We spoke with Yun Tso Lee, the advisor to the Cherry Committee of Fruits from Chile (Frutas de Chile).
Each season, Chilean cherry producers ship tons and tons of cherries through fruit exporters, with their main destination being the Chinese market. In the recent campaign, our country exported more than 414 thousand tons, a record figure, surpassing the US$2.26 billion mark, 16% more than the previous season, according to data from ProChile’s Market Intelligence Department.
It is expected that this figure will increase for the 2024-2025 season, and therefore it is necessary to increasingly understand and closely monitor the Chinese markets and consumers. In this context, we spoke with Yun Tso Lee, the advisor to the Cherry Committee of Fruits from Chile. He is also a Doctor in Political Science, an academic at the University of Development, and has lived in Chile for 40 years.
One of the aspects highlighted by the specialist regarding the Chinese consumer is the importance they place on the price-quality ratio: “It is very important because the Chinese know how to associate price and quality, which consumers in other countries do not have associated. One always buys the cheapest, the most functional, but the Chinese associate the idea that expensive means better quality; and if I want to give a gift to someone, the Chinese always try to give the best, so many buy North American cherries because they are more expensive, for gifts; and they say no, it’s because Chilean cherries are cheaper, so it’s a matter of perception of the Chinese consumers,” commented the academic.
Although a significant amount of cherries are sold through supermarkets or established retail, online sales and influencers are gaining ground.
“Influencers are playing an extraordinary role, more than influencers, it’s the e-commerce, because this has generated a type of business for these new entrepreneurs; they sell their products from the place of origin. Imagine with the highly efficient logistics infrastructure in China, you can buy something that is 800-1,000 kilometers away and it arrives the same day or in the afternoon, and that is tremendous potential; as the president of China said, if you want to reduce poverty, the first thing to do is pave the roads, establish the logistics infrastructure so that everyone has the possibility to sell, and that makes sense because, imagine if in Chile the logistics system were so efficient that a farmer could sell his “little pig” for September 18th from his farm and that in the afternoon someone in Santiago could receive it, it would be great, it would improve the quality of life for that farmer because he could sell directly, and that directly impacts his quality of life, economic condition, and he will also have more money, and then it’s a whole cycle; he will have more money, he will be able to buy more, so there is economic growth and that is what the government and the Chinese president have contributed when he took power. Logistics means are fundamental for new technologies, for the development of e-commerce,” explained Yun Tso Lee.
Chinese New Year and cherries
There is no better coincidence in the Chilean cherry industry than our productive and export season coinciding with the celebration of the Chinese New Year, a festivity where the red fruit is the queen of the celebration.
“Chinese New Year is the main reason why the Chinese buy cherries; and the second reason is that the color red has a lot of significance for the Chinese; and third, the Chinese give fruit as gifts to elders and elders to their parents, to their uncles, as a healthy gesture, so the Chinese do not give chocolates like here in Chile, the Chinese give fruit, so the cherry for Chinese New Year coincides with all these factors that the Chinese consider auspicious and healthy, that’s why it is so well received just for Chinese New Year,” said the advisor to the Cherry Committee of Fruits from Chile.
In this context, marketing plays a fundamental role, a task that each season is led by the Cherry Committee of Fruits from Chile in the giant Asian market.
“The Cherry Committee of Fruits from Chile has done an extraordinary job there in China in spreading the image of the Chilean cherry in China, but I believe that all producers have to join this effort, as it is not an effort of one or an association, but of everyone; in that sense, I believe that the Chilean cherry is already in the collective memory as something of great value, especially for Chinese New Year, so in that sense, it is achieved, what needs to be done perhaps is to maintain it, and I know that there are influencers who work for Fruits from Chile and have done very well in the Chinese market,” indicated the academic from the University of Development.
The advisor to the Cherry Committee of Fruits from Chile also emphasized the importance of continuing to cultivate a relationship with Chinese buyers.
“If we want to continue doing business with the Chinese, it is better to know them; for the Chinese, it is better to do business with friends than with strangers, so it is good to continue strengthening ties of friendship and mutual understanding,” concluded Yun Tso Lee.
