30+ industry experts, 100+ B2B platform founders, and 800+ manufacturer and distributor friends gathered in Fuzhou to discuss the internet transformation of the FMCG industry.
Recently, the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products released import statistics for alcoholic beverages from January to July 2016. Beer imports totaled 375 million liters, up 26.73% year-on-year, with a total value of $384 million, up 19.34%. While the overall beer industry's performance has been mixed, imported beer has seen explosive growth for several consecutive years. What is the reason? Can imported beer sustain its current growth momentum? Rise of novelty-seeking consumers fuels high growth Industry insiders point out that imported beer began to see significant growth in 2012, with modest increases before that. From 2012 to 2015, it grew substantially each year, with a cumulative increase of 737.2% over four years. So why has imported beer grown against the trend while the overall beer industry is on a downward trajectory? "Because the base of beer imports is small, the growth rate appears fast," said He Yong, Executive Deputy Secretary-General of the China Alcoholic Drinks Association and Secretary-General of the Beer Branch. He noted that imported beer actually takes the top tier of the beer industry, but its share of total beer consumption is very limited. In recent years, China's annual beer consumption has been about 50 million kiloliters, of which imports account for just over 500,000 kiloliters, or about 1% of total consumption. The explosive growth in imported beer's market share in recent years is primarily due to changes in the overall beer consumption environment. He Yong further explained that the beer market has entered a phase of refinement and segmentation, with consumers increasingly demanding quality, differentiation, and personalized products. Second, imported beer attracts attention because it mainly targets novelty-seeking consumers in high-consumption cities like Beijing, Shanghai, Guangzhou, and Shenzhen. In He Yong's view, these consumers have little brand loyalty or sense of belonging, and even extremely low product loyalty. Additionally, imported beer performs prominently in e-commerce channels, creating a misconception of high market share. Some consumers firmly believe "imported equals quality" A random interview with consumers by reporters found that many choose imported beer because they believe it has a richer taste and more variety, with some openly stating that "German beer is definitely the best." Industry insiders say China is entering a consumption era that is "sensitive to quality but not price," and many people have the illusion that imported products represent quality. The significant growth in imported beer reflects consumers' pursuit of quality of life. Moreover, consumers have a complex of tracing origins and favoring foreign goods when it comes to beer, a product that originated abroad. He Yong also pointed out that beer has only been developed in China for a little over 100 years, a relatively short history with a lower cultural foundation, making it hard to compare with baijiu or yellow wine, which have been passed down for thousands of years. "Not only do consumers think foreign products are better, but even some domestic manufacturers have elevated the German concept, which reflects a lack of confidence in their own products and consumers' lack of confidence in domestic products." He Yong said that some people believe domestic beer lacks "beer flavor" while imported beer is richer, but this is a cognitive misconception. The reason there are so many light-colored beers domestically is determined by market demand. Because domestic beers are mostly light-colored, the imported ones are mostly rich and varied, but in fact, there are also many light-colored beers abroad. Low share means imported beer will still see some growth Now that the beer consumption market has entered a refined and segmented phase, consumers' demands for quality, differentiated, and personalized products are increasingly prominent. Therefore, industry insiders analyze that imported beer, with its low market share, will still see some growth in the next step. "However, considering the price factor of imported beer, the deepening understanding of beer products and culture among domestic consumers, and the adaptation of domestic localized products to rich and diverse demands," He Yong predicts, "in the next two to three years, the growth rate of imported beer will decline, and its share of total beer consumption will not exceed 5%. The domestic market will still be dominated by localized products." On a deeper level, beer has not only a shelf life but also a freshness period. Products past their freshness period but within shelf life are safe in terms of food quality, but the taste is greatly affected. He Yong explained, "The cycle from origin to China for imported beer is usually 3 to 6 months, sometimes even 7 to 8 months. Therefore, from a freshness perspective, localized products may taste better than imported beer that has undergone long-distance transportation." New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry's channels will transform under the trend of internet+ Agenda 09:00-09:30 Registration 09:30-09:35 Opening by host 09:35-10:05 2016 China FMCG Industry Trend Analysis Report – Zhao Bo 10:05-10:25 Transformation Strategy and Path for FMCG Enterprises – Liu Chunxiong 10:25-10:45 Opportunities and Challenges from FMCG Channel Reform – Liu Zhao, CEO of Waiqin365 10:45-11:25 Alibaba Retail Link Full Empowerment – Guo Kunkun, Alibaba Retail Link 11:25-12:00 Roundtable Forum – Brand Transformation: Improvement vs. Reconstruction? (Guests TBD) 12:00-13:30 Lunch 13:30-14:00 Dealer Transformation: Trends in City Distribution – Wang Qi, CEO of Weijie City Distribution 14:00-14:30 Roundtable Forum – Why Should Dealers Transform into Logistics? 14:30-15:00 Detailed Explanation of Zhongshang Huimin's One Machine, Two Wings Strategy – Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:30 Detailed Explanation of Zhanghe Cloud Factory Strategy – Yang Lixiang, Zhanghe Tianxia (Content TBD) 15:30-16:00 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business – Chen Xian, CEO of 51 Order 16:00-16:30 Principles and Approaches for 2B Investment – Xu Xiaoping, Founder of ZhenFund (Guest TBD) 16:30-17:00 Small Retail, Big Opportunity: Transformation and Upgrading of China's Retail – Wang Jianfeng, General Manager of E-commerce Division, Yurun Group 17:00-17:30 Roundtable Forum – Who Will Be the King in FMCG B2B Models? (Guests TBD) 18:00-20:00 Dinner For manufacturers and dealers looking to transform, this is an event you cannot miss. Interested friends can long-press the QR code below or click "Read Original" to register. Registration: Long-press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]