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Industry Trends

The Forces Reshaping Retail Over the Next Twenty Years

Persistent oversupply, dematerialization, demographic decline, fragmented demand, technology, and volatility are shifting retail advantage toward focused brands, frictionless distribution, experience, fluid organizations, and platforms.

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Capital, Earnings & M&A

FMCG Daily: Liquor Companies Banned from Listing; Nongfu Spring Raises Prices for Some Barrel Water in Hangzhou; 21 Financing Events in Food & Beverage Sector in January...

1. Liquor companies are banned from listing, as the main board IPO 'traffic light' rules reportedly change. 2. Nongfu Spring raises the price of 19L barrel water in Hangzhou from 20 yuan to 22 yuan per barrel. 3. Yiming Food expects a net loss of 110-135 million yuan for 2022, turning from profit to loss. 4. In January, the food and beverage sector saw 21 financing events totaling over 7.5 billion yuan. 5. COFCO Fortune's 21 billion yuan strategic investor project lands. 6. OATLY and Bilibili launch a new ice cream. 7. 1688 announces organizational restructuring. 8. Hangzhou Jiuba Technology (Huitehui - Unmanned Retail) receives 20 million yuan in angel financing. 9. Tropical fruit manufacturer 'Tianye' lists on the Beijing Stock Exchange.

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Capital, Earnings & M&A

FMCG Daily | Sanyuan Shares 2022 Net Profit Expected to Drop 86%-90%; Maiquer Auctions Shares to Repay Huge Debts; East Buy Invests in Agricultural Products

East Buy announced an investment of 17.52 million yuan to expand its self-operated sausage factory in Jiaozuo, Henan, marking its first specific investment in the agricultural product industry chain. Maiquer plans to auction shares to repay debts, while Sanyuan Shares expects a significant decline in net profit for 2022.

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Dealer Operations

Why B2B Operations Are the Future for Large FMCG Distributors

After a decade of market education, Chinese FMCG B2B has entered a more mature phase. Distributors with sufficient scale can use digital ordering, operations, warehousing, and delivery to become regional supply-chain platforms.

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Capital, Earnings & M&A

Narrowing Losses: Is Yonghui Superstores Approaching a Turning Point?

Traditional supermarkets have faced successive impacts from e-commerce, new retail, and the pandemic, making transformation and upgrading an inevitable trend. Yonghui Superstores, founded in 2001, once maintained high double-digit revenue growth for over a decade, earning the title of "China's No.1 supermarket." However, by 2022, its net profit fell into losses due to external environmental impacts and its own transformation efforts. Despite the harsh conditions, Yonghui has made progress in digital business. As the external environment improves, the company's performance pressure may gradually ease.

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Brand Marketing

Six Walnut Teams Up with Chainlink to Achieve Marketing Breakthrough through Digital Private Domain

The FMCG market has entered the era of consumer sovereignty, making it essential for FMCG companies to innovate products, conduct marketing activities, and arrange sales channels with a consumer-centric approach. Hebei Yangyuan ZhiHui Beverage Co., Ltd. (hereinafter referred to as Yangyuan Beverage), a leading enterprise in plant protein beverages, has become the category king and industry leader with its Six Walnut product, controlling over one million terminals in the FMCG sector.

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Capital, Earnings & M&A

Uni-President Group's 2022 Revenue Exceeds NT$116.1 Billion, Entering the 'Hundred-Billion Club' for Four Consecutive Years

Uni-President Group's revenue hit a new high. On January 10, 2023, the group released its monthly revenue report, showing December 2022 consolidated revenue of NT$44.56 billion (approximately RMB 9.86 billion), up 19.5% year-on-year; cumulative 2022 revenue was NT$524.64 billion (approximately RMB 116.1 billion), up 10.8% year-on-year. This marks the fourth consecutive year Uni-President has entered the hundred-billion club. Despite external uncertainties and rising raw material costs in 2022, the group achieved double-digit growth.

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Consumer & Categories

The 'New Diamond Decade' Approaches: How Can Chinese Brands Embrace Change?

Market conditions and environments may change, but the essence of capturing consumers remains constant. On January 8, the 'Rising Against the Trend: The Path to Breakthrough for Chinese Brands' summit was held in Shanghai, where representative Chinese brands such as Junlebao, Jinmailang, Dongpeng Beverages, Luckin Coffee, Yezhifeng, Tasly, Conba, Talanis, Kongke Pasta, and Daily Dark Chocolate, along with Xie Weishan from Junzhi Billion Strategy Consulting, delivered keynote speeches sharing insights on breaking through in the new landscape. In the post-pandemic era, a new recovery cycle is brewing...

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Brand Marketing

China Consumer Expectation Index Report 2022 Released: National Trend Economy Remains Hot, Brand Value Drives Growth

The China Consumer Expectation Index Report 2022, jointly compiled by Focus Media, the Institute of Industrial Economics of the Chinese Academy of Macroeconomic Research, and the New Media Center of Xinhua News Agency, was released, showing a rebound in consumer expectations for 2022 and an optimistic outlook for 2023. The report highlights the sustained popularity of the national trend economy and emphasizes that brand value has become a key driver of growth, with brands increasingly focusing on building brand equity to secure long-term success.

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Brand Marketing

Ten Brand-Marketing Lessons for Uncertain Markets

Sustainable marketing requires focus, consumer relevance, brand memory, and coordination between long-term brand building and short-term conversion rather than permanent dependence on increasingly expensive traffic.

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Dealer Operations

Proposal for the Launch of the China FMCG Digital Distribution Alliance

Distributors transitioning to B2B need to unite and join the alliance to engage in dialogue, exchange, growth, and development together.

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Brand Marketing

Farewell 2022, 2023 [New. Thriving], the Third New Year's Eve Live Broadcast is Tonight!

On December 26, the National Health Commission announced that "COVID-19 pneumonia" was renamed "COVID-19 infection" and the "Class B management policy for COVID-19" was abolished. In just three years, the world has changed. Standing at the crossroads of bidding farewell to the old and welcoming the new in 2023, we may deeply miss the world before 2019. The past is gone, and we know nothing will be the same. The upcoming 2022 has been tough for us. Many brand managers and distributor owners say it has never been this hard; just to survive, 2022 has already taken all their efforts. Everyone who survived 2022 is a warrior. Now is the time to gather our thoughts and look toward 2023 together.

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Retail Formats

Spring Festival Sales: Seize the Four Magnet Points That Contribute Most in Stores

Will Spring Festival sales be better this year? Some worry about the peak of positive infections, while others remain optimistic about the sales peak. Our suggestion is: take an aggressive approach for fresh and essential categories, and promote standard products and gift boxes early while stocking conservatively. Nationwide, the 'opportunities' for retail in the 2023 Spring Festival far outweigh the 'uncertainties'. The only thing enterprises need to consider is which key categories and items to focus on. Procurement should select and prepare the right products, while operations should display these good products fully to customers in the store, aligning with customer needs, which requires higher standards for store product layout.

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Brand Marketing

Brands Need Compounding, Not Another Traffic Dividend

Temporary traffic advantages can create rapid growth, but resilient brands compound value through core products, new occasions, consumer behavior change, disciplined media testing, and balanced demand creation and conversion.

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Brand Marketing

Stop Discussing Dividends; Brands Need Compound Interest

In the era of stock competition, enterprises face three major challenges: the peak of traffic dividends, rising customer acquisition costs, and weak market demand. When dividends eventually dissipate, brands realize they mistook dividends for capability. Facing the dilemma of wanting growth but finding it harder to achieve, how can brands grasp the capabilities that truly drive growth? Recently, Bain & Company and Kantar jointly hosted the forum 'Embracing Change, Resilient Growth.' Experts including Bain's global expert partner Lu Xiuqiong, Kantar's Greater China CEO and BrandZTM Global Chairman Wang Xing, and other industry leaders discussed brand growth opportunities and marketing strategies in the new landscape.

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Retail Formats

Costco's Retail Philosophy and Operating Model

Costco combines radical assortment reduction, low margins, membership economics, high inventory turnover, private label, and employee investment to build a durable contract of trust with shoppers.

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Capital, Earnings & M&A

Financial Reports of 18 Listed Dairy Companies for First Three Quarters of 2022: Mixed Results for Most

As pandemic prevention policies ease and consumption gradually recovers, dairy companies face real market tests. Among 18 listed dairy companies, 14 saw revenue growth and 4 saw declines, with Beingmate leading at 45.8% year-on-year growth. However, only 7 companies achieved net profit growth, with Royal Group standing out at 220% increase.

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Capital, Earnings & M&A

All Three Major E-commerce Platforms Disclose Q3 Earnings: JD and Alibaba Stable, Pinduoduo Grows Rapidly

All three major e-commerce platforms have released their Q3 2022 earnings reports, which were positively received by the capital markets. While JD and Alibaba showed stable performance, Pinduoduo achieved rapid growth in both revenue and profit, exceeding market expectations.

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Capital, Earnings & M&A

15 Supermarkets' Q3 2022 Reports: Multiple See Dual Declines, Local Supermarkets Yonghui, Lianhua, Hongqi, Sanjiang Recover

In the post-pandemic era, traditional supermarkets are transforming to meet personalized, comfortable, and convenient consumer demands. Among 15 supermarkets' Q3 2022 reports, Yonghui, Lianhua, Hongqi, and Sanjiang saw revenue and profit growth, while others faced declines or mixed results.

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Consumer & Categories

JD Big Data: Domestic Coffee and Others Become 10 Benchmark New Consumption Categories; Wo Xiaoya and Others Become 30 Benchmark New Consumption Brands

During JD 11.11, JD Supermarket and JD Consumption and Industry Research Institute released the '2022 New Consumption Brand Research Report for FMCG and Fresh Food'. The report identifies 10 benchmark categories and 30 benchmark brands based on sales and user data, with repurchase rate as a key driver for high growth.

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Supply Chain & B2B

Integrated Supply Chain Easily Handles Sudden Order Surges, Order Backlogs and Delivery Efficiency No Longer a Problem

During the 11.11 shopping festival, JD Logistics' integrated supply chain solutions helped companies like Shandong Luhua Group and Hangzhou Qiaonuofan Foods manage order surges of up to 10 times normal volume, improving delivery efficiency and customer satisfaction.

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Brand Marketing

Yunnan Baiyao Oral Health Teams Up with Alec Su on Focus Media to Showcase a New Way of Oral Care

As Chinese consumers become more aware of oral care and move beyond basic practices, products like electric toothbrushes, mouthwash, and dental floss are growing rapidly, fueling the 'oral economy.' In the competitive mouthwash segment, Yunnan Baiyao Oral Health has launched Oral Repair Mouthwash and is promoting the concept of 'brush in the morning and evening, rinse after meals, one brush one rinse, oral health.'

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Consumer & Categories

International Dairy Giant Arla Invites You to Create a New Future Together!

In recent years, as health awareness has increased, dairy products as a source of high-quality protein have gained recognition from more consumers. Data from the China Dairy Association shows that per capita dairy consumption in China reached 42.3 kg in 2021, up 36.3% from 31.1 kg in 2012. With rising consumption levels, many consumers are demanding higher quality dairy, shifting from simply having milk to drinking good milk. This market change is driving continuous upgrades in dairy product structure, making organic milk with comprehensive nutrition and safe, pollution-free sources a target for many distributors.

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E-commerce & Instant Retail

The Imagination of Instant Retail: How Hard Tech 'Mods' a 10-Square-Meter Smart Pharmacy

There are only about 8,000 24-hour pharmacies in China, far from meeting the nighttime medication demand. To address this, companies like Meituan are collaborating with pharmacy chains to deploy automated smart pharmacies that use robotics and AI to enable 24/7 service, overcoming cost and labor challenges.

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