Chinese economy and the power of social media on fruit sales

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Chinese economy and the power of social media on fruit sales

Given the importance of China to the global cherry industry - especially for Chile, which exports around 90% of its total production to the Asian country - the segment focused on the Chinese economy, trends, and consumers was one of the most anticipated during the 2025 Global Cherry Summit.

The discussion began with a presentation by Rena Ma, senior analyst for the consumer foods sector at RaboResearch, who provided an analysis of the Chinese economy amid ongoing change.

She noted that China’s economy is currently a global leader, capable of producing and consuming more goods than any other country. However, she emphasized that consumption still has room to grow, unlocking further potential.

"To reach this potential, however, new growth drivers are necessary, along with new productive forces and dual circulation," Ma said. "We have a powerful supply chain, which is why we can produce for the globe."

The impact of trade conflict with the U.S.

Regarding the trade war between the U.S. and China, Ma said that RaboResearch's calculation indicates that losing exports to the U.S. will have an impact on the Chinese economy of less than 3%. 

"Of course, there are ongoing changes, and this could change every day. However, to mitigate the impact, we must focus on several key areas, including market diversification for Chinese products. We must also stimulate consumption, enhance competitiveness, and reduce our reliance on U.S. imports," she explained. 

Overall, she believes the most important of these factors is stimulating consumption, as the economy is in a transition. 

Government works to increase consumption

Ma said the government is prioritizing increased consumption as it plays an increasingly important role in economic growth.

"At the Central Economic Work Conference in December 2024, boosting consumption and expanding domestic demand were placed at the top of the nine major tasks for 2025."

Government subsidies to low-income groups have increased to raise the minimum wage. They have also reduced mortgage rates to decrease financial burdens on consumers. 

This shows the Chinese economy is shifting from being externally driven to being driven by domestic demand. 

How can companies grow in China?

Ma indicated that companies must adopt a strategic approach, thinking in the long term, as patience and faith are required to capitalize on the country's potential.

"China’s market size, growth potential, and geography will drive economic development, but companies must have more sophisticated value propositions, business model innovations, and investment considerations. 

Opportunities and challenges for imported fruit 

Regarding cherries, Ma said the market was hurt last season by oversupply, which led to price drops. In addition, food safety concerns created a negative perception, weakening the product’s image as a luxury item.

Competition from strawberries and domestically grown cherries has also contributed to the challenges faced by Chilean exporters.

Still, Ma remained optimistic about cherries’ future in China, noting that their consumer base is broadening.

"Before, we would buy cherries almost exclusively for gifting, but now also for self-indulgence," she said. "The health benefits of the fruit are also very relevant as newer generations are shifting to healthier diets."

The seasonality of Chilean cherries also gives them an advantage, as they arrive during the festive season in China. 

Impact of social media on the cherry market

One of the leading causes of Chile's negative season in China was the negative publicity it received on social media. This showcased the power of social media, for better or worse, on fresh fruit. 

Hector Zhang, marketing director at Frutas de Chile, covered this topic, covering the actions they had to take, lessons learned, and potential pathways for the upcoming season. 

"Chinese spend, on average, 5.5 hours a day on their phones, and 75.5% of the country's population actively uses social media," Zhang explained. 

Social media and recommendations are key drivers of consumption, behind quality and price, making them key to the viability and sustainability of the industry. 

What happened during the season?

"Negative and fake news had a big impact this season. Based on a survey with importers and exporters, they ranked negative news and food safety as the second most important factor that defined the season," Zhang explained. 

While consumers in general were still satisfied with the fruit they consumed, the content generated throughout the season raised concerns in approximately 12% of consumers about food safety, particularly regarding storage, the use of preservatives, chemicals, and potential health impacts. 

A particular case where a woman ate 1.5kg of cherries and ended up in the hospital with a swollen face led more consumers to associate their unhealthy symptoms with cherries.

This news generated significant repercussions on social media, leading to a negative perception of cherries and raising questions about the methods of transporting the fruit. 

Actions taken to counter negative news

Even though Frutas de Chile had an action plan in place, Zhang said they were impacted by the speed, severity, and duration of the negative news that "really barraged us this season."

"We must restore the consumer experience as quickly as possible. Communication and protecting the reputation of the profitability of the industry are key," he said. 

The team at FDC reacted immediately, within the first few hours, to filter and resolve issues with potentially sensitive news regarding cherries. 

Getting mainstream media and industry-specialized outlets to share their statement regarding the negative news was one of the first actions taken by the association. 

Promoting the nutritional benefits of cherries to debunk false statements made by news outlets and social media influencers was also an adopted action. 

To prepare for future crises involving social media, Zhang recommended that industry members have ready content, legal materials, and scalable resources to respond to emergencies effectively.

"Collaborate with the Chinese market and public authorities, Chinese fruit trade associations, and trade to jointly strengthen industry reputation," Zhang told industry leaders. 

Finally, he said they must work with the industry in both China and Chile, as any negative news not only harms Chilean growers and exporters but also harms Chinese trade. 

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