A Consumer Issue

I would like to refer to this issue as a consumer one. Although not written for the consumer reader, many articles and features in here were written with them in mind. Allow me to take you through our offering this in this June-July issue.

Firstly, the world meets at Anuga (pg 8-11), arguably the world’s largest and most relevant food and drink trade show. Reacting to consumer trends, segments such as private label products and a global Halal conference will be featured this year. The trendsetting exhibition observes that private labels tend to be in the premium segment, especially in the UK.

The UK consumer market is indeed interesting (and more so, uplifting), as increasing sales were recorded in the month of April. According to a report by the British Retail Consortium and KPMG, food sales have gone up by 6.9 percent and 5.5 percent in the UK and London respectively, in the February-April 2008/9 period. (Read more on pg 14-15.) Consumers were more enthusiastic to shop and to spend thanks to the Easter holidays and sunnier weather. “While many shoppers are delaying the purchase of big ticket items, nearly three-quarters told IGD in a recent poll that they are ‘carrying on as normal’ with their grocery shopping - although of course they are seeking out the best deals and promotions, shopping around and scrutinising value,” the report said. The IGD (Institute of Grocery Distribution), in its standalone research report (pg 33-39), offers many insights into the spending habits of British youth, and how their wants affect buying decisions their parents make.

In terms of the Halal market, however, a more conservative outlook is recommended. While it is estimated that this market is worth US$2.1 trillion worldwide (including non-food sales), consumers in non-Muslim countries are still largely unfamiliar with the Halal concept. While Malaysian and Indian Halal food exporters are convinced of the Halal food’s potential (pg 20-22), buyers from around the world at MIHAS note that these products are far from suitable for the mainstream markets, especially in the west (pg 18-19). Again and this is not new; this points to the important need for exporters to identify the right markets to penetrate, and how big the niche they wish to fill is.

Speaking of the niche, restaurants in China are quickly filling out the fine dining gap as “fried rice and sweet and sour pork are not the only kinds of food the Chinese eat today. They want something that makes them truly happy,” says Bernhard Butz, executive chef at the Shangri-La Hotel, Beijing. (Read more on pg 24-25). In India, however, organised modern retailing seems set to remain almost void as local resistance and the government form bulk of its setbacks (pg 26-27). Then again, Allanasons Ltd, India’s largest exporter of Halal buffalo meat, has ventured unfazed into the retailing sector and things don’t look so bleak at all for the food manufacturing and meat supplier giant. “Retailing in India is still in the primary stage as this segment is just opening up. The cold chain management and logistics for food has improved a lot in India. We see a lot of potential here,” says Afzal Aziz, the company’s president for International Business Development (pg 23). Perhaps all it takes is local market understanding and a lot of resilience.

Nicole Liang
Assistant Editor