Sales of imported seafood fell by up to 50 percent in the wake of China’s linking of coronavirus to imported seafood this summer, but are recovering fast as consumers turn to seafood as a health boost.
Robin Wang, the CEO of SMH International, a seafood-focused marketing agency with offices in Shanghai and Hong Kong, and with clients including the Alaskan Seafood Marketing Institute, said a recovery in seafood consumption has come quicker than expected as Chinese consumers
“Looking ahead, we see a lot of continued opportunity because of growth in the online space and renewed interest in health foods from the pandemic for seafood,” he told SeafoodSource.
Wang pointed to a surge in e-commerce prompted by the virus as a trend on which seafood can capitalize.
“There were almost 2,600 fresh food e-commerce companies that were newly registered in just the first half of the year, a sign for strong downstream demand. As the health initiative in China continues, sustainable, lower-calorie protein sources like seafood are definitely well-positioned,” he said. “We feel the health message will play out strongly and put us in a good position.”
After Beijing authorities in June identified coronavirus on a salmon vendor’s cutting board at the Xinfadi wholesale market, many of Wang’s clients saw a “short-term” decline in sales, with drops in revenue of between 10 and 50 percent.
“Those serving the Japanese restaurant space were hit hardest,” Wang said, while clients working with high-end retail and hospitality channels “fared much better and reported minimal effects from the incidents.
“In the past month, traders have mentioned orders picking up in frequency and per order volume,” he said. “There is increased foot traffic at hospitality and retail locations as people venture back outside and data is confirming a positive uptick, slowly but surely.”
Wang said he believes that while the Xinfadi market and a separate incident linking coronavirus to Ecuadorian shrimp were “certainly unfortunate – with many questioning the virus link," the response by the Chinese government bolstered the public’s trust in it in safeguarding its health.
“The swift and aggressive response for product removals and inspections was definitely consistent with Beijing’s stance in dealing with COVID-19,” he said. “While removing all the product may not have actually been necessary, the psychological effect on building a safe environment and developing consumer confidence was critical. Since then, products have returned to shelves and menus, so we are working towards recovery.”
Photo courtesy of The State Council of the People's Republic of China
