Selling Products in Various Markets

The goal of the Central Asia Food Research and Development Center is not to export the primary pulp of tomatoes to surrounding areas of Xinjiang, but to change it to high value-added products before exporting them, by processing and adding some condiment to it to produce tomato paste products with different tastes. Since its founding in 1997, the Xinkang Co., Ltd., a wholly-owned subsidiary of the Central Asia Food in Kazakhstan has always adhered to the operation principle of “fresh and healthy”and developed hundreds of products falling into four categories, including special tomato products, chilli sauce products, canned vegetables, and pure fruit jams, etc. After 15 years of unremitting efforts and innovative development, in 2012, “Xinkang” had grown into a leading localized enterprise engaged in agricultural processing in Kazakhstan, with an accumulative sales amount of 66,000 tons. Its sales network had covered 14 provinces in Kazakhstan and its market share had reached 25%, forming the operation mode of a whole industrial chain, from research and development to production and terminal sales. In the eyes of the consumers in Kazakhstan, various Xinkang brand of tomato paste products are essential seasonings on their tables. The Xinkang Tomato Products Factory in Kazakhstan has currently an annual production capacity of 5,000 tons, processing more than 10,000 tons of tomatoes produced in Xinjiang of China every year, which made it a major tomato products factory in Kazakhstan. Xinkang Tomato Products Factory won many titles, including the “Industrial Development Contribution Award in Almaty”, the”Best Enterprise in Almaty”, and the “National Enterprise with Best Food Quality in Kazakhstan”, etc. It was also rated as the “Best Enterprises in Kazakhstan of the Year” for five years, selected into the Directory of Golden Agricultural Businessesin Kazakhstan, became one of the “Consumer Trust Enterprises”announced by the Kazakhstan Consumers’Association. Additionally, it won Presidential Citation and was rated as the best production enterprise in its industry of the year, becoming the only China-invested enterprise that has ever won such award in Kazakhstan In 2009, it was identified as a key contact enterprise of the Ministry of Agriculture in Kazakhstan, acquired quality certification support, and became the only China-invested enterprise that has ever received such support.

These honors of Xinkang just show the praise from the government in the eyes of the common people in Kazakhstan, who concern more on the tastes of this brand of products. “I like the taste of Xinkang tomato sauce and use it to mix salad. It has a unique and fresh taste with agreeable sweetness. My daughter-in-law likes canned Xinjiang diced tomatoes too. We used to brew tomatoes ourselves before winter.

However, as the pace of life speeds up, much less people make their own tomato paste and diced tomatoes, because similar products with delicious tastes at a reasonable price are available in the market. Borsch tastes best with diced tomatoes in it. This is the comment on Xinkang product from Natalya, resident in Astana.

According to the investigation by the Kazakhstan Food Agency, the market share of Xinkang brand of tomato condiments accounted for more than 30% in Kazakhstan only. After the formation of the Customs Union between Russia, Belarus, and Kazakhstan in 2010, tax rates of many commodities was raised, while the duty for tomato sauce remained the same In Central Asian countries where there is rigid demand for tomato seasonings, there are less tight restrictions on tomato products.

The successful occupation of the Central Asian market by Xinkang not purely benefited from market demand, but is largely owing to the market survey of the company over the years. Besides, the products’tastes conform to the cooking custom of the families in Central Asian countries While a large number of tomato products factories closed down one after another in recent years against the backdrop of dramatic changes in the international market, Xinkang products still dominates the sales market in Central Asia and are breaking into the markets of Tajikistan, Kirghizstan and Uzbekistan. According to the marketing experience in the Kazakhstan market, the enterprise would adopt new formula and change the tastes of the products to be sold in these two markets, so as to cater to the tastes of consumers. In 2012, the sales volume of Xinkang tomato seasoning reached 10,000 tons. The tomato industry is a sunrise industry with a very bright prospect in Xinjiang and China. With the development of the fast food industry and western-style restaurants and the change in consumption custom in China many tomato products enterprises aim at domestic market. It is very important for a brand to be recognized by consumer  during the process of transferring from export to domestic sales. Xinkang and other brands still have a long way to go.

qingquang

See author's posts