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China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan Xubing Managing Director, Beijing Seabridge Marketing Co.

China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

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Page 1: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s E-Commerce and Canadian Seafood Export Opportunity to China

8th October, Fredericton, NB2014 Annual Conference of Canada Fishery Council

Fan XubingManaging Director, Beijing Seabridge Marketing Co.

Page 2: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-Commerce Market Overview: World No.1 and Continue Fast Growing

Page 3: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s Consumer Spending: Triple from 2010 to 2020

Page 4: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China vs. US Ecommerce Annual Increase: 120% vs. 17%

Page 5: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s E-Commerce Market: World No.2 in 2012

Page 6: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s E-Commerce Market: Potential

Page 7: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s E-Commerce Market: Potential for Growth

Page 8: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

US’s E-Commerce: Path to Purchase

Page 9: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s E-Commerce: Path to Purchase

Page 10: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood Enter into China Market Steps

Governme

nt

• Market Access

Associatio

n

• Trade Exhibition, Buyer Delegation

Marketing Company

• Social Media: weibo, wechat, blog, recipe-sharing web, short video, etc.• Printing Media, TV Cooking Program

Marketing Company

• Baidu Key Word, SEO, Wikipedia• E-Commerce and E-Promotion

Marketing Company

• Hypermarket Promotion and Restaurant Promotion

Page 11: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

@ 野生北极虾 Coldwater Shrimp Official Weibo

@ 野生北极虾 following: 659 fans: 198000 weibo: 857http://weibo.com/beijixia88

Page 12: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s E-Commerce: Path to Purchase

Page 13: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Different E-commerce Structure: US vs. China

Page 14: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-Commerce Market Leaders: Alibaba/Weibo, Jingdong/Tencent and other……

Page 15: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China B2C E-commerce Giants: G2

Page 16: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China/World Largest E-commerce Company: Alibaba & Jack Ma

Page 17: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China/World Largest E-commerce Company: Alibaba

Page 18: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Best Selling Canadian Seafood on Tmall: Coldwater Shrimp

http://list.tmall.com/search_product.htm?q=%B1%B1%BC%AB%CF%BA&type=p&vmarket=&from=mallfp_1_searchbutton

Page 19: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Best Selling Canadian Seafood on Tmall: Canadian Lobster

http://list.tmall.com/search_product.htm?q=%BC%D3%C4%C3%B4%F3%C1%FA%CF%BA&type=p&spm=a220m.1000858.a2227oh.d100&from=.list.pc_1_searchbutton

Page 20: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Best Selling Canadian Seafood on Tmall: Canadian Surf Clam

http://list.tmall.com/search_product.htm?q=%B1%B1%BC%AB%B1%B4&type=p&spm=a220m.1000858.a2227oh.d100&from=.list.pc_1_searchbutton

Page 21: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Best Selling Canadian Seafood on Tmall: Canadian Seal Oil

http://list.tmall.com/search_product.htm?q=%BC%D3%C4%C3%B4%F3%BA%A3%B1%AA%D3%CD&type=p&spm=a220m.1000858.a2227oh.d100&from=.list.pc_1_searchbutton

Page 22: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China/World Largest E-commerce Company: Alibaba

Page 23: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-Commerce Market Future

Page 24: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: Go Mobile

Page 25: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 26: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 27: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 28: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 29: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 30: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 31: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Prospective: 3 Driven Forces

Page 32: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China vs. US: All Social, but Different Social Animals

Page 33: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Current China’s E-commerce Food Consumption:3.3% but huge potential to grow

Page 34: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-commerce Sales: Exceed 10% of total retail sales since 2014

Page 35: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China B2C E-commerce Sales: Food only take 3.3% of total sales

Page 36: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

But Increase Very Fast:Taobao/Tmall Agri-products Annual On-line Sales

Source: Alibaba agri-product white paper 2012

Page 37: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s Young and Rich E-Shoppers

Page 38: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-Shoppers: mainly 19-35 Y young people

Page 39: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-Shoppers: 1/3 buyers buy more than 40 times/year

Page 40: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China E-Shoppers: 52.4% spend 500-3300 USD/year

Page 41: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China’s Food E-Commerce Sellers

Page 42: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

2013 China B2C Top30 Companies: 6 are Food related E-Stores

Page 43: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Opportunities for Canadian Seafood in China

Page 44: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood Export: 85% seafood for exportG4: Lobster, Salmon, Crab, Shrimp

Page 45: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

United States63%

EU10%

Non-EU4%

Japan8%

China7%

Other8%

Canadian Seafood Exports by Country of Destination, 2010

Canadian Seafood Export: Mainly Rely on US Market

Page 46: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

United States50%

EU10%

Non-EU5%

Japan8%

China18%

Other9%

Canadian Seafood Exports by Country of Destination, 2020 (projected)

Canadian Seafood Export: shifting from US to China

Page 47: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

What Seafood China Market Need?

Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

Page 48: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

What Canada currently export to China: Crab & Shrimp

Page 49: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canada Seafood: Enough Opportunities in China

Source: Beijing Seabridge Marketing Co., China Customs Statistics

Canadian Seafood Main Competitors in China Market

  No.1 No.2 No.3

Frozen Snow Crab Atlantic Canada Alaska, US Russia

Frozen Coldwater Shrimp Atlantic Canada Greenland Argentina

Live Lobster Atlantic Canada Maine, US New Zealand

Live Dungeness Crab BC, Canada Pacific US  

Live Geoduck BC, Canada Pacific US  

Frozen Halibut Greenland Canada Russia

Frozen Capelin Atlantic Canada Norway Hokkaido, Japan

Frozen Mackerel, Herring Norway Russia Canada

Frozen Lobster Atlantic Canada Cuba Mozambique

Farmed Fresh Atlantic Salmon Norway Scotland Faroe Island

Wild Frozen Pacific Salmon Alaska, US Russia Canada

Frozen Sablefish Pacific US BC, Canada  

Frozen Flat Fish Alaska, US Russia Canada

Farmed Mussel New Zealand India PEI, Canada

Page 50: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood Competitors in China

Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

Page 51: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood Competitors in China

Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

Page 52: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood Competitors in China

Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

Page 53: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China: Strong Demand on Variety of Seafood

<Pelagic Fish in China 2014> report, Agriculture & Agri-food Canada

Page 54: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

CanadaLobster, Shrimp, Crab, Surf Clam, Geoduck,

Salmon, Sablefish, Sea Urchin,

NorwayFarmed Salmon,

Mackerel, Herring, Haddock,

Alaska, RussiaKing Crab, Snow Crab, Wild Salmon,

Cod, Pollock, Flat Fish,

Seafood Country Image for Chinese Consumers

Canada: High-end, High-Price,

Lower Quantity

Page 55: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China-Canada: Perfect Matching for Canadian Seafood Demand-Supply

• Population: 1.4 Billion people and increasing

• Income: increasing

• Diet: a nationality who like seafood; from meat to seafood

• Consuming Habits: prefer live & fresh seafood; prefer shellfish than finfish

• Seafood Trade: from Seafood Export Country to Seafood Import Country

• Wild Seafood Catch: decreasing

• Aquaculture Production: reached a ceiling

Page 56: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Important Canadian Seafood in China:

History, Current and Future

Page 57: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

1. Canadian Lobster Market in China

Page 58: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canada Lobster Export Market Structure

USA China Japan Hong Kong Belgium South Korea France Netherlands UK Spain China + HK0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

20092010201120122013

During 2009-2013, USA remains average 77.5% of total Canada lobster export market, while China and

HK together increases from 2.2% to 7.6%, when 5 European countries decreases from 10.6% to 7.2%.

The emerging Asian market (China, HK, Japan, Korea) is replacing the declining European market.

Canada lobster export is still too much rely on the single USA market, which is not a healthy export structure.

Page 59: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China Live Lobster Import: strong demand and increasing, major exporting countries: New Zealand (20.3%), USA (34.3%) and Canada (23.8%)

China Live Lobster Import

  2011 2012 2013

  Kg % USD USD/kg Kg % USD USD/kg Kg % USD USD/kg

New Zealand 1475585 16.7% 59618825 40.40 1795960 20.2% 132472127 73.76 2530261 20.3% 206102512 81.46

USA 975048 11.0% 19330361 19.83 2382602 26.7% 57458263 24.12 4279829 34.3% 91779134 21.44

Canada 1370424 15.5% 22872427 16.69 2029847 22.8% 39731942 19.57 2967573 23.8% 55837005 18.82

South Africa 1218921 13.8% 22543441 18.49 542510 6.1% 18519429 34.14 730060 5.8% 26183862 35.87

Indonesia 450149 5.1% 6944264 15.43 893627 10.0% 22129805 24.76 756665 6.1% 23634616 31.24

Mexico 1332537 15.1% 31377424 23.55 455760 5.1% 13998114 30.71 311929 2.5% 12714248 40.76

Australia 1089582 12.3% 39797998 36.53 104936 1.2% 6490056 61.85 224062 1.8% 11985871 53.49

Burma 181673 2.1% 2637653 14.52 242588 2.7% 5663834 23.35 201075 1.6% 4577555 22.77

Subtotal 8093919 91.7% 205122393 25.34 8447830 94.8% 296463570 35.09 12001454 96.1% 432814803 36.06

Total 8829622 100.0% 218390217 24.73 8908780 100.0% 309144407 34.70 12491775 100.0% 449636175 35.99

NZ lobster take high-end market and Canada lobster take low-end market

China live lobster market is very strong even in 2013 and not effected by anti-corruption movement

Source: China customs statistics

Page 60: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China Frozen Lobster Import: limited market potential, Canada is the most important supply country (52.7%, 2013)

China Frozen Lobster Import

  2011 2012 2013

  Kg % USD Kg/USD Kg % USD Kg/USD Kg % USD Kg/USD

Canada 329212 18.6% 3532990 10.73 460557 32.6% 6143144 13.34 555021 52.7% 6841098 12.33

Cuba 58394 3.3% 1218170 20.86 419858 29.7% 7435832 17.71 188584 17.9% 3409822 18.08

Mozambique 0 0.0% 0 0.00 21740 1.5% 387894 17.84 116252 11.0% 1547997 13.32

Morocco 0 0.0% 0 0.00 66519 4.7% 949418 14.27 43400 4.1% 586819 13.52

UK 886742 50.2% 2396418 2.70 308826 21.9% 821131 2.66 212 0.0% 4417 20.83

Subtotal 1274348 72.1% 7147578 5.61 1277500 90.4% 15737419 12.32 903469 85.7% 12390153 13.71

Total 1767349 100.0% 9551698 5.40 1412802 100.0% 17751473 12.56 1053949 100.0% 14843133 14.08

Source: China customs statistics

Page 61: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China total Lobster import from USA and Canada

China Lobster Import from USA and Canada

    2011 2012 2013

    Kg USD USD/kg Kg USD USD/kg Kg USD USD/kg

USA live 975048 19330361 19.83 2382602 57458263 24.12 4279829 91779134 21.44

USA frozen 29029 538193 18.54 60711 837397 13.79 27909 240781 8.63

Canada live 1370424 22872427 16.69 2029847 39731942 19.57 2967573 55837005 18.82

Canada frozen 329212 3532990 10.73 460557 6143144 13.34 555021 6841098 12.33

Total live frozen 2703713 46273971 10.73 4933717 104170746 13.34 7830332 154698018 12.33

Total importing increase very fast: 7830 tons (2013), Canada take 45% market share (2013)

Canada as the largest catching country, export less than USA

and cheaper than USA to China

Source: China customs statistics

Page 62: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Market Opportunities and Marketing Activities for Canadian Lobster

RestaurantsChinese restaurants, Western Hotels

WeddingsLobster FestivalChef Seminars

SupermarketsHigh-end supermarkets

E-CommerceTmall, No.1 Store, JD, AmazonWomai, Sfbest, Tootoo, Benlai

OthersGift Package for Chinese New Year

Buyers Delegation to CanadaImporters Incentive Program (encouraging

to buy more Canadian lobster instead of to buy US lobster)

MediaMedia Trip to CanadaTV cooking program

Gastronomy and Chef MagazineChinese Website

Weibo and WechatBlogs

Page 63: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

E-Commerce & E-Promotion Proposal for Canadian Seafood Industry

Beijing Seabridge Marketing

Page 64: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

2013: the year for imported seafood on-line selling

• 2013 is the year of taking-off and booming for imported seafood, meat, fruit and other agricultural products on-line sales in China.

• Seafood, as the Canada’s most popular agri-products in China, received high attention and attracted many on-line shoppers eyes in 2013.

• In 2013, Canadian coldwater shrimp, lobster and surf clam, as the leading Canadian seafood in China, have been arranged by Seabridge Marketing to join several very important e-promotion on leading e-malls, include Tmall, JD, No.1store etc. These 3 products have been ranked as top 10 on-line best selling imported seafood in China and Canadian coldwater has been ranked as the No.1 on-line selling seafood.

• In 2013, we estimated the total coldwater shrimp on-line selling was about 500 tons and accounted for 1.5% of total 33434 tons coldwater shrimp import.

Page 65: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

2013: imported seafood on-line selling booming

• By end 2013, China’s total annual on-line sales has reached 1885 billion RMB (306 billion USD) and accounted for 8.1% of China’s total annual retail turnover.

• Agri-foods are the fastest developed on-line selling catalogue (112%) among all on-line selling goods.

• Seafood, meat and fruit are the fastest developed on-line selling catalogue (195%) among all on-line selling agri-foods catalogue.

• Imported seafood, meat and fruit on-line sales are developed much faster (3-5 times) than domestic seafood, meat and fruit on-line sales because: 1. domestic consumption upgrading, 2. domestic food safety problems, 3. higher profit to sell imported agri-products on-line.

Page 66: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood to China/HK/Taiwan: No.2 Market after USA

• US Food Industry Association predict: by 2018, China will become the world largest market for food importing and consumption, with market size of 480 billion RMB (78 billion USD).

• Seafood, as the largest exporting agri-food catalogue for Canada, is now still heavily rely on USA market (63% Canadian seafood export to USA), which is not a healthy structure.

• Currently, seafood is the largest agri-food catalogue exported from Canada to China.

• By end 2013, China is largest importing country for Canadian coldwater shrimp (21097 tons), China/HK is the second largest importing country for Canadian lobster (4807 tons) after USA, Great China is No.1 importing country for Greenland halibut (8988 tons, China, HK, Taiwan, Vietnam, 83%), China/HK is No.1 importing country for Canadian geoduck (1386 tons, 82%), Canadian Dungeness crab (552 tons, 93%), Canadian surf clam (2884 tons, 71%) and second largest importing country for Canadian sea cucumber (1024 tons).

• By end 2013, China is very important country for other Canadian seafood like snow crab (4956 tons, No.2), Great China is the largest importing country for Canadian capelin (12005 tons, 59%). These products are imported to China, processed and re-exported to Japan before but now with more and more sales in China’s domestic market.

Page 67: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

E-Commerce and E-Promotion: icebreaking vehicle for new Canadian seafood enter into China market

Page 68: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Why is e-commerce for Canadian seafood?

• Most Canadian seafood has been sold into China/HK/Taiwan market for more than 10 years and the traditional market segments has been more or less developed, therefore less opportunity and potential there.

• E-commerce is the fastest development segment and will take about 20% retail market share by 2020 (currently 10.1% by 2014).

• Imported seafood, meat and other agri-foods are easier to be accepted by e-commerce compare with traditional wholesale market, hypermarket and food service.

• Traditional wholesale markets and hypermarkets are getting down in China during recent 3 years and less imported seafood sold through hypermarkets (except high-end supermarkets).

• Food service is suffering from China government anti-corruption movement since 2013, and still not recovered without the huge expenses from “official entertainment”.

• Emerging e-commerce companies are much more creative, aggressive, efficient and result-driven compare with traditional business. They are willing to accept and try new products and new business module selling on-line.

Page 69: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

What benefits E-Commerce could bring to Canadian seafood?

• 1. Fast entering into China market– Selling through traditional market segment takes several years to gradually penetrate into

the market, which is slow and low efficiency– Selling on-line through leading e-malls and e-stores (more concentrated players compare

with traditional distribution channels) are much faster– Once one e-promotion succeed, the whole supply chain will follow the on-line market

demand quickly– Only succeed with one e-mall or e-store, we could duplicate to other e-malls and e-stores

much faster then duplicating to hypermarket and food service– E-commence will quickly cover whole China market

• 2. Demonstrative influence to traditional channels– Once these Canadian seafood selling well in emerging e-commence channel,

hypermarket and food service channel will also follow. Currently in China, c-commence has become a best platform to launch new products sales

– A proven successful good selling new seafood product on e-commence channel will be selected by hypermarkets and restaurants to sell in their channel because on-line big data has shown the market demand and potential of this seafood product

Page 70: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

What benefits E-commerce could bring to Canadian seafood industry and exporters?

• 3. Fast branding establishment– E-commence and e-promotion is not only selling the products, it’s also a bigger

opportunity to propaganda your products and marketing/branding your products– Successful e-promotion imported seafood like Canadian coldwater shrimp, Canadian

lobster, Chilean seabass are then getting popular off-line as well

• 4. Big data– C-commence and E-promotion will give us big data and let us understand consumers

needs and market potential quickly– Based on the big data, we could then formulate clear marketing plan, sales plan and

develop consumer-oriented product, package and pricing

• 5. Direct connecting to end consumers– Could directly connect to end consumers, without through different layer distributors

and retailers– Could squeeze out the profit of middlemen and give the best price to end consumers.

This is the big advantage of e-commence for imported seafood

Page 71: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Positioning and objective for different Canadian seafood in China

• Strong Branding Group– Coldwater shrimp: No.1 wild shrimp and No.1 imported shrimp in

China. 80% market share. No strong competitor (Greenland and Denmark). 2017: 45000 tons

– Canadian lobster: No.1 lobster in China. 70% market share. Stronger brand than US lobster. 2019: 15000 tons

– Surf clam: No.1 imported clam in China. 70% global market share (Japan). No strong competitor (North Korea).

Page 72: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Positioning and objective for different Canadian seafood in China

• Weak Branding & Competitive Group– Snow crab: No.1 snow crab branding and sales in China. Competitive

against Alaska, Russia or North Korea snow crab.– Greenland halibut: No.1 halibut branding and sales in China.

Competitive against Greenland, Denmark, Norway, Germany and Spain.– Blue mussel: No.1 imported blue mussel in China. Competitive against

NZ green mussel.– Capelin: No.1 capelin in China, competitive against Iceland and Norway.– Salmon: popular branding in China, following brand after Norway and

competitive against Chile, Scotland and Alaska salmon.– Sea cucumber: popular imported sea cucumber in China. Competitive

against Iceland sea cucumber.– Pork and beef: popular imported meat branding in China. Following

brand after Australia, US and NZ beef.

Page 73: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Weak & Competitive

Brand

Strong Brand

Dominating Brand

Canadian Seafood Branding & Positioning Steps in China:Take No.1 position in each small market segment like shrimp,

lobster, crab, clam, flatfish, pelagic fish etc.

Canadian Seafood as a Strong Group-Product Name become the No.1 Seafood brand and take No.1 market share in China

Page 74: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Select importer(s) and delivery

E-Promotion Planning with

selected E-mall

Select e-store, prepare inventory and design

product page

Design e-promotion front page and

launch e-promotion

Steps for Canadian Seafood E-promotion:Single product e-promotion to multi products e-promotion

Multi products e-promotion(Design theme, select leading seafood, select other seafood)

Select e-stores for leading seafood and

other seafood, prepare inventory and design

product page

Design e-promotion front page and launch

e-promotion

Page 75: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Multi Products Canadian Seafood E-Promotion:by different products combination, different theme, different

season and with different e-mall, e-store

Multi Products Canadian Seafood E-Promotion

Strong Branding Product Competitive Branding Product Unique Product Following Product

Coldwater Shrimp Snow Crab Salmon Geoduck Sea Scallop

Lobster Greenland Halibut Beef Dungeness Crab Oyster

Surf Clam Sea Cucumber Pork Ice Wine    Blue Mussel Blue Berry    

  Capelin Cherry    

Spring Seafood E-promotion 1 1 1 1 1

Dragon Boat Festival E-promotion 1 1 1 1 1

Summer Seafood E-promotion 1 1 1 1 1

JD & No1store E-Festival 06.18 1 1 1 1 1

Moon Festival E-Promotion 1 1 1 1 1

T-Mall & Amazon E-Festival 11.11 1 1 1 1 1

New Year E-promotion 1 1 1 1 1

Chinese New Year E-promotion 1 1 1 1 1

Womai Regular E-promotion (National) 1 1 1 1 1

Womai Daily E-promotion (Regional) 1 1 1 1 1

Sfbest Daily E-Promotion (National) 1 1 1 1 1

Tootoo Daily E-promotion (Regional) 1 1 1 1 1

Benlai Daily E-promotion (National) 1 1 1 1 1

Amazon Daily E-Promotion (National) 1 1 1 1 1

No1store Daily E-promotion (National) 1 1 1 1 1

JD Daily E-promotion (National) 1 1 1 1 1

Tmall Daily E-promotion (National) 1 1 1 1 1

Page 76: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

China Important E-Commence Platform List and Vertical Food E-Commence Companies List

China Current Leading E-Mall and E-store Ranking

Name (CH) Name (EN) Head office Web Address Alexa Traffic Global Ranking

Alexa Traffic China Ranking Notes

淘宝 Taobao Hangzhou www.taobao.com 10 3 belongs to Taobao/Alibaba

天猫 Tmall Hangzhou www.tmall.com 43 8 belongs to Taobao/Alibaba

京东商城 Jingdong Beijing www.jd.com 80 14 largest E-store in China

亚马逊中国 Amazon China Beijing www.amazon.cn 112 18 No.1 E-bookstore in China

当当网 Dang Dang Beijing www.dangdang.com 285 46 No.2 E-bookstore in China

拍拍网 Pai Pai Shenzhen www.paipai.com 291 51 belongs to QQ.com

易迅网 51buy Shenzhen www.51buy.com 352 58 belongs to QQ.com

一号店 No.1 Store Shanghai www.yihaodian.com 672 109 belongs to Wal-Mart

苏宁易购 Suning Nanjing www.suning.com 578 112 largest off-line 3C chain store in China

一号商城 No.1 Mall Shanghai www.1mall.com 1555 200 belongs to No.1 Store

我买网 My Buy Beijing www.womai.com 6298 753 belongs to COFCO

顺风优选 Shunfeng Best Choice Beijing www.sfbest.com 10297 891 belongs to largest express transportation company Shunfeng

东方 CJ Oriental CJ Shanghai www.ocj.com.cn 25367 2564 belongs to largest TV shopping channel in Shanghai

沱沱工社 Tootoo Community Beijing www.tootoo.cn 60581 5027 E fresh food store

本来生活网 Benlai Beijing www.benlai.com 58032 7172 with background of large media and leading IT company Tencent

易果网 E-fruit Shanghai www.efruit.sh.cn 76824 7607 specialized in fruit on-line sales

Page 77: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

How Canadian seafood associations and exporters participate e-promotion and e-commerce in China?

• Working Group: Each association or exporter should appoint a representative to work with Fan Xubing (GM Seabridge Marketing). It is most effective if the association or exporter establishes a working group to focus on the initiative to address marketing, logistics, etc. issues.

• Export and Delivery: Each product need to find importer in China and deliver the product to China before start of the e-promotion. If have retail package, welcome to sell retail pack product to China, otherwise bulk pack product are also acceptable for re-packing in China later.

• Product information and supporting documents: Each association or exporter need to provide detailed products information, pictures, supporting documents before start of e-promotion for product page and front page design and e-marketing.

• Free Sample: Each association or exporter need to donate a certain quantity of free sample for on-line free tasting, luck draw, awarding etc. during e-promotion.

Page 78: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Cost for Canadian seafood associations and exporters to participate e-promotion and e-commerce in China?

• E-promotion Fee: Depends on different scales, different products, different theme, different season e-promotion, Seabridge Marketing will charge different fee for participating, organizing, listing fee for e-mall and e-store, implementing, e-marketing, off-line activities, following-up, data collection and summary report services.

Multi Products Canadian Seafood E-Promotion

Strong Branding Product Competitive Branding Product Unique Product Following Product

Coldwater Shrimp Snow Crab Salmon Geoduck Sea Scallop

Lobster Greenland Halibut Beef Dungeness Crab Oyster

(Canadian Dollar per E-promotion)

Surf Clam Sea Cucumber Pork Ice Wine    Blue Mussel Blue Berry      Capelin Cherry    

Spring Seafood E-promotion 6000 6000 6000 3000 3000

Dragon Boat Festival E-promotion 6000 6000 6000 3000 3000

Summer Seafood E-promotion 6000 6000 6000 3000 3000

JD & No1store E-Festival 06.18 12000 12000 12000 6000 6000

Moon Festival E-Promotion 6000 6000 6000 3000 3000

T-Mall & Amazon E-Festival 11.11 15000 15000 15000 7500 7500

New Year E-promotion 8000 8000 8000 4000 4000

Chinese New Year E-promotion 10000 10000 10000 5000 5000

Womai Regular E-promotion (National) 6000 6000 6000 3000 3000

Womai Daily E-promotion (Regional) 4000 4000 4000 2000 2000

Sfbest Daily E-Promotion (National) 6000 6000 6000 3000 3000

Tootoo Daily E-promotion (Regional) 4000 4000 4000 2000 2000

Benlai Daily E-promotion (National) 6000 5000 5000 2500 2500

Amazon Daily E-Promotion (National) 8000 8000 8000 4000 4000

No1store Daily E-promotion (National) 8000 8000 8000 4000 4000

JD Daily E-promotion (National) 10000 10000 10000 5000 5000

Tmall Daily E-promotion (National) 10000 10000 10000 5000 5000

Page 79: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Successful Samples of Canadian Seafood Marketing and E-Promotion

Page 80: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Seabridge Successful Seafood Marketing and E-Promotion Samples

Seabridge Marketing Co. Marketing Projects List: Seafood

Product Client Activities Since To Achievements

Norwegian Salmon Norwegian Seafood Councilmarketing, retail promotion, food

service, training, media2003 2012

10000 tons (2003) to 80000 tons (2012)

Norwegian Herring Norwegian Seafood Councilmarket study, retail promotion,

media2006 2009 ------

Canadian Coldwater Shrimp

Canadian Association for Prawn Producers

marketing, retail promotion, e-promotion, media

2006 now22000 tons (2008) to 35000 tons (2013), Canada 70%

market share

BC Geoduck Underwater Harvesters Associationmarket study, marketing, food

service, media2011 now

1600 tons (2013), China & HK 90% market share

NB & PEI LobsterNB & PEI Department of Fishery, Fishery

Council Canadamarketing, food service, media 2008 2012

500 tons (2008) to 7830 tons (2013), Canada 45% market

share

NB & PEI Snow Crab NB and PEI Department of Fishery marketing, food service, media 2008 2008dropped from 9000 tons

(2010) to 5000 tons (2013)

BC Sablefish Canadian Sablefish Association market study 2013 2013 ------

US Louisianan SeafoodLouisianan Seafood Promotion &

Marketing Boardmarket study 2012 2012 ------

Spanish Farmed Turbot Pescanova Sa. markeitng, food service, media 2011 2012 ------

Barents Sea Atlantic Cod Ocean Trawlers Co. market study, marketing, media 2013 now100 (2013) tons to 1000 tons

(2014)

Page 81: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Miaoxiansheng (imported fresh food) Canadian lobster and coldwater shrimpE-Promotion at Tmall.com

Page 82: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Tmall Canadian lobster Sales: One E-store selling Clearwater brand lobster

http://detail.tmall.com/item.htm?spm=a220m.1000858.1000725.51.clEynH&id=39017576543&areaId=110100&cat_id=2&rn=157a0b6796b7872bff93a3daffa12690&user_id=1678488000&is_b=1

Page 83: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Canadian Seafood E-Commerce Free Tasting

Page 84: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Tmall Free Tasting: New and Low Cost E-Marketing & Pre-Warming Vehicle

• Tmall free tasting: No.1 on-line shoppers application for free tasting.

• Tmall free tasting: More free tasting application and new products exposure than any other e-malls, e-stores and any other gastronomy/recipe social media platforms.

Page 85: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Tmall Free Tasting: Canadian Coldwater Shrimp

Applicants number

Page 86: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Tmall Free Tasting: Canadian Lobster

Applicants number

Page 87: China’s E-Commerce and Canadian Seafood Export Opportunity to China 8 th October, Fredericton, NB 2014 Annual Conference of Canada Fishery Council Fan

Beijing Seabridge Marketing Co.

• The most professional seafood marketing company in China.• Established in 2003 with more than 10 years experiences in China.

• Exclusive marketing agent for: Norwegian salmon, Canadian coldwater shrimp, Canadian lobster, Canadian snow crab, BC geoduck and important marketing agent for Australian beef and lamb, NZ beef and lamb in China market.

• All these products are currently the top 10 selling imported seafood and imported meat products in China both for e-commerce and for traditional distribution channels.

• Contact:– Fan Xubing, GM Beijing Seabridge Marketing Co.– Email: [email protected]– Phone: +86 13311369269, +86 10 58768918– Website: www.seabridge-china.com