HK International Tea Fair 2009 On-site Survey Christine Kwok Managing Consultant Actrium Solutions...

HK International Tea Fair 2009On-site Survey

HK International Tea Fair 2009On-site Survey

Christine KwokChristine Kwok

Managing ConsultantManaging Consultant

Actrium Solutions Actrium Solutions

17 August 200917 August 2009

2

Key Findings Buyers

Key Findings Buyers

3

Demographics of Buyers

By RegionAustralia &

New Zealand, 3%

Middle East & Africa, 5%

Europe & Russia, 7%

Americas, 5%

Other Asia, 22%

Chinese Mainland, 27%

Hong Kong, 31%

Base: All Respondents (N=288)

4

Over 90% of Buyers Think that HK Has the Edge to Become the Asian Tea Trading Centre

30%

27%

22%

17%

21%

24%

33%

37%

35%

39%

38%

39%

26%

27%

36%

40%

37%

33%

0% 20% 40% 60% 80% 100%

HK has sophisticated tea-drinking culture

HK is impartial promotional platform for tea trading andpromotion due to absence of local production

HK has edge in developing into centre of tea auctions in Asia

HK has edge in organising international tea competitions to facilitate trade & brand promotion

HK has strict food & drinks safety regulations & quality testing service

HK provides quality branding & packaging service providers

Buyer's Perception of HK as the Tea Trading Centre for Asia

Fairly Agree Agree Strongly Agree

Base: All Respondents (N=288)

5

Over 90% of Buyers Consider That TheirObjectives for Attending the Fair Have Been Achieved

63%

59%

60%

63%

66%

27%

34%

33%

32%

29%

0% 20% 40% 60% 80% 100%

To identify new suppliers(N=152)

To network with industry players(N=140)

To obtain the latest market intelligence(N=186)

To meet with existing suppliers(N=105)

To source for new products(N=191)

Objectives of Attending the Fair &Achievement of Objectives

Partially Achieved Fully Achieved

6

Buyers Usually Source for Green, Black, Oolong & Pu’er Tea

Types of Tea Buyers Usually Source

7%

15%

42%

46%

60%

41%

30%

0% 20% 40% 60%

Yellow Tea(黃茶)

White Tea(白茶)

Floral Tea(花茶)

Pu'er(普洱)

Oolong Tea(烏龍茶)

Black Tea(紅茶)

Green Tea(綠茶)

Base: All Respondents (N=288)

7

Buyers Mainly Source Direct from Producers or through Trade Fairs

Channels of Tea Sourcing

7%

13%

40%

56%

27%

31%

0% 20% 40% 60%

Auctions

Electronic & Printed Media

Buying Agents

Wholesale Markets

Trade Fairs

Direct from Producers

Base: All Respondents (N=288)

8

84% of Buyers Have Placed or Are Negotiating Orders at the Fair

Yes28%

Under Negotiation

56%

No16%

Orders Placed at the Fair

Base: All Respondents (N=288)

9

91% of Buyers Are Either Satisfied or Very Satisfied with the Timing of the Fair

Satisfaction of the Timing of the Fair

VerySatisfied,

31%

Satisfied,60%Partially

Satisfied,8%

NotSatisfied,

1%

Base: All Respondents (N=288)

10

96% of Buyers Are Either Satisfied or Very Satisfied with the Fair Overall

Overall Satisfaction of the Fair

NotSatisfied,

1%

PartiallySatisfied,

3%

Satisfied,64%

VerySatisfied,

32%

Base: All Respondents (N=288)

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91% of Buyers Are Likely toAttend the Fair Next Year

Intention of Attending the FairNext Year

VeryLikely,51%

Likely,40%

Not Likely,3%

Not YetDecided,

6%

Base: All Respondents (N=288)

12

91% of Buyers Are Likelyto Recommend the Fair to Others

Intention of Recommending the Fairto Others

Not Likely,9%

Likely,42%

VeryLikely,49%

Base: All Respondents (N=288)

13 Increase = +25%; Decrease = -19%

93% of Buyers Will Either Maintain or Increase Their Orders in Next 12 Months

Increase, 46%

Maintain, 47%

Decrease, 7%

Order Quantities Changedin the Next 12 Months

Base: All Respondents (N=288)

14

66% of Buyers Are Visiting a Tea Trade Fair in Asia for the 1st Time

Attendance of Other Asian Tea Fairs

No, 66%

Yes, 34%

Base: All Respondents (N=288)

15

Key Findings Exhibitors

Key Findings Exhibitors

Key Findings Exhibitors

Key Findings Exhibitors

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Demographics of Exhibitors

Chinese Mainland,

68%

Hong Kong, 12%

Others, 20%

By Region

Base: All Respondents (N=148)

17

Over 90% of Exhibitors Think That HK Has the Edge to Become the Asian Tea Trading Centre

Exhibitor's Perception of HK as the Tea Trading Centre for Asia

24%

18%

28%

16%

30%

35%

44%

36%

39%

45%

41%

43%

39%

37%

30%

38%

23%

13%

0% 20% 40% 60% 80% 100%

HK has edge in developing into centre of tea auctions in Asia

HK has edge in organising international tea competitions to facilitate trade & brand promotion

HK has well-established logistics & transportation infrastructure

HK can help market our brands globally

HK provides quality branding & packaging service providers

HK has strict food & drinks safety regulations & quality testing service

Fairly Agree Agree Strongly Agree

Base: All Respondents (N=148)

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Over 90% of Exhibitors Consider the Fair Match with Their Key Selection Criteria

Respective Performance of the Fair

21%

25%

16%

38%

45%

48%

42%

41%

35%

26%

30%

41%

24%

22%

10%

0% 20% 40% 60% 80% 100%

Fair hosting city has good infrastructure & logistic services support

(N=146)

Fair enables me to meet new & potential customers

(N=148)

Fair is attended by quality trade visitors (N=146)

Participation in fair promotes our company image & product branding

(N=144)

Reputation & professionalism of organiser (N=142)

Satisfactory Good Very Good

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81% of Exhibitors Have Received or Are Negotiating Orders at the Fair

Orders Received at the Fair

No, 19%

UnderNegotiation,

69%

Yes, 12%

Base: Valid Respondents (N=148)

20

85% Believes that Participating in Trade Fairs Is theMost Effective Channel for Meeting New Customers

Most Effective Channels for Meeting New Customers

11%

32%

85%

41%

49%

0% 20% 40% 60% 80%

Participate in auctions

Electronic & printed media

Wholesale markets

Referral by others

Participate in trade fairs

Base: All Respondents (N=148)

21

97% of Exhibitors Expect that Orders Will Either Be Increased or Maintained in Next 12 Months

Order Quantities Changed in the next12 Months

Increase,74%

Maintain,23%

Decrease,3%

Base: All Respondents (N=148)

22

Chinese Mainland is Currently the Top Market for Most Exhibitors

** Calculation Method:

Rank 1 = 3 Scores; Rank 2 = 2 Scores; Rank 3 = 1 Score

Current Key Markets

16

24

55

108

234

45

28

0 50 100 150 200 250

Taiwan

Russia

Thailand

Hong Kong

US

EU

Chinese Mainland

Base: All Respondents (N=148) Score

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84% of Exhibitors Are Either Satisfied or Very Satisfied with the Fair Overall

Overall Satisfaction of the Fair

VerySatisfied,

34%

Satisfied,50%

PartiallySatisfied,

15%

NotSatisfied,

1%

Base: All Respondents (N=148)

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92% of Exhibitors Are Likely toAttend the Fair Next Year

Intention of Exhibiting in the Fair NextYear

Not YetDecided,

7%

Not Likely,1%

Likely,60%

Very Likely,32%

Base: All Respondents (N=148)

25

93% of Exhibitors Are Likely toRecommend the Fair to Others

Intention of Recommending the Fair toOthers

Very Likely,32%

Likely,61%Not Likely,

4%

Not YetDecided,

3%

Base: All Respondents (N=148)

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Key Findings Consumers

Key Findings Consumers

Key Findings Consumers

Key Findings Consumers

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Demographics of Consumers

Hong Kong, 71%

Chinese Mainland,

12%

Other Countries(Not else

specified), 10%

Other Asia, 7%

By Region

Base: All Respondents (N=225)

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Demographics of Consumers

Profession

Others,15%

Non-office-worker, 3%

BusinessOwner/

Self-employed,

10%

Office-worker,

19%Student,

23%

Professional/Management/Executive, 30%

Base: All Respondents (N=225)

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Demographics of Consumers

Age Group

Over 40,24%

31-40, 25%

21-30, 29%

12-20, 22%

Base: All Respondents (N=225)

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Demographics of Consumers

Gender

Female, 51%

Male, 49%

Base: All Respondents (N=225)

31

90% of Consumers Consider That Their Objectivesfor Attending the Fair Have Been Achieved

48%

56%

55%

52%

63%

31%

39%

42%

48%

37%

0% 20% 40% 60% 80% 100%

To purchase tea-ware(N=44)

To attend various events & activities

(N=60)

To purchase tea(N=97)

To taste wide selection of tea from different regions

(N=163)

To enhance understanding of tea culture

(N=88)

Purposes of Visiting the Fair &Achievement of Purposes

Partially Achieved Fully Achieved

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90% of Consumers Are Either Satisfied or Very Satisfied with the Fair Overall

Overall Satisfaction of the Fair

VerySatisfied,27.1%

Satisfied,64.5%

PartiallySatisfied,

8.0%

NotSatisfied,

0.4%

Base: All Respondents (N=225)

33

92% of Consumers Are Likely to Visit the Fair Next Year

Intention of Visiting the FairNext Year

VeryLikely,38%

Likely,54%

Not Likely,4%

Not YetDecided,

4%

Base: All Respondents (N=225)

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Consumers Usually Drink Green, Oolong and Pu’er Tea

10%

17%

24%

30%

51%

51%

59%

0% 10% 20% 30% 40% 50% 60%

Yellow Tea(黃茶)

White Tea(白茶)

Floral Tea(花茶)

Black Tea(紅茶)

Pu'er(普洱)

Oolong Tea(烏龍茶)

Green Tea(綠茶)

Types of Tea Consumers Usually Drink

Base: All Respondents (N=225)

35

Consumers Mostly Drink Tea for Enjoyment

Reasons for Drinking Tea

19%

28%

55%

39%

39%

0% 10% 20% 30% 40% 50% 60%

Socialising/ Networking

Physical health & well-being

Refresh mind & reduce stress

Improve digestion

Enjoyment

Base: All Respondents (N=225)

36

64% of Consumers Spend over HK$100 Monthly on Buying Tea

Below HK$100,

36%

HK$100-200, 25%

HK$201-300, 17%

HK$301-500, 11%

HK$501-1000, 7%

Over HK$1000,

4%

Average Monthly Spending on Buying Tea

Base: All Respondents (N=225)

37

92% of Consumers Purchase Tea Leaves & Tea Bags

Tea Leaves, 58%

Tea Bags, 34%

Tea Slabs, 8%

Type of Tea Purchased

Base: All Respondents (N=225)

38

Consumers’ Key Purchasing Determinants Are Flavor & Aroma

Purchasing Determinants

29%

31%

40%

47%

40%

27%

11%

14%

17%

18%

26%

24%

56%

72%

44%

29%

0% 20% 40% 60% 80% 100%

Packaging

Organic(No Pesticides)

Brand Image

Color

Origin

Price

Aroma

Flavor

Important Very Important

Base: All Respondents (N=225)

39

Young People Prefer Organic (No Pesticide) Tea

Importance of Organic (No Pesticides)

20%

25%

15%

12%

14%

14%

37%

43%

0% 20% 40% 60%

Over 40yr

31-40yr

21-30yr

12-20yr

Important Very Important

Base: All Respondents (N=225)

40

80% of Consumers Will Consider Using Tea as Gift

Using Tea as GiftNo, 20%

Yes, 80%

Base: All Respondents (N=225)

41

Consumers Are Interested in Alternative Usages of Tea like Food Production & Cooking

Alternative Usage of Tea

64%

37%

0% 10% 20% 30% 40% 50% 60% 70%

Beauty & hygiene products

Food production & cooking

Base: All Respondents (N=225)

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ConclusionConclusion

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Conclusion

Buyers & Exhibitors

90% of participants are positive about HK becoming the Asian tea trading centre.

Over 90% of participants consider their objectives for attending the Fair have been achieved.

96% of buyers & 84% of exhibitors are either satisfied or very satisfied with the Fair.

Over 90% of participants will attend the Fair next year and will recommend the Fair to others.

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Conclusion

Consumers

90% of consumers consider their major purposes of visiting the Fair achieved.

Over 90% of consumers are either satisfied or very satisfied with the Fair.

Over 90% of consumers will attend the Fair next year.

Consumers usually drink green tea, Oolong tea and Pu’er tea, and they mostly drink tea for enjoyment.

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Conclusion

Consumers

64% of consumers spend over HK$100 per month on buying tea.

Consumers’ top purchasing determinants are flavor and aroma, followed by price, color and origin.

80% of consumers will consider tea as gift.

Consumers are interested in the following alternative usages of tea:

Food production & cookingBeauty & hygiene product

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Key Findings Exhibitors

Key Findings Exhibitors

End Thank You

End Thank You