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China’s Leading Beverage Enterprises Battle for Vending Machine Market

Author:admin Source:本站 Update:2017-7-11 15:03:11   Click:383
Synopsis: Driven by Internet popularity and higher claim for shopping convenience, China’s retailing suffers an earthshaking changes. For FMCG(Fast Moving Consumer Goods) sector, enterprises usher in a new era by taking advantaging of vending machines that render utmost convenience and 24-hour service.

Synopsis: Driven by Internet popularity and higher claim for shopping convenience, China’s retailing suffers an earthshaking changes. For FMCG(Fast Moving Consumer Goods) sector, enterprises usher in a new era by taking advantaging of vending machines that render utmost convenience and 24-hour service.

Considering the statistics issued by Kantar Worldpanel, consumers exposures a large demand for vending machines when GDP per capita amounts to 10,000 dollars. And some major cities in China have come to this explosive market demand for vending machines. In the following 5 years, domestic vending machine industry is deemed to lead the FMCG retailing market.

Domestic Vending Market Scales Up to CNY100 billion
Since from 2015, vending machine channel profits has been on the journey of ‘Internet Plus Times’ and notched up overwhelming market scale.

In recent five years, the average growth rate of vending sales exceeds 100% surprisingly. The monthly production amount of vending machine arises along with the improving people’s living standard and economy. By 2020, monthly sales for each vending machine is predicted to reach CNY6,000 while the annual turnover of vending machine sales is up to staggering CNY100 billion.

From the perspective of geographical distribution, vending machine primarily markets on coastal regions. Yangtze Rive Delta and Pearl River Delta boast a wide coverage of vending machines and mature market, accounting for 60% or so of the total vending machines.

Chinese Renowned Beverage Businesses Flock into Vending Machine Market
A batch of Chinese renowned beverage businesses has seen their chances in the vending machine market and taken prompt actions to gain the foothold.

China’s bottled water brand supplier, Nongfu Spring has incisively financed large investment on marketing its own branded vending machines. More than 30,000 sets of vending machines had been recorded by Nongfu Spring. Other food & beverage industry bigwigs like Coco Cola, Master Kong, HuiYuan, Pepsi, Hengda, Wa Ha Ha, swift their businesses on vending machine markets.

It is reported that one of China’s leading beverage enterprises has set Zongs Smart Technologies specialized for vending machine layout. CNY2 billion will be put into investment for 100 thousand set of vending machines, in an attempt to build up a nationwide intelligent retailing terminal network with high channel margins.

So far there are less than 150, 000 vending machines under operation in China. Compared to the market capacity of vending machines in Japan and other developed countries, China’s vending machine market is merely springing up. Big beverage enterprises will reduce the operation cost significantly by giving full play to its own advantages such as brand effect, good-quality products and multiple distribution channels.

Lucrative Channel Margin
Market shares of vending machines gradually takes on an upend trend thanks to the growing number of beverage enterprises developing vending machines distribution. It is studies that a majority of dealers were contented with the sales revenue of different vending machine distribution channels because of the high margin.

Mr. Tu Dongping, General Manager of JinYang Subsidiary Food said, they have set 6 vending machines of Nongfu Spring with the brand’s series of products at stations places. Due to the convenience, the amounts of daily sales stands at 200 bottles, profiting nearly 30%. It is the lucrative channel margin that appeals to more and more enterprises stepping up their efforts to take a share.

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