Business Opportunities
www.greentrade.net is always looking for new markets in the organic industry. From 2003 to 2006 we worked on the European market and the Gulf Countries. For 2007, USA and ASIA will be our priorities. www.greentrade.net will get a pavilion in EXPO WEST (Anaheim) and EXPO EAST (Baltimore).
In Asia, certified organic products were developed in the early 1990s, when foreign companies began working with farmers to meet specialty export markets in tea and soy products.
While organic products remain largely aimed at the export market, with only limited distribution nationwide, a parallel 'green food' movement has arisen to satisfy Chinese demand for higher quality, more sustainable food items. People are getting more and more concerned about the pollution and its effects on their food,"
After several recent food safety crisis - including contaminated fish, listeria in ice cream, the chicken flu (H5NI) virus and high levels of pesticides found in vegetables - Hong Kong consumers are turning to organic foods. The demand increases for foods produced without any chemicals or pesticides. Asian consumers are joining the global trend towards organic produce. Japan, Taiwan, Singapore and Hong Kong are emerging organic markets with "little domestic competition".
There are export opportunities for European companies. Imports have the edge on local produce because they carry a recognized, well respected label of organic authenticity.
Hong Kong, with its population of 6.8 million and per capita income of $25,000 is the best choice for starting. Market-watchers have noted that organic foods have been selling in Hong Kong since the early 1990s.
Retail operations offering organic foods fall into three categories:
- Supermarkets. Park N' Shop and Wellcome are the two dominant chains.
- Department Stores. Citysuper, Seibu, Jusco, Uny and Sogo are Japanese-style department stores that feature food sections.
- Specialty Health Food Shops. Around 50 to 60 health food shops carry organic, health and diet-supplement foods.
The opening of Asia's largest retailer for natural and certified organic food in Hong Kong by the end of November tells one of the megatrends. Located in the heart of Central, Dairy Farm-fully-owned ThreeSixty translates visionary lifestyle into practice by introducing a mix of innovating ideas. Occupying a total area of 23,000 sq. ft., the mega-store offers a brand new shopping experience with a take-home food store for grocery products and fresh foods and a ready-to-eat food hall for tasting new recipes. Over 5,000 natural and certified organic products are on the shelves. Besides, a comprehensive array of new and amazing eco-friendly household products, fair trade products and functional products land in. That's definitely good news to natural and organic suppliers and manufacturers around the globe.? ThreeSixty moves on with a plan to open its flagship supermarket of 33,000 sq. ft. on Kowloon side in the late 2007.
Mainstream retailers also ride on the wave. Two leading supermarkets in Park N' Shop and Wellcome, along with department stores, such as CitySuper, Seibu, Jusco, UNY and Sogo allocate more retail space to organic products.
Now the local market is big enough to accommodate both giant and small players. The number of independent natural and organic retail outlets now totals over 300, and they become an important market force that cannot be overlooked. Established retailers like Health Gate, GreenDotDot and Green Concepts can still afford high-rent outlets in Causeway Bay and Central and pioneer in sourcing new brands and products worldwide.
What kind of products :
Food :
The term "organic foods" is virtually synonymous with "health foods" in Hong Kong, so it's important to emphasize the overall nutritional value and health food image of organic products. Baby food, fruits juice, manufactured produces, cakes, chocolate, wines are particularly appreciated..
Natural Personal Care Products Take off
Safe food is not the only major concern for local consumers when the SK-II cosmetics incident rings the alarm. 9 products of the premium brand were detected with low levels of toxic heavy metals, chromium and neodymium, in testing by the watchdog authorities in Guangzhou and Hong Kong. Although China's authorities later confirmed that the heavy metals only posed a minor hazard to consumers' health and Proctor & Gamble has resumesd the sales of its SK-II cosmetics line in China, the incident is a blow to the consumers' confidence. Consumers begin to question the quality of raw materials for cosmetics and toiletries.
The next wave for natural and organic personal care products is coming. Europe, USA and Australia have already taken the lead in the market to educate the public about the purity and functions of organic ingredients. Consumers begin to take a zero-tolerance attitude towards personal care products contaminated with any heavy materials, such as neodymium and chromium. Questioning the safety of cosmetics and toiletries, more and more consumers will shift their choice to natural and organic labels; therefore, more and more organic cosmetics retailers will squeeze into the market.
The sector is booming, and more and more Hongkongers choose to live with natural and organic products.
This year, we are planning actions on Asian market, specifically in Hong Kong.
If you are interested, please get back to us at : info@greentrade.net
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