--- title: "Uni-President's Lo Chih-hsien: No Summer for Mainland Beverages This Year, Implementing Zero-Inventory Strategy, Next Year's Target is No Growth in Shipment Cases!" description: "Recently, Uni-President Group Chairman Lo Chih-hsien, accompanied by his wife Kao Hsiu-ling, attended the \"Love·Sharing\" Christmas lighting events in Taipei and Kaohsiung, where he responded to questions about the group's Q3 performance and next year's plans. The \"zero-inventory\" strategy is challenging, and next year's target is \"no growth.\"" author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2016-11-21" language: "en" canonical: "https://xinjignxiao.com/en/articles/uni-president-s-lo-chih-hsien-no-summer-for-mainland-beverages-this-year-5204c493/" markdown: "https://xinjignxiao.com/en/articles/uni-president-s-lo-chih-hsien-no-summer-for-mainland-beverages-this-year-5204c493.md" original_source: "https://mp.weixin.qq.com/s/E6GA4cf4lntwesRp_-CgKQ" translation: "https://xinjignxiao.com/zh/articles/%E7%BB%9F%E4%B8%80%E7%BD%97%E6%99%BA%E5%85%88-%E5%A4%A7%E9%99%86%E9%A5%AE%E6%96%99%E4%BB%8A%E5%B9%B4%E6%B2%A1%E5%A4%8F%E5%A4%A9-%E6%8E%A8%E8%A1%8C%E9%9B%B6%E5%BA%93%E5%AD%98%E7%AD%96%E7%95%A5-%E6%98%8E%E5%B9%B4%E7%9B%AE%E6%A0%87%E5%87%BA%E8%B4%A7%E7%AE%B1%E6%95%B0%E4%B8%8D%E6%88%90%E9%95%BF-5204c493.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/uni-president-s-lo-chih-hsien-no-summer-for-mainland-beverages-this-year-5204c493/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Uni-President's Lo Chih-hsien: No Summer for Mainland Beverages This Year, Implementing Zero-Inventory Strategy, Next Year's Target is No Growth in Shipment Cases! > Recently, Uni-President Group Chairman Lo Chih-hsien, accompanied by his wife Kao Hsiu-ling, attended the "Love·Sharing" Christmas lighting events in Taipei and Kaohsiung, where he responded to questions about the group's Q3 performance and next year's plans. The "zero-inventory" strategy is challenging, and next year's target is "no growth." Recently, Uni-President Group Chairman Lo Chih-hsien, accompanied by his wife Kao Hsiu-ling, attended the "Love·Sharing" Christmas lighting events in Taipei and Kaohsiung, where he responded to questions about the group's Q3 performance and next year's plans. **"Zero-Inventory" Strategy is Challenging; Next Year's Target is "No Growth"** Speaking about next year's economic outlook, Lo Chih-hsien believes there are "no favorable conditions." Global trade is at a standstill, so companies have to find ways to compete horizontally, and many unusual actions are emerging between regions. It is reported that Uni-President Group will, for the first time, set a target of "no growth in shipment cases" next year. "No consumer likes to see the same product at a different price every day," Lo said. Demand for food and beverages won't fluctuate much, but it will shift. **Next year, the company will adopt a no-promotion, no-shipment-pushing approach. As long as supply order is controlled, revenue will grow naturally.** Lo noted that the mainland beverage market had no summer this year, and it is expected that the second half of the year will be very tough, with the market likely to be "in dire straits." **Uni-President China's Q3 profit declined mainly due to the bold inventory strategy implemented since June, with shipments paused in Q3. It's like cleaning a waterway thoroughly, leaving no pollution; Q4 will see healthy operations, lower costs, and food safety, and the company is optimistic about better performance than last year.** Lo further added that in June this year, Uni-President Group implemented a "zero-inventory" policy in mainland China, which is highly challenging and bold in the industry. General product shipments are "8+X" days; the smaller the X, the better, as it means consumers get the freshest products. The ideal is "8+0" days, but currently the industry's X is over 200 days. Uni-President hopes to reduce X to 45 days, and for milk tea products, it has already been reduced to single digits. **First Nine Months: Uni-President Declines 13% QoQ; Uni-President China Losses RMB 19 Million in Q3** Recently, Uni-President Enterprises released its financial results. Although Q3 was affected by losses at Uni-President China, quarterly net profit after tax was NT$4.138 billion, down 13% from the previous quarter but up 7.3% year-on-year, with EPS of NT$0.73. With contributions from investee companies, cumulative net profit for the first three quarters was NT$13.239 billion, up 5.22% year-on-year, EPS NT$2.33, setting a new high. Based on the first three quarters, full-year profit is expected to hit a new record. Uni-President China, in which Uni-President holds over 70%, and which is the most familiar mainland business, posted a profit of RMB 775 million in the first half of the year, but a loss of approximately RMB 19 million in Q3. Cumulative profit for the first three quarters was RMB 756 million, down RMB 159 million from the same period last year, a decline of 17.4%. **Uni-President stated that the decline was mainly due to weather affecting the overall beverage market, clearing channel inventory and adjusting shipments, leading to lower capacity utilization, resulting in lower overall profit compared to the same period last year.** **Investee Companies Perform Well; Future Focus on Brand Value** Although Uni-President China declined, other investee companies performed well. Among them, President Chain Store (held 45.4%) saw increased revenue per store per day, and gained NT$114 million from selling shares in Gaintch. Plus, stable growth from Philippine 7-Eleven, Shanghai Starbucks, and Uni-President Lifestyle, contributed to first-three-quarter profit of NT$7.855 billion, up NT$1.118 billion year-on-year, a growth of 16.59%. Taiwan Synthon (held nearly 38%), an API manufacturer, saw first-three-quarter profit of NT$512 million, up NT$72 million year-on-year, a growth of 16.36%, due to product mix and customer mix changes. Uni-President Can (held 45.5%), a tinplate producer, saw first-three-quarter profit of NT$870 million, down NT$30 million year-on-year, a decline of 3.33%. This was mainly because steel prices rebounded from the beginning of the year, and although tinplate gross margins improved significantly from last year, PET margins also improved due to optimized cap and product mix. However, last year included a one-time gain from selling the Chengdu plant land (NT$337 million), which was absent this year, leading to a slight decline. Lo Chih-hsien said that Uni-President Group has been in manufacturing for the past 50 years, but in the future, it will place more emphasis on brand value, differentiate its products, and take on social responsibility. The group will develop in three directions: "brand, character, and taste." -END- China's best FMCG distributor learning platform 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 corresponding content Reply with number 1 to view the complete knowledge base | **001** Excellent article selection | **002** Distributor market operations | **003** Terminal visit management | **004** Sales supervisor skills | **005** Sales improvement techniques | **006** Channel expansion | **007** Managing distributors | **008** Distributor development | **009** Distributor internal operations management | **010** Team management | **011** Efficient distribution techniques | **012** Sales manager's eighteen skills | **013** KA operation methods and strategies | **014** First lesson for new salespeople | **015** Internet, brands | **016** Distributor B2B transformation | [Long press QR code to follow] --- ## Copyright and AI use This article is sourced from New Distribution. 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