MARKET PENETRATION Thai Imports to Hispanic & Asian Consumers in U.S.
Monday August 3rd, 2015 Tim Sher
PART 1: Introduction • History of Tim Sher • History of HC Foods • Packaging
PART 2: Asian vs Western • Simple Comparison • Adapting to US Market • Exposure of Brand/Products • Q & A Part 1 HISTORY OF TIM SHER History of Tim Sher
Tim Sher was always trying to improve himself and be innovative in business. His father, Mr. Paul Sher taught him that business must always be conducted with honesty and fun, and the key is to find the joy in work. WORK ETHICS History of Tim Sher
As a sales and marketing with more than 20 years of experience, he started his sales career with HC Foods under his father, Mr. Paul Sher. However, after two years he felt incomplete. LEAVING FOR ASIA History of Tim Sher
Eager to venture out and learn more, he decided to move to Asia where he would spend the next 11 years honing his marketing skills. His first 3 years he worked as a Salesman at Classic Components. A SALESMEN’S LIFE History of Tim Sher
Later he found the excitement of Shanghai lifestyle, worked in various industry such as Xonnected.com, Buzz magazine, Jaded productions, Uber lifestyle club, Tabom Trading (Brazilian coffee), FBC Product Development and also F&B (Masse restaurant & bar, and also Drip cafe). JACK OF ALL TRADE History of Tim Sher
While jumping from job to job, he never realized that every step he took was just another step closer to developing everything he would need to come back to HC Foods. He knew his destiny would still be in America. TIME TO COME HOME Part 1 HISTORY OF HC FOODS History of HC Foods
Founded in 1987, H.C. Foods Co., Ltd. has developed into one of the largest Asian foodstuff Importer & Distributor in the US. With the growing Asian population, H.C. Foods has develop a distribution network that currently reaches across all 50 states, Canada & Mexico. OPPORTUNITY EVERYWHERE History of HC Foods
H.C. Foods is on top of the developing needs of consumers as well as the latest trends in Specialty Asian Food Products. With this in mind, we source food products throughout Thailand, China, Vietnam, Laos, Singapore, Taiwan, Hong Kong, Malaysia, Philippines and Indonesia.. INTERNATIONAL PARTNERS History of HC Foods
We own several well-recognized private brands and are the exclusive importer/distributor of others such as Carabao, Vitamilk, Lactasoy, Golden Boat, Yum Yum, Smiling Fish, Megachef, Samui and many more. GROWTH TOGETHER History of HC Foods
HC Foods is one of few companies licensed to import and distribute Alcohol. In 2010, we started our HC Beverages division that targets convenient stores, gas stations, restaurants and clubs. Identifying imported products for non-Asians. EXPANDING THE MARKET History of HC Foods
• Dry warehouse 77,000 sqf
• Frozen warehouse 44,500 sqf Part 1 PACKAGING Packaging: BRAND
Brand Identification • Build a Brand, consumers must first know what is the product. Packaging: UNITY
Unity in Design • Label must look all the same, logos, design, font. Packaging: ELIGIBLE
Eligible Font & Size (product info) • Never put words on images • Logo should be modest, Product name should be Eligible
Packaging: U.S. INFO
Volume (fl.oz) or Weight (oz) Example: Net.Wt. 330ml (12fl.oz) Exmaple: Net.Wt. 1kg (2.2lbs) Packaging: U.S. INFO
• Nutrition Facts Example: Canada Left (Metric) Example: U.S. Right Packaging: North America INFO
North American Languages • English (America) • Spanish (Mexico) • French (Canada) Optional Languages: • Thai, Chinese, Japanese & Korean 10 Minutes
NEXT: ASIAN VS WESTERN Part 2 SIMPLE COMPARISON Asian Supermarkets
Individual stores may cater to a specific Asian group -- usually the ethnic origin of their owner. • 99 Ranch – Chinese • Island Pacific – Filipinos • H-mart – Korean • Mitsuwa Marketplace – Japanese • Shun Fat – Vietnamese • Thai Markets (one store owners)
Asian-Americans
• The future looks bright for Asian supermarket chains in America. • Earnings of Asian-American households outpace the national average with spending exceeds all other groups. • Asian-Americans spend more of their money on groceries than average America households. Asian-American Expending Asians Immigrants Rising Booming Population
Census Bureau projects that by the year 2050 • 40.6 million Asians living in the United States • 9.2 percent of the total U.S. population Where do they live?
66% Asian-Americans are in 5 states: • California (12.1% of the state) • New York (5.6%) • Hawai'i (63.6%) • Texas (2.9%) • Illinois (3.4%) Amazingly, 54.7% of all Asian Americans live in just the six metropolitan areas • Los Angeles • New York • San Francisco • Honolulu • Washington DC / Baltimore • Chicago Popularity of Asian culture
• Americans have developed greater appetite for cooking and eating Asian foods • In 2012 non-restaurant sales of Asian foods topped $1.5 billion • Though Latin foods are a bigger market, the popularity of Asian foods is growing faster • Once strange-seeming imports like seaweed and sashimi are now fashionable foodstuffs Why the increase in Asian products?
• More Asian Friends, Restaurants and Supermarkets (introduction) • Exposure to new cultures, expanding into more cities from new immigrates • Asian’s naturally go into the food business, such as small shops and restaurants TRENDY AND FAMILIAR Expanding Out of Asian areas
• Asian grocers have not made efforts to reach new customers; many shops are located in minority enclaves • A few Asian grocery chains have caught on, opening stores in more diverse suburbs, paying attention to cosmetic niceties, and marketing more widely, such as H Mart, 99 Ranch & Shun Fat Rise of Asian Markets
• Cheaper Pricing • More selection vs the American • Fresh Seafood and more varieties
Part 2 ADAPTING TO THE U.S. MARKET Starting with the Asian markets
• While targeting the Asian markets when launching products, the ultimate target is the whole U.S. • America is not so foreign with the right partner; clear goals & targets Long term Partnership for Success
Distribution Channels
Food Service Wholesalers / Cash & Carry • Sysco • Giant Union Small store or independent
Asian Chains • Independent gas stations • 99 Ranch • Liquor Stores • Hong Kong • Convenient Stores • H-mart • Market World Non-Tradition or On premise Hyper Channel • Restaurants • Cost Plus Whole Foods • Bars • Fresh n Easy • 99 Cents Only • Bodega R Ranch Asian vs Western Markets
ASIAN • New Products: samples • Cheap Pricing • No Promotional Advertising • Under Cutting
WESTERN • Slotting Fee • Reasonable Pricing with bi-yearly SALE • Advertising / Marketing FEE • Distribution Centers FEE (Associated Wholesalers / UNIFI / Unified Grocers)
Cost to Launch One Product
10 products x 10 stores = $13,500
Slotting Fee $100 per item per store Launch Demo $150 per day per store Advertising $1,000 twice a year Example: Curry Paste
• Current use only by Thai restaurants and families at home • Adaption, worked with CP foods to come up with an easy use curry sauce (ready to use) Part 2 EXPOSURE OF BRAND / PRODUCTS 1. Asian Markets
• Working TOGETHER • SHARED Cost of Business • Same TARGET Let’s AGREE to DISAGREE 2. Reaching Asian-Americans
• Asian American supermarkets are also well-aware of their overlapping pan-Asian demographics, and reflect them perfectly in their product stock. • Inevitably, you can find Japanese shrimp chips at the Filipino market, Filipino banana ketchup at the Chinese grocery, Chinese ginseng at the Korean marketplace, Korean kimchi at the Vietnamese store, Vietnamese shrimp paste at the Thai market, and Thai coconut water at the Japanese chain. 3. New Outlets
• HC Bev: Convenience Stores • Hispanic Markets • Hypermarkets Questions & Answers We’re Here to Stay Thank You