1. China’s E-Commerce and Canadian Seafood Export Opportunity to China
8th October, Fredericton, NB
2014 Annual Conference of Canada Fishery Council
Fan Xubing
Managing Director, Beijing Seabridge Marketing Co.

2. China E-Commerce Market Overview: World No.1 and Continue Fast Growing

3. China’s Consumer Spending: Triple from 2010 to 2020

4. China vs. US Ecommerce Annual Increase: 120% vs. 17%

5. China’s E-Commerce Market: World No.2 in 2012

6. China’s E-Commerce Market: Potential

7. China’s E-Commerce Market: Potential for Growth

8. US’s E-Commerce: Path to Purchase

9. China’s E-Commerce: Path to Purchase

10. Canadian Seafood Enter into China Market Steps
Government
Market Access
Association
Trade Exhibition, Buyer Delegation
Marketing Company
Social Media: weibo, wechat, blog, recipe-sharing web, short video, etc.
Printing Media, TV Cooking Program
Baidu Key Word, SEO, Wikipedia
E-Commerce and E-Promotion
Hypermarket Promotion and Restaurant Promotion

11. @野生北极虾 Coldwater Shrimp Official Weibo
@野生北极虾 following: fans: weibo: 857

12. China’s E-Commerce: Path to Purchase

13. Different E-commerce Structure: US vs. China

14. China E-Commerce Market Leaders: Alibaba/Weibo, Jingdong/Tencent and other……

15. China B2C E-commerce Giants: G2

16. China/World Largest E-commerce Company: Alibaba & Jack Ma

17. China/World Largest E-commerce Company: Alibaba

18. Best Selling Canadian Seafood on Tmall: Coldwater Shrimp

19. Best Selling Canadian Seafood on Tmall: Canadian Lobster

20. Best Selling Canadian Seafood on Tmall: Canadian Surf Clam

21. Best Selling Canadian Seafood on Tmall: Canadian Seal Oil

22. China/World Largest E-commerce Company: Alibaba

23. China E-Commerce Market Future

24. China E-commerce Prospective: Go Mobile

25. China E-commerce Prospective: 3 Driven Forces

26. China E-commerce Prospective: 3 Driven Forces

27. China E-commerce Prospective: 3 Driven Forces

28. China E-commerce Prospective: 3 Driven Forces

29. China E-commerce Prospective: 3 Driven Forces

30. China E-commerce Prospective: 3 Driven Forces

31. China E-commerce Prospective: 3 Driven Forces

32. China vs. US: All Social, but Different Social Animals

33. Current China’s E-commerce Food Consumption: 3
Current China’s E-commerce Food Consumption: 3.3% but huge potential to grow

34. China E-commerce Sales: Exceed 10% of total retail sales since 2014

35. China B2C E-commerce Sales: Food only take 3.3% of total sales

36. But Increase Very Fast: Taobao/Tmall Agri-products Annual On-line Sales
Source: Alibaba agri-product white paper 2012

37. China’s Young and Rich E-Shoppers

38. China E-Shoppers: mainly 19-35 Y young people

39. China E-Shoppers: 1/3 buyers buy more than 40 times/year

40. China E-Shoppers: 52.4% spend 500-3300 USD/year

41. China’s Food E-Commerce Sellers

42. 2013 China B2C Top30 Companies: 6 are Food related E-Stores

43. Opportunities for Canadian Seafood in China

44. Canadian Seafood Export: 85% seafood for export G4: Lobster, Salmon, Crab, Shrimp

45. Canadian Seafood Export: Mainly Rely on US Market

46. Canadian Seafood Export: shifting from US to China

47. What Seafood China Market Need?
Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

48. What Canada currently export to China: Crab & Shrimp

49. Canada Seafood: Enough Opportunities in China
Canadian Seafood Main Competitors in China Market
No.1
No.2
No.3
Frozen Snow Crab
Atlantic Canada
Alaska, US
Russia
Frozen Coldwater Shrimp
Greenland
Argentina
Live Lobster
Maine, US
New Zealand
Live Dungeness Crab
BC, Canada
Pacific US
Live Geoduck
Frozen Halibut
Canada
Frozen Capelin
Norway
Hokkaido, Japan
Frozen Mackerel, Herring
Frozen Lobster
Cuba
Mozambique
Farmed Fresh Atlantic Salmon
Scotland
Faroe Island
Wild Frozen Pacific Salmon
Frozen Sablefish
Frozen Flat Fish
Farmed Mussel
India
PEI, Canada
Source: Beijing Seabridge Marketing Co., China Customs Statistics

50. Canadian Seafood Competitors in China
Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

51. Canadian Seafood Competitors in China
Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

52. Canadian Seafood Competitors in China
Inside China, the Seafood Trade 2014, Agriculture & Agri-food Canada

53. China: Strong Demand on Variety of Seafood
<Pelagic Fish in China 2014> report, Agriculture & Agri-food Canada

54. Seafood Country Image for Chinese Consumers
Canada:
High-end, High-Price, Lower Quantity
Canada
Lobster, Shrimp, Crab, Surf Clam, Geoduck, Salmon, Sablefish, Sea Urchin,
Norway
Farmed Salmon, Mackerel, Herring, Haddock,
Alaska, Russia
King Crab, Snow Crab, Wild Salmon, Cod, Pollock, Flat Fish,

55. China-Canada: Perfect Matching for Canadian Seafood Demand-Supply
Population: 1.4 Billion people and increasing
Income: increasing
Diet: a nationality who like seafood; from meat to seafood
Consuming Habits: prefer live & fresh seafood; prefer shellfish than finfish
Seafood Trade: from Seafood Export Country to Seafood Import Country
Wild Seafood Catch: decreasing
Aquaculture Production: reached a ceiling

56. Important Canadian Seafood in China: History, Current and Future

57. 1. Canadian Lobster Market in China

58. Canada Lobster Export Market Structure
During , USA remains average 77.5% of total Canada lobster export market, while China and HK together increases from 2.2% to 7.6%, when 5 European countries decreases from 10.6% to 7.2%. The emerging Asian market (China, HK, Japan, Korea) is replacing the declining European market.
Canada lobster export is still too much rely on the single USA market, which is not a healthy export structure.

59. China Live Lobster Import
China Live Lobster Import: strong demand and increasing, major exporting countries: New Zealand (20.3%), USA (34.3%) and Canada (23.8%)
NZ lobster take high-end market and Canada lobster take low-end market
China Live Lobster Import
2011
2012
2013 Kg %
USD
USD/kg
New Zealand
16.7%
40.40
20.2%
73.76
20.3%
81.46
USA
975048
11.0%
19.83
26.7%
24.12
34.3%
21.44
Canada
15.5%
16.69
22.8%
19.57
23.8%
18.82
South Africa
13.8%
18.49
542510
6.1%
34.14
730060
5.8%
35.87
Indonesia
450149
5.1%
15.43
893627
10.0%
24.76
756665
31.24
Mexico
15.1%
23.55
455760
30.71
311929
2.5%
40.76
Australia
12.3%
36.53
104936
1.2%
61.85
224062
1.8%
53.49
Burma
181673
2.1%
14.52
242588
2.7%
23.35
201075
1.6%
22.77
Subtotal
91.7%
25.34
94.8%
35.09
96.1%
36.06
Total
100.0%
24.73
34.70
35.99
China live lobster market is very strong even in 2013 and not effected by anti-corruption movement
Source: China customs statistics

60. China Frozen Lobster Import
China Frozen Lobster Import: limited market potential, Canada is the most important supply country (52.7%, 2013)
China Frozen Lobster Import
2011
2012
2013 Kg %
USD
Kg/USD
Canada
329212
18.6%
10.73
460557
32.6%
13.34
555021
52.7%
12.33
Cuba
58394
3.3%
20.86
419858
29.7%
17.71
188584
17.9%
18.08
Mozambique
0.0%
0.00
21740
1.5%
387894
17.84
116252
11.0%
13.32
Morocco
66519
4.7%
949418
14.27
43400
4.1%
586819
13.52 UK
886742
50.2%
2.70
308826
21.9%
821131
2.66
212
4417
20.83
Subtotal
72.1%
5.61
90.4%
12.32
903469
85.7%
13.71
Total
100.0%
5.40
12.56
14.08
Source: China customs statistics

61. China total Lobster import from USA and Canada
Canada as the largest catching country, export less than USA and cheaper than USA to China
China Lobster Import from USA and Canada
2011
2012
2013 Kg
USD
USD/kg
USA
live
975048
19.83
24.12
21.44
frozen
29029
538193
18.54
60711
837397
13.79
27909
240781
8.63
Canada
16.69
19.57
18.82
329212
10.73
460557
13.34
555021
12.33
Total
live frozen
Total importing increase very fast: 7830 tons (2013), Canada take 45% market share (2013)
Source: China customs statistics

62. Market Opportunities and Marketing Activities for Canadian Lobster
Media
Media Trip to Canada
TV cooking program
Gastronomy and Chef Magazine
Chinese Website
Weibo and Wechat
Blogs
Restaurants
Chinese restaurants, Western Hotels
Weddings
Lobster Festival
Chef Seminars
Supermarkets
High-end supermarkets
E-Commerce
Tmall, No.1 Store, JD, Amazon
Womai, Sfbest, Tootoo, Benlai
Others
Gift Package for Chinese New Year
Buyers Delegation to Canada
Importers Incentive Program (encouraging to buy more Canadian lobster instead of to buy US lobster)

63. E-Commerce & E-Promotion Proposal for Canadian Seafood Industry
Beijing Seabridge Marketing

64. 2013: the year for imported seafood on-line selling
2013 is the year of taking-off and booming for imported seafood, meat, fruit and other agricultural products on-line sales in China.
Seafood, as the Canada’s most popular agri-products in China, received high attention and attracted many on-line shoppers eyes in 2013.
In 2013, Canadian coldwater shrimp, lobster and surf clam, as the leading Canadian seafood in China, have been arranged by Seabridge Marketing to join several very important e-promotion on leading e-malls, include Tmall, JD, No.1store etc. These 3 products have been ranked as top 10 on-line best selling imported seafood in China and Canadian coldwater has been ranked as the No.1 on-line selling seafood.
In 2013, we estimated the total coldwater shrimp on-line selling was about 500 tons and accounted for 1.5% of total tons coldwater shrimp import.

65. 2013: imported seafood on-line selling booming
By end 2013, China’s total annual on-line sales has reached 1885 billion RMB (306 billion USD) and accounted for 8.1% of China’s total annual retail turnover.
Agri-foods are the fastest developed on-line selling catalogue (112%) among all on-line selling goods.
Seafood, meat and fruit are the fastest developed on-line selling catalogue (195%) among all on-line selling agri-foods catalogue.
Imported seafood, meat and fruit on-line sales are developed much faster (3-5 times) than domestic seafood, meat and fruit on-line sales because: 1. domestic consumption upgrading, 2. domestic food safety problems, 3. higher profit to sell imported agri-products on-line.

66. Canadian Seafood to China/HK/Taiwan: No.2 Market after USA
US Food Industry Association predict: by 2018, China will become the world largest market for food importing and consumption, with market size of 480 billion RMB (78 billion USD).
Seafood, as the largest exporting agri-food catalogue for Canada, is now still heavily rely on USA market (63% Canadian seafood export to USA), which is not a healthy structure.
Currently, seafood is the largest agri-food catalogue exported from Canada to China.
By end 2013, China is largest importing country for Canadian coldwater shrimp (21097 tons), China/HK is the second largest importing country for Canadian lobster (4807 tons) after USA, Great China is No.1 importing country for Greenland halibut (8988 tons, China, HK, Taiwan, Vietnam, 83%), China/HK is No.1 importing country for Canadian geoduck (1386 tons, 82%), Canadian Dungeness crab (552 tons, 93%), Canadian surf clam (2884 tons, 71%) and second largest importing country for Canadian sea cucumber (1024 tons).
By end 2013, China is very important country for other Canadian seafood like snow crab (4956 tons, No.2), Great China is the largest importing country for Canadian capelin (12005 tons, 59%). These products are imported to China, processed and re-exported to Japan before but now with more and more sales in China’s domestic market.

67. E-Commerce and E-Promotion: icebreaking vehicle for new Canadian seafood enter into China market

68. Why is e-commerce for Canadian seafood?
Most Canadian seafood has been sold into China/HK/Taiwan market for more than 10 years and the traditional market segments has been more or less developed, therefore less opportunity and potential there.
E-commerce is the fastest development segment and will take about 20% retail market share by 2020 (currently 10.1% by 2014).
Imported seafood, meat and other agri-foods are easier to be accepted by e-commerce compare with traditional wholesale market, hypermarket and food service.
Traditional wholesale markets and hypermarkets are getting down in China during recent 3 years and less imported seafood sold through hypermarkets (except high-end supermarkets).
Food service is suffering from China government anti-corruption movement since 2013, and still not recovered without the huge expenses from “official entertainment”.
Emerging e-commerce companies are much more creative, aggressive, efficient and result-driven compare with traditional business. They are willing to accept and try new products and new business module selling on-line.

69. What benefits E-Commerce could bring to Canadian seafood?
1. Fast entering into China market
Selling through traditional market segment takes several years to gradually penetrate into the market, which is slow and low efficiency
Selling on-line through leading e-malls and e-stores (more concentrated players compare with traditional distribution channels) are much faster
Once one e-promotion succeed, the whole supply chain will follow the on-line market demand quickly
Only succeed with one e-mall or e-store, we could duplicate to other e-malls and e-stores much faster then duplicating to hypermarket and food service
E-commence will quickly cover whole China market
2. Demonstrative influence to traditional channels
Once these Canadian seafood selling well in emerging e-commence channel, hypermarket and food service channel will also follow. Currently in China, c-commence has become a best platform to launch new products sales
A proven successful good selling new seafood product on e-commence channel will be selected by hypermarkets and restaurants to sell in their channel because on-line big data has shown the market demand and potential of this seafood product

70. What benefits E-commerce could bring to Canadian seafood industry and exporters?
3. Fast branding establishment
E-commence and e-promotion is not only selling the products, it’s also a bigger opportunity to propaganda your products and marketing/branding your products
Successful e-promotion imported seafood like Canadian coldwater shrimp, Canadian lobster, Chilean seabass are then getting popular off-line as well
4. Big data
C-commence and E-promotion will give us big data and let us understand consumers needs and market potential quickly
Based on the big data, we could then formulate clear marketing plan, sales plan and develop consumer-oriented product, package and pricing
5. Direct connecting to end consumers
Could directly connect to end consumers, without through different layer distributors and retailers
Could squeeze out the profit of middlemen and give the best price to end consumers. This is the big advantage of e-commence for imported seafood

71. Positioning and objective for different Canadian seafood in China
Strong Branding Group
Coldwater shrimp: No.1 wild shrimp and No.1 imported shrimp in China. 80% market share. No strong competitor (Greenland and Denmark). 2017: tons
Canadian lobster: No.1 lobster in China. 70% market share. Stronger brand than US lobster. 2019: tons
Surf clam: No.1 imported clam in China. 70% global market share (Japan). No strong competitor (North Korea).

72. Positioning and objective for different Canadian seafood in China
Weak Branding & Competitive Group
Snow crab: No.1 snow crab branding and sales in China. Competitive against Alaska, Russia or North Korea snow crab.
Greenland halibut: No.1 halibut branding and sales in China. Competitive against Greenland, Denmark, Norway, Germany and Spain.
Blue mussel: No.1 imported blue mussel in China. Competitive against NZ green mussel.
Capelin: No.1 capelin in China, competitive against Iceland and Norway.
Salmon: popular branding in China, following brand after Norway and competitive against Chile, Scotland and Alaska salmon.
Sea cucumber: popular imported sea cucumber in China. Competitive against Iceland sea cucumber.
Pork and beef: popular imported meat branding in China. Following brand after Australia, US and NZ beef.

73. Weak & Competitive Brand Strong Brand Dominating Brand
Canadian Seafood Branding & Positioning Steps in China:
Take No.1 position in each small market segment like shrimp, lobster, crab, clam, flatfish, pelagic fish etc.
Weak & Competitive Brand
Strong Brand
Dominating Brand
Canadian Seafood as a Strong Group-Product Name become the No.1 Seafood brand and take No.1 market share in China

74. Steps for Canadian Seafood E-promotion:
Single product e-promotion to multi products e-promotion
Select importer(s) and delivery
E-Promotion Planning with selected E-mall
Select e-store, prepare inventory and design product page
Design e-promotion front page and launch e-promotion
Multi products e-promotion
(Design theme, select leading seafood, select other seafood)
Select e-stores for leading seafood and other seafood, prepare inventory and design product page
Design e-promotion front page and launch e-promotion

75. Multi Products Canadian Seafood E-Promotion: by different products combination, different theme, different season and with different e-mall, e-store
Multi Products Canadian Seafood
E-Promotion
Strong Branding Product
Competitive Branding Product
Unique Product
Following Product
Coldwater Shrimp
Snow Crab
Salmon
Geoduck
Sea Scallop
Lobster
Greenland Halibut
Beef
Dungeness Crab
Oyster
Surf Clam
Sea Cucumber
Pork
Ice Wine
Blue Mussel
Blue Berry
Capelin
Cherry
Spring Seafood E-promotion 1
Dragon Boat Festival E-promotion
Summer Seafood E-promotion
JD & No1store E-Festival 06.18
Moon Festival E-Promotion
T-Mall & Amazon E-Festival 11.11
New Year E-promotion
Chinese New Year E-promotion
Womai Regular E-promotion (National)
Womai Daily E-promotion (Regional)
Sfbest Daily E-Promotion (National)
Tootoo Daily E-promotion (Regional)
Benlai Daily E-promotion (National)
Amazon Daily E-Promotion (National)
No1store Daily E-promotion (National)
JD Daily E-promotion (National)
Tmall Daily E-promotion (National)

76. China Important E-Commence Platform List and Vertical Food E-Commence Companies List
China Current Leading E-Mall and E-store Ranking
Name (CH)
Name (EN)
Head office
Web Address
Alexa Traffic Global Ranking
Alexa Traffic China Ranking
Notes 淘宝
Taobao
Hangzhou 10 3
belongs to Taobao/Alibaba 天猫
Tmall 43 8
京东商城
Jingdong
Beijing 80 14
largest E-store in China
亚马逊中国
Amazon China
112 18
No.1 E-bookstore in China
当当网
Dang Dang
285 46
No.2 E-bookstore in China
拍拍网
Pai Pai
Shenzhen
291 51
belongs to QQ.com
易迅网
51buy
352 58
一号店
No.1 Store
Shanghai
672
109
belongs to Wal-Mart
苏宁易购
Suning
Nanjing
578
largest off-line 3C chain store in China
一号商城
No.1 Mall
1555
200
belongs to No.1 Store
我买网
My Buy
6298
753
belongs to COFCO
顺风优选
Shunfeng Best Choice
10297
891
belongs to largest express transportation company Shunfeng
东方CJ
Oriental CJ
25367
2564
belongs to largest TV shopping channel in Shanghai
沱沱工社
Tootoo Community
60581
5027
E fresh food store
本来生活网
Benlai
58032
7172
with background of large media and leading IT company Tencent
易果网
E-fruit
76824
7607
specialized in fruit on-line sales

77. How Canadian seafood associations and exporters participate e-promotion and e-commerce in China?
Working Group: Each association or exporter should appoint a representative to work with Fan Xubing (GM Seabridge Marketing). It is most effective if the association or exporter establishes a working group to focus on the initiative to address marketing, logistics, etc. issues.
Export and Delivery: Each product need to find importer in China and deliver the product to China before start of the e-promotion. If have retail package, welcome to sell retail pack product to China, otherwise bulk pack product are also acceptable for re-packing in China later.
Product information and supporting documents: Each association or exporter need to provide detailed products information, pictures, supporting documents before start of e-promotion for product page and front page design and e-marketing.
Free Sample: Each association or exporter need to donate a certain quantity of free sample for on-line free tasting, luck draw, awarding etc. during e-promotion.

78. Cost for Canadian seafood associations and exporters to participate e-promotion and e-commerce in China?
E-promotion Fee: Depends on different scales, different products, different theme, different season e-promotion, Seabridge Marketing will charge different fee for participating, organizing, listing fee for e-mall and e-store, implementing, e-marketing, off-line activities, following-up, data collection and summary report services.
Multi Products Canadian Seafood E-Promotion
Strong Branding Product
Competitive Branding Product
Unique Product
Following Product
Coldwater Shrimp
Snow Crab
Salmon
Geoduck
Sea Scallop
Lobster
Greenland Halibut
Beef
Dungeness Crab
Oyster
(Canadian Dollar per E-promotion)
Surf Clam
Sea Cucumber
Pork
Ice Wine
Blue Mussel
Blue Berry
Capelin
Cherry
Spring Seafood E-promotion
6000
3000
Dragon Boat Festival E-promotion
Summer Seafood E-promotion
JD & No1store E-Festival 06.18
12000
Moon Festival E-Promotion
T-Mall & Amazon E-Festival 11.11
15000
7500
New Year E-promotion
8000
4000
Chinese New Year E-promotion
10000
5000
Womai Regular E-promotion (National)
Womai Daily E-promotion (Regional)
2000
Sfbest Daily E-Promotion (National)
Tootoo Daily E-promotion (Regional)
Benlai Daily E-promotion (National)
2500
Amazon Daily E-Promotion (National)
No1store Daily E-promotion (National)
JD Daily E-promotion (National)
Tmall Daily E-promotion (National)

79. Successful Samples of Canadian Seafood Marketing and E-Promotion

80. Seabridge Successful Seafood Marketing and E-Promotion Samples
Seabridge Marketing Co. Marketing Projects List: Seafood
Product
Client
Activities
Since To
Achievements
Norwegian Salmon
Norwegian Seafood Council
marketing, retail promotion, food service, training, media
2003
2012
10000 tons (2003) to tons (2012)
Norwegian Herring
market study, retail promotion, media
2006
2009
------
Canadian Coldwater Shrimp
Canadian Association for Prawn Producers
marketing, retail promotion, e-promotion, media
now
22000 tons (2008) to tons (2013), Canada 70% market share
BC Geoduck
Underwater Harvesters Association
market study, marketing, food service, media
2011
1600 tons (2013), China & HK 90% market share
NB & PEI Lobster
NB & PEI Department of Fishery, Fishery Council Canada
marketing, food service, media
2008
500 tons (2008) to 7830 tons (2013), Canada 45% market share
NB & PEI Snow Crab
NB and PEI Department of Fishery
dropped from 9000 tons (2010) to 5000 tons (2013)
BC Sablefish
Canadian Sablefish Association
market study
2013
US Louisianan Seafood
Louisianan Seafood Promotion & Marketing Board
Spanish Farmed Turbot
Pescanova Sa.
markeitng, food service, media
Barents Sea Atlantic Cod
Ocean Trawlers Co.
market study, marketing, media
100 (2013) tons to 1000 tons (2014)

81. Miaoxiansheng (imported fresh food) Canadian lobster and coldwater shrimp E-Promotion at Tmall.com

82. Tmall Canadian lobster Sales: One E-store selling Clearwater brand lobster

83. Canadian Seafood E-Commerce Free Tasting

84. Tmall Free Tasting: New and Low Cost E-Marketing & Pre-Warming Vehicle
Tmall free tasting: No.1 on-line shoppers application for free tasting.
Tmall free tasting: More free tasting application and new products exposure than any other e-malls, e-stores and any other gastronomy/recipe social media platforms.

85. Tmall Free Tasting: Canadian Coldwater Shrimp
Applicants number

86. Tmall Free Tasting: Canadian Lobster
Applicants number

87. Beijing Seabridge Marketing Co.
The most professional seafood marketing company in China.
Established in 2003 with more than 10 years experiences in China.
Exclusive marketing agent for: Norwegian salmon, Canadian coldwater shrimp, Canadian lobster, Canadian snow crab, BC geoduck and important marketing agent for Australian beef and lamb, NZ beef and lamb in China market.
All these products are currently the top 10 selling imported seafood and imported meat products in China both for e-commerce and for traditional distribution channels.
Contact:
Fan Xubing, GM Beijing Seabridge Marketing Co.
Phone: ,
Website: