The annual observation | the leader of the frozen products industry, Beijing Construction (0925.HK), accelerating the release of new potential

1. The imported frozen products industry does not change its growth trend, and the integrated service platform has become a high potential

For the imported frozen goods industry, 2021 is still extraordinary, and the global epidemic of the epidemic and the opening of a new round of industrial changes have intertwined influences, and the development environment has become more complex. However, at the same time, the release of dividends such as consumption upgrading, digitalization and platformization have become an important direction for industrial upgrading, and the amount of imported frozen products has still maintained growth in the restrictions of the epidemic, leading the industry's head industrial Internet platform to develop rapidly.

In terms of overall growth, according to market statistics, the import amount of China's meat (including offal) from January to November 2021 has reached 29.647 billion US dollars, an increase of 7.0% year-on-year, and has developed steadily on a high base. In 2020, the import amount of this industry will grow by about 100% year-on-year, and the annual scale will exceed the level of 100 billion yuan for the first time.

Looking forward to 2022, demand-driven and supply-side reforms will support the continued development of the imported frozen goods industry, and actively help includes but is not limited to:

1) The General Administration of Customs has the conditions to resume the export of Brazilian beef to China and ensure the supply of imported beef. China has been the world's largest importer of beef since 2019 and the largest buyer of Brazilian beef, with about half of its beef imports coming from Brazil;

2) The "14th Five-Year Plan for Cold Chain Logistics Development" was released, proposing to support cold chain logistics enterprises to become bigger and stronger, improve market concentration and other plans, that is, upgrade the important infrastructure of the frozen product industry;

3) The State Council mentioned the establishment and improvement of the centralized supervision system for imported frozen products, and then the Shenzhen centralized supervision warehouse (Yantian) for imported frozen products was officially opened to better protect food safety issues and enhance the development confidence of frozen product enterprises;

4) The head industrial Internet platform in the field of imported frozen products, as an important force in the industry, is still accelerating the integration of resources, and is committed to the evolution of business models to promote the transformation of the imported frozen products industry faster.

Based on the expected improvement of the prosperity of the imported frozen product industry fundamentals, as well as the trend of digitalization and platform industry upgrading, the frozen product industry integrated service platform that can provide all-round services, improve the efficiency of the industrial chain and prolong the value of the industrial chain has naturally become a high-potential person worthy of attention.

This article mainly focuses on the construction of Beijing, a representative player and an industry leader. Beijing Construction's strategic layout in the past year has been fruitful, whether at the business level or in the construction of technology and other development bases, and at the same time, it has learned that it has clarified a new business direction, which has brought new variables to the development of the entire industry.

2. As an industry leader, Beijing Construction has made upward breakthroughs from three dimensions

One of the focuses of Beijing Construction's development is to establish a national cold chain logistics facility, and at the same time, through its subsidiary China Cold Chain Industry Investment Group (hereinafter referred to as China Cold Chain Investment), it has independently developed a comprehensive service platform for the frozen product industry - Frozen Product e Port. That is, it has built a business model with frozen e-port as the core, cold chain warehousing as the core, online to offline (O2O), and promoting overseas suppliers to domestic customers (S2B), which can provide one-stop service covering the entire industrial chain of imported frozen products.

Looking back at 2021, Beijing Construction and its frozen e-port have made great strides, and there are breakthroughs in at least three dimensions:

First, business breakthroughs

The registered users of the frozen e-hong Kong platform have achieved a hundred-fold increase of more than 20,000, the online transaction volume has exceeded 100 million, and the opening of overseas first-hand supplier channels has accelerated to exceed 30. And it is worth noting that according to market data, as of mid-July 2021, the online platform of Frozen E-Port has more than 10,000 registered users, which means that it may double again in just a few months in the second half of the year, and the initial growth of the flywheel effect, that is, faster and faster to break through the order of magnitude of scale.

The second "828 Frozen Products Trading Festival" (online) brand theme activity held by The Frozen Products e-Port was a complete success, with more than 10,000 customers participating in the industry, overseas manufacturers, ambassadors and diplomats from various countries gathered to deeply focus on the vertical field of frozen products, use Internet means to empower enterprise development and increase efficiency, and jointly explore the future new formats of the cold chain industry and bring about a prosperous transaction scale. In the frozen e-port itself, it has greatly improved its industrial influence and laid the brand advantage of continuing to promote the business.

Second, business breakthroughs

In 2021, Beijing Construction's international business status has also been improved, and its companies have been invited to represent China in international-level business and trade seminars on many occasions, and have been visited by important countries in frozen goods trade. In terms of frozen products, it has successively proposed commercial diplomatic relations with the embassies of more than 10 countries in China and the meat and fisheries associations of more than 10 countries, including Uruguay, Brazil, Australia, Ireland, Denmark, Canada, the United States, Chile, Argentina, Spain, Norway, Turkey, the Philippines, France and Peru.

From another point of view, Beijing construction has also become an important medium for overseas governments and enterprises to understand the imported frozen products market, as well as the image of domestic and foreign export commercial enterprises, and establish a radiating international influence.

Third, technological breakthroughs

Beijing Construction has been committed to accelerating the transformation of the frozen products industry with science and technology, the development base is technology, and the frozen product e port also uses high-tech technologies such as cloud computing, big data and artificial intelligence.

In 2021, the soft works of the frozen e-port platform in the application field have increased to 17 items, including the "Frozen e-Hong Kong Commodity Management System" and "Frozen E-Port Enterprise Membership Management System", which thickens the technical reserves of the products; completes the launch and upgrading of mobile app and mini programs, and the download volume in major application markets has exceeded 200,000; completes the three levels of security and other guarantees, maintains user information security with a more sound and effective guarantee system; successfully launches the membership system to empower users through topping, business opportunities, brands, etc.

At the same time, in terms of supply chain finance, Frozen E Port and Ping An Bank launched an online payment and settlement system to ensure transaction security through capital supervision, and the supply chain account period service was supported by Bank of Shanghai and China CITIC Bank, and will directly grant credit to customers through the algorithm model according to the online transaction data of the platform.

The enterprise in-app purchase zone also operates in the form of mobile APP and mini program to create an employee welfare procurement platform with imported frozen products as the core for enterprises.

3. The original advantages and S2B2C+O2O new business direction unlock new growth space

Looking forward to 2020, the development of Beijing Construction and its frozen e-port is more clear.

On the one hand, as mentioned in the opening paragraph, the prosperity of the fundamentals of the imported frozen products industry is expected to increase, the integrated service platform of the frozen products industry has become a high potential person under the trend of industrial upgrading, the leading market position of the frozen product e port, and the core capabilities accumulated by combining offline cold chain logistics will gradually be transformed into growth nutrients and support further development.

In particular, the "14th Five-Year Plan" Cold Chain Logistics Development Plan proposes to support cold chain logistics enterprises to become bigger and stronger, enhance market concentration and other plans, Beijing Construction is expected to benefit from it, which may greatly enhance the comprehensive competitiveness of frozen e-ports. Shenzhen import frozen product centralized supervision warehouse (Yantian) and other formal opening, management capacity improved, frozen product e port with Shenzhen as the hub radiated outward, was positively driven.

On the other hand, it is understood that the investment in China Refrigeration will accelerate the cold chain development strategy of the second stage, and the frozen product e port will extend to the C-end / small b retail end with the central kitchen as the core in the original model, that is, transformed into the business model of S2B2C+O2O, through the integration of circulation links, in-depth cooperation with high-quality production capacity at the production end, intelligent transformation of production links in the reverse supply chain mode, etc. as the entry point, in line with the market environment, quickly improve profit margins and improve risk resistance.

The 2B model is more vertical than the B2C model, many players have seen the development opportunities in this field and poured in earlier, in fact, the more active well-known frozen B2B platform, in addition to the frozen e port, also includes the fresh frozen product supply chain platform "flying bear collar fresh", "frozen product to home" and so on.

And when too many players are squeezed into a single track, resulting in compressed profit margins, it is necessary to be efficient to the back end, and some entrepreneurs with a keen business sense will often find new ecological niches through innovation in advance. The maturity of technologies such as intelligence and the Internet of Things also better supports the integration and extension of circulation and production links, so that the frozen product industry can open up the industrial chain and value chain through digital transformation, and fundamentally improve efficiency and value.

The frozen product e port seeks the profit maximization link of the supply chain through the central kitchen this time, and asks for benefits from the C-end/small b retail end, which is also a similar logic. There are still few players on the B2B2C frozen product platform, and at the same time, it can realize the category segmentation and small batch of imported frozen products, reach more diversified audiences, promote the rapid development and scale expansion of the platform, and achieve the profitability of self-operated frozen products. And it is believed that the brand theme activities such as the "828 Frozen Products Trading Festival" were a complete success, and the formation of brand advantages will help the frozen product e port to break through in the competition of C-end/small B retail end.

More specifically, Frozen E-Port will at the same time comprehensively promote the development of new business models by building community demonstration stores of fresh and frozen products in stages, cooperating in community retail, piloting community canteens, building enterprise welfare purchase platforms, and testing water group meals and chain catering. In the early stage, the emerging topical marketing was used to form hot topics to expand the publicity effect, and then set up a regional sample model to accumulate operational experience and improve comprehensive benefits.

At the same time, it can also enhance the existing market competitiveness by combining the comprehensive advantages of its own cold chain system, international trade, and agricultural shopping mall, combined with the advantages of brand awareness and credibility, develop brand frozen products, and enter the supermarket, e-commerce, chain catering customization market.

4. Summary

In the field of imported frozen products with broad development space, huge development dividends brought about by consumption upgrading and industrial change are emerging, regardless of policy direction, economic cycle, etc., may be the corner of the prelude to the new wave, and related comprehensive service platforms are also likely to become one of the opportunities of the era of industrial Internet investment.

As an early player who has become a leader in this field and continues to innovate and evolve, Beijing Construction has huge radiation capabilities and empowerment capabilities, and has undoubtedly moved to the center with the role of the top designer of the platform or ecosystem, and at the same time, based on the development base of technology and brand, it can match the larger-scale and accelerated business development, and the new business direction of S2B2C+O2O has been clarified, and it has once again entered a period of acceleration of development.

This article originated from Grand Gateway