With the rise of the internet and consumers' increasing demand for shopping convenience, China's retail landscape is undergoing profound changes. For FMCG companies, besides premium supermarkets and convenience stores, vending machines are opening another window with their convenience and 24-hour service. According to Kantar Consumer Index, when per capita GDP reaches $10,000, consumer demand for vending machines will explode. By 2015, areas covering 390 million people in China had reached this level. In the next five years, the domestic vending machine channel will become a major emerging market for FMCG retail. Rapid Development: 15-fold increase in 5 years, market size approaching 100 billion in 4 years The starting point 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, two major American cola companies also participated in the construction of vending machine channels, introducing hundreds of devices to China. Around 2000, the vending machine channel entered a period of exploration and market introduction. After more than ten years of exploration and imitation, by 2013, the vending machine channel showed explosive development. The domestic vending machine independent research and development and innovation system has gradually formed. In 2013, vending machines introduced mobile payment technology. In 2015, the vending machine channel opened the Internet+ era. As of 2015, the number of vending machines nationwide was about 150,000, a 15-fold increase in five years. In the United States, the ratio of vending machines to convenience stores is 30:1. 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. 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 estimated that by 2020, the monthly sales of a vending machine will reach 6,000 yuan, 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 equipment deployed in these areas. The number of vending machines in the Bohai Rim region is also gradually increasing. Beverage giants such as Wahaha and Nongfu have laid out their plans, releasing two major signals With economic development and the transformation of domestic consumption concepts, vending machines have become an emerging market for FMCG layout, attracting many beverage companies and even giants to join. It is understood that as of the end of August 2015, the scale of vending machines owned by Nongfu Spring exceeded 5,000 units; Coca-Cola currently has about 5,000 vending machines in China; Master Kong piloted about 300 units in Shanghai in 2015, and the market has begun to take shape. Recently, Wahaha confirmed that it has established Zongsheng Intelligent Technology Co., Ltd. specifically for vending machine layout, planning to invest 2 billion yuan and deploy 100,000 vending machines, to build a national intelligent retail terminal network with high channel profits. Wahaha's participation has also made the industry pay more attention to the development of vending machines. Seize the market potential of the vending machine industry. Compared with developed countries such as Japan and the United States, which have a market capacity of more than 5 million units, the current domestic vending machine market of less than 150,000 units can only be considered in its infancy. Under this trend, beverage giants, with their advantages in brand, product, and channel, will significantly reduce operating costs and extensively mobilize social resources to promote the development of the industry, which will become inevitable. In this regard, Zong Zehou, general manager of Zongsheng Intelligent Technology Co., Ltd., said: "With the substantial increase in domestic human resources and commercial space costs, especially the rapid development of the domestic mobile payment industry, and the wonderful interactive experience marketing it brings, the future of China's intelligent vending machine industry will surely usher in a wave of explosive development. Facing this market opportunity, Wahaha, on the basis of its own products, will seize industry resources in the future and complete the channel sinking of multiple products." Seize the focus channels in first- and second-tier cities. The involvement of large FMCG companies is precisely because they see the strong coverage and influence of vending machines on retail terminal channels. Since the main channels of vending machines are in first- and second-tier cities, this market is favored by major giants, but the characteristic of vending machines is that they are placed in smaller spaces, and generally two vending machines cannot be placed in the same channel at the same time, so seizing the channel is particularly important. At present, vending machines are mostly located in shopping malls, hospitals, parks, schools, stations, and factory sites. Market Feedback: Channel Profit Reaches 30%, After-sales Service is Key In recent years, major beverage companies have laid out vending machine channels, and their overall market share has gradually shown an upward trend. So what is the market effect of vending machines? During the investigation, many regional distributors reported that vending machines sell well in special channels, and product profits are also high. Since last year, Nongfu Spring has been deploying vending machines in the terminal market. Tu Dongping, general manager of Jinyang Non-staple Food in Anji County, Zhejiang Province, said when talking about the local market: "Vending machines are mostly consumed by young people. I have deployed 6 Nongfu Spring vending machines in the station channel, which only display Nongfu Spring series products. The convenient and fast purchase method also makes the product price relatively high. The daily sales volume can reach about 200 bottles, and the profit can reach about 30%." While vending machines are developing rapidly, the inspection and maintenance of terminal machines and the later maintenance and replenishment of channels are particularly important. When talking about the later maintenance of vending machines, Ou Feixiang, general manager of Jiangsu Sikaile Trading Co., Ltd., said: "In the local market, I think Coca-Cola has done a very good job in the field of vending machines. It has many years of operating experience, and in the later stage, it also arranges a professional team to repair machines and replenish products. After a machine failure, it can be repaired by a special person within 48 hours. I think this is something that few companies and operators can do, and it has certain market advantages in short-term competition." Shen Zheming, deputy secretary-general of the China Self-service Vending Industry Alliance, said: "At present, the domestic vending machine industry is in a special development period. Externally, China is entering an aging society and economic restructuring stage; internally, a new generation of consumer groups is rising, and the channel reform triggered by internet technology is deepening. Self-service vending, as a special intelligent retail service channel, has both room for innovation and upgrading, and cost advantages. Therefore, major brand companies have entered the market one after another. Only by accurately grasping the development trend of the channel and continuously doing a good job in later market maintenance can they ride the east wind of vending machines to complete the growth of product sales and the sinking of channels. Source: Food Investor, some data from Kantar Consumer Index -END- The best FMCG distributor learning platform 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 skills | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operation management | 010 Team management | 011 Efficient distribution skills | 012 Sales manager's eighteen skills | 013 KA operation method strategy | 014 First lesson for new sales | 015 Internet, brand | 016 Distributor B2B transformation | [Long press QR code to follow]