Looking beyond the first-tier cities - Ben Cavender

Ben Cavender

China´s consumers have changed dramatically over the past decade, retail analyst Ben Cavender told a conference on fruit, for example only looking at first-tier cities is a wrong habit from the past, reports the Fruitnet. And the hypermarkets are dead.

The Fruitnet:

“The focus shouldn’t be in first-tier cities,” Cavender told delegates, adding that the key to success is to focus on developing trust among consumers in tier-two and tier-three cities. “There’s been a lot of changes in the past five to ten years in how consumers see the world.” 

Pollution, food safety and the crackdown on corruption have all influenced consumer trends, with a move away from tangible items towards ‘experiences’ and premium, healthy food – an opportunity for the fresh produce industry to make inroads in China's emerging markets. 

As a result, branding and brand origins are increasingly important, said Cavender, adding that companies should focus on what their brands stand for and building a story behind their brand. .. 

"Ten years ago it was about the hypermarkets – they were the premium space. Now, hypermarkets are dead to the consumers – they don’t like the shopping experience,” Cavender said.

More at the Fruitnet.com

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

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Why hypermarkets turn into convenient stores - Ben Cavender

+Benjamin Cavender 

Small is beautiful in retail as hypermarkets lose traction in favor of convenient stores. When you look at the figures, convenient stores make more sense, says retail expert Ben Cavender in the China Daily.

China Daily:

The study said the convenience store sector is now considered to be the fastest-growing section of the retail industry with a growth rate of 19.5 percent on average in 2013, among the surveyed 26 cities, significantly higher than that of department stores and hypermarkets. 

Ben Cavender, principal at the China Market Research Group, said one of main reasons retailers are now opening more convenience stores is the cost of real estate. Smaller format stores can focus on high-margin products and also serve consumers who might not be able to visit a hypermarket, he said. 

Their challenge, however, is that there is a high degree of competition in the market so the stores really have to focus on strong product offerings and good service to attract customers, said Cavender. 

Spanish community retailer Dia Tiantian recently quit the Beijing market to focus on Shanghai where it has 361 stores, because it said revenues from the stores were half of what they are in Shanghai.

More in the China Daily.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´ request form.

Are you looking for more experts on risk management at the China Speakers Bureau? Do check out this list.  

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