In general, Hong Kong's regulations are relatively less stringent and consumer products packaged and labeled for the Canadian market are often found on store shelves. Nevertheless, new Canadian exporters to the China and Hong Kong market should investigate labeling requirements for consumer products and give serious consideration to packaging and portion sizes. It should be understood that mainland supermarkets will not stock products that are not portioned or labeled in a way that makes them compelling for Chinese consumers. New labeling regulations have been recently promulgated by the China's State Administration for Entry-Exit Inspection and Quarantine which will have an impact on Canadian packaged food exporters. In several mainland China provinces, the distribution system is still at an early stage of development, especially for frozen and fast-food products.
Cold storage remains a challenge in Beijing and, to a lesser extent, in Shanghai.
Guangzhou, however, has a relatively good distribution system with expressways and distribution centers and its proximity to Hong Kong, serves as the wholesale service point. Canadian exporters will also likely be expected to contribute increasing resources to marketing as their market share increases. Increased concentration of the Hong Kong food retailing industry. The overwhelming dominance of these chains may undermine Hong Kong's competitive environment, restrict the entry of new to the market products and limit food manufacturers' effort to establish brand recognition of their products. Intellectual Property Rights.