Zespri's president for Greater China, Michael Jiang, reports that demand for branded kiwifruit in China continues to show growth potential despite a slower economic outlook. He notes that the property downturn has reduced household wealth by up to 30%, with GDP growth now tracking at 4 to 4.8 per cent. This has resulted in more cautious consumer behaviour, including greater attention to value in everyday purchases.
China accounts for almost one-third of total crop sales and remains the market delivering the highest price premium. SunGold fruit retails at six times the average per-kilogram fruit spend, while Green registers three times. Jiang attributes current performance to both supply-side quality and the company's onshore investments in China.
Market development has relied on offshore supply chain expansion. This includes a 3 million-tray cool store in Shanghai that supports controlled release of shipments, maintains supply tension, and protects margins as volumes rise through the season. Longer controlled-release periods help maintain late-season availability.
Packaging has also been adapted for Chinese business customers. Jiang notes that "Last year, 120 million different consumer units were shipped, but 45 million were into China, then were prepackaged here for customer needs." Retailers such as Walmart and Sam's Club require tailored packaging to meet their price-point structures.
A ripening facility forms the third component of onshore investment, intended to manage eating quality for fruit arriving off the vessel prior to ripening. Jiang states, "You simply have to build your offshore market and supply chain capacity with the same care and quality as you would do in NZ."
Jiang confirms a gradual shift in positioning toward "Zespri kiwifruit" rather than "New Zealand kiwifruit", linked to efforts to maintain 365-day shelf space through Zespri Global Supply. He notes that brand consistency, packaging, and controlled quality form part of this approach. "Once your product is at a certain level, the focus becomes on the brand itself, what it means to consumers, how valued it is."
The company reports high online penetration in China. One third of the 45 million trays shipped to China are sold through home delivery and e-commerce channels. Jiang notes that "Over 30% puts Zespri kiwifruit close to the likes of packaged consumer goods for online ordering volumes."
Household penetration remains uneven across major cities. Shanghai reaches about 50 per cent, while Beijing is at 20 per cent and Chengdu is at 10 per cent, indicating further room for expansion.
Jiang maintains a steady outlook, stating that controlled supply, packaging alignment, and ripening management will continue to guide performance in China's large and varied consumer market.
Source: FarmersWeekly
