By 2020, the total number of vending machines in China will approach 1.38 million, an increase of more than 8 times compared to 2015. Based on research on the global retail market, Kantar Retail Consulting found that when per capita GDP reaches $10,000, consumer demand for vending machines will explode. As of 2015, regions covering 390 million people in China had reached this level, but the development of the vending machine channel lags behind the overall retail environment, leaving a huge market gap. In the next five years, China's vending machine channel will experience explosive growth, becoming a new channel for FMCG retail. The origin of China's vending machine channel can be traced back to 1994, when Japan's Suntory Company first introduced vending machines to China. Two years later, the two major American cola companies also participated in the construction of the vending machine channel, introducing hundreds of machines to China. At that time, vending machines only supported the sale of low-temperature beverages. Around 2000, the vending machine channel entered a period of exploration and market introduction. The failure rate of machines decreased significantly, and vending machine manufacturers began to explore new payment methods. After more than ten years of exploration and imitation, by 2013, the vending machine channel experienced explosive development. A system for independent research and innovation of domestic vending machines gradually formed. In 2013, mobile payment technology was introduced to vending machines. In 2015, the vending machine channel opened the Internet+ era. Now, vending machines cover a wide range of product categories, whether beverages, snacks, personal care products, or fresh fruits, all can be sold through vending machines. A vending machine occupies only 1-5 square meters. Compared to retail stores, vending machines require very little manpower and can provide uninterrupted service day and night. In 2015, the number of vending machines placed nationwide was about 150,000, which increased 15 times in five years. In the United States, the ratio of vending machines to convenience stores is 30:1. It is predicted that the scale of convenience stores in China will reach 46,000 by 2020. If the development of vending machines reaches the level of the United States, the total number of vending machines nationwide will approach 1.38 million. Number of vending machines placed (10,000 units) In the last five years, the average annual sales growth rate of the vending machine channel has exceeded 100%. The average monthly output per vending machine has gradually increased with the rise of economy and living standards. It is expected that by 2020, the monthly sales of a vending machine will reach 6,000 RMB, and the annual sales of the vending machine channel will approach 100 billion. In terms of geographical distribution, vending machines are currently mainly concentrated in coastal areas. The Yangtze River Delta and Pearl River Delta regions are currently the areas with the most extensive penetration and the most mature market development, with about 60% of the equipment placed in these areas. The number of vending machines in the Bohai Rim region is also gradually increasing. Distribution of vending machine sales across the country China's vending machine operators are numerous and scattered, with strong regional characteristics and large differences. Uboss, with its development of smart machines and O2O model, has placed the most equipment and ranks first in market share. Shanghai Miyuan Beverage Company is not only a vending machine operator but also a beverage and food supplier, with its own branded tea drinks, and its number of placed machines is also much higher than other operators. Kantar Retail Consulting believes that in the next five years, the huge increment in the vending machine channel will mainly come from the following five aspects:

  1. Broadening categories and focusing on health is the general trend of the global vending machine industry
  2. China's smart Internet vending machines and mobile payment technology are at the forefront of the world
  3. Brand-exclusive vending machines become a new market direction
  4. Vending machines will become a new product promotion channel and marketing medium for brands
  5. Expanding to more regions and places, vending machines will be everywhere On the one hand, the vending machine channel connects with e-commerce through smart devices; on the other hand, it saves space and labor costs, taking advantage of the current retail industry development. The vending machine channel will gradually become a new growth driver in the sluggish Chinese retail market. With rapid performance growth and unlimited growth potential, vending machines have attracted increasing attention from brand owners. Only those brand owners who fully understand the characteristics of the vending machine channel, grasp the development trends, and keep an open mind to follow the trends can ride the vending machine wave to boost performance growth. -END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operation management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's skills | 013 KA operation methods and strategies | 014 First lesson for new sales | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]