The energy drink in China takes a positive direction. According to Beverage Daily, by 2021 the country can expect a share of 47, 2 of the drink’s market. This is a result of increasing demand. The development of the country pushes the expansion of the market. Indeed, the industrialization and urbanization participated in the migration of people, from the countryside to cities. The Chinese government turned its policy toward a market-based economy. As a consequence, the Chinese people have higher incomes and see their living standard improving. They get closer to western lifestyles and tend to copy their consumption habit. In addition, the commerce is facilitated by the distribution and the infrastructure.
Energy Drinks Market in China
There are several categories but the sector can be divided into two main branches: sport and nutrient- enhanced drinks. The first one contains sodium, potassium, and magnesium. The second one contains extra supplements of vitamins. Depending on the country the classification can change. In China, energy drinks are considered as drinks with other functions because they include caffeine, taurine, and sugar coupled with other ingredients such as guarana and B vitamins. Studies showed that energy drinks especially canned one knew a significant growth from 9 billion yuan in 2009 to an estimated 87, 5 billion in 2019. Energy drinks in different formats (cans, bottles) are sold everywhere: super & hypermarkets, convenience stores, grocery stores, bars but also online.
Several categories of people are targeted by energy drinks. We have for instance: gym goers, sports people, the working class, school student who drink them in order to be more active and to keep them awake because they have long days and have to work a lot.
Consumers New Preferences
Chinese people pay attention to their health. Health has a significant place in Chinese culture. This fact coupled with some scandal in the food industry, they are willing to pay more to have a product of better quality. In the field of Energy drinks, it means less sugar. Even though in the Chinese market, most drinks contain more sugar than western countries’ ones. Consequently, they are used to it but because of the health issue that can be caused by the consumption of certain products that can change their habits. Healthy trend helps the evolution of the demand. Indeed, eating better goes with doing sport.
Business Opportunities for Foreign Brands
Because China, e-commerce ecosystem is very developed, launching your online store is facilitated. All the digital infrastructure such as mobile apps already exist. Chinese people are very familiar with this kind of purchasing. Order things on the internet are enshrined in their daily life. Cross border trade is encouraged by the Chinese government since the country opened itself to the world. Foreign brands are welcome because they symbolized quality and modernity. Cross border commerce platform enjoy reduced tariffs and lower regulatory. It is an occasion to try a new kind of product and marketing campaign. Indeed, the risk taken online is lower than in physical shops.
Different options are available. Either you can choose to create your own platform or working with well-known channels. The first option presents full control capacities. In other words, you can handle the whole process from production to distribution and adopt specific marketing for the Chinese market especially if you are an international brand. The second option may be convenient too. Actually, established cross border online platforms presents true advantages. They allow you to sell the product directly to the consumers and have easy payment structures.
Your brand needs to reflect the essence of the product. It should be something fresh, dynamic. What is important nowadays when you’re making your marketing and communication campaign is to think about the experience you are going to give to your customer. Buy your brand for the consumer is a way to express the social category he or she belongs to. It is also a way to express their lifestyle. Social media are unavoidable especially in you are doing e-commerce business. Competition in energy drinks is fierce mainly because of the strong presence of big brands such as Red Bull. Energy drinks sector is composed of different segments as we mentioned at the beginning of this article. Thus, you should, therefore, choose a specific branch and adapt your strategy to reach by the list effective way your target.
Promotion Through KOL
Well known as influencers in western countries as KOL( key opinion leader). They are very common in China and have true power to influence people in their consumption and their habit. They have the power to do something trendy. They can bring you leads because they have numerous followers which whom they interact throughout the digital app. They can be integrated into your communication strategies but you need to make sure that their image fits with yours.
Starting a business in China in Energy drinks field requires precise knowledge about features, trends, and consumer behaviors. Thanks to its expertise GMA can help you to achieve your goal.
Read also: Mobile apps are more and more important for food and beverage
For more information please go to the contact section.