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FASHION THE NEW FRONTIER FOR CHINA’S F&B BRANDS In China, Mintel has seen how the shift to digitalisation has resulted in many food and beverage industry players following fast fashion trends to create and promote their products. BWy Mintel Associate Director of Food & Drink China Daisy Li. ith the fast development of internet technology, interactive engagement with consumers in a digital way has become one of the most important focus areas for brands. It’s a key way for them to engage and attract consumers, with an end goal of driving sales. In China, fashionable food and beverages (F&B) are being used to drive online traffic on social media. As a result, new launches are designed to go viral, with the pace of innovation speeding up. Food and drinks are being consumed for looks, experiences and to enhance social status beyond nourishment. Mintel data reveals that 49 per cent of surveyed Chinese consumers share product information on their social media platforms. A key foundation of fashion is colour, and trends change with the season. Thus, we’re now seeing F&B brands launch distinctively coloured ranges, in much the same way fashion brands do. This is an aspect of fashion that F&B brands can readily embrace. For example, Hey Tea, a Chinese leading bubble tea drink chain store brand, has highlighted its products with colour codes, reflected in its 2020 marketing campaign showcasing its top drinks. Think and act like a fast fashion brand The embrace of fashion means brands must adopt a product strategy to shorten product life cycles with more frequent launches and high-speed innovation. Moreover, this approach relies heavily on social media to help the brands stay active and drive online traffic. For example, Freshippo, a new retail outlet, has launched more than 20,000 private label products in the past year. Differentiated from the typical private label products positioned for the value-for-money segment, Freshippo’s products are uniquely premium, with a high-quality, fashionable image and engaging social media marketing. In China, especially in tier-one and tier-two cities, arts, crafts, drama and theatre are trending, attracting an increasing number of customers. For F&B brands, aligning with the growing interest in the arts would help attract those customers. Mintel data reveals that 33 per cent of surveyed Chinese customers participate in arts and crafts activities to experience local culture. Fashion is a new frontier for F&B brands and represents a new way of achieving cut-through in the increasingly competitive online world. This is particularly apparent in China’s developed social commerce retail environment. As incomes rise, consumers look to food to provide more than nourishment. In this digitalised retail and social world, the goal is to develop products attuned to the latest fashion trends. Factors such as aesthetics, novelty and/or covetability are vital for brand relevance and driving sales. INDUSTRY INSIGHT About Daisy Li Daisy monitors and reports the latest innovations and trends impacting the Chinese food and drink market. About Mintel Mintel is the expert in what consumers want and why. As the world’s leading market intelligence agency, our analysis of consumers, markets, product innovation and competitive landscapes provides a unique perspective on global and local economies. Since 1972, our predictive analytics and expert recommendations have enabled our clients to make better business decisions faster. Our purpose is to help businesses and people grow. To find out how we do that, visit mintel.com. APR, 2021 RETAIL WORLD 25