, dry fruit has a big price range on Tmall. Products with high sales usually have relatively low price, which means price is still a important criteria for buying dry fruit on Tmall Most expensive SKU Cheapest SKU Top seller SKU •Three squirrels (三只松鼠) •29.9 RMB Top selling SKU •9.9 RMB •291.6 RMB Price range of the category •0.37 •Market is still driven by price Ratio top selling price vs average price •80.8 RMBAverage price
  • 23.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Business cases – Three Squirrels (三只松鼠) Digital activity As one of the most popular snack brands in China, Three Squirrels is known by its nuts products. By using cute squirrels, the brand successfully uses an adorable image to sell nuts. The content of its website consists of brand introduction, main products, recruitment information and related events. The brand quickly attracted a large amount of Chinese consumers by its packages designs with cute squirrel cartoons and the continually updated tastes of snacks. http://www.3songshu.com/ Platform Presence Official account Volume (sales, product reviews or traffic) 3songshu.com Yes Yes 14,778 visits per month Taobao/ Tmall Yes Yes 20.8 million items in December 2018 JD.com Yes Yes More than 4 million comments Kaola Yes Yes 32,791 followers Pinduoduo Yes Yes 50,750 items per day
  • 24.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Business cases – Three Squirrels (三只松鼠) E-reputation in China The most related keywords of “Three squirrels” are “Three squirrels flagship stores”, “Three squirrels offline stores”, “The quality problem of Three squirrels was revealed”, “official website of Three squirrels” and “The logo of Three squirrels”. The brand usually released advertising videos, new arrivals introductions and discount activities on its WeChat and Weibo accounts. Platform Presence Followers Posting frequency in December 2018 WeChat Yes 242,730 7 posts Weibo Yes 762,391 43 posts Three squirrels Three squirrels offline stores The logo of Three squirrels Three squirrels flagship stores Three squirrels company is listed Official website of Three squirrels
  • 25.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Business cases – BESTORE (良品铺子) Digital activity BESTORE is a famous Chinese high-end snacks brand, its products cover most types of snacks (includes healthy snacks). By using popular famous Chinese actors as spokesmen, such as Kris Wu (吴亦凡), BESTORE quickly raised their brand awareness among Chinese consumers. Its relatively smaller packages make buyers easily carried healthy snacks during their journey. The website of BESTORE generally releases content about new arrivals, important events and brand stories. http://www.517lppz.com/#page1 Platform Presence Official account Volume (sales, product reviews or traffic) 517lppz.com Yes Yes 8,198 visits per month Taobao/Tmall Yes Yes 10.9 million items in December 2018 JD.com Yes Yes More than 2 million comments Kaola Yes Yes 59,280 followers Pinduoduo Yes Yes 3,091 items per day
  • 26.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Business cases – BESTORE (良品铺子) E-reputation in China The most related keywords of “BESTORE” are “BESTORE’s official website”, “BESTORE’s logo”, “How much is the franchise of BESTORE” and “Three squirrels”. The brand posts lots of info about new arrivals, discount/ lucky draw activities, its mobile app, new spokesmen and many videos of popular Internet drama that sponsored by BESTORE on its Weibo and WeChat accounts. Platform Presence Followers Posting frequency in December 2018 WeChat Yes 936,750 10 posts Weibo Yes 680,631 90 posts BESTORE BESTOR E official website BESTORE’ s logo Three squirrels How much is the franchise of BESTORE Why BESTORE’s products are so expensive Franchising
  • 27.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Business cases – Be & Cheery (百草味) Digital activity Be & Cheery is a well-known snacks and processed food brand in China, it provides all types of snacks to consumers. The brand’s website mainly offer info about its products (snacks), brand stories, news and mobile app. Be & Cheery is focusing on online sales and promotion channels, around 80% of it’s sales revenue came from online stores in 2017. Besides, the brand achieved significant exposure through advertisements implanting in China’s popular TV series https://www.vipbcw.com/ Platform Presence Official account Volume (sales, product reviews or traffic) Vipbcw.com Yes Yes 21,330 visits per month Taobao/Tmall Yes Yes 13 million items in December 2018 JD.com Yes Yes More than 3 million comments Kaola Yes Yes 15,963 followers Pinduoduo Yes Yes 6,210 items per day
  • 28.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Business cases – Be & Cheery (百草味) E-reputation in China The most related keywords of “Be & Cheery” are “Be & Cheery logo", "The official website of Be & Cheery", " Be & Cheery flagship stores" and "Pagoda" (a popular fruit brand in China). Be & Cheery frequently posts advertising videos and info about its new arrivals, discount accounts and company events on WeChat and Weibo to engage with its consumers and followers in China. Platform Presence Followers Posting frequency in December 2018 Wechat Yes 569,440 10 posts Weibo Yes 612,638 135 posts Be & Cheery offline franchise stores The official website of Be & Cheery Be & Cheery flagship stores Be & Cheery logo Pagoda Pictures of Be & Cheery BESTORE Be & Cheery
  • 29.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Comparing online interest for leading brands On Baidu index, Three squirrels showed the highest search frequency, BESTORE had the second highest search frequency, however its search frequency was significant high in August 2018 when the brand disclosed its strict food safety detection process. On WeChat index, BESTORE showed the highest search frequency and reached the highest point in January 2019 for the brand used the famous Chinese actor KRIS (吴亦凡) as its new spokesman. The search brands are Three squirrels BESTORE Be & Cheery Xiyumeinong QiaQia The search brands are Three squirrels BESTORE Be & Cheery Xiyumeinong
  • 30.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Advertising – case study The advertising video was released by a well-known snacks (red date) brand Haoxiangni (好想 你). The brand focuses on providing healthy and processed red date to Chinese consumers. Red date is a Chinese traditional healthy fruit/snack and it has the functions of enriching blood (based on Chinese medicine), resisting fatigue and etc. By using different scenes and age groups, the video effectively showed the benefits to Chinese consumers and highlighted the (processed) date products from Haoxiangni are also healthy. https://v.youku.com/v_show/id_XMTY0NDc3Mjc3Ng= =.html?spm=a2h0k.11417342.soresults.dtitle This is a advertising video about red date (red date) launched by a Chinese snacks brand Haoxiangni (好想你). The video introduced the product (red date) as healthy snacks by 4 scenes. 1. Students eat red date when they ‘re reading 2. Family (kids and elderly) shares a pack of red date 3 A woman eat a pack of red date in her office 4. Young people share a pack of red date during their trip. The video impliesthat Haoxiangni‘s red date can be eaten in different life scenes and will be favoured by different age groups. Only for the audience in China
  • 31.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Brand naming – case studies The Chinese names of healthy snacks brands generally contain two meanings: 1. Implies the types of snacks provided by the brand. 2. Highlights the brand’s (healthy) snacks have good quality and taste. Most Chinese names of healthy snacks brands are easy to remember (for consumers) and they usually highlight some advantages (quality, tastes and etc.) of those brands. •“三只松鼠” is the Chinese name of “three squirrels”. •The name created a cute image for the brand and implies that nuts are the main products of the brand (nuts are the food of squirrels). 三只松鼠 (Three squirrels) •“良品” means “good quality items” and “铺子” is a ancient name of “shops” in China. •The Chinese name implies the brand only provides high-quality snacks to Chinese buyers. 良品铺子 (BESTORE) Justification / reason / detail #1 •About the brand’s name, “百” means hundred, “草” means grass, “味” means flavor. •The brand’s name highlights that it has a myriad of flavors and options 百草味 (Be & Cheery)
  • 32.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED DISTRIBUTION& PROMOTION ANALYSIS
  • 33.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Online retail Coverage in China The number of healthy snacks brands on JD are far more than Tmall/Taobao, mainly due to the higher requirements and deposit from Tmall for those brands want to enter the platform. Many healthy snacks brands already started to launched discount activities and new arrivals for the Spring Festival in February 2019. Market segments Number of brands selling on Tmall/Taobao Number of brands selling on JD Nuts 204 960 dry fruit and vegetables 174 197 Fruit chips 169 253 Beef jerky 204 622 Dried seaweed 204 644 Yogurt 199 288
  • 34.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Offline retail: Coverage in Shanghai Healthy snacks are mainly sold in supermarket, brand stores, part of convenience stores (such as Family Mart), import stores and specialized snacks shops. We use them as examples of distribution channels for healthy snacks in Shanghai. Stores chains Number of stores in Shanghai Supermarket 1,169 Import snacks store 639 Snacks stores 1,489 Family Mart 1,238 Baidu Map: 1,169 results Dianping: 636 results Supermarket chains Import snacks
  • 35.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED On-the-shelf: representation of the category in stores In China, consumers usually purchase healthy snacks from convenient stores, supermarket, import stores and snacks brands stores. The prices of nuts are generally higher than other healthy snacks in offline stores. Many brands are using smaller packages that make healthy snacks be easily carried. In some stores, healthy snacks have QR codes on their price tags for consumers to scan (with smart phone) and pay by WeChat or Alipay.
  • 36.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Online sales: volume assessment Sunflower seeds and peanuts both showed very high sales in December 2018 on Taobao/Tmall. For dry fruit, dry mangos had the highest sales on Taobao/Tmall, which means mangos are very popular fruit among Chinese consumers. Nuts Main brands Way of ranking: general, popularity, new arrivals, sales and price Categories 2.34 5.38 2.58 3.10 Pecans Sunflower seeds Walnuts Peanuts Sold items of nuts on Taobao/Tmall (million–December 2018) 1.28 3.56 2.51 Dry strawberries Dry mangos Raisins Sold items of dry fruit on Taobao/Tmall (million–December 2018)
  • 37.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED Promotion channels to leverage for international brands in China Dedicated Websites/Apps: Lingshi.com (中国零食网)/ Lingshi.com app LingshiKong.com (零食控)/ LingshiKong.com app Xiaochanmao.net (小馋猫)/ Xiaochanmao.net app Specialized Magazines: DIET (饮食科学) Food and Life (食品与生活) Food and Health (食品与健康) Lingshi.com (中国 零食网)is specialized snacks website, the platform offers most types of daily snacks to consumers, which includes healthy snacks. DIET (饮食科学) is a popular Chinese food magazine, it mainly provides the knowledge of healthy food and snacks to Chinese readers.
  • 38.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED KOL landscape in China For international brands, KOLs are a huge part of modern Chinese snacks promotions, and healthy snacks consumers are influenced by KOL’s shared opinions and experiences. China’s KOLs, who usually post content about healthy snacks on Weibo, mainly consist of food/ snacks KOLs, health KOLs and sports/ body building KOLs. This is a well- known food KOL’s Weibo account. The KOL mainly posts info about different types of snacks on Weibo and healthy snacks are an important parts of her posts. Her Weibo account has 124,581 followers. This is a well- known health KOL and writer. He frequently posts info/ knowledge about health food on Weibo, which includes healthy snacks. His Weibo account has 691,110 followers. The Key Opinion Leader (KOL), or influencers, are a major part of the Chinese online journey, and therefore of the online marketing funnels for international brands in China. KOL will especially be as relevant to target niche audience (micro-KOL) and mainstream consumers (mass-market)
  • 39.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED MARKETTREND ANALYSIS
  • 40.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED MARKETTRENDS Increasing variety of healthy snacks • For increasing competitiveness in China’s healthy snacks market, many brands have started to provide multiple types of healthy snacks, especially those brands only focus on a single type of healthy snacks in the past. More promotion through popular TV series/dramas • Except advertising videos, large healthy snack brands (such as BESTORE) are also trying to raising their awareness by implanting brands’ names and logos in popular Chinese TV series. Package design is becoming important • In order to attract more attention from consumers and build brand images, more Chinese brands have been working on personalized and small package design that can show their features and be easily carried by consumers.
  • 41.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED OUR OFFICES Beijing, China Dongzhong Jie #40 Shanghai, China Room 504, 768 Xietu Road, Xuhui District Hong-Kong Island, Hong- Kong, 13 Queen’s Road, Floor 23 ABOUT US Daxue Consulting is a market research Company dedicated to providing the best specially tailored, high quality, customer- specific data in one of the most challenging markets in the world; China. We leverage our unique network of university organizations and professors, business associates, industry experts and foreign and local consultants to find the information you need efficiently, reliably and in a manner that addresses your specific needs. We excel because we’re reliable, resourceful and flexible, everything that the Chinese market demands. TO ACCESS MORE INFORMATION ON THE SHARING ECONOMYIN CHINA, PLEASE CONTACT DX@DAXUECONSULTING.COM
  • 42.
    TO ACCESS MOREINFORMATION ON THE CHINESEMARKET, PLEASE CONTACT DX@DAXUECONSULTING.COM www.daxueconsulting.com +86 (21) 5386 0380 2019 DAXUE CONSULTING ALL RIGHTS RESERVED This report is the property of Daxue Consulting. No copyrighted materials may be reproduced, redistributed, or transferred without prior consent from Daxue Consulting. For more information on the sharing economy in China, please contact us. CONTACT US HONGKONG|BEIJING|SHANGHAI www.daxueconsulting.com dx@daxueconsulting.com +86 (21) 5386 0380 +86 134 6658 3902 © 2018 DAXUE CONSULTING ALL RIGHTS RESERVED