Internaional Trade

In the following paragraphs, the reasons behind the choice of China as the potential market for Amorino to explore will be illustrated. Additionally, along with the assumed entrance and expansion of Amorino in China, a number of cultural, economic and political considerations based on Chinese market will be analysed.

China as an emerging market for ice cream is entitled with specific advantages. The stable growing economy is the fundamental guarantee for the consumption of ice cream. With regard to the GDP annual growth rate, it keeps a rate of 9.1% annually and it predicts the surging purchasing power of Chinese consumers. Though the rate slows to 7.7% at the end of 2013, it is relatively an outstanding growth rate compared to that of 1.79% in France and that of 2.46% in UK averagely. The stable economy also provides a healthy employment environment in China with a low unemployment rate fluctuating between 4%- 4.3% in 2008-2014. In contrast, the unemployment rate in France in 2013 reached to 10% (Trading Economics, 2014). Considering the massive amount of population in China, the difference of 6 percent in employment rate between France and China means that there are more potential ice cream consumers in the Chinese market.

Moreover, the potential ice cream market in China could still be hugely developed and expanded. There are evidence that the ice cream market in China has been roaring in the past years. For example, the sales volume of ice cream in 2012 was 16 times of that in 2002 and the output and sales volume in 2009 reached 2.8 billion kilogram and realised the sales revenue of over 5 billion euros. In spite of the rapid increase rate in production and sales in China, the per capita consumption of ice cream is only 1.7 kg, which is 1/16 of New Zealand that ranks first in the ice cream-consuming countries. This means that there are still large number of Chinese who are not regular consumers of ice cream. If the promotion as well as products could be improved in the future Chinese market, it could generate a great deal of new consumers and revenues. In addition to per capita consumption, the ice cream consumed in winter is 1/30 of that in summer. Compared to the ratio of 1/3 in the United States, the market capacity in winter in china is still could be largely developed and explored (Beijing Orient Agribusiness Consultant Ltd, 2013). Overall, China as an ice cream market still has huge space to develop and this is great chance for Amorino to enter the market.

The third reason is more specific to Chinese market, in which the main cream type is hard ice cream and the soft one could only be found in food stores and restaurants (Beijing Orient Agribusiness Consultant Ltd, 2013). The huge demand for soft Galeto ice cream requires the entrance of Amorino into Chinese market. In fact, with the rapid development of economy, consumers posed more demands for their lives and living standards. The ice cream is also asked to be individualised to meet the needs of different consumers. Amorino as a healthy ice cream brand could satisfy consumers’ needs of flavour, entertainment as well as demand in nutrition and health care.