BEIJINGSeptember 14 (News about Japan) – Japanese food companies are stepping up their expansion efforts in China, where consumption has stagnated due to rising food prices. We examine the factors driving these Japanese companies to accelerate their activities in the Chinese market.
‘Tenpura Ebino-ya’, a tempura restaurant from Osaka, recently celebrated its first anniversary after opening in downtown Shanghai. The freshly made tempura bowls are a big hit among locals.
During our lunch visit, all 80 seats were occupied, demonstrating its popularity. In the kitchen, skilled chefs prepare the tempura, with the most popular dish being the ‘Two Shrimp Tempura Bowl’, with two shrimp, squid and white fish, priced at around 1,000 yen. Why has tempura become so popular?
Xie Min, deputy general manager of Fujio Food, Shanghai branch, said: “Many Chinese have traveled to Japan and remember the taste of the tempura bowls they ate there. They are very happy to have exactly the same taste here in Shanghai to find.”
The restaurant’s appeal is not limited to its taste.
One customer said: “I think it’s affordable. Prices are generally high in this area so I’m happy with this price.”
As the Chinese economy stagnates and the desire to save increases, affordability has become a major draw.
Japanese food chains are adopting a low-price strategy, leading to a string of new store openings. Last month, conveyor belt sushi chain Sushiro opened its first location in Beijing.
On opening day, more than 600 groups visited the store, with some customers having to wait up to 10 hours, demonstrating the restaurant’s popularity.
One customer commented: “Tuna is expensive in Beijing, so I ordered a lot.”
Tuna is the most popular item, with one plate costing around 200 yen.
Kazuo Aratani, Executive Officer of F&LC, said: “Our goal is to serve delicious food at affordable prices. We want customers to be pleasantly surprised by how delicious the sushi is at this price.”
New restaurant openings continue in Shanghai.
On the first of this month, ‘Yama-Ushi’, a beef bowl restaurant, opened its first store in Shanghai. The restaurant is managed by Toridoll Holdings, the company behind Marugame Seimen.
Although Marugame Seimen once expanded to about 50 locations in mainland China, it was forced to close its stores two years ago due to the pandemic. This marks the company’s second attempt to break into the Chinese market.
This time they focus on rice bowls. Their signature dish, the charcoal-grilled short rib bowl, costs around 500 yen.
By utilizing the experience and expertise they gained in Japan, they aim to attract customers with affordable prices.
Takashi Sugiyama, vice president of Toridoll Holdings, commented: “We are aligning our operations with current consumption needs in China and aiming for significant growth.”
Japanese companies entering China are not limited to the food industry.
According to data released last month by Teikoku Databank, the number of Japanese companies with local subsidiaries or production facilities in China is about 13,000. This represents an increase of about 300 companies compared to two years ago, when many companies withdrew or downsized their Chinese operations due to the pandemic.
In addition to the growing popularity of Japanese restaurants, there is an expected increase in companies entering sectors such as elderly care, as China continues to face demographic challenges such as an aging population and a declining birth rate.
Kei Nakajima, an expert on China, noted: โJapan is becoming somewhat of a brand in China. Although Japanese cuisine used to be exclusive to the ultra-wealthy, it has now become more accessible. However, Chinese consumers tend to lose interest quickly. Without constant menu innovation, it will be difficult to survive in this market.โ
Source: ANN
