INSIGHTS
Chilean Cherry’s Success in China Implies Opportunities for Imported Fruits
BY Shine HuFeb 07, 2021
China is currently the world's largest Chilean cherry importer. About 500,000 tons of cherry entered the Chinese market in the 2020 winter. Marketing approaches such as live-streaming, in-store promotions, group buy promotion, digital video advertising, and social media activities have made Chilean cherry a household consumption in China.

The rapidly growing Chinese consumer market has enticed more overseas fruit suppliers to target China as the top export destination for their products. People’s improving living standards also speed up the penetration of exotic and expensive fruit products into their daily lives.

Chilean cherry is a typical example, which skyrockets to a top choice for Chinese people each winter, especially during the Spring Festival period.

ChemLinked will guide you through how Chilean cherry goes viral in China and practical experience that can also apply to other imported fruits.

Chilean cherry in China: a recipe to success

Although China has home-grown cherries (樱桃), they are overshadowed by Chilean cherries (车厘子) in terms of sales and reputation.

According to the Chilean Cherry Committee of the Chilean Fruit Exporters Association (ASOEX), Chilean cheery exports would increase by 38.3% for the 2020/21 season, 90% of which would be exported to China.1 The Commercial Counselor of the Chilean Embassy in China Nata also introduced that China is currently the world's largest Chilean cherry importer. About 500,000 tons of cherry entered the Chinese market in the 2020 winter.2

In January 2021, the topic #ChileanCherryPriceHalved became the Top1 trending topic on Weibo (Chinese equivalent Twitter) with one billion views and 640,000 comments. Other topics about Chilean cherry also gained considerable traction. Chilean cherry also ranked the first among the TOP3 Popular New Year Gift List of Fresh Hema (Alibaba’s new retail business).

In addition to cherry’s inborn advantages involving good taste and adorable shape, we at ChemLinked think that the following factors also contribute to the fruit’s increasing popularity in China:

1. An impressive name is half done. The Chilean cherry got its Chinese name 车厘子 by transliterating the English word cherry, as differentiation from Chinese-grown cherry, which is named 樱桃 in Chinese. Such an exotic and novel Chinese name endows the fruit premium and scarce features.

2. The bright red cherry coincides with the jubilant new year festival atmosphere. Therefore, merchants marketed cherry as a desirable gift choice for Chinese consumers to convey their best wishes for the coming year.

3. Savvy marketing also includes consumer education. Cherry is depicted as a friendly fruit for pregnant women,subject to many dietary prohibitions in China.

What can other imported fruits learn?

Ingenious grading

In the Chinese market, Chilean cherry is classified into different grades according to the single fruit size.

"J" (26-28mm) is the size unit, ranging from J to JJJJ. The larger the number, the higher the quality of cherry. Choosing cherry by grade embodies consumers’ purchasing power and identity. The grading strategy leads to a face game, where consumers would like to pay for the best.

srchttp-5b0988e595225cdnsohucscom-images-20180211-e2608cc6e6ad4d41b5b50230912e9d82jpegreferhttp-5b0988e595225cdnsohucs.jpgIllustration on Chilean cherry grading. Photo source: internet

Proactive marketing

Since the winter of 2020, the Chilean Cherry Committee of the Chilean Fruit Exporters Association (ASOEX) has made constant efforts to promote cherry consumption in China. They supported and organized a wide range of online and offline campaigns to make Chilean cherry a household consumption.

Marketing approaches cover live-streaming, in-store promotions, group buy promotion, digital video advertising, and social media activities. Some innovative and interactive activity types such as lucky draw are also adopted to boost sales.

dingtalk-20210207143315-1.jpgChilean cherry promotion campaign in different types. Photo source: Guojiguoshu WeChat Official Account

Business expansion

The popularity of cherry also brings more commercial possibilities. For example, cherry is a perfect ingredient for tea drinks and desserts. An emerging tea chain brand Tea Buds (小满茶田), sells cherry fruit tea as its core offering and has finished a pre-A round of financing in July 2020. Similarly, the well-known Schwarzwlder Kirschtorte (black forest cherry cake) uses cherry as the primary raw material. Extending from fruit to other fields can promote the single category into a consumption phenomenon.

j-1.jpgProduct picture of the new tea brand Tea Buds (小满茶田). Photo source: internet

Opportunities for imported fruits

High-end expensive imported fruits are gaining traction.

From durian to cherry, Chinese consumers are becoming more receptive to high-priced fruits. Social networks even call the ability to freely consume high-end fruit as a reflection of “financial freedom.”

Japan’s white strawberry (called 淡雪in Chinese) is renowned as the "Rolls-Royce" among fruits, with each catty costing RMB 200. The Sunshine Rose Grape, also known as Shine Muscat or Clear King, has been sought after in the mid-2020 at RMB 60 per catty. Wild raspberries can sell for up to RMB 180 per catty. Imported Australian tangerines for 25 yuan each also gained fame because of a hot TV drama, Nothing But Thirty.

The target customers of high-end fruits are urban young people who pursue a quality life. The imported fruits have always been hot cakes in the boutique supermarkets such as Ole'.

53dc1e57b27b6f59bf35822941e676d7-1.jpgTV drama “Nothing But Thirty” stills. Photo source: internet

The rapid expansion of online channels has opened up markets for high-end fruits.

E-commerce companies that directly purchase the goods from the supply side have lower cost and make imported fruits more affordable for ordinary people. The high e-commerce penetration in China also fosters the modern consumers’ habits to purchase high-end imported fruits at high frequencies.

In 2020, Tmall organized major fruit importers to purchase cherry from Chile and charter ships directly to China. JD also intensified its efforts in direct overseas purchasing of Chilean cherry by cooperating with Chile’s cherry farms.

Meanwhile, large e-commerce marketplaces have strengths in various promotion campaigns such as live-streaming, which can boost product sales and enhance products’ e-reputation.

Shine Hu
ChemLinked Research Analyst
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