President Xi Jinping is behind the creation of the CIIE, the largest import trade fair, and he conceived this huge event primarily as a platform for China's opening up to the world. However, there is no doubt that the CIIE represents a unique opportunity to raise the profile of its products in China's 1.4 billion-strong market, to understand Chinese consumer culture and also to meet new business partners.

The event receives a lot of attention from the media and political elites and participation is considered a prestigious affair. Every year you will therefore find huge presentations from companies such as IKEA, LEGO, LVMH and leading car brands.

This year's edition hosted more than 3,400 exhibitors from 129 countries and regions, including representatives of Czech companies, mainly from the food and glass industry. The main Czech presentation was on display in one of the three halls focused purely on food and agricultural products, where producers of Czech beer, wine and spirits, mineral water, health food and baby food or food supplements exhibited, taking advantage of the Ministry of Agriculture's subsidy programme for participation in foreign fairs.

The networking evening, organized by the Consulate General of the Czech Republic in Shanghai with the financial support of the Ministry of Industry and Trade of the Czech Republic as a PROPED economic diplomacy project, helped with the visibility and, for some companies, with the entry into the Chinese market. During the evening, Czech companies exhibiting at the fair had the opportunity to meet with representatives of Chinese companies, as well as with representatives of the CzechCham Chamber of Commerce in Shanghai, who were happy to share their experiences with the local business environment.

China is still the world's largest importer of food and agricultural products. While the food and beverage market in China is highly competitive, it continues to offer interesting opportunities for foreign brands seeking to enter the Chinese market. Much has been written about the growing middle class or changing consumer preferences in China. The fact is that imported food is increasingly popular in China due to its perceived higher quality and exclusivity. For example, there is a growing demand for healthier products such as organic products, functional foods with added vitamins and minerals, food supplements and ordinary dairy products. There are also opportunities in alcoholic beverages, especially beer, liqueurs and spirits.

Above all, foreign brands entering the Chinese market need to understand and adapt to the specific behaviour and preferences of Chinese consumers. To impress in a crowded market, it is essential to focus on product differentiation through quality ingredients, unique flavours, packaging design or sustainable sourcing practices. Some Czech exhibitors have experienced feedback first-hand that their product is not sweet enough for the local market or that the product packaging is not appealing enough.

Digitalization or the emphasis on e-commerce is essential and necessary. In order to successfully target Chinese consumers, it is important that companies establish a strong online presence through e-commerce and social media. One of the Czech exhibitors at CIIE used a live streaming tool where a hired Chinese influencer presented the company's product to interested parties directly from the fair and made interesting sales in a relatively short period of time. Live streaming is a growing medium that offers brands a unique opportunity to connect with Chinese consumers in this interactive way.

Czech beer is a separate chapter. There are quite a few Czech brands on the market, each with a different success. Chinese beer drinkers generally prefer light and refreshing beers that are suitable for warm climates. At the same time, they consume more premium quality beers, which Czech breweries should take advantage of and present with a premium quality label. In China, drinking alcohol is associated with traditions, rituals, business meetings and social ties. Although Czech beer has its own story, tradition, undoubted quality and taste, awareness of it in China is still low. This needs to change and it needs to be presented to the Chinese customer in all its glory.

 

Jan Kubacka, Consulate General of the Czech Republic in Shanghai