The possibility for Russian health product export to Chinese market
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Introduction 3
1. The Russian and Chinese health product market 5
1.1The Russian and Chinese health product 5
1.2The analysis for health products market in China 8
1.3 The tendency for health product in Chinese market 18
1.4 The top 10 brands development status in Chinese market 20
2. Methods of selling for health product market 34
2.1 The direct selling analysis of healthy food in China 34
2.2 The pyramid selling methods 42
2.3Amway company analysis 46
3. Questioner analysis for health product market in China 55
3.1The survey about health product consumption in China 55
3.2 A survey about Chinese consumers' cognition for Russian health products 71
3.3 The SWOT analysis for Russian health product enter Chinese market 86
Conclusion 106
References 110
Appendices 114
1. The Russian and Chinese health product market 5
1.1The Russian and Chinese health product 5
1.2The analysis for health products market in China 8
1.3 The tendency for health product in Chinese market 18
1.4 The top 10 brands development status in Chinese market 20
2. Methods of selling for health product market 34
2.1 The direct selling analysis of healthy food in China 34
2.2 The pyramid selling methods 42
2.3Amway company analysis 46
3. Questioner analysis for health product market in China 55
3.1The survey about health product consumption in China 55
3.2 A survey about Chinese consumers' cognition for Russian health products 71
3.3 The SWOT analysis for Russian health product enter Chinese market 86
Conclusion 106
References 110
Appendices 114
1. Related research
CNKI (China National Knowledge Infrastructure, Фй£пИ) is a key national information construction project. When search "Russian health product market" there are only three related papers. One article is about the development of the Russian health product market. The other two articles are about how Chinese health products enter the Russian market. The latest article was written in 2013. The other two articles one written nearly 10 years ago and the other one was written nearly 20 years ago. It can be seen that Chinese scholars' research on Russian health products is close to blank.
2. The research background
With the development of China’s economy, the demand for health products in the Chinese market is increasing. Many countries entered the Chinese health product market in the last century, the Australian brands entered the Chinese market last year, but Russian health products brands are still blocked outside of the Chinese market. Tomsk local Russian health product company wants to enter the Chinese market but it know nothing about the Chinese market. Under this background, the possibility of Russian health products enter the Chinese market has been studied.
3. The research objectives and goals
The objectives of the research is to provide relevant information for Russian health products to enter the Chinese market, helping Russian health products companies understand the Chinese market, and understand the needs and ideas of Chinese consumers.
The research goal is to discover the bright spots of Russian health products and combine the situation of the Chinese market to make Russian health products aware of their advantages in the Chinese market and look forward to the long-term development in the Chinese market. At the same time, some shortages of Russian health products in the Chinese market have also been found. It is expected that Russian health products will be able to avoid weaknesses and develop advantages in the Chinese market.
4. The research methods
The thesis mainly used questionnaire analysis. Through the questionnaires on Chinese consumers purchasing health products and questionnaires on Chinese consumers' understanding of Russian health products, analyzing the health product demand for Chinese consumers and their views on Russian health products. Cross-over analysis was used in the questionnaire to analyze the connections between different elements.
5. The research structure
First, the thesis makes an overall analysis of the Russian health product market and the Chinese health product market;
Second, analyze the sales methods of health products, to provide a reference for Russian health products sales in the Chinese market;
Third, through a questionnaire to analyze the Chinese health product market and consumers' views on Russian health products, combined with the overall market and give a SWOT analysis for Russian health products enter the Chinese market;
Finally give the conclusion.
6. The elements of originality and practical significance
From the perspective of Russian health products, the thesis studies the possibility of Russian health products entering the Chinese market and has an original departure perspective. The thesis mainly uses the form of a questionnaire survey to analyze the Chinese consumers' purchasing psychology and other factors for the health products through questionnaire survey results.
The research of this thesis provides a reference for Russian health products enter the Chinese market, enabling the Russian health products company have a general understanding of the Chinese health products market and benefit for exporting Russian health products to China in the future.
CNKI (China National Knowledge Infrastructure, Фй£пИ) is a key national information construction project. When search "Russian health product market" there are only three related papers. One article is about the development of the Russian health product market. The other two articles are about how Chinese health products enter the Russian market. The latest article was written in 2013. The other two articles one written nearly 10 years ago and the other one was written nearly 20 years ago. It can be seen that Chinese scholars' research on Russian health products is close to blank.
2. The research background
With the development of China’s economy, the demand for health products in the Chinese market is increasing. Many countries entered the Chinese health product market in the last century, the Australian brands entered the Chinese market last year, but Russian health products brands are still blocked outside of the Chinese market. Tomsk local Russian health product company wants to enter the Chinese market but it know nothing about the Chinese market. Under this background, the possibility of Russian health products enter the Chinese market has been studied.
3. The research objectives and goals
The objectives of the research is to provide relevant information for Russian health products to enter the Chinese market, helping Russian health products companies understand the Chinese market, and understand the needs and ideas of Chinese consumers.
The research goal is to discover the bright spots of Russian health products and combine the situation of the Chinese market to make Russian health products aware of their advantages in the Chinese market and look forward to the long-term development in the Chinese market. At the same time, some shortages of Russian health products in the Chinese market have also been found. It is expected that Russian health products will be able to avoid weaknesses and develop advantages in the Chinese market.
4. The research methods
The thesis mainly used questionnaire analysis. Through the questionnaires on Chinese consumers purchasing health products and questionnaires on Chinese consumers' understanding of Russian health products, analyzing the health product demand for Chinese consumers and their views on Russian health products. Cross-over analysis was used in the questionnaire to analyze the connections between different elements.
5. The research structure
First, the thesis makes an overall analysis of the Russian health product market and the Chinese health product market;
Second, analyze the sales methods of health products, to provide a reference for Russian health products sales in the Chinese market;
Third, through a questionnaire to analyze the Chinese health product market and consumers' views on Russian health products, combined with the overall market and give a SWOT analysis for Russian health products enter the Chinese market;
Finally give the conclusion.
6. The elements of originality and practical significance
From the perspective of Russian health products, the thesis studies the possibility of Russian health products entering the Chinese market and has an original departure perspective. The thesis mainly uses the form of a questionnaire survey to analyze the Chinese consumers' purchasing psychology and other factors for the health products through questionnaire survey results.
The research of this thesis provides a reference for Russian health products enter the Chinese market, enabling the Russian health products company have a general understanding of the Chinese health products market and benefit for exporting Russian health products to China in the future.
Through the research, in my opinion, it is possibility for Russian health products enter the Chinese market.
Its possibilities are mainly reflected in the following aspects:
1. Chinese health product factors
(1) Through the analysis of China's health products industry, we can see that the scale of China's health care products market has been expanding year by year and the output value has been rising year by year. No matter now or in the future, the Chinese healthcare products market has a huge scale and huge potential.
(2) With the development of China’s economy, Chinese consumers are increasingly focusing on health issues, and consumers’ attitudes toward buying health products are changing. Health products have been developing in China for several decades and have been accepted by more and more consumers. Chinese consumers’ attitudes toward health products have gone from blind trust to distrust, and becomes rational consumption now, and the concept of consumption has become more and more mature.
(3) According to the analysis of my survey data, the health care market in China is becoming more and more popular, and more and more ordinary income groups have begun to purchase health products. This has greatly expanded the scale of Chinese health products consumption, and also gives more possibilities for Russian health products enter China.
(4) China has a large population and its GDP has grown year by year. The aging of the population has become seriously in China. The demand for health products in the Chinese market in the future is enormous.
2 .There is a market gap of Russian health products in the Chinese market
(1) It can be seen from my survey that only about half of the younger generation of consumers have heard of Russian health products, and fewer of them purchased. As for the advantages for Russian health products, it is also unclear to the consumers.
(2) There are few academic papers about Russian health products in China. This shows that Chinese scholars have little research on Russian health products, and Russian health products have not attracted widespread attention in the Chinese market.
(3) There are few Russian health products in the Chinese market. Taobao is currently the largest shopping site in China, but there are few Russian health products sold on Taobao.
The Chinese health product market is close to a white paper for Russian health products. The current Chinese health product market has developed, and various health product brands development provide references for Russian health products. In the future, when Russian health products enter the Chinese market, it will not grope like foreign brands that entered the Chinese market decades ago.
The market gap of Russian health products in the Chinese market also gives some inspirations for selling Russian health products in the Chinese market:
Chinese consumers do not understand the specific conditions of Russian health products. In publicity, Russian health products can fully package themselves and avoid weaknesses to attract Chinese consumers.
3. The current sales model in the Chinese health product market provides a reference for Russian health products entering the Chinese market
In the Chinese health products market, most of the foreign health products brands and domestic health products brands use the direct sales model. The direct sales model is controversial when entering the Chinese market. However, with the growth of the health products industry and the development of the direct sales model, the direct sales model has been accepted by the Chinese health product market.
The current Chinese health product market has formed a relatively mature direct sales system. It provided a reference for the sales model of Russian health products in China.
With the development of China's Internet industry, in addition to the direct sales model of health products, online marketing also becomes more and more popular.
Russian health products can choose to develop online and offline sales at the same time when enter the Chinese market in the future
4. Compared with domestic health products, Chinese consumers more trust and prefer foreign health products
The cross-border online shopping is very popular in China.
China’s cross-border online shopping purchases are blooming everywhere, including the health products. Although consumers need to pay an extra overseas shipping fee, however, compared to domestic health products, Chinese consumers believe that the quality of health products abroad is better and safer.
Chinese consumers have shown their recognition of overseas health products. This is an encouragement for foreign brands. It shows that overseas health products brands have a certain consumption base in China and facing positive and optimistic market prospects.
5. Russian health products have unique advantages
(1) Pollution-free natural environment creates high quality raw materials
The Russian government attaches great importance to environmental protection issues and Russians have a strong sense of environmental protection. Relative to Russia, China has a higher air pollution index. In the past two years, the haze weather in the Chinese region has made Chinese people aware of the importance of the environment and also looking forward to the improvement of the environment. Russia's good natural environment is undoubtedly prefer by Chinese consumers. The raw materials grown in such a natural environment and the health care products produced from these raw materials will also be appreciated by Chinese consumers.
(2) Has rich species resources
Russia belongs to the high-cold zone and has an unparalleled species advantage compared with other areas. The slow growth of plants and animals in the high-cold regions has also created high quality treasures of plants and animals.
(3) Strict supervision system
The new "Food Safety Law" puts forward higher requirements for market supervision.
6. Sino-Russia relations becomes more and more friendly in recent years
According to statistics from China Customs, in 2017, the volume of Sino- Russian trade was about 84 billion dollars, an increase of 20.8% year-on-year. Among them, China exported 42.9 billion dollars to Russia, a year-on-year increase of 14.8 percent, and China imports 41.2 billion dollars from Russia, a year-on-year increase of 27.7%.
Since 2016, China and Russia have expanded their cooperation in resource trade, which has ensured the demand for China’s economic development resources and effectively filled Russia’s fiscal gap.
7. Recommendations for Russian health products entering the Chinese market:
(1) Cultivating the leader of Russian health products brand
To make Russian health products go to the Chinese market, a single dominant product is not enough. Only by making the brand bigger and stronger can we have a stronger competitive advantage in the market.
(2) Focus on Chinese market segments
As young people become consumers of health products, there have been some changes in the health product market in China. When Russian health products enter the Chinese market they should subdivide the market and develop different marketing development strategies for different groups of people.
Its possibilities are mainly reflected in the following aspects:
1. Chinese health product factors
(1) Through the analysis of China's health products industry, we can see that the scale of China's health care products market has been expanding year by year and the output value has been rising year by year. No matter now or in the future, the Chinese healthcare products market has a huge scale and huge potential.
(2) With the development of China’s economy, Chinese consumers are increasingly focusing on health issues, and consumers’ attitudes toward buying health products are changing. Health products have been developing in China for several decades and have been accepted by more and more consumers. Chinese consumers’ attitudes toward health products have gone from blind trust to distrust, and becomes rational consumption now, and the concept of consumption has become more and more mature.
(3) According to the analysis of my survey data, the health care market in China is becoming more and more popular, and more and more ordinary income groups have begun to purchase health products. This has greatly expanded the scale of Chinese health products consumption, and also gives more possibilities for Russian health products enter China.
(4) China has a large population and its GDP has grown year by year. The aging of the population has become seriously in China. The demand for health products in the Chinese market in the future is enormous.
2 .There is a market gap of Russian health products in the Chinese market
(1) It can be seen from my survey that only about half of the younger generation of consumers have heard of Russian health products, and fewer of them purchased. As for the advantages for Russian health products, it is also unclear to the consumers.
(2) There are few academic papers about Russian health products in China. This shows that Chinese scholars have little research on Russian health products, and Russian health products have not attracted widespread attention in the Chinese market.
(3) There are few Russian health products in the Chinese market. Taobao is currently the largest shopping site in China, but there are few Russian health products sold on Taobao.
The Chinese health product market is close to a white paper for Russian health products. The current Chinese health product market has developed, and various health product brands development provide references for Russian health products. In the future, when Russian health products enter the Chinese market, it will not grope like foreign brands that entered the Chinese market decades ago.
The market gap of Russian health products in the Chinese market also gives some inspirations for selling Russian health products in the Chinese market:
Chinese consumers do not understand the specific conditions of Russian health products. In publicity, Russian health products can fully package themselves and avoid weaknesses to attract Chinese consumers.
3. The current sales model in the Chinese health product market provides a reference for Russian health products entering the Chinese market
In the Chinese health products market, most of the foreign health products brands and domestic health products brands use the direct sales model. The direct sales model is controversial when entering the Chinese market. However, with the growth of the health products industry and the development of the direct sales model, the direct sales model has been accepted by the Chinese health product market.
The current Chinese health product market has formed a relatively mature direct sales system. It provided a reference for the sales model of Russian health products in China.
With the development of China's Internet industry, in addition to the direct sales model of health products, online marketing also becomes more and more popular.
Russian health products can choose to develop online and offline sales at the same time when enter the Chinese market in the future
4. Compared with domestic health products, Chinese consumers more trust and prefer foreign health products
The cross-border online shopping is very popular in China.
China’s cross-border online shopping purchases are blooming everywhere, including the health products. Although consumers need to pay an extra overseas shipping fee, however, compared to domestic health products, Chinese consumers believe that the quality of health products abroad is better and safer.
Chinese consumers have shown their recognition of overseas health products. This is an encouragement for foreign brands. It shows that overseas health products brands have a certain consumption base in China and facing positive and optimistic market prospects.
5. Russian health products have unique advantages
(1) Pollution-free natural environment creates high quality raw materials
The Russian government attaches great importance to environmental protection issues and Russians have a strong sense of environmental protection. Relative to Russia, China has a higher air pollution index. In the past two years, the haze weather in the Chinese region has made Chinese people aware of the importance of the environment and also looking forward to the improvement of the environment. Russia's good natural environment is undoubtedly prefer by Chinese consumers. The raw materials grown in such a natural environment and the health care products produced from these raw materials will also be appreciated by Chinese consumers.
(2) Has rich species resources
Russia belongs to the high-cold zone and has an unparalleled species advantage compared with other areas. The slow growth of plants and animals in the high-cold regions has also created high quality treasures of plants and animals.
(3) Strict supervision system
The new "Food Safety Law" puts forward higher requirements for market supervision.
6. Sino-Russia relations becomes more and more friendly in recent years
According to statistics from China Customs, in 2017, the volume of Sino- Russian trade was about 84 billion dollars, an increase of 20.8% year-on-year. Among them, China exported 42.9 billion dollars to Russia, a year-on-year increase of 14.8 percent, and China imports 41.2 billion dollars from Russia, a year-on-year increase of 27.7%.
Since 2016, China and Russia have expanded their cooperation in resource trade, which has ensured the demand for China’s economic development resources and effectively filled Russia’s fiscal gap.
7. Recommendations for Russian health products entering the Chinese market:
(1) Cultivating the leader of Russian health products brand
To make Russian health products go to the Chinese market, a single dominant product is not enough. Only by making the brand bigger and stronger can we have a stronger competitive advantage in the market.
(2) Focus on Chinese market segments
As young people become consumers of health products, there have been some changes in the health product market in China. When Russian health products enter the Chinese market they should subdivide the market and develop different marketing development strategies for different groups of people.
