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Industry Trends

Pentawards, the 'Oscar' of Packaging Design, Is Changing

Founded in 2007, Pentawards, as the world's only competition dedicated to packaging design, has long been committed to promoting the development of packaging design and enhancing the creative level of professional designers, and is known as the 'Oscar Award' in the packaging design industry. The Pentawards awards are categorized by food, beverages, body-related products, luxury goods, and other market products based on creative quality. Each year, Pentawards presents only one Diamond Award, along with Platinum, Gold, Silver, and Bronze awards.

New Distribution
Brand Marketing

Breaking | E-cigarette Industry Faces National Standard, Online Channels Cut Off!

On November 1, the State Tobacco Monopoly Administration and the State Administration for Market Regulation issued a notice to protect minors from e-cigarettes, urging the closure of online sales channels and removal of e-cigarette products and ads. This takes effect immediately, meaning all internet sales sites and e-commerce platforms must remove e-cigarette products and ads within the day.

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Management & Methods

Pawn or Sacrifice? Nestlé Needs to Think Carefully Before Selling Hsu Fu Chi and Yinlu!

According to sources, Nestlé is considering options for its two Chinese subsidiaries, including a possible sale, after years of struggling to turn them around. The company is seeking over $1 billion for controlling stakes in Hsu Fu Chi and Yinlu, though no final decision has been made.

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Brand Marketing

Dealers Should Never Pin Their Hopes on a Single Brand

More than half of 2019 has passed, and all dealers are complaining about poor market sales. Manufacturers have raised prices multiple times to balance their books, but whether consumers will accept the increases is a huge test for dealers. In the early days, dealers aspired to represent big brands, but now representing them has become a dilemma—abandoning them is a pity, while keeping them is exhausting.

New Distribution
Brand Marketing

Five New Products Launched Together! Can This Company Become the Next 'Three Squirrels'?

In recent years, Three Squirrels, Be & Cheery, Bestore, and Qiaqia in the snack food industry have leveraged e-commerce to quickly create a 'nut craze', attracting multiple snack giants to enter the nut market, such as foreign brand Kraft Heinz. Before this, nut products were never mainstream in the snack food sector. Undoubtedly, nuts are now at the industry's peak. According to a Mintel research report, over the next three years, nut snack sales will maintain a compound annual growth rate of 10.7%, with the market size expected to reach 345.6 billion yuan by 2020...

New Distribution
Capital, Earnings & M&A

Qiaqia Food's Net Profit in First Three Quarters Increased by 32.27%, Joining Forces with Focus Media to Target 10 Billion Revenue

On the evening of October 17, Qiaqia Food (002557.SZ), a leading nut company, released its third-quarter report for 2019. During the reporting period, the company achieved operating revenue of 3.219 billion yuan, a year-on-year increase of 10.64%, and net profit attributable to shareholders of 400 million yuan, a year-on-year increase of 32.27%. Notably, Qiaqia's single-quarter revenue in the third quarter was 1.232 billion yuan, a year-on-year increase of 19.01%, with a significant sequential improvement in revenue growth. Core products such as the blue bag flavored sunflower seeds and the small yellow bag nuts maintained strong growth.

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Distribution & Channels

JD New Channel and Unilever Upgrade Strategic Cooperation, Join Forces with Wall's to Build Intelligent Channel for Low-Temperature Products

On October 21, JD New Channel signed a strategic cooperation agreement with international ice cream brand Wall's. The two parties will combine their advantages in brand, channel, logistics, etc., to deepen cooperation, further promote retail model innovation, achieve complementary advantages, and build an intelligent channel for low-temperature category products. The signing ceremony was attended by Zheng Hongyan, Vice President of JD Group and President of JD Retail Group's New Channel Business Unit, and Xu Yucong, Vice President of Unilever's Ice Cream and Beverage Division and General Manager of Wall's.

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Brand Marketing

Trademark Registration Ruled Invalid: Will Jiangxiaobai Become the Next JDB?

As the saying goes, 'fame brings trouble.' Since the Jiangxiaobai brand took the market by storm, a series of disputes have erupted over the ownership of the Jiangxiaobai trademark family. Recently, the administrative lawsuit over the invalidation of the 'Jiangji Xiaobai' trademark, part of the Jiangxiaobai series, was heard at the Beijing Intellectual Property Court. This marks the fourth trademark ownership dispute between Chongqing Jiangxiaobai Liquor Co., Ltd. (Jiangxiaobai Company) and Chongqing Jiangjin Distillery (Group) Co., Ltd. (Jiangjin Distillery) to enter judicial proceedings, following previous cases involving 'Jiangxiaobai,' 'Jiangdabai,' and 'Xiaobaijiang.'

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Brand Marketing

The Company Behind JDB Herbal Tea, Kunlun Mountain Mineral Water, Pechoin Herbal, and Jiangzhong Jianwei Xiaoshi Pian...

This article tells the legendary stories of brands like Pechoin, which grew from 200 million to 17.7 billion yuan in 8 years, surpassing L'Oreal and Olay to become China's leader; Wanglaoji, which surpassed Coca-Cola in 8 years to become 'China's No.1 beverage can', growing from 120 million to 36 billion yuan; Jiangzhong Jianwei Xiaoshi Pian, which has been the No.1 OTC drug in China for 12 consecutive years; and Xiwang Corn Oil, which grew from 65 million to 2.6 billion yuan, surpassing Arawana to become the No.1 in the corn oil category. All these successes are attributed to positioning, and the positioning for these brands came from a master-level company: Chengmei.

New Distribution
Dealer Operations

Explosive! Lvling Roasted Walnuts Can Be Sold Like This (Sales Report at Beijing-Hong Kong-Macao Expressway Service Area)

During the just-concluded National Day holiday, the peak season for snack foods arrived as scheduled. Major food companies went all out in fierce competition. Lvling Roasted Walnuts took a unique approach, focusing on the Beijing-Hong Kong-Macao Expressway service area, creating a spectacular scene that swept the entire food industry. The 'Golden Corridor' holds immense business opportunities. Since the policy of free passage for small passenger cars with 7 seats or fewer on expressways during the National Day holiday, the expressway has become one of the most crowded areas each year. This year's National Day holiday coincided with the Double Ninth Festival, leading to a significant year-on-year increase in expressway exit traffic during the Golden Week.

New Distribution
Dealer Operations

Want Want's Second Venture: Distributors' Future Earnings Lie in 'Management Profit' Rather Than 'Opportunity Profit'

Distributors have always focused on three things: managing people, reaching end consumers, and making money. However, the environment is changing as China's FMCG industry shifts from a growth market to a stock market. With product homogenization, low employee income, and channel saturation, distributors need to shift from relying on 'opportunity profit' to 'management profit'.

New Distribution
Retail Formats

Entrepreneur's Journal: A Brutal Battle in E-Cigarette Sales

This is a first-hand account from a frontline salesperson, chronicling their journey from late July 2019 when they joined the e-cigarette brand Snow+ (雪加). Su Xiaowen, a native of Jiangsu, and his team carried over 20 kilograms of materials daily, walking 40,000-50,000 steps to persuade thousands of mom-and-pop store owners to stock their products. Within two months, Snow+ became the top-selling e-cigarette brand in their city, which ranked among the top five in national sales.

New Distribution
Brand Marketing

Is the E-Cigarette Industry a Good Business at the Forefront?

Success is a 'downwind path'—contrary to common belief, it often involves leveraging experience and resources rather than overcoming obstacles. Chen Chaoxian, chairman of Niwo Group, has repeatedly succeeded by seizing market trends, and his new e-cigarette brand idols is now entering the Chinese market at a critical moment.

New Distribution
Brand Marketing

NBA in Hot Water? FMCG Sponsors Queue to Terminate Contracts! IP Needs Caution

On the evening of October 4 US time, Houston Rockets general manager Daryl Morey posted inappropriate remarks about Hong Kong on social media, echoing a slogan used by Hong Kong rioters. NBA Commissioner Adam Silver defended Morey's 'freedom of speech', sparking widespread opposition from Chinese fans. The incident has led to sponsors terminating contracts, with NBA earning $1.2 billion annually from China.

New Distribution
Dealer Operations

Practical Analysis of How Distributors Make Money by Handling First-, Second-, and Third-Tier Brands

A distributor's profitability is directly related to its product portfolio. FMCG products can be broadly divided into three categories: first-tier, second-tier, and third-tier brands. First-tier brands typically offer low returns (6-7% gross margin plus 1% rebate), while second-tier brands offer higher returns (12-20%) but require more capital. Third-tier brands offer the highest margins (30-40%+) but carry high risks. The optimal strategy is to combine brands from all three tiers, with a sales weight of 40% first-tier, 40% second-tier, and 20% third-tier, to maximize profit and stability.

New Distribution
Dealer Operations

National Trend Goes Global, Domestic Brands Surge! New Opportunities for Distributors Are Coming

Who is the king of FMCG? P&G? That is a thing of the past. The marketing revolution brought by mobile internet has disrupted the FMCG industry, the 'national trend' fever continues, and domestic brands are rising strongly. With a huge FMCG market and strong manufacturing capabilities, after further enhancing brand influence, the future world-class FMCG king may well be 'Made in China'. At the Sino-French Brand Summit series events opening on National Day in Paris, the world's fashion capital, the performance of domestic brands such as Free, Yili, Hero, and Yunnan Baiyao became a strong footnote to this assertion...

New Distribution
Consumer & Categories

Thai Court Confirms Validity of Resolution by Red Bull Vitamin's Controlling Shareholder to Remove Yan Bin as Chairman

Red Bull, originally from Thailand and popular worldwide, has been embroiled in a trademark litigation between its founder's Xu family and Red Bull Vitamin Beverage Co., Ltd. (Red Bull Vitamin) in China for over three years. Recently, a significant court ruling has stirred new waves in this battle. Reports show that as early as September 20, 2016, Red Bull Vitamin Beverage (Thailand) Co., Ltd. (Thai Red Bull), as the controlling shareholder, removed Yan Bin from his positions as legal representative and director of Red Bull Vitamin.

New Distribution
Dealer Operations

Want Want Food Tech's "Five New Operations": A Shot in the Arm for Distributors

As China's FMCG industry enters a stock market, relying solely on big products and big channels is no longer sufficient to sustain brand sales growth. In the internet age, consumers are destined to become an indispensable part of new production relations. Want Want Group's second entrepreneurial venture, Food Tech, introduces a "Five New Operations" approach to help distributors achieve "More Money" through new company, new brand, new customers and retail, new management, and new incentives.

New Distribution
Dealer Operations

Distributors Must Read: The Dividends and 'Landmines' of the E-Cigarette Industry

It is often said that FMCG business is like 'working for cabbage money but worrying like selling drugs.' In recent years, competition in the FMCG industry has become a red ocean, and finding a new product that is both easy to sell and profitable seems nearly impossible. However, technological progress is rapid and often surprises pioneers willing to explore unknown territories, opening up new horizons. The e-cigarette (electronic atomizer) industry has emerged as a new category that meets people's needs for leisure and stress relief, as well as young people's social expression. For FMCG distributors, this is a golden opportunity for a 'comeback.'

New Distribution
Brand Marketing

Jinluo Showcases at 2019 China International Meat Industry Exhibition, New Product 'Zhenpin Xiaoshan' Steals the Spotlight

On September 26, the 17th China International Meat Industry Exhibition opened at the Chengdu Century City New International Convention and Exhibition Center. As one of the most important trade exhibitions in the global meat industry and the largest, most professional, and highest-turnover international meat exhibition in Asia, it attracted over 1,000 domestic and international enterprises from more than 30 countries and regions. As a leading brand in China's meat products industry, Jinluo Group (hereinafter referred to as 'Jinluo') has participated for many consecutive years, and this year once again made a high-profile appearance with its full industry chain star products, with a mysterious new product—'Zhenpin Xiaoshan'—officially launched, drawing significant attention and becoming the focus of the event.

New Distribution
Retail Formats

A Hair Therapy Store Earns Over 4 Million Yuan a Year: The Hair Loss and Gray Hair Market Is Booming

According to data from national health authorities, China's hair health industry will grow at an annual rate of 260% over the next decade, with urban residents' spending on personal head care surging 30% annually, far exceeding the 9% GDP growth rate. Experts estimate the next 10 years will be a golden decade for explosive growth in China's hair growth, hair care, and hair transplant markets, with professional investment analysis showing the hair care product industry's demand capacity will grow 20%-25% annually from 2019 to 2023, leaving a 500 billion yuan blue ocean market gap.

New Distribution
E-commerce & Instant Retail

Managing Warehousing and Logistics: How Can Cross-Border E-Commerce Be Efficient?

Cross-border e-commerce has become increasingly popular among consumers. For platforms and related enterprises, cross-border e-commerce logistics involves multiple links, long lead times, and high costs, making supply chain management a bottleneck that must be overcome. How can cross-border e-commerce enterprises efficiently manage warehousing and logistics? As a pilot city for cross-border e-commerce, Pingtan in Fujian has successively launched bonded import and direct purchase import businesses in recent years, attracting a large number of upstream and downstream enterprises in the industry chain. As of now, Pingtan has over 90 e-commerce enterprises, with an increasingly prominent industrial clustering effect. In the first half of 2019, the value of goods entering the bonded import zone for cross-border e-commerce in Pingtan Comprehensive Experimental Area exceeded 300 million yuan, a year-on-year increase of 64%, while the value of goods leaving the zone exceeded 420 million yuan; international express parcels totaled 1.67 million items, up 90.6% year-on-year, with a value of approximately 450 million yuan, up 154% year-on-year.

New Distribution
Consumer & Categories

Why Would Best-Selling Cola Resort to Cashback to Save Itself?

PepsiCo has launched a membership program called PepCoin that offers cashback for purchasing its drinks and snacks, aiming to boost sales amid declining carbonated beverage consumption. While the initiative may attract some consumers, its effectiveness is questionable given the broader health trend and the low-price perception of cola.

New Distribution
Management & Methods

“涨芝士啦” Holds 61% Market Share, Aims to Sell 1.1 Billion This Year: How Junlebao Built a Billion-Yuan Product in Two Years

According to a report by Ries, Junlebao squeezed out Guangming in the first half of the year to become one of the top three mass-market yogurt brands alongside Mengniu and Yili. Despite declines at Yili and Guangming, Junlebao maintained double-digit growth. This article reveals how Junlebao transformed from a milk powder crisis to create the billion-yuan product "涨芝士啦" (Cheese Surprise).

New Distribution