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From Vast Fields to Warm Dining Tables

Branding for Chinese Agricultural and Livestock Enterprises:

Challenges and Opportunities

Author: Chake Bangbang

"Branding is undoubtedly the path to consumers' dining tables—

the only way."

As the world's largest agricultural country, China plays a pivotal role on the international stage in agriculture and livestock. From grain production to animal husbandry, China holds leading positions in multiple verticals. According to data from the Food and Agriculture Organization of the United Nations, China is the world's largest producer and consumer of agricultural products, with total grain output ranking first globally for many consecutive years. In animal husbandry, China's scale of pig and poultry farming also ranks among the top in the world.

Although China's agricultural products are diverse and abundant, few Chinese agricultural brands can rival internationally renowned brands in the global market. Even domestically, very few enterprises have truly integrated farming/breeding and processing, reaching consumers' tables directly while also possessing brand recognition. Most agricultural and livestock enterprises remain at the stage of providing raw materials or primary processing, failing to fully tap into the added value of their products and struggling to stand out in fierce market competition.

This situation not only constrains the further development of China's agricultural and livestock industry but also limits its voice and influence in the international market. In the global agricultural value chain, product branding often yields higher profit margins and market recognition. Therefore, promoting the branding of agricultural and livestock enterprises is not only an inevitable choice to enhance industry competitiveness but also an important pathway to agricultural modernization and increased farmer incomes.

Taking the fruit industry as an example, its value chain encompasses multiple stages from cultivation to retail, including cultivation, primary processing, finished product processing, distribution, and retail. China's fruit cultivation enterprises are mostly concentrated in the cultivation and primary processing stages, where profits account for only 35% of the entire industry chain; while the downstream finished products, distribution, and retail capture 65% of the profits. From this perspective, the development of upstream agricultural and livestock enterprises depends on integrating the entire value chain and placing products on dining tables—this is the key to maximizing profits.

Branding is undoubtedly the only path to consumers' dining tables. Without the support of a brand, many enterprises engage in homogeneous competition or become low-cost OEMs, with profit margins continuously squeezed and the industry trapped in a vicious cycle of price wars. Conversely, by branding products and directly facing end consumers, enterprises can establish a unique brand image and value proposition, gaining higher bargaining power and consumer loyalty in the market.

For agricultural and livestock enterprises, building a consumer brand that emotionally connects with consumers requires cultivating four internal strengths, each step indispensable:

Clarify the core customer group and understand consumer pain points and needs

Consolidate brand power and accurately position brand value

Build product power, select the right category track, and clarify product differentiation

Leverage communication power to precisely navigate the path from seeding to conversion

01

Clarify the Core Customer Group

Understand Consumer Pain Points and Needs

"Especially in the highly homogeneous agricultural product market, agricultural and livestock enterprises need to avoid blindly pursuing

comprehensive market coverage where 'everyone is a consumer'; they need to find unique segments to enter,

seeking a 'blue ocean route' amid

'red ocean' competition."

Shift from "what I have" to "what you need." For a long time, domestic agricultural and livestock enterprises have been more familiar and adept at increasing yield and reducing costs in the "fields." This production-driven sales model has led to a lack of genuine understanding of consumers. Especially in the highly homogeneous agricultural product market, agricultural and livestock enterprises need to avoid blindly pursuing comprehensive market coverage where "everyone is a consumer"; they need to find unique segments to enter, seeking a "blue ocean route" amid "red ocean" competition.

To truly understand consumer needs and pain points, enterprises must conduct in-depth market research and consumer surveys. Through methods such as consumer surveys, data analysis, and interactive communication, enterprises can gain deep insights into consumer purchase motivations, preferences, and pain points. By directly engaging with consumers, using big data to analyze purchasing behavior and market trends, and collecting feedback, enterprises can uncover deep-seated consumer needs.

Sunkist Case Study

Sunkist oranges originated in California, USA, with a history of over a hundred years. Initially, Sunkist was a small cooperative that gradually grew into a globally renowned citrus brand. Among the broad citrus consumer base, the company selected three core groups: young white-collar workers, fitness enthusiasts, and middle-class housewives. These three core customer groups generally possess strong purchasing power, high health awareness, and a focus on the nutrition and freshness of citrus, along with corresponding purchasing preferences. At the same time, under their busy work and life rhythms, they have high demands for convenient and quick access to fresh fruit.

To meet these needs, Sunkist adopted the following strategies:

Provide high-quality products: Sunkist is committed to offering high-quality oranges, ensuring the nutrition and freshness of every orange through strict quality control and advanced cultivation techniques.

Project a healthy brand image: Through advertising and marketing, it has shaped a healthy, natural brand image that has won consumer trust.

Distribute through convenient sales channels: Sunkist oranges are available in major supermarkets, convenience stores, and online platforms, greatly facilitating consumer purchases. At the same time, by cooperating with retailers, it ensures product freshness during transportation and storage.

By precisely targeting core customer groups and meeting their needs, Sunkist successfully stood out in fierce market competition and became a globally trusted high-quality orange brand.

02

Consolidate Brand Power

Accurately Position Brand Value

"Brand power helps distinguish a company's

products from competitors,

build consumer awareness and trust in the brand,

and enhance market competitiveness and long-term development potential."

In the agricultural product industry, brand power is crucial for enterprises. Brand power helps distinguish a company's products from competitors, build consumer awareness and trust in the brand, and enhance market competitiveness and long-term development potential.

To build brand power, agricultural product enterprises can gradually establish strong brand influence and market position by ensuring product quality and transparent origin traceability, creating unique brand differentiation, inheriting brand stories and culture, designing attractive brand image and packaging, and focusing on social responsibility and sustainable development. These efforts will help enterprises stand out in a competitive market, win consumer trust and support, and achieve long-term stable development.

Telunsu Case Study

For a long time, China's pure milk products have lagged behind European and American countries in standards regarding raw milk quality, nutritional content requirements, antibiotic residue limits, and additive usage regulations. Consumers find it difficult to distinguish the varying quality of milk products on the market, and after the melamine incident, consumers generally lack confidence in domestic dairy products.

Around this market environment, Mengniu launched the "Telunsu" high-end pure milk brand in 2005, introducing the slogan "Not all milk is called Telunsu" ("Telunsu" means "gold medal milk" in Mongolian). Telunsu chose a market positioning of "high quality, high nutrition," emphasizing that its products feature high-quality milk sources from exclusive pastures, high-standard raw material selection and production processes, and nutritional characteristics such as high protein and high calcium. This effectively distinguished it from ordinary milk brands and created a "high-end white milk" segment in the market.

Before this, China's milk market was dominated by ordinary liquid milk, lacking clear high-end products. The emergence of Telunsu not only met the demand for consumption upgrades but also educated consumers about high-quality milk. Through continuous brand building and product innovation, Telunsu successfully positioned itself as synonymous with high-end dairy products, winning the favor of a large number of middle- and high-income consumer groups. This success is reflected not only in increased market share and brand value but, more importantly, it set a model for branding and premiumization in China's dairy industry, proving that agricultural and livestock enterprises can effectively avoid low-price competition and achieve sustainable high-quality development through brand strategy and product innovation.

03

Build Product Power

Select the Right Category Track and Clarify Product Differentiation

"Although the agricultural product industry overall lacks product differentiation,

by emphasizing quality, origin,

green and organic certifications, and other aspects,

enterprises can find their own positioning and selling points,

differentiating themselves from competitors."

Most agricultural and livestock products have no significant differences in appearance or taste. Consumers can sometimes only distinguish different products by a few characteristics such as origin and variety. For some products, quality differences even become a matter of "mysticism."

Therefore, in the agricultural product industry, building product power is both difficult and important. Especially when the industry generally lacks product differentiation, enterprises need to clearly define product selling points and differentiation, while also implementing the realization of these selling points and differences. For agricultural products, practical product selling points and differentiation can be considered from the following aspects:

Quality Assurance

In the agricultural product industry, quality is the most fundamental and core competitiveness. Through strict production standards, quality control, and certification systems, ensure product safety and stable quality. For example, Danone's Activia yogurt and Silk plant-based milk emphasize sustainable development and food safety, and guarantee product quality through multiple certifications.

Origin Traceability and Storytelling Marketing

Use technological means to achieve origin traceability and document the cultivation/breeding process, creating a product story that helps consumers better understand the value and characteristics behind the product, increasing consumer identification and trust. For example, Marks & Spencer sells fresh steaks with QR codes printed on the packaging. After scanning the QR code, consumers can view information about the product's source farm (including farm location, breeding methods, feed composition, etc.), as well as detailed records of slaughtering, processing, and transportation. This information may be recorded on a blockchain to ensure authenticity and immutability.

Green and Organic Certification

If conditions permit, transition to organic cultivation or production, obtain corresponding green and organic certifications, and enhance the added value and market competitiveness of products.

Technological Enhancement

Utilize advanced science and technology to improve production efficiency and product quality, or even create entirely new product types, giving products unique new selling points and differentiation. For example, hydroponic systems (hydroponic vegetables) grow plants in a soilless environment using nutrient solutions, reducing water usage. They provide efficient, fast-growing green vegetables suitable for urban and resource-limited areas.

In a fiercely competitive market, defining differentiation is key to the success of agricultural product enterprises. Although the agricultural product industry overall lacks product differentiation, by emphasizing quality, origin, green and organic certifications, and other aspects, enterprises can find their own positioning and selling points, differentiating themselves from competitors. Continuous improvement and innovation, along with building close connections with consumers, will help agricultural product enterprises stand out in the market and gain competitive advantages.

04

Leverage Communication Power

Precisely Navigate the Path from Seeding to Conversion

"At the same time, enterprises must recognize that marketing communication for brands and products is not just about 'buying traffic,'

'shooting short videos,' or 'hiring KOLs,'

but about thinking through the 'entire chain'

of this issue."

Branding for enterprises requires content communication to be implemented, because content communication is a key pathway to building brand image, conveying core values, and establishing emotional connections with consumers. Through content communication, enterprises can deeply convey product features, brand philosophy, and stories, attracting the attention and recognition of target audiences.

In the domestic market, with the gradual decline of traditional advertising, brands must rely on the product itself as the core of information dissemination to achieve effective reach and communication. They need to leverage emerging platforms such as Xiaohongshu and Douyin as mainstream communication channels to create broader and more direct communication opportunities with consumers. On these platforms, enterprises need to replace traditional pure brand promotion with innovative product communication. Content needs to be more approachable and down-to-earth, focusing on emotional resonance with audiences in different scenarios. Through this approachable and emotional communication method, brands establish positive connections with consumers, gradually enhancing brand awareness and reputation.

At the same time, enterprises must recognize that marketing communication for brands and products is not just about "buying traffic," "shooting short videos," or "hiring KOLs," but about thinking through the "entire chain" of this issue. By leveraging the characteristics of different platforms, design a full-chain communication strategy covering platform channel positioning, product selection, content direction, communication methods, and even conversion paths.

For example, a beverage company selected four content platforms when promoting its newly innovative beverage brand and designed a comprehensive communication strategy for these four platforms. By "using products instead of promotion," it built a communication chain from seeding to harvesting, fully leveraging the differentiated characteristics of different platforms and achieving marketing communication that integrates brand and performance.

In this branding journey from field to table, agricultural and livestock enterprises face unprecedented challenges and opportunities. Challenges stem from the low differentiation of products themselves, management inertia within enterprises, and unfamiliarity with the front-end consumer market due to the extended value chain. However, opportunities are equally enormous: consumers' demand for high quality, innovation possibilities brought by technological progress, and people's emphasis on health and sustainable development all provide broad space and possibilities for enterprise branding development.

Successful branding is not just about attaching a resounding label to a product; it is about deeply embedding quality, trust, and value into every link from production to consumption. By deeply understanding consumer needs, adhering to product innovation, and building a strong brand culture, agricultural and livestock enterprises can carve out their own space in a fiercely competitive market.

"From field to table,

build a bridge connecting enterprises and consumers,

and pave the way for China's agriculture and livestock industry toward

a high-quality branding path."

Ultimately, successful branding in agriculture and livestock will not only reshape the enterprises themselves but also transform the entire industry chain, enhancing the overall value of the sector. It will bring consumers higher-quality and safer food choices, inject new vitality into agriculture and livestock, and set new benchmarks for the modernization and branding of Chinese agriculture. In this process, every participant bears an important mission, jointly weaving a beautiful vision from field to table.

Editor | Wu Diya

Supervisor | Shanding Dongren

Image IClay

Art Editor ITom

Originally published on: GSP金源点创新咨询 WeChat Official Account · 2024-11-07View original WeChat article ↗
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