Buyers are more interested in packaging than the product inside, according to Najib Lawand.
As the general manager of market development for Food Innovation Australia (FIAL), Najib Lawand had some fresh insights to share on exports at Auspack’s National Technical Forums.
Australia’s supermarket heavyweights are in competition for the best price, but when it comes to reaching the Asian market, price is less important than product variety.
“With exporting it’s a race to come up with the best product rather than the best price,” Lawand says.
“People want health-related products that are also convenient – such as single-serve protein balls.
“Buyers are loving them at the moment.”
Key export markets are also paying attention to packaging.
“Appearance is everything,” says Lawand.
“Buyers are more interested in what the product looks like, and whether they can visualise it on shelf.
“We often find they don’t even want to taste samples of the product – instead, they’re looking at colours and designs, and size due to the small amount of space in Japanese and Korean fridges and pantries.”
Lawand has seen a lot of innovation in beef jerky packaging – with an array of single-serve options and pouches being developed.
Export markets are also interested in such things as beef broth in pouches, and Paleo ingredients.
“There’s never been a better time to look for export markets,” Lawand says.
“If Australian manufacturers can tap into the demand for health and organic foods; spreads, sauces and condiments – especially honey; biscuits, crackers, and snack foods; and dairy; then they will find success.”
While most buyers are from China, there is also a strong interest in baby food and formula in Singapore.
In China, according to Lawand, there’s also a growing interest in chocolate, confectionery, and baked goods.
The good news for SMEs is that many international buyers are not only interested in the big brands.
“While some are, due to the fact they can pay all the listing fees, many retail buyers want the SMEs with the most innovative products so they can differentiate on shelf,“ Lawand says.
“Many are willing to work with the SME in order to have exclusivity.
“The buyers will be patient throughout the process of developing the product and so on as they want a unique selling proposition.”
That’s why it’s so important to know what ingredients or health credentials set you apart, as well as how to articulate your differences.
“Brands need to work on their communication and storytelling.
“And this involves a marketing and promotional program which can be communicated to buyers up front.
“Approach buyers with a plan, and they’ll be motivated to sell and put your brand front and centre.”
