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Heavyweight! "Food & Beverage Cost Research Special Report": On the Issue of Rising Costs
Click the image for details. Key points: The food industry has enjoyed the CPI-PPI scissors gap dividend for five consecutive years, with the first half of 2017 possibly being the turning point. From 2012 to 2016, gross margins for mass-market food improved by nearly 10 percentage points, which we believe is mainly due to the scissors gap between CPI and PPI. Starting from March 2012, PPI began negative growth while CPI continued positive growth, allowing companies to benefit from falling costs. However, since November 2016, PPI has risen sharply, especially with soaring costs for packaging materials, transportation, sugar, and oil, leading us to predict the turning point of the CPI-PPI scissors gap dividend. Historically, in the second half of 2008 and in 2010, CPI and PPI inverted, and the profitability of food processing companies was generally affected for 2-3 quarters.
New DistributionRIO Cocktail Loses Its Magic, Performance Plunges 60%!
Baorun's hit product RIO premixed cocktail, after two years of rapid growth, has shrunk like a bubble. Recently, Shanghai Baorun Investment Holding Group Co., Ltd. released its 2016 performance report showing a 60% year-on-year drop in revenue and a loss of 142 million yuan. In fact, the premixed cocktail market entered a downturn at the start of 2016, and Baorun, which focuses on this category, was hit hardest.
New DistributionYouyou Foods Sold 630 Million Yuan in Pickled Pepper Chicken Feet in One Year—What Makes It So Successful?
On February 21, Youyou Foods released its 2016 annual report, showing revenue of 827 million yuan (up 10.04% year-on-year), with pickled pepper chicken feet contributing 630 million yuan (76.11% of total). Net profit attributable to shareholders was 122 million yuan (up 13.56%). The company attributed growth to increased marketing efforts, new product launches, and e-commerce expansion.
New DistributionDistributors Afraid to Order, Industry Losses Over 100 Million Yuan, Firmly Declaring War on Laver Rumors!
A viral video falsely claiming that laver (seaweed) sold in supermarkets is made of plastic has caused nearly 100 million yuan in losses to Fujian's laver industry. Despite refutations from companies and associations, the rumor has led to product removals, distributor panic, and even extortion attempts.
New DistributionWhat Exactly Is Wrong with Traditional Business?
This article analyzes the fundamental problems of traditional business, attributing them to the twin black holes of inventory and discounting, and proposes a future path through asset securitization, financialization of franchise stores, product differentiation, and crowdfunding via e-commerce.
New DistributionAustralian Milk Powder Massively Counterfeited! China's 'Bonded Zone' Is So Deep It Has Become a 'Laundering Zone' for Fakes
This article exposes the rampant counterfeiting of Australian milk powder sold on Taobao, revealing that some sellers offer Devondale milk powder for as little as 9 RMB, far below the genuine cost. It explains how fake products are laundered through China's bonded zones and warns consumers to be wary of low prices.
New DistributionLatest Rankings in China's Beverage Industry
The China Brand Power Index (C-BPI), launched by Chnbrand in 2011, is China's first brand value evaluation system based on consumer feedback. This article presents the rankings of various beverage subcategories, including bottled water, tea drinks, herbal tea, functional drinks, juices, yogurt, and more.
New DistributionSouth Korea's Lotte Plans to Support Government's THAAD Deployment: Does It Still Want the Chinese Market?
Lotte Group, a South Korean conglomerate, plans to sign a land swap deal with the government to facilitate THAAD deployment, despite strong opposition from China. This move risks damaging its extensive business interests in China, where it has operated for over 20 years and generates significant revenue from Chinese consumers.
New DistributionAlibaba Joins Hands with Bailian: A Marriage of Convenience?
Alibaba has designated 2017 as the strategic year for 'New Retail,' and Jack Ma has been touting its importance. Today, the target of Alibaba's partnership was revealed: Bailian Group, not RT-Mart as previously rumored. The two companies have been in talks for eight months, and their strategic cooperation will cover retail formats, omnichannel layout, payment, logistics, and membership systems.
New DistributionWhy Companies Prefer to Hire New Staff at Higher Salaries Rather Than Give Raises to Existing Employees?
Many employees wonder why companies would rather pay higher salaries to attract new hires while letting long-serving staff leave than increase their wages. This article, based on insights from senior HR professionals, explains the reasons, including fear of triggering widespread pay raises, higher expectations for unknown talent, the ease of hiring new people versus adjusting salary rules, the replaceability of existing employees, and the catfish effect in the workplace.
New DistributionFollow-up Report | Is Kraft Heinz Determined to Acquire Unilever?
Kraft Heinz proposed to acquire Unilever at $50 per share in cash and stock, valuing Unilever at over $140 billion, a 20% premium over its closing price on Thursday, February 16. Unilever rejected the offer, stating it 'fundamentally undervalues' the company, but Kraft Heinz remains hopeful. Analysts and media speculate on the strategic fit and potential obstacles.
New DistributionWhat Happens to Milk Powder Cans Recycled for 60 Yuan?
Recently, mothers are again discussing how to dispose of empty milk powder cans, advising to damage them before discarding and avoid high-price recycling to prevent counterfeiters. Industry insiders say some physical stores recycle cans as a marketing tactic.
New DistributionKraft Heinz Proposes to Acquire Unilever! Durex Acquires Mead Johnson: Are International Giants' Poor Performance and Buying Spree a Good Solution?
Kraft Heinz has proposed a merger with Unilever, which was rejected, while Reckitt Benckiser, the maker of Durex, agreed to acquire Mead Johnson for $17.9 billion. These moves highlight the challenges and strategies of global FMCG giants in a changing market.
New DistributionThe Best Business Models Are Born in the Most Turbulent Times! - 30 Signals That Physical Stores Will Rise in 2017
The article argues that the best business models emerge during turbulent times, and despite the rise of e-commerce, physical stores are poised for a comeback in 2017. It lists 30 signals, including changing consumer habits of younger generations, government support, and innovative retail strategies, indicating a new era for brick-and-mortar retail.
New Distribution4 Tricks for Distributors to Understand the Pricing of the Alcohol Market
Price is relatively important business information. To understand the core market's business secrets, it is necessary to gain the trust of the research subjects and use certain techniques for deeper understanding. Only by obtaining real research information can one have a more thorough understanding of the market and work smoothly. Trick 1: "Empty-handed" method, which involves making initial assumptions and letting the research subject correct them. Trick 2: "Colloquial" method, which uses simple language to avoid sensitive terms. Trick 3: "Fog" method, which compares known information about brand A to unknown information about brand B. Trick 4: "Flashback" method, which deduces accurate information from subtle feedback.
New DistributionValentine's Day Romance | The Love Stories of Li Ka-shing, Li Kaifu, Robin Li, Jack Ma, Liu Qiangdong, and Pan Shiyi
This article shares the heartwarming love stories of prominent Chinese business leaders, including Li Ka-shing, Li Kaifu, Jack Ma, Robin Li, Liu Qiangdong, Zhou Hongyi, and Pan Shiyi, highlighting how their personal relationships shaped their lives and careers.
New DistributionCoca-Cola and Pepsi Are Both Losing Young Consumers!
According to new data from Connexity, an e-commerce and consumer analytics company, both Coca-Cola and Pepsi are struggling to attract younger consumers, with their largest user groups being older demographics. While Coca-Cola has a stronger appeal to young people than Pepsi, neither brand is doing well among the 18-24 age group.
New DistributionWhy Do the Best Talents Often Lack a Perfect Resume?
This article explores why candidates with non-traditional backgrounds, termed 'boxers,' may outperform those with perfect resumes, termed 'golden keys,' citing research on post-traumatic growth and examples like Steve Jobs.
New Distribution29 FMCG Companies' 2016 Performance: Who Lost and Who Gained?
This article reviews the 2016 performance forecasts and reports of listed food and beverage companies, highlighting their profits and losses across categories such as seasonings, grains and oils, meat products, dairy, food additives, snacks, and others.
New DistributionFor Work, Find Reliable People; Smart People Are Only for Chatting
The article argues that while smart people can be insightful to talk to, they often prioritize their own interests, making long-term cooperation difficult. Instead, it emphasizes the importance of reliability and integrity in business and personal relationships, suggesting that dependable people are a valuable resource and that staying reliable will attract like-minded individuals and lead to positive outcomes.
New DistributionMeiyijia Convenience Stores Added 1,700 New Outlets in 2016, Focusing on Deep Regional Market Penetration
Despite the challenging offline retail environment, convenience stores are expanding rapidly. Meiyijia, China's largest convenience store chain, reported sales exceeding 10 billion yuan in 2016, with over 1,700 new stores added, bringing the total to 9,300. The company's success is attributed to its deep regional market strategy, focusing on community stores and profitability.
New Distribution2017 Global Brand Value 500 Full List: Only Yili, Moutai, and Yanghe from China's Food & Beverage Sector Make the Cut
Brand Finance, a UK-based brand valuation consultancy, released its 2017 Global 500 list, with Google overtaking Apple for the top spot. Among Chinese food and beverage brands, only Yili, Moutai, and Yanghe made the list, with Moutai ranking 118th and Yanghe 398th.
New DistributionCoca-Cola Has Been Busy Lately! New Product! New Packaging!
Coca-Cola has launched a new weight-loss cola in Japan called Coca-Cola Plus, and has begun a global packaging upgrade under its 'One Brand' strategy, which has now reached China.
New DistributionDeep Dive | Japan's Kao with 90 Billion RMB Revenue: Diapers in High Demand Only Account for 7%!
Kao, Japan's largest daily chemical producer and second-largest cosmetics maker, founded in 1887, operates in 33 countries and regions with subsidiaries in 18 countries. Its main business spans beauty care, health care, fabric and home care, and industrial chemicals. In 2015, Kao Group's revenue was 88.3 billion RMB (at end-2016 exchange rates), with a market cap of 167.1 billion RMB at end-2016, and a TEV/2015 Total Revenue of 1.8.
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