The China Challenge: Strategy Moves for Aussie Brands (Part 2)
Image: The Rise of Chinese Brands
In recent years, a new wave of Chinese brands has risen to challenge the dominance of established Australian players in the China market. As local brands rapidly improve in quality and marketing sophistication, competition across categories like dairy, beauty, and health supplements has intensified. Here are some key examples.
Dairy and Infant Formula:
- Chinese Brands: Feihe, Beingmate, and Mengniu
- Australian Brands: a2 Milk, Bubs
- While Australian brands, particularly a2 Milk and Bellamy’s, have been highly popular in China due to their reputation for quality and safety, domestic Chinese brands have been upgrading their product offerings and emphasizing their local understanding of consumer needs.
Wine:
- Chinese Brands: Great Wall (长城) , Changyu (张裕)
- Australian Brands: Penfolds, Jacob’s Creek
- Although Australian wines enjoy a premium reputation in China, local Chinese wine brands have been making strides in quality and marketing, aiming to appeal to the rising middle-class consumer base.
Skincare and Beauty:
- Chinese Brands: Pechoin (百雀羚), Chando (自然堂), and Perfect Diary (完美日记), Florisis (花西子)
- Australian Brands: Jurlique, Aesop, and Sukin.
- The beauty sector sees local brands like Perfect Diary employing innovative marketing strategies, especially in digital spaces, to capture the youth market. They’ve managed to compete strongly with foreign brands by rapidly responding to local trends.
Healthcare Product:
Influenced by the local medical culture in China, health supplements in China are categorized into health supplements from the Western medical perspective and “dietary supplements” (食补) from the Chinese medical perspective.
Health Supplements:
- Chinese Brands: BY-HEALTH, Swisse (acquired by Health and Happiness Group but originally Australian).
- New Emerging brands: 小仙炖 (Xiao Xian Stew)
- Australian Brands: Blackmores, Nature’s Own.
- The health supplement market in China has been a strong area for Australian brands due to the perception of higher quality and purity. However, local players like BY-HEALTH have been stepping up their game with enhanced quality and aggressive marketing campaigns.
Dietary Supplements :
- Chinese Brands: 小仙炖 (Xiao Xian Stew), 桃花姬阿胶, (Donkey-Hide Gelatin), 老金磨坊 (Black Sesame)
- In this category, there aren’t many well-known brands active in China, nor in Australia, but it’s a high demand category among Chinese consumers or wider Asian consumers.
With the rising trend of local Chinese brands, Australian brands have to be mentally and tactically prepared to go overseas. Therefore, in the next blog, we will share some practical strategies on marketing and promotion of Australian brands.
