On April 13, Titanium Media Group and Haikou Fuxing City Internet Information Industrial Park, under the guidance of the People's Government of Xiuying District, Haikou City, held the "Global 2024T-EDGE Consumer Innovation Forum" to discuss how to break through the blockages and blind spots of Chinese brands going overseas driven by new technologies and new models such as digitalization, intelligence, socialization, and personalization, and how to promote the quality and upgrading of the consumer industry under the new going overseas.
On the afternoon of April 13, Liu Xiangming, co-founder & co-CEO of Titanium Media Group, as the moderator, discussed the theme of global innovation together with Yuan Bing, founder and chairman of Shanxi Global Frog E-commerce Co., Ltd., Shu Shangbin, founder of Shucai Technology, Yao Zhiguo, general manager of Fuxing City Industrial Development Center, and Wang Tao, general manager of public affairs of Pop Mart International Group.
Liu Xiangming, co-founder and co-CEO of Titanium Media Group, proposed that he has three thoughts on this round of globalization: first, the waves are magnificent, in the next 20 or 30 years, Chinese enterprises will develop and blossom in the world; second, the ability to spill out, the ability to roll out in China, is a great competitiveness overseas; third, ecological blessing, this round of going to sea is not the original brand, a company going to sea, but an industrial chain, a supply chain, and even the entire ecology are going to sea, everyone cooperates with each other, Supporting each other to walk.
Yuan Bing, founder and chairman of Shanxi Global Frog E-commerce Co., Ltd., said that Chinese brands go to sea, one is to go to sea in a dot shape, one is to go to sea in clusters, and the other is to go overseas with brands. SHEIN is typical, using China's supply chain, industrial clusters and digital advantages, with a valuation of 470 billion yuan. This case should attract the attention of many Chinese enterprises and is a good reference for going overseas.
In the future, there will still be dividends in the digital field of the retail industry. At the same time, Yuan Bing said that the current regional leading supermarkets should optimize the supply chain of stock standard products, make fresh food and instant goods, and then provide the last mile service.
"I feel like their spring has just arrived. I believe that the enterprises I serve in the future will have a broad mass base, which will get better and better, and will pay taxes to the local area and help the regional economy. Local taxes stay local, local talents stay local, and local consumption stay local. ”
Shu Shangbin, the founder of Shucai Network, emphasized that the most important thing for overseas enterprises is "people", not the victory of business model, but the victory of management. Forming a team with locals and doing something new is a big challenge for most companies in China. That's the number one problem to be solved.
In view of the opportunities and increments of catering going overseas, Shu Shangbin said that more and more catering brands will go overseas, and their supply chain needs to be solved, and these are some of their opportunities.
Yao Zhiguo, general manager of Fuxing City Industrial Development Center, mentioned that when Fuxing City Industrial Park was built in the early days, it borrowed from Hong Kong's Cyberport, Dubai, Taiwan's Nangang Park and Singapore's One-North Science and Technology City. The park is built around the international enterprises and international talents after the future customs closure operation, and there is an innovative point in the function, which is to realize the integration of production, education, research, housing, entertainment and business, and promote the development of enterprises while contributing industry knowledge.
"Hainan also has a lot of favorable policy empowerment projects, global enterprises need to do supply chain services, Mixue Bingcheng has made a factory in the park, through the advantages of Hainan, global centralized procurement of products, processing and value-added to Thailand. The free trade port policy is very suitable for enterprises with a global layout. Hainan also has the lowest cost, zero tariff, low tax rate, and simplified tax system. At two levels, equipment is duty-free, raw materials are duty-free, and processing value-added is duty-free to the country. In the next step, Hainan's overseas processing value-added enterprises can be exempted from intermediate circulation link taxes, that is, there is no value-added tax and additional tax. ”
Wang Tao, general manager of public affairs of Pop Mart International Group, pointed out that collectivization and globalization have always been the core strategy of Pop Mart, and the global layout began in 2018, and the revenue of Pop Mart's overseas market will exceed 1 billion in 2023, accounting for more than 15%. It is expected that in 3 to 5 years, Pop Mart's overseas market revenue will exceed 50% of the overall revenue, and new stores will be opened in more well-known neighborhoods around the world this year.
The following is a transcript of the roundtable keynote speech, edited and arranged by Titanium Media APP:
Host Liu Xiangming: What is the wave that you are most excited about in the general trend of globalization?
I can start first. I've told a lot of people this story. Last year, I invited a friend from the United States to come back, he started to program, he couldn't do it, and he felt that the place was very remote, so he decided to do catering, and worked in Maryland for a few years to make some money, but he felt that it was too hard, and he wanted to give full play to the advantages of science students, and wanted to make fast-moving consumer goods and standardized products, so that he would not be kidnapped by the chef. So during the epidemic, I put a bankrupt Jewish shop in New York and sold two big things in the United States, meat buns and hot and sour noodles. In the United States, the meat bun is called a crispy burger. Lao Mei also loves to eat hot and sour noodles.
Yesterday, someone asked me how much it costs to sell for meat buns in the United States. I asked, and a meat bun sells for $5.5 a bun in New York, USA, and the hot and sour noodles are even more terrifying, $11.99 a bowl. This year, we also went to Las Vegas to experience that it is normal to eat a bowl of noodles for $19 or $20. My friend now sells a container of meat buns every month. He really wanted to come to the Consumer Expo, but he couldn't come because of something at home, so I told him this story. This is the most exciting and exciting thing I've heard about going to sea lately.
Shu Shangbin: I will also tell the stories of my friends and tell some stories about making money. I've been in Japan for many years, and a friend of mine now owns what is probably the largest kimono rental shop in Japan. As a traditional local industry, this is a shocking thing. He is a native of Fujian, a young man in 91, and he has done such a big thing. Although the scale of his business is not that large, it is an example of Chinese Chinese working hard overseas, and they can do well in some industries that we can't get into, or industries that don't necessarily do very big. This inspires me a lot.
Second, let's talk about a somewhat strange business that I've been thinking about lately. I was chatting with a friend who used to work at an embassy, and I asked him if there was an ear cleaning shop in Indonesia, and he said no. I said if I could open an ear cleaning shop, if I could combine some of the religious aspects of Muslims with ear cleaning, the whole business would become very interesting. He said it was interesting, but he needed to go there and get a qualification, and he could do a lot of business with local religious people. At that time, I felt that Chinese are born to do business, and it is natural to think of using local resources to implement projects wherever they go. I think there's a big chance.
Wang Tao: I'm Wang Tao from Bubble Mart. Many people know that Pop Mart has been carrying out a global layout, and we have opened stores in many well-known neighborhoods around the world.
First, our trendy toy products are also very attractive to overseas consumers. Trendy toys, not toys in the traditional sense, have a strong sense of artistic expression and beauty, it can mobilize the emotions of consumers, and overseas users themselves are more willing to consume emotional products. What makes us feel the most is that in the European and American markets, there are many locals who often ask when they enter the store, whether you are a Japanese brand or a Korean brand. When the clerk said that we were from China, they were all very surprised that a Chinese brand could make such a design product and was willing to pay for it.
Second, during the Chinese New Year this year, many friends traveled to New Zealand, Thailand and other countries, and when they stood in front of the overseas store of the Bubble Mart store and took pictures and sent them to me, that sense of pride arose. We don't just sell products to consumers, behind opening stores is more offline brand penetration, which I think is very valuable. Going overseas is not only a simple product going overseas, but also a brand going overseas and culture going overseas.
Yao Zhiguo: I can probably only share it from my profession itself. From the perspective of the recent development of our free trade port, there are two pieces of information that I can share with you. In the early stage of Hainan's customs closure operation, there were two major systems, one was to announce that Hainan would open EF accounts. In the future, this account will play a role in facilitating trade funds for global enterprises. The money in your Hainan account can be transferred 1:1 with the money from overseas.
The second level, the development of digital economy enterprises in Hainan will be a good channel and channel for global consumer enterprises to circulate data, capital and cross-border transactions in the future, which will also empower the development of many new consumer industries in the future.
Yuan Bing: Two perspectives. One case is SHEIN, which is also a company that I have seen a lot recently. This company is second only to the valuation of the note beating.
Chinese brands go overseas, one is dotted to go overseas, one is to go to sea in clusters, and the other is to go overseas with brands. You look at SHEIN is very typical, using China's supply chain, industrial clusters and digital advantages, with a valuation of 470 billion yuan. The way to go out is still the public domain and the private domain, go to the public domain to find traffic, find people to experience, and then direct the traffic to the private domain. I think this case should attract the attention of many Chinese enterprises, and you can take a look at this model, which is a good reference for going overseas.
The second is the Consumer Expo. Which policy in Hainan has the most gold content, and what is the value of this policy for our entire new consumer goods, including value-added tax exemption, imported raw materials are processed locally in Hainan, and the tax return and increased profits it brings, both of which are remarkable. We should do more to discuss and run through the model under the dividends of the policy.
There are many people in Hainan who are running this model, and what do they do when raw materials are imported back and then turned into new products after deep processing. First, how do we go out, and what do we do when we go out? Like Bubble Mart, it represents our Chinese culture and has national self-confidence. Another is to use the advantages of our industrial chain to go out and use the digital platform to do a good job in this big market. So one is the question of how to get out, and the other is the question of how to get in. We're going to do some exploration here to find dividends.
Liu Xiangming: In the next 1 to 3 years, what is the plan for globalization from now on, and what will your company become in the future?
Yuan Bing: That's a good question. Because my son is a global talent, he is now studying in the United States, and after graduating from graduate school this year, I belong to the layout and return to Hainan first. I think the supporting facilities of Fuxing City are very good, and if we want to plan and develop, we must go to a place that is suitable for our development, and we complement each other in order to do a good job.
I went to several parks, one was to the Software Park, to Lingshui, and finally settled in Fuxing City, so I advertised Fuxing City. I feel very comfortable with the package, and I have now rented a house opposite it and settled down on the opposite side of the digital port. Yao is always a very professional person, and in all the parks, I see that he is very professional, which is also a good blessing for the industry we have settled.
I'm still calling my son's classmates back, which is equivalent to calling the second generation back. They either went north to Guangzhou, Shenzhen, or Hainan. I am optimistic about Hainan, we have settled our homeland here, and our household registration has also been settled here, ready to do a great job. This is a reserve of talent.
Then there is the international vision, they are inherently global talents with a global vision. Then it complements each other with the park, and Liu Xiangming just released it on stage, I especially recommend that you co-organize it with Fuxing City.
Liu Xiangming: We're already talking.
Yuan Bing: I think there will be one more perspective in the co-organization, in addition to the perspective of the park, there is another perspective from the perspective of Xiuying District, and the perspective of the media is more extensive, so if it is the perspective of titanium media, the perspective of Fuxing City, and the perspective of enterprises, in the next three years, we will definitely become a leader in global trade flow and data transaction flow enterprises.
Yao Zhiguo: I would like to talk about two aspects, one is from the park aspect, Fuxing City has built a new park directly south of the International Convention and Exhibition Center, Fuxing City International Digital Port. In the future, we will build a digital port around the scenarios needed by international enterprises, introduce relevant industrial supporting capabilities and policies, and empower these enterprises to develop with us.
Second, from the industrial aspect, Hainan will be closed in 2025, and Hainan has been promoting the construction of two headquarters bases, international enterprises to Haikou to build a domestic headquarters base, and Chinese enterprises to go out of the headquarters base. Around these two ABPs, our campus is also pushing the government to realize the integration of some elements.
For example, we will have such service capabilities for the trade settlement facilitation of Pop Mart's global items, including overseas copyright and authorized procurement and capital flow facilitation in the future. Including the cross-border data repatriation mentioned by Mr. Shu, we can also use Hainan's data repatriation to China for development. We plan around two ABPs and element freedom.
Another is vertical industry planning, for example, in the next three years, the focus will be on the development of games going overseas, cross-border live broadcasting, and cross-border data orderly flow of industries.
Wang Tao: In 2024, we expect to have nearly 150 overseas stores, last year's Pop Mart stores in Southeast Asia have entered Thailand, Malaysia, this year is expected to enter Indonesia, the Philippines, Vietnam, etc., in Europe, last year into France, the United Kingdom, the Netherlands, this year will also enter more countries, for the United States, a single market, our layout has just begun.
On the whole, collectivization and globalization have always been the core strategy of Pop Mart, which began its global layout in 2018, and in 2023, Pop Mart's overseas market revenue will exceed 1 billion, accounting for more than 15%. It is expected that in 3 to 5 years, Pop Mart's overseas market revenue will exceed 50% of the overall revenue, and new stores will be opened in more well-known neighborhoods around the world this year.
Shu Shangbin: My company is the smallest here, but the scale of our customers is okay, our development strategy is relatively simple, follow the customer, and if the customer wants to go global, we will follow them to go global. We are to give them supporting solutions, to introduce them to more partners, I have a lot of customers who do not want to go abroad, never want to go abroad, and do not want their children to go abroad, but the company's shareholders want to do business overseas, they lack resources overseas, we will introduce our resources in the United States, Japan, Southeast Asia to them, to provide more services. So, I sincerely hope that my customers are getting better and better, paying me more and making us better and better, this is our five-year plan.
Liu Xiangming: I just asked a very good question, so let me ask it. Does Yang Guofu's hot pot need to make some flavor adaptation abroad? Are foreigners used to eating our food?
Shu Shangbin: I just represent my personal opinion, I think adaptation is what needs to be done. The local people's acceptance of spicy, or aromatic, will lead to the optimization of the hot pot base. After all, the most important thing in eating Malatang is the taste of the base soup.
Liu Xiangming: The blueprint in your mind is far from being as small as the three years you just said, following the customers, including the agricultural supply chain, and the catering to go overseas, where do you think the opportunities and increments of globalization are?
Shu Shangbin: We think that more and more F&B brands will go overseas, and their supply chain needs to be solved, because it is easy for you to get ingredients in China, but it is a very professional process to ship ingredients, and these brands may not necessarily have more professional partners who are compliant. These are some of our opportunities. Because we are more familiar, we now serve many enterprises, including food and beverage brands, as well as supply chain companies, food processing plants and agricultural groups. We also have certain digital assets and are willing to take these things out and match them to our customers. Although it seems that making money is still making money from software, the more we provide you with a comprehensive service to achieve your business goals, the more you will trust us and be willing to build a long-term relationship with us. That's how we think about the problem, it's simpler.
Liu Xiangming: As I mentioned earlier, Pop Mart has done very well offline, and you also entered France last year, which is a very challenging thing. My question is, it turns out that our globalization is mainly online, do you have any experience and lessons to share with you when offline stores go overseas?
Wang Tao: In the past two years, there have been a lot of topics around Bubble Mart going to sea, but in fact, Pop Mart has been going overseas for five or six years. It has started since 2018, before the company went public, of course, at the beginning, it was mainly through agents, selling products first, and there have been changes since the listing in 2020.
We began to open offline stores, robot stores, e-commerce and other ways to reach out to overseas consumers. We have products sold in more than 80 countries around the world through e-commerce, followed by nearly 100 offline stores in more than 20 countries around the world
In the early stage, we learned about the local market through online e-commerce and robot channels. For example, his consumption potential, consumption desire and so on. For example, in Thailand, where we just entered last year, the market was far more hot than we imagined, in fact, our e-commerce channel was also selling well in Thailand before, and the reason why we have not opened offline stores is that Thailand does not allow a wholly foreign-owned enterprise to open an online retail store in Thailand. We didn't enter Thailand until we found the right partner. After entering Thailand, from the time we opened our first store, the entire Thai market was basically in short supply.
The process of internationalization is a gradual expansion, including in other countries. We strictly abide by the policies of various countries, if the conditions allow, we will directly operate, and if the conditions do not allow, we will cooperate through partners, and adjust them according to the specific situation.
Liu Xiangming: Thank you! Very good experience. Mr. Yao and Yuan Bing have done a lot of advertising for Fuxing City, and I still hope that you can systematically tell you about the competitiveness and influence in the field of globalization, including the digital economy, from your point of view, including the recent investment promotion and empowerment of Fuxing City, which everyone is concerned about.
Yao Zhiguo: To put it simply, the core policy of the Hainan Free Trade Port can be represented by 12 words: zero tariff, low tax rate, simplified tax system, and more freedom. For our digital economy industry, the core solution is the problem of future freedom. For example, if China joins the CPTTP and DEPA, Hainan will certainly be one of the first to relax its policies in the process of joining these agreements. Therefore, in the past, our park promoted the country's first cross-border digital orderly flow.
In addition, we have also landed a lot of enterprises that do cross-border two-way capital flow in Hainan, such as Micro Connect. Including enterprises with double Q business, such as Ping An and Huaxing. Now we are actively promoting the opening of value-added telecom licenses, for example, AirAsia, the entire digital industry platform is planned to land in Fuxing City, we help it achieve the first 100% foreign investment to obtain EDI, ICP, we help him do this.
In the next step, the global digital economy will use the Hainan Free Trade Port as a channel to do business across the country. Including, we can expect that after the operation of the customs closure in the future, whether we can explore platforms such as Google and Facebook to do business in Hainan in China. This is an important point for Hainan to serve global enterprises and innovate in the digital economy in the future.
In addition, Hainan also has a lot of favorable policy empowerment projects, global enterprises need to do supply chain services, Mixue Bingcheng has made a factory in the park, through the advantages of Hainan, global centralized procurement of products, processing value-added to Thailand. The free trade port policy is very suitable for enterprises with a global layout.
Hainan also has the lowest cost, zero tariff, low tax rate, and simplified tax system. At two levels, our equipment is duty-free, raw materials are duty-free, and processing value-added to the territory is duty-free. In the next step, Hainan's overseas processing value-added enterprises can be exempted from intermediate circulation link taxes, that is, there is no value-added tax and additional tax. Enterprises that develop in Hainan, whether they use digitalization to empower industries or enterprises that use digital economy to innovate, have the opportunity to display their space stage in Hainan. The park will also have some supporting policies, for example, we provide rent-free platforms like Yuanbing, and integrate resources with it in the future to do better and bigger.
Liu Xiangming: Yuan Bing, just now you talked about the idea of the first, second and third industry, how to serve globalization with your idea of the three, second and first industry, you just talked about the main domestic market, how to coordinate this idea with Xiaoshu, and everyone form some synergies and links?
Yuan Bing: It came at the right time, because Xiao Shu does catering, like the coconut water just now, is suitable for catering channels, Chinese companies go overseas without a platform, each repeated communication channel, if Xiao Shu builds the catering SAAS, it means that he and my supply chain SAAS are connected, and he does not have to blindly find the supply chain, I will definitely become a part of his supply chain. In this way, coconut water and coconut water can find more pathways. Therefore, the platform and the platform need to be opened up more, and the road between us must also be opened.
All meals are basically accompanied by food and drink, including Chinese herbal tea, which is very popular abroad. I drank a tea abroad, and Pien Tze Huang made a tea with a yellow essence in it. Yesterday when we had a total of six tables of food, when we didn't drink, everyone disliked the drink, thought it looked a little dirty, and no one drank the drink, the brand did sponsorship, and no one drank on the table. However, after the wine had passed three times, the bottle of drink exploded. I counted 42 bottles of that drink from 6 tables. These should all be circulated through Shu's catering SAAS. So, there's a lot to offer in your catering.
My son, who goes to school in New York, said I would want to open a Chinese restaurant when I graduated, and nothing else. I said how can you have such ambition, he said that Chinese restaurants are easy to make money. Chinese restaurants have formed a standard chain in China, and you have noticed that the people who create Shaxian snacks create a new brand every few years. It's nothing more than going abroad to adjust the taste.
One of the food and beverage industries I work for now is asking him if he has export qualifications, which means that he already has the FDA and already has the ability. In this case, you need to take the fast lane, and it is best to go to the industry SAAS. If Xiao Shu is doing SAAS for overseas catering, it means that our platform is more meaningful and valuable. Therefore, I hope that the park will recruit Xiao Shu as soon as possible, Xiao Shu has this idea to build, especially since he is an industry veteran, soon, if there is an application scenario, there will be more matchmaker makeshift meetings in the park, so that the park and the enterprise can be together.
Yuan Bing: When I first came, Mr. Yao introduced me to a company, which is also in the Fuxing City Park, doing SAAS for cultural tourism, called Angel City, and now serves tens of thousands of scenic spots across the country. In the past two days, I have been communicating with him, and he is a cultural tourism SAAS. After we got through, we made a business move, I embedded my supply chain into it, all the people who use cultural tourism SAAS have my supply chain, I embedded cultural tourism products into our supply chain, and at this time we completed mutual embedding. In the next step, he is also embedded with Xiao Shu in this way. Therefore, I hope that the park and enterprises will hold more matchmaking meetings.
Liu Xiangming: Everyone is very concerned about whether there are any pain points and how to solve these services in China and overseas in digital construction. Are the challenges encountered overseas the same as those at home?
Shu Shangbin: I think the business rules are different in each country, in the past, I was doing business in Japan, and we were also a commercial company, and we also sold the company. However, the overall feeling is that the business rules over there are more on the table. We have a normal visit, after the establishment of cooperation, we provide our own services, he pays us, and after the relationship of trust between the two parties is up, the cooperation is very simple. However, it is a bit complicated in China, and everyone knows that it is more complicated, and there may be a lot of doorways.
When I came back in 2016 to do business, I felt a little uncomfortable because I didn't understand too much. For example, I once went with a colleague to visit a client. The middle customer said we went out for a cigarette. Because I don't smoke, they went out for a cigarette and came back to find that they had finished talking. I was shocked. I don't think it's a discussion at the table, how do you go out and smoke a cigarette and it's done?
Liu Xiangming: What kind of challenges are encountered in the construction of the supply chain and localized operations, including the operation of Pop Mart IP, and do you have any suggestions to share with you?
Wang Tao: The core of Pop Mart's globalization is localization. First of all, the vast majority of Pop Mart's overseas team are local employees. Secondly, as we all know, there are many types of IP under Pop Mart, including artist IP, big copyright IP and so on. As a simple example, when we first entered the European market, local users may be more familiar with IPs like Harry Potter, but after entering the store, in front of more dazzling products, maybe Harry Potter is no longer his first choice. In fact, our artist IPs, such as MOLLY, LABUBU, ONO, etc., have been in operation for a period of time, and they are all loved by overseas consumers.
At the same time, we are constantly exploring local well-known IPs or potential IPs in different countries to help them further develop into global IPs. We have an IP in Thailand, called crybaby in English and crybaby in Chinese, we signed a contract two years ago, and it is now a very influential national IP in Thailand.
To sum up, on the one hand, we are promoting the original IP to the world, and on the other hand, we are also developing local influential IP. In essence, Pop Mart has been making trendy toys from the very beginning, and now it is doing the layout of the whole industry chain with IP operation as the core, and the core is still IP operation. The supply chain just mentioned, we have a layout at home and abroad, and now the core of the supply chain is still in Dongguan. Because it is the toy capital of the whole world.
Liu Xiangming: Mr. Yao, the next question, the digital port has opened, what is the innovation point of your next project, and what is the difference between the idea of the digital port and the old Fuxing City?
Yao Zhiguo: First of all, let me advertise to you, the vertical direction of the digital port is 4 kilometers. When we built a new park in Fuxing City in the early days, we borrowed from Hong Kong's Cyberport, Dubai, Taiwan's Nangang Park and Singapore's One North Science and Technology City, and our boss personally inspected them. Our park is built around the future of international enterprises and international talents. There is an innovation point in terms of function, and the park should realize the integration of production, education, research, housing, entertainment and business. In other words, we hope that entrepreneurs, such as entrepreneurs like Mr. Wang, can come to the park to start a business and live here at the same time, can connect with entrepreneurs in the park community, and can also contribute industry knowledge while driving the development of some enterprises. We will build an industrial community with the concept of 24-hour life "core".
In the next step, it is very important that after enterprises come to the park, we will provide empowerment services and escort services, including services for enterprises to solve problems in localization, services for government policy fulfillment, and are committed to serving enterprises to develop and grow in Fuxing City.
Yesterday we talked about what is worth selling in the park. There were no talents back then, from 3 people to a company of 400 people, including the general manager of iQiyi, who was also the first three or five people, and now there are more than 100 people, and Byte also has a team of more than 100 people. We hope to do more business in Hainan and take root in Hainan.
Liu Xiangming: Yuan Bing, leave you a more difficult question, this year's retail pressure is very high, everyone is talking about consumption downgrade, what dividends will the retail industry have in the field of digitalization in the future?
Yuan Bing: Yes, I still ask myself if I am doing well. Everyone should watch Douyin recently, no one doesn't know Henan Xuchang. Fat Donglai raised everyone's morale. Engaging in new retail and online and offline integration is actually to grab retail. In fact, retail is hard work, and the service capabilities required are very refined, and the profit margin is about 3-5%. The profit margin is not high because there are rent, water, staff operating costs. I have served more than 300 clients and this year marks its ninth year. So far, none of them have died, they have not made a lot of money, but they have been staying alive. They have a stable supply chain system.
The trade circulation industry not only ensures supply but also stabilizes prices. So, I'm impressed with the retail people. Moreover, the recent phenomenon of fat coming to the east, all Chinese go there like a pilgrimage to buy things, although the price of things is increased, and the price is publicly marked. I provide such a service at such a high cost. In fact, it has been verified from one point of view, as long as you do well, you will not care about the brand. Now the retail clients I serve are businesses that have been in business for 20 or 30 years. The youngest companies I worked for were all over 15 years old, and most of them were in their 30s. Such an enterprise needs to be purified. So, it needs to be improved.
Recently, there is another phenomenon in Xuchang, the national retail people are the same as Fat Donglai, and they are suddenly not confused. It turned out that I once learned from others, and I had to turn my hypermarket into a discount store, so low that it couldn't be lower, thinking that there would be customers in this way. In fact, this is not the case. As long as I do a good job in service, and the products and services I make for you are good, and the service is very complete, there will be new value.
Similar to what the supermarkets I serve are doing, in addition to the full range of supermarkets, they are also developing in the direction of fresh, including prefabricated dishes and semi-finished product processing. It is not a long-term product, it is a short-term product. Therefore, one is to optimize the supply chain of standard products, and the other is to do the deep processing of the supply chain when it is fresh. It's very marketable. As long as these two supply chains are optimized, and the service system is added, all services will be refined, standardized and process-oriented. For the leading supermarkets in the region, the first is to optimize the supply chain of stock standard products, the second is to make fresh food, instant goods, and then the last mile service.
I feel like their spring has just arrived. I believe that the enterprises I serve in the future will have a broad mass base and will get better and better. Moreover, it is to pay taxes to the local area, to help the regional economy, local taxes to stay local, local talents to stay local, and local consumption to stay local.
Liu Xiangming: Xiao Shu and Yuan Bing, do you think prefabricated dishes are a big opportunity for overseas catering?
Yuan Bing: Yes. There are many kinds of pre-made dishes, ready-to-eat, ready-to-heat, ready-to-cook, ready-to-match, and there is also a pot of fish in the standard meal that everyone sees, which is soup. Therefore, in order to maintain the consistency and stability of the taste, Chinese food needs to be participated in by prefabricated dishes. Prefabricated dishes can promote Chinese food to go overseas, and in the future, they will be frozen foods like McDonald's and KFC. Chinese food must have pre-made dishes to go to sea. So, hurry up and grab this one.
Shu Shangbin: The boss is right, I have been studying the prefabricated food industry for a long time. Because one of my own customers is the canteen, and the canteen also has a linkage of primary, secondary and tertiary industries, and they will make some pre-made dishes. When it comes to going to sea, there is a great opportunity for pre-made dishes. For example, Lao Gan Ma herself sells well overseas, and there is no problem with that. If all the products are pre-made, it becomes a different problem. Prefabricated food itself is a food industry, which involves the question of whether production capacity and sales can be matched. You will find that the investment in the prefabricated food factory is very large, and the money will not come back for a long time, and we see that some catering brands have invested in their own factories, which is not necessarily a correct decision.
Yuan Bing: Sharing, we are open to you, we have just invested 500 million yuan in such prefabricated vegetable factories to support the entire domestic and international, to use, not to build their own.
Shu Shangbin: Manufacturers don't necessarily think they're a good business, but for those who open a store outside, it's definitely good business, and it's okay to buy pre-made dishes from you to make sure the taste is OK. But I'm worried that these manufacturers don't necessarily have a healthy business model. The things sold on e-commerce are cheap, and manufacturers feel that they are not profitable, so they will go through our big To B channel, which requires strong sales capacity to consume production capacity, which becomes an economic account. Pre-made food is a necessity, but it needs a good financial account to turn the business around. This is my understanding of pre-made dishes.
Liu Xiangming: From the perspective of compliance, for example, in the future, will there be some challenges for prefabricated dishes to go overseas, like countries with more things?
Shu Shangbin: It's definitely a challenge. Many products need to meet the certification, and if you want to be certified, you have to spend money, and you have to think about which of your products to go out. When importing from each country, there will be different requirements for your ingredients, and you may have to change the product, etc.
Liu Xiangming: Thank you for your temporary answers, and you will take one minute to give the most important advice to consumer enterprises going overseas.
Original ice: Iron also needs to be hard. Don't step on the thunder, because I have a lot of food companies, food safety can't step on the thunder, so I think the iron has to be hard. A brand that really wants to become a world brand should make a plan in advance for its own standards and system contributions, as well as the problems encountered when going overseas. The more you do your homework, the less you go out and plant, the more you rush out, and the last pack. Therefore, I think that people are doing anything, not only going to sea, but also making careful plans and plans in advance. The more you research, the more thorough you are, the less likely you are to go wrong.
We have been studying in Hainan for two years, and we have been observing whether Yao Zhiguo is really serving, and whether we will ignore you after this park is recruited, and we have been observing until the observation is successful. So, I think we can take a slow time first, and then go out when we are fully prepared, and then accelerate.
Yao Zhiguo: First of all, I think enterprises should make full use of the industrial opportunities, policy opportunities and channel opportunities such as the Hainan Free Trade Port, and also use the platform of the Consumer Expo to welcome everyone to develop in Haikou, which has a very good business environment.
Wang Tao: Our company has always had a saying that it is particularly important to make decisions quickly and do things slowly, which is particularly important in the process of globalization. Growing overseas is not as easy as you think. The so-called going overseas is globalization, including talents, organization, management and other aspects. What you see now is one, two, or three enterprise successes, and I believe what you don't see is a large number of failure cases. In many cases, it is still necessary to base on your own resource endowment and the company's development stage, and do not blindly go to sea for the sake of going to sea.
Shu Shangbin: The most important thing for overseas enterprises is people, in fact, it is not the victory of the business model, it is the victory of management, and forming a team with the locals to do a new thing is a big challenge for most enterprises in China, which is the first problem to be solved. Based on things, there is nothing to worry about, as long as you don't spend money indiscriminately.
Liu Xiangming: Thank you for your very good sharing. Thank you!(This article was first published on the Titanium Media APP, author | Liu Dafang, editor | Fang Yu)
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