As the food and beverage market offers many business opportunities to European SMEs as Chinese consumers are looking for healthy quality products, we have dedicated today’s blog post to geographical indications protection in China. Registering geographical indications in China offers another layer of protection to SMEs that are producing European high-quality products associated with certain regions or production methods.
What is a Geographic Indication (GI)?
“Champagne”, “Bordeaux”, “Parma Ham”, “Parmesan”. Each of these products, associated with certain regions, are renowned and trusted for their nature, quality and authenticity. As a consumer, you are probably more familiar with “Scotch”, “Cognac” and “Bavarian beer” than unnamed brands claiming to use the same ingredients. A GI is therefore a labelling that identifies a good as originating in a specific territory, region or locality, where characteristics of the good are associated with its place of origin.
GIs are protected by World Trade Organization (WTO) signatories, including all 28 European Union (EU) Member States (MS) and China – since 2001. This is designed to prevent unfair competition and to protect consumers from purchasing goods that misleadingly claim to be from a particular place.
Made in China?
China’s middle class is growing; as has its appetite for imported – predominantly Western – products. Younger generations spend significantly less time cooking than their parents and are increasingly quality- and status-conscious. In addition, food safety concerns in recent years have encouraged Chinese shoppers to more carefully consider the origin of the products that they consume. Purchasing patterns have therefore experienced a significant shift. Regarding food, large numbers of Chinese people are purchasing brands that are recognised for their quality and food safety standards – this has stimulated a rise in sales of Western goods. Similarly, while sales of traditional alcoholic drinks, like baijiu, still dominate in many places, individuals in wealthy Tier 1 cities are increasingly opting for higher-end Western wines, beers and spirits. Continue reading “Champagne or Sparkling Wine? Geographic Indications Protection in China” »