Distribution Channel of Tropical Fruits in the Netherlands Market

Author(s):  Siohong Tih, Azhar Ahmad and Mohd Fauzi Mohd Jani

Keywords: Tropical fruits, Distribution Channel, Netherland Market, Importer, Supermarket

DOI:
 

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Abstract: Tropical fruits have started to gain acceptance in the European market. For instance, banana, papaya and pineapple are commonly available at the retail food outlets in Europe. However, only selected tropical fruits are distributed and the main source of these fruits are the Asian countries. With the increased awareness of the value of these fruits that is associated with healthy eating, the potential of fruits in general and tropical fruits in particular is huge. Subsequently, it is crucial to understand the structure of tropical fruit supplies in the European market in order to design appropriate channels that would reach the ultimate targeted market segments. Hence, the objectives of this paper are to explore the supply and distribution structure of tropical fruits in the Netherlands market; and to identify distribution channel structure of tropical fruits. In this study, 100 industry channel members were interviewed to gain first-hand information about tropical fruit supplies in the context of the Netherlands. The Netherlands is chosen due to its strategic location as a gateway to European markets. Content analysis of interview responses and percentage counts of quantitative data were included in the research results. Findings of this research indicated that tropical fruits are brought into the Netherlands through importers and wholesalers and then they are distributed to retail outlets such as supermarkets, retail stores and traditional open markets. In addition, the findings indicate that in order to access high-end consumer segments via supermarket chains, the quality of tropical fruits is important. The alternative channels via retailers and traditional grocers are also available at a lower margin. The findings from this research can serve as useful guidelines for tropical fruit producers and exporters to support their decision making.

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