An observation visit was made to three trade fairs being held concurrently at the Shanghai New International Expo Centre, Pudong New Area, Shanghai, China, in September. Local circumstances and the substance of the exhibitions are introduced herein.

Shanghai is improving its traffic infrastructure in preparation for the Shanghai World Exposition to be held in 2010. The population is increasing, and the resulting boom in apartment building construction meant that large cranes were to be seen everywhere in the city.

Prices seemed low, with domestic drinking water (half-bottle) selling for 0.9 yuan, custard cakes (bag of 10) for 10 yuan, transport on a city bus for 1 to 2 yuan, and the initial fare on the subway for 3 yuan. On the other hand, there were also confectioneries (cookies, biscuits) from leading world brands such as Nestle, Danone, and Kraft that cost three to five times as much as domestic products, and drinking water that cost 10 times as much. The fact that imported goods and other high-priced products are being sold is probably a sign that the economy is growing. Another factor, however, is the presence of large numbers of foreign residents in Shanghai.

The food sections in department stores and supermarkets did not look very different from those in Japan. However, there were fewer sweets freshly made on the morning of the day of sale, and most of the display space was taken up by products with longer shelf life.

Imported products, including sweets from Japan, were treated as luxury confectionery, and were on sale in department stores, supermarkets, and imported goods stores specializing in high-end products. While the prices are high, these products seemed to be gradually gaining market acceptance for their good flavor, safety, and sense of security.

On the other hand, recent years have seen a rise in the number of shops dealing in baked goods and Western-style unbaked sweets and confectioneries. One popular bakery had a shop that offered freshly baked bread. Where this differed from Japan was that the just-baked bread was displayed on covered shelves. Apparently, there is a requirement that unpackaged bread must be sold from shelves that have covers.

 Observation Visits to the Trade Fairs

Visits were made to three trade fairs that were being held simultaneously: Sweets China (the fourth time for this trade fair for China's confectionery industry); World of Food China (the second time for this trade fair for China's food industry); and International Sweet & Snack Tec China (the first time for this trade fair for China's confectionery and bakery machinery industry). Exhibitions of confectioneries, food products, and machinery were going on in parallel, so the exhibits went beyond just sweets to include raw materials, manufacturing machinery, and the full range of food products. Manufacturers and buyers that are targeting the growing Chinese market were concentrated at these events.

Sweets China had exhibits by 180 enterprises and organizations from 19 countries around the world. From Japan, the All Japan Trade Association of Confectionery Manufacturers (Japan TACOM) booth represented 17 companies, and there were another 21 Japanese companies also showing their products, including independent exhibitors. They were introducing Japanese confectioneries by offering tasting samples, and conducting market research in taste trends while they carried out sales promotions.

"Sweets" in China refers to candies, chocolates, and snack foods. The greater part of the confectionery products and machinery on display were related to sweets in that sense.

Japanese food enterprises had been investing in China as a production base. Now, however, they see it as a consumer market, and have been actively cultivating access to the market. The exhibition venue was bustling with manufacturers and buyers making deals.

 
The financial and commercial district in Lujiazui

Pedestrian paradise on Nanjing West Road

The sweets section in a supermarket on Hongmei Road that carries many imported products

 
The Japan TACOM booth at Sweets China