The Scandic Group
Scandic Sourcing was founded in 2006 with the focus of helping International companies to start up operations as well as working more effectively with suppliers in China.
Scandic Foods Asia has been developing its import and distribution organization for imported foods from Scandinavia in China since 2010.
Together they form the Scandic Group
With both a professional consulting arm and a food importing business with fresh relevant experience in the group we can easily form a team to assist food producers with market entry into China. Some of these cases might eventually fit with the Scandic Foods Asia focus, others might fit better with other partners.
Opportunities in China
China has grown into the world’s largest import consumer market for food and beverages and annual imports are expected to reach 10 trillion USD during the next five years. Concerns over domestic food safety following a number of scandals, coupled with a growing middle class with increasing spending power has created huge surge for foreign food brands.
q Chinese total grocery sales will increase from $1,119bn in 2015 to $1,491bn in 2020.
q Imported foods accounted for 54.8 Billion USD in 2015 with a YOY growth of 17%.
q In 2018 China will be the world’s largest imported foods market.
q 50% of all foods are still sold in traditional wet markets. Migration to cities and upgrading of food retail channels will continue.
q Share of groceries sold online and by mobile devices is increasing rapidly.
q The Chinese online grocery market, already the world’s largest, is set to be worth almost $180bn by 2020 – nearly five times its current value of $41bn
Service Description, importing food stuffs into China
The Scandic Group presents a fully customizable multi step service to help you prepare, import and distribute your food and beverage products in China. This program will show you and your company how you can enter the market according to your own scope and reach.
First of all it’s necessary to find out whether your products fit the China standard and if there are any restriction regarding ingredients. There are very strict and sometimes unusual requirements on ingredients where China has chosen to define what is allowed instead of what is forbidden making it very hard to introduce new innovative products. Some food products require special licenses for the producer or the importer. All these issues needs to be clarified before the next step is taken.
We then typically make a market survey to see how the product will fit in. This includes a competitors present in the market and we also calculate import cost and suggest price points.
If all looks ok we then prepare a test import of a small quantity by air freightThis will sometimes unearth issues that are not easy to find in print, such as conflicts between customs and hygiene authorities in classification, unpublished rules, We will advise on export documentation. Producers and products will be registered with customs and CIQ (Hygiene authorities).
A lab tests is might be needed. We draft and design Chinese label text including nutrition data. The second part is the import stage where we declare your goods and get it past customs. This involves translating labels to fit Chinese standards, declaring the goods for inspection by Chinese customs and CIQ inspections and clearing tariffs and VAT charges.
With a CIQ document in hand you can confidently speak to importers and distributors. With the samples imported retail chains can be approached and the listing application process started.
Finally we can assist with marketing activities such as trade shows, consumer tests and partner search if needed. Every year we participate at the SIAL exhibition im May and always have a few aspiring exporters participating in our both on a cost sharing basis.
well as marketing, in-store promotions and help initiating distribution.