Taiwanese food makers top survey of China's market

Taiwan's food manufacturers have successfully won the stomachs of many in China's top ten major cities, according to a survey.

A consumer behavior study conducted by Business Weekly magazine and market research firm Field Force Group showed that the products of several Taiwanese food makers have become staples in many households in China's top cities.

The cities included in the survey were Beijing, Shanghai, Guangzhou, Xiamen, Hangzhou, Sichuan, Chengdu, Qingdao, Xian and Wuhan.

Specifically, Taiwanese firms did well when it came to serving up instant noodles, ice tea, desserts, cookies and frozen food, which were among the 65 items in the study.

Among the winning favorites was Kang Shifu (康師傅) instant noodle, which is produced by Ting Hsin Group (頂新集團). It ranked number one in China's instant noodle market, gobbling up a 50.61 percent share.

The number two manufacturer was President Enterprise (統一企業 ), which has a 27.63 percent share of the surveyed markets.

Together, Ting Hsin and President accounted for 80 percent of China's instant noodle market.

In addition to noodles, President Enterprises also ranked second for ice tea and desserts.

Meanwhile, Want Want Group (旺旺集團) accounted for 25.38 percent and 21 percent of the cookie and leisure food markets, respectively. Want Want was also the most profitable Taiwanese company in China, earning NT$1.6 billion in after-tax profits in 1998 and an estimated NT$2 billion this year.

Despite the success of many Taiwanese food manufacturers, the nation's leading computer makers Acer (宏其石電腦) and First International Computer (大眾電腦) have just an 0.81 percent and 0.5 percent of China's PC market, respectively.

As for easily replaceable daily necessities, Chinese consumers have shown a preference for home-made products over manufactured products from Taiwanese firms.

In addition to surveying products, the study also examined consumers' top ten purchase preferences. Personal computers, air conditioners and mobile phone topped China's shopping wish list.

Other desired items included motorcycles, microwave, cars, telephones and health facilities.

Another item in the survey measured income growth between 1996 and this year.

Personal incomes grew 70 percent over the past four years and reached an average of 1,000 yuan monthly in the wealthier cities of Shanghai, Beijing, Guangzhou, Xiamen and Hangzhou, according to the survey.