MNCs feel the heat from China  brands 
2019-08-01
Multinational food and beverage companies are facing challenges from up-and-coming local brands but they can leverage opportunities brought about by tech giants’ new retail platforms, according to a report by RaboBank.
Globally, packaged food and beverage manufacturers are under pressure from local players who are quicker to adapt to consumers’ shifting preferences and market trends, said RaboBank Shanghai Branch’s Food and Agribusiness Research director Michelle Huang.
Food companies should actively seek business transformation and better leverage innovative technologies such as data analysis and precision marketing.
Out-of-home beverage vendors, boutique coffee shops and milk tea sellers are also taking on a new look thanks to location-based service and on-demand delivery.
The rise of China’s super tech giants is also reshaping the retail landscape as they have gathered information about consumer preferences and can sell private label brands at much lower prices.
“Consumers are also demanding packaged food be more tailored to suit their tastes, thus driving the adoption of the customized manufacturing model,” said Huang.
The hunger for new tastes is driving innovation. 
New flavors often come in limited quantities and are mostly sold online, transforming product launch cycles and marketing strategies. But there might be challenges to the new models as some multinationals have internal restrictions on how products are developed and launched.
