The main objective behind this collaboration was to do away with one of the limitations of the private sector, which was the last mile delivery to consumers. The Chinese firm had the logistics capacity (as well as access to banking and real estate), but lacked the sourcing. “The main idea was to source fresh food from all over the world and to provide it to Chinese consumers, hopefully at a cheaper price, making sure there were no problems with the products.” He mentions that there were public health issues, so “it comes down to credibility.”
One of the key aspects behind this need is the growing urbanisation of China, which naturally entails challenges in the supply of food. Mr Keys uses the city of Shenzhen as an example, which within 45 years has transformed from a fishing village into a city larger than London with amazing infrastructure. “You just cannot have that level of urban development without changes in the food requirements. The fastest growing area is fresh retail,” he affirms. There has been a move from small open markets to “highly sophisticated supermarkets.”
Also, Chinese consumers are really interested about the origin of the products they buy, “and in all these platforms there’s a higher level of explanation. A QR-Code is provided which allows the consumer to go to the relevant website with information about the producer.” QR-Codes can also link to WeChat, which ensures a very refined level of communication.
As a result of all this, Mr Keys explains that foreign suppliers, unfamiliar with this level of sophistication, may have issues finding the right sales channels in China, and that is where Q-Emporia comes in. “It is very interactive and very engaging for the consumer.”
Another aspect which is quite unique to the consumer model in China is subscription-based shopping, which allows you to build up a database and find out about the particular demands for fresh products of individual consumers in given areas. “With an organised society living in big, complex cities, there’s a search for this community involvement, and this particular project suggests that this is what the consumer wants: to have that level of engagement. Whoever wins that battle in China, will get the market share,” concludes Mr Keys.