A different marketing message may help Australian olive oil to grow its Chinese market share
I had a lunch meeting with a Chinese investor recently who has been operating an Australian olive oil business by exporting to the China market for five years. During the lunch, she complained the slow growth of her business and the fierce competition from European exporters in the China market. Unlike other competitors, she decides not to promote and sell products on the e-commerce platforms, but chooses medium to large supermarkets in the tier 1 and 2 cities and Wechat (Chinese social media) channel instead.
Here’s some facts that I understand according to the conversation and my research,
- More than 300 international companies are currently selling olive oil in China
- 78% of olive oil is virgin and extra virgin olive oil
- Spain accounts for 81% of total olive imports to China, leading far ahead of Italy (17%), Greece (2%) and a combination of the rest of the exporting countries together including Australia, Tunisia, Morocco, Turkey, or Portugal (4%) (International Olive Council – Market Newsletter No. 113, 2017)
- Olive oil demand increases by 12.8% annually not very substantial growth
- Olive oil accounting for less than 1% of total cooking oil consumption in China
Apparently, it is a market with potential. However, it will take time and patience to nurture in the right way.
When I was searching imported olive oil from Chinese e-commerce platforms, the key marketing messages are almost the same, which includes
- Product specification, such as virgin/extra virgin, acidity, freshness (pressed within 8-10 hours)
- Endorsement by western food association, export country’s government, or Chinese famous KOLs (Key Opinion Leaders, or influencers, such as celebrities)
- International awards
- Authenticity by providing certificate of origin
- Olive oil production line pictures
- Chinese cuisine cooking with olive oil
It will undoubtedly impress the consumer at first glance. However, even myself was feeling bored with those repetitive messages after viewing several pages.
I would wonder the consumers may got confused about which one will be the right choice. Eventually the price factor stands out by incorporating some product reviews to make the final decisions. It seems that those well-designed marketing messages do not work very well as what it’s expected.
Then what is the differentiator of our Australian olive oil and how to promote uniquely?
Here are my two cents for her.
The Power of Story-telling
When introducing olive oil brands to China, most companies emphasise the originality of the country or healthy lifestyle such as Mediterranean way of life in order to position as premium brands to the Chinese consumers. It makes sense given the needs of targeted segment, i.e. middle to high end consumers.
That said, I feel the gap between the brand image and the consumers’ perception.
Personally, I prefer a story that happened and evolved with the product they sell in a local community environment, for example a village or a town.
A good example is the story of Daylesford & Hepburn mineral spring water *. The company produces mineral spring water based on the local resource and operates the whole business locally. They support and help neighborhood and contribute to the local community development eventually. It’s a beautiful and trustworthy story.
I believe Australian olive oil producers will have something similar to tell.
Creative Endorsement
Hiring famous Chinese KOLs to endorse the product is costly. The model itself can be easily copied if marketing budget allows. Chinese consumers have got use to this kind of celebrity’s endorsement from many channels.
Having said that, you may consider the endorsement from Australian local community or Chinese evangelists living in Australia.
Will it be more convincing if most of the local schools, childcare centers or restaurants are using your brand of olive oil?
How about inviting Chinese Australian, or Chinese student here to taste your product, tell you what they think, and fill the education and marketing gap before you launch the product officially in China?
The conversation with this investor will continue.
A critical factor to be considered when creating a marketing message is to build and enhance the trustworthy image for the brand among Chinese consumers so that they are willing to pay for the premium.
