Editor's Note: Today, the domestic FMCG market is fiercely competitive, and every company and individual feels it deeply. Where is our next blue ocean? Can we find a vast sea of stars that avoids this cutthroat development?
From March 18-20, 2022, at the "2022 7th China FMCG Channel Innovation Conference," New Distribution will hold a salon titled "First China FMCG Expedition to the World."
At this salon, you will meet a group of Chinese FMCG "explorers." They are few in number, but they have long begun their journey to conquer the world. They will tell you where they have been over the past years, the joys and sorrows of their expansion, and what they have gained and learned.
They are the first eyes of Chinese FMCG to look outward, and they will lead you into a completely different new world.
Seats are limited, so secure your spot now.
What is Chinese is the World's, and What is the World's is Chinese
35 years ago, on November 12, 1987, KFC opened its first store on Beijing's busiest Qianmen Street. At that time, it was still called "Kentucky Fried Chicken." Today, KFC has over 7,000 stores in China.
KFC's entry into China marked the wave of international brands entering China. In 2019, the Ministry of Commerce reported that 490 of the Fortune Global 500 companies had entered the Chinese market, accounting for 98%. 35 years later, today's China is no longer what it was. In 2021, Chinese companies occupied 143 spots on the Fortune Global 500 list, surpassing the US's 122 and ranking first in the world. Not only at the national level, but China's FMCG sector has also developed by leaps and bounds. In the 2021 Fortune China 500 list, 54 companies were FMCG or closely related to FMCG businesses.
Chinese FMCG brands have made significant progress in all areas, including food, beverages, alcohol, condiments, daily chemicals, personal care, and household cleaning. They are now capable of competing with world-class brands, and in certain sub-categories such as instant noodles, beer, ham sausages, milk, and drinking water, they have achieved absolute advantages.
However, we must still recognize that China's FMCG global standing is not high enough. In the 2020 Global FMCG Top 50 list, only 4 Chinese companies were included, less than 10%. Clearly, the position of Chinese FMCG in the world does not match China's current global status. There are two main reasons:
Most of the top 50 global FMCG brands were founded over 60 years ago, with many being century-old brands. Time cannot be accelerated; clearly, young Chinese FMCG has more room to grow in the future.
Other top 50 global FMCG brands operate on a global scale, while Chinese FMCG brands currently focus mainly on mainland China as their primary or even sole market.
The first point is about the accumulation of time, which we cannot change, but the second point is precisely where the greatest opportunity lies for Chinese FMCG. Why must Chinese FMCG brands sink into cutthroat competition? Why should only global FMCG giants attack our market, while we cannot set our sights on the world?
To escape the rat race, Chinese FMCG needs to look outward. To gain a global position commensurate with China's national strength, it also needs to look outward. Excellent Chinese marketers and their theories and experiences also need to brave the waves in global markets. Now, we have the capability and courage to envision: What is Chinese is the world's, and what is the world's is Chinese! Chinese products and brands are the world's products and brands; the world's markets and users are the markets and users of Chinese brands! Today, Chinese FMCG can say to the world: Here we come!
The Vanguard of Chinese FMCG's Global Expedition
Today, we introduce a group of lonely "explorers." They are the "Columbus" of Chinese FMCG, the vanguard. They have fought the first battles and gained valuable experience and lessons.
1) In 20 Years, They Created a Nigerian Version of "Nongfu Spring"
In 2001, a group of Chinese came to Nigeria and founded an FMCG company called CWAY. Like KFC coming to China in 1987, they cultivated that unfamiliar land slowly.
Image source: Visual Africa
Nigeria is Africa's most populous country, with around 200 million people, and is one of the world's most populous nations. The Nigerian market in 2005 was similar to China's market around 1998. CWAY's core business is drinking water, along with some beverages and other foods. Starting from scratch, CWAY's founders used primitive methods to cultivate the market, while continuously learning marketing experience from domestic FMCG brands, attracting marketing talent, and introducing marketing models.
By 2020, CWAY Group's business scale exceeded $1 billion, with its barrel water business holding over 80% of the Nigerian market, and its bottled water business, though a latecomer, also captured over 40% market share.
Mr. Wang Qinzhi, General Manager of CWAY Water Group, said, "We spent 15 years replicating a 'Nongfu Spring' in Nigeria!" He added that in Nigeria, CWAY has only two worthy opponents: Coca-Cola and Nestlé.
At the "China FMCG Expedition to the World" salon on March 17, 2022, Mr. Wang Qinzhi will share his experiences and thoughts with Chinese FMCG peers:
- In what form should Chinese FMCG venture into overseas markets?
- What preparations should Chinese FMCG make for overseas expansion?
- Why has CWAY achieved rapid development in Nigeria in recent years?
2) Egatee to Realize B2B Channel Digitalization Blueprint on the African Continent
The world is both diverse and singular. From an economic development perspective, the African continent is still a relatively barren market. But from a technological application perspective, smartphone penetration in major African cities has exceeded 60%.
The Egatee platform is a B2B platform targeting the African consumer goods market, with core team members from China's FMCG B2B platforms.
Egatee has already built a considerable market team in some major African cities. The platform launched in 2021 and is growing rapidly. The dream of transforming China's FMCG B2B industry may very well be realized first on this mysterious continent.
At the "China FMCG Expedition to the World" salon, we have invited Mr. Wang Jun, partner of Egatee, to share his insights. Wang Jun believes that Africa is the market with the greatest development potential and vitality globally in the next 30 years.
It not only has 1.3 billion people, but the average age is under 20, indicating enormous future consumption potential. If Chinese FMCG wants to look to the world, Africa is a potential market not to be missed!
Mr. Wang Jun will bring his thoughts:
- How should Chinese FMCG view and analyze the African market?
- What strategic paths and rhythms should Chinese FMCG adopt when entering Africa?
- Which marketing models are effective in Africa, and how should they be implemented?
- Which African countries and cities are must-win territories for our expedition?
3) He Sold Dozens of Chinese FMCG Brands Across Italy
Cai Shansheng came to Italy over ten years ago. Because he missed Chinese food and hometown flavors, he founded "Today Food" company, doing business exporting Chinese brands to Italy.
Over the years, "Today Food" has become the main supplier of Chinese FMCG products in Italy, with annual sales exceeding 200 million RMB. It has become the exclusive or core channel partner for brands like Yili, Jiangxiaobai, Laoganma, and Tsingtao Beer in Italy.
Today, Cai Shansheng's "Today Food" has become the advance team and bridgehead for Chinese FMCG brands in the Italian market, with many Chinese FMCG products covering all of Italy through his channels.
At this "China FMCG Expedition to the World" salon, we will invite Mr. Cai Shansheng, founder of Italy's "Today Food," to share how, as an agent, he built a basic business of hundreds of millions in Italy through hard work. What are his thoughts and suggestions for Chinese FMCG brands investing and entering the Italian market?
The "First China FMCG Expedition to the World" salon on March 17 is the warm-up event for the "2022 7th China FMCG Channel Innovation Conference." Due to space limitations, we cannot introduce all guests in detail. Besides the above, we will also invite:
- Ms. Zhang Huihui, Head of International Business at Jiangxiaobai
- Mr. Wu Kun, Commercial Director of Indonesia's Jet Commerce Group
- Mr. Zhang Guobin, Head of Latin America Market at Midea Group
- Guests from Genki Forest's overseas market team
They will contribute their experiences and models from fighting in global markets, offering their thoughts and suggestions for the Chinese FMCG industry.
If you are paying attention to and researching Chinese FMCG overseas markets, if you are thinking about how to enter overseas markets, then this high-quality salon on "China FMCG Expedition to the World" is not to be missed!
Seats are limited. Scan the QR code now to book your ticket and secure your seat!
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