Click image for details Introduction: Overseas markets are the only growing segment of Chacha Food's business, but they account for just 7.05% of the company's main revenue, contributing limited overall. Since 2002, Chacha sunflower seeds have appeared on overseas shelves. Fifteen years later, Chacha plans to spend $32.5 million to set up subsidiaries in Thailand and the U.S., reflecting its domestic growth challenges. On August 18, Chacha Food released its first-half 2017 financial report, with revenue of 1.6 billion yuan and net profit of 149 million yuan, down 3.36% and 14.16% year-on-year, respectively. The sunflower seed business, which accounts for 68.9% of total revenue, continued to decline, falling 3.74% from the same period last year. Consumers are increasingly pursuing healthy lifestyles and prefer nut products in leisure snacks. Chacha's traditional roasted seeds, such as sunflower seeds, are not keeping up with this trend. Although Chacha has been launching new products, they have repeatedly failed, such as Zhuangguoren, jelly, and seasonings. The only success was the "Kazhicui" potato chips launched in 2010, but it was short-lived; two years later, its revenue began to decline year after year. By last year, it accounted for only 6.11% of Chacha's annual revenue, about 148 million yuan. On the other hand, with the rise of internet snack brands, Chacha is actively building e-commerce channels, but Chacha, with its traditional snack background, does not have an advantage in internet channels; revenue from this channel fell 35.07% year-on-year. Old brand products cannot adapt to the new market environment, and new products have yet to show results. The only bright spot in the first-half report came from its overseas markets. In the first half of 2017, Chacha Food's overseas market revenue was 113 million yuan, accounting for 7.05% of total revenue, up 44.89% from the same period last year. In the latest financial report, Chacha Food announced a new overseas subsidiary plan: using over-raised funds of $17.5 million to set up a Thai subsidiary and $15 million to set up a U.S. subsidiary. From the financial report description, the purposes of these two subsidiaries are somewhat different. On Thai supermarket shelves, Chacha melon seeds are often snapped up. Southeast Asia is also a key overseas market for Chacha Food. Currently, Chacha mainly uses OEM models overseas. The Thai subsidiary will mainly help it expand local OEM resources. The U.S. subsidiary is more like a strategic investment department. The financial report mentions, for example, that this subsidiary should promptly obtain dynamics of overseas leisure food markets, including upstream nut planting resources. In fact, Chacha Food's desire to develop new nut products has a problem: the raw materials for key new products like macadamia nuts and pecans mainly come from overseas, and due to tariffs and other factors, the cost of such products is relatively high. According to Chen Jun, secretary of the board of directors of Chacha Food, since 2002, Chacha has been expanding overseas and is now sold in more than 30 countries and regions, including Taiwan, Malaysia, Indonesia, Vietnam, the U.S., the UK, and Germany. From January to September 2011, Chacha achieved overseas sales revenue growth of 133.5% year-on-year. At the end of October that year, Chacha Food announced it would invest 50 million yuan to set up a wholly-owned subsidiary, Shanghai Aotong International Trade Co., Ltd., to handle various import and export businesses. However, fifteen years later, Chacha Food's overseas market accounts for only 7.05% of company revenue, contributing limited overall. What Chacha needs to consider more is how to attract domestic consumers. Source: Jiemian Click image for details The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. At this conference, New Distribution has invited 1,000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to participate. The theme of this conference: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics:

How can the FMCG industry achieve new growth opportunities through B2B?

How should the new supply chain behind new retail be built?

How can intra-city logistics help B2B achieve leapfrog development? Highlights of this conference: The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"

B2B and investor project closed-door matchmaking meeting

Conference site + exhibition center, dual internet technology exhibition

Alibaba, EAS, Best Store Plus, GLP, Unilever, Hd, and other well-known enterprise leaders from various fields will give speeches and share pioneering views. October 17-18, 2017 Chongqing Exhibition Center Registration is now open. Long press the QR code below or click "Read Original" to register. Before September 15, early bird tickets enjoy a 30% discount! Add friend and note "Conference Registration" -END-