Organa Gardens International Inc., the sustainable vertical gardens systems company, reports that it has targeted the China market as its first point of entry into the hydroponics organic market. The company is in discussions with a China-based company to manufacture and distribute its Organa Garden Systems-Enterprise (OGS-E).
The domestic Chinese retail market for organic foods was valued at only $195 million in 2004, which is less than 1% of China’s total food market. However, the organic produce sector in China did increase by tenfold during the 1999-2004 period and has continued to be promoted and supported by the Chinese government. The market for organic foods in China is expected to continue on a rapid growth path as consumers’ purchasing power increases.
The company is currently pursuing strategic alliances with existing organic food distributors and hypermarket stores in China, such as LianHua, which is the largest hypermarket chain in China that carries organic products. Organa is also in discussions with several Chinese-based indoor greenhouse companies with regard to integrating the company’s OGS-E within their warehouse establishments by year’s end.
Organa’s initial marketing efforts will target second tier cities such as Chengdu and Tianjin in central and northern China. This is smart marketing for two reasons. First, this region of China has been much less affected than other areas by the global slowdown. Secondly, this is an area in China where farming is seasonal. The company’s product has allowed such areas to grow organic foods on a smaller scale to accommodate variable demands while being cost and energy efficient.