challenges and opportunities for imported mangoes in the...

Challenges and opportunities for

imported mangoes in the Shanghai markets

Xinjian Chen1, Alec Zuo2 & Wen-e Qi3

2 The University of Adelaide, 1Guangxi University & 3South China Agricultural University

19 – 21 March 2019

© Griffith University 2018 2

Overview

Introduction

Market overview

Methodology

Results

Conclusion

References


Introduction

Develop an in-depth understanding of key issues in supply and

demand of imported mangoes, challenges and opportunities

across market segments in Shanghai, China.

Conduct in-depth interviews with 26 stakeholders in the supply

chain of imported mangoes in Shanghai.

Undertake a detailed analysis of the interview transcripts and

identify the key challenges and opportunities for market access

and export growth for targeted partner countries and Australia.


Market overview

China has been identified as a priority market given the rapid expansion in its middle class population and is close to most of the major mango producing nations in the Asia-Pacific region.

Shanghai is the largest city in China and a major consumer market for imported fruits. However, little information is known about the complex and rapidly evolving market requirements, barriers and opportunities in as the Chinese market.

To understand the comparative advantages and implications for growers in Australia and throughout Asia, this report provides detailed information regarding imported mango in the Chinese market by conducting a case study in Shanghai.


Methodology

Semi-structured interviews were undertaken with

key stakeholders including customs and

quarantine officials, importers, wholesalers,

traditional and new retailers, supermarkets,

specialised fruit shops and restaurant managers in

Shanghai.

Interview documents were analysed through an

inductive method like the general inductive

approach described in grounded theory analysis.


Research

Importer Retailer Retailer-E Retailer-S Wholesaler Restaurant Market

Ouheng

Company/欧恒进出口代理有限公司

IVSUN Store/

爱泽阳光水果直营店

YIGUO E-

commerce/上海易果电子商务有限公司

Ole

Supermarket/Ol

e精品超市

Jianong

Company/佳农农产品有限公司

Madam

Goose-

Michelin/米其林餐厅

XijiaoInternational/

西郊国际水果批发市场

Yibo

Company/上海翼博贸易有限公司

Lianhua Store/

联华小超市

Fruitday E-

commerce/上海天天鲜果电子商务有限公司

Lilian

Company/上海利莲国际贸易有限公司

Linzhen

Company/上海林臻投资发展有限公司

Sunfucoo

Company/上海新弗国际贸易有限公司

No name fruit

store/无名水果摊

Citysuper

Supermarket/Ci

tysuper超市

Ivsun

company/爱泽阳光水果批发

Golden Fruit

(Fruita Cloud)/

金果集团水果云

Dazhong Fruit

store/大众果园

Wal-Mart

Supermarket/沃

尔玛超市

Luli Xiaoxing/

泸利小邢果品行

Dole

company/都乐中国

Fruitwell

company/诚实果品水果连锁

Zhu xuan

boutique/祝玄水果精品店

Xianfeng Fruit

Company/鲜丰水果Pagoda

Company/百果园水果连锁Hao & Lian

Fruit Shop/好阿廉水果店


Results 1

Current situation and trends

Note: N=26 respondents

0

2

4

6

8

10

12

Huge market space Small market chance Hard to say Falling market trend


Results 1

Positive trends

Some respondents predicted that the demand is growing:

quality, appearance and taste of imported mango is good.

income and consumption level of consumers in Shanghai is increasing

rapidly, more and more people are willing to pay a price premium to ensure

the quality and safety of food.

eliminated tariffs of imported mangoes under the China-ASEAN and China-

Australia Free Trade Agreement (Australian Mangoes, 2014).

Some respondents concerned about the mango import market:

Some importers and retailers indicated that the imported mango market is

falling in recent years as it faces the domestic mango competition.


Results 2

Major varieties and country of origin

The major varieties of imported mangoes in Shanghai include:

the R2E2 from Australia, the Kent from Peru, the Narcissus

from Thailand, and Green mangoes from Vietnam.

A small proportion of imported mangoes are from the

Philippines (Luzon Carabao), Ecuador (Kent) and Myanmar

(Sein Ta Lone).

Green mangoes,

Vietnam

R2E2,

AustraliaKent,

Peru

Narcissus,

Thailand


Results 2

Seasonal supply and origins

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AU AU AU

Peru Peru Peru Peru

China China China China China China China China

VN VN VN VN VN VN VN

TH TH TH TH TH TH TH TH TH TH TH TH

PH PH PH PH PH PH PH PH PH PH PH PH

MM MM MM

Origin of imported mangoes and seasonal supply, Shanghai, China, 2017-2018

CountryQuantity

(tons)

Share

%

Value

(USD1000)

Share

%

Taiwan 1830 35.7 5330 28.7

Australia 907 17.6 4554 24.5

Thailand 817 15.9 3604 19.4

Peru 597 11.6 2094 11.3

Vietnam 226 4.4 85 0.5

Philippines 102 1.9 830 4.4

Top 5 total mango imports, mainland China (by

country & volume), 2017


Results 3

Key quality issues that affected the mango businesses

0

2

4

6

8

10

12

14

Difficult to controlripening

Not good taste Not goodappearance

Biosecurity issues Big seeds

Key Quality issues of imported mangoes (N=26)


Results 3

Mango Origin Quality advantages Main quality disadvantages

Australian

(R2E2)

Nice skin with round shape; good

taste, with high sweetness and less

fibre

Difficult to control ripening

Peru

(Kent)Good shape and good taste Difficult to control ripening

Thailand

(Narcissus)Good appearance; strong fragrance

Difficult to control ripening;

Not good taste

Vietnam

(Green)

Big size and good shape;

Green Skin

Difficult to control ripening; Not good

taste; Bio-security issues;

large seeds

Philippines

(Carabao)

Nice yellow skin and long strips;

Very sweet and less fibre

Difficult to control ripening;

large seeds

Myanmar

(Sein Ta Lone)Big size with round shape

Not good taste; large seeds;

Bio-security issues

Chinese consumers like mangoes with high sweetness levels and low fibre content.

‘If the imported mango is sour, or has a big seed, it will not suit the Chinese consumer’s preference,’ one importer commented.


Results 4

Supply chain issues

15% damage and loss

are most likely to

occur in the wholesale

and retail stage. 1%

3%

5%

12%

0%

2%

4%

6%

8%

10%

12%

14%

Exporter Importer Wholesaler Retailer

0

1

2

3

4

5

6

7

8

9

10

Not sold intime

Temperature Overripe Long supplychain

Package Other

Timing

Shelf-life

Damaged

products


Results 4

Supply chain issues

02468

10121416

0

1

2

3

4

5

6

7

8

9

High income Young people Women Seeking safeand highquality

Men For gift

Key barriers of imported mangoes in

Shanghai (respondents, N=26).

Consumer

characteristics of

imported mangoes

(respondents, N=26).


Results 5 & 6

0

2

4

6

8

10

12Marketing

Supply chainrelationship

Post-harvest, Storageand Transportation

Trade negotiation

Variety improvement

Quality guarantee

Respondents’

recommendations to

address challenges

and barriers


Results 5 & 6

Imported

originsCompetitiveness

Australia

Good appearance

Good taste

Good supply season (Chinese Spring Festival

season).

Thailand

All year supply

Taste good and strong fragrance;

Low cost.

Vietnam

Low price

Geographical proximity

Long supply season.

Peru

Look similar to Australian mango, but cheaper

Good supply season

Good taste and quality.

The

Philippines

Very sweet and less fibre

Year-round supply

Nice yellow skin.

02468

10

High-endsupermarket

or store

New retailmodels

Multipledistributionchannels

First to third-tier cities

Successful market segment counts commended by

respondents, N=26.

Summary of key competitiveness of top 5 imported mangoes

in Shanghai.


Implications

Some respondents concerned about the mango import market:

Some importers and retailers indicated that the imported mango

market is falling in recent years as it faces the domestic mango

competition.


Conclusion

Imported mangoes in Shanghai market are mainly from Australia,

Peru, Vietnam, Thailand and the Philippines.

Imported mangoes have huge potential market space.

Quality issues include:

poor appearance

short shelf-life

damage caused by difficulties in controlling ripeness and during storage.


Conclusion

Key challenges and barriers for imported mangoes in

Shanghai include:

high cost/price

quality issues

Although imported mangoes are suitable for different market

sectors and have competitive advantages, still encounter

competition from domestic mangoes.


Conclusion cont.

Main consumers of imported mango:

young people with high incomes

high-end specialty supermarkets and fruit stores

new retail models, which will also bring market opportunities for

imported mangoes.

Consumer purchasing power in second- and third-tier cities is

growing, which will also bring huge market opportunities for

imported mangoes.


References

1. Australian Mangoes. 2014. Mango tariffs to China to be eliminated. 16 December 2014. At <http://www.industry.mangoes.net.au/resource-

collection/2014/12/16/mango-tariffs-to-china-tobe-eliminated>.

2. Bo, Yang, Yu Yue, Yi-wen Wang,etl. 2009. 'Market disease pathogens detection of imported fruits in Shanghai', Agricultural Sciences in China, 8: 1087-96.

3. Corbin, J., Strauss, A., 1998. Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. SAGE, Los Angeles.

4. Dan Siekman. 2018.Carrefour Steps into China's "New Retail" Fray. At <http://www.producereport.com/article/carrefour-steps-chinas-new-retail-fray>

5. Evans, E. A., Ballen, F. H., & Siddiq, M. (2017). Mango production, global trade, consumption trends, and postharvest processing and nutrition. Handbook of

Mango Fruit: Production, Postharvest Science, Processing Technology and Nutrition, 1.

6. Freshplaza.2016. Strong Chinese demand for Manbulloo mangoes. At <http://www.freshplaza.com/article/163718/Strong-Chinese-demand-for-Manbulloo-

mangoes>

7. Galán Saúco, V. (2017). Trends in world mango production and marketing. Acta Hortic. 1183, 351-364

8. Iresearch. 2018. China Fresh E-Commerce Consumption Report 2018. At <http://report.iresearch.cn/report_pdf.aspx?id=3123>

9. Matt Brann.2018.Australian mango and dragon fruit growers set to face competition from Indonesian imports. At <http://www.abc.net.au/news/rural/2018-02-

21/indonesian-mangoes-set-to-be-imported-by-australia/9466770>

10. Produce Marketing Association. 2016. Exporting Fresh Fruit and Vegetables to China: A Market Overview and Guide for Foreign Suppliers. At<

https://www.pma.com/~/media/pma-files/research-and-development/exporting-fresh-fruit-and-vegetables-to-china.pdf>

11. Robin Roberts,Tiago Wandschneider.2015.Vietnam Mango Export Opportunities in Hong Kong and Shanghai.At<https://www.adelaide.edu.au/global-

food/research/smallholder-inclusive/Vietnam_Mango_Export_Opportunities_in_Hong_Kong_and_Shanghai.pdf>

12. Sun, Ximing. 2016. 'Opportunities and challenges relating to the export of fruit and vegetable products from Queensland to Asian Countries'.

13. Thomas, D.R., 2006. A general inductive approach for analyzing qualitative evaluation data. Am. J. Eval. 27, 237e246.

14. World Bank Group. 2018. China overview. At <http://www.worldbank.org/en/country/china/overview>

15. Yun Yang Zi. 2017.Hema Fresh: A Case Study in New Retail. At <http://www.ceibs.edu/alumni-magazine/hema-fresh-case-study-new-retail>

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