As many Chinese exporters loose the U.S. market due to sky-high tariffs, they are focussing on alternative market – for example in Southeast Asia – but also on their own home market. Ningbo Today Food Co, one of Asia’s leading tuna product firms, is navigating a tumultuous export market landscape as orders from the United States have steadily declined since the introduction of tariff policies first levied in 2019. The U.S. market used to make up 20% of orders, but has now declined to nearly zero. With over two decades of experience in tuna canning, the company has reported an impressive 2024 annual revenue of CNY900 million, with 80% of its products being exported or produced under OEM agreements, primarily targeting Europe, South America and Southeast Asia. As recent tariffs imposed on China by U.S. President Donald Trump’s second term now add up to 145%, the company has struggled. “The impact of these tariffs has made our business increasingly challenging this year,” said Zhang Ning, Market Manager at Ningbo Today.
To help suppliers such as Ningbo Today, the Ministry of Commerce (MOFCOM) has called for major domestic retailers and distributors to help them expand sales in the domestic market. Yonghui Superstores, a leading supermarket chain, has already engaged with over 200 high-quality supply chain companies, including Chinese suppliers catering to the U.S. market such as Costco and Sam’s Club. Yonghui is set to launch a dedicated international trade section in select stores, showcasing a selection of some Chinese-made products. Yonghui has enhanced its shopping experience at its flagship store in Shijingshan district in Beijing. This store now features a specialized section for both domestic and exported products, providing consumers the opportunity to explore quality goods with a broader range of options. Yonghui has introduced an innovative “green channel” for Made-in-China products, which includes three supportive measures – a swift 15-day shelf placement process, targeted brand promotion plans, and collaborative product development opportunities with leading supply chains. With over 700 stores nationwide, the retailer said it aims to mitigate the impact of export pressure while facilitating the flow of high-quality products from established supply chains to reach more Chinese consumers.
Jason Yu, General Manager of CTR Market Research, said the proportion of domestic consumption by Chinese residents to GDP is about 20 percentage points lower than the average level of developed countries, which means there is significant room for improvement. MOFCOM is encouraging more export-oriented enterprises to redirect some of their high-quality and cost-effective products to meet domestic market demand, which is a promising approach, he added. Gong Dehua, Yonghui’s Deputy General Manager, said recently: “Behind the export of goods is the brilliance of ‘Made in China’.” Chinese consumers are increasingly poised to embrace high-quality domestic products. For exporters, this opportunity comes at an ideal time.
“Tuna remains a relatively unfamiliar ingredient for many local consumers, who will take time to adapt and incorporate it into their meals,” Zhang of Ningbo Today said. “Collaborating with leading Chinese retailers and catering partners is essential to expanding our product category and boosting sales.” To cater to local tastes, Ningbo Today has developed innovative product offerings, including spicy and vegetable-flavored tuna, as well as convenient packaging designed to appeal to female consumers. The company also hopes to boost its domestic brand, Yellowfin Tuna, which initially was sold only online.
Wushang Group – a leading retailer in Hubei province – called on its 11 shopping centers and department stores, more than 100 supermarkets, and other market entities across the country to join hands to help consumer goods exporters expand into the domestic market. “A total of 47 enterprises have reached out to us expressing interest in collaboration,” said Wang Zhiming, Deputy General Manager of Wushang Group. The majority of these companies operate in essential sectors, including daily necessities, food, textiles, home furnishings and personal care. “Many are eager to secure dedicated space for their products in supermarkets or shopping centers,” he said. The group has implemented a fast track to assist exporters in obtaining the necessary domestic retail certifications and qualifications, with plans to designate areas for exports-turned-domestic products in stores as early as this week. “The domestic market has become a significant buffer zone for exporters who have hit a wall with tariffs. High-quality products that meet consumer expectations are exactly what our domestic market desires,” Wang said, as reported by the China Daily.
China's retail sales reached CNY4.094 trillion in March, up 5.9% year-on-year. The consumer market is steadily rebounding. In the first quarter, retail sales reached CNY12.5 trillion, up 4.6% year-on-year, 1.1 percentage points higher than the growth rate for the whole of last year.
