Closer to Chinese Markets
Consumer Discretionary
Horizon recently met with investors and exchanged views on China consumer trends. The primary focus of this analysis revolves around Chinese brands "domestic substitution strategy". This strategic approach adopted by local brands involves a calculated penetration into diverse consumer sectors within China, with the exception of luxury markets. Noteworthy achievements by certain companies across various sectors, such as Luckin Coffee, Gambol Pet, Miniso, Anjoy Food, Flyco, etc. These companies have effectively tapped into the lower-tier markets, offering cost-effective products in areas that international brands tend to overlook. Following the acquisition of substantial market shares and the establishment of brand recognition, these local companies subsequently enhance their product offerings and services, thereby cementing their competitive stance.
Edition: 168
- 01 September, 2023
China's semi-finished food market booming
Consumer Staples
Predicted to become a trillion-yuan market in the next 3-5 years - the sector is in an early growth stage similar to the US (1960/70s) and Japan (1980/90s). The growth rate of the Business-end market is 20%+. Horizon Insights’ industry surveys show that 90%+ of restaurants, hotels, group meal manufacturers have started using semi-finished food attracted by the high degree of product standardisation and cost advantages. The Consumer-end market is growing much faster - online pre-made dishes have maintained YoY sales growth of 50-100% and offline sales are up 50%+. Companies well placed to benefit include Weizhixiang, Hema Fresh, Anjoy Foods and Longda.
Edition: 130
- 04 March, 2022