HEMA, Yonghui Superstores Co.Ltd(601933) and other retail enterprises continue to make efforts and make in-depth layout of fresh direct collection
On May 15, HEMA village, the largest organic vegetable in China, landed in Kunming, Yunnan; On May 18, Yonghui Superstores Co.Ltd(601933) announced the construction results of Yonghui Tianqu rice planting base. It can be seen that in recent years, all kinds of fresh retail enterprises represented by supermarkets, new retail, community group purchase and fresh e-commerce have continued to actively layout the direct purchase of fresh food in the upstream. From the definition, the direct purchase of fresh food in the retail industry refers to the direct supply cooperation between terminal retail companies and front-line producers such as upstream agricultural companies, agricultural cooperatives and farmers. We believe that the direct purchase of fresh food mainly empowers retail enterprises in terms of cost and product quality. First, in terms of cost: (1) directly cooperate with the source manufacturer across the distribution link to avoid the price increase in the intermediate link and benefit consumers; (2) Through long-term and stable cooperation with manufacturers based on large-scale orders, we can obtain strong bargaining power. Secondly, in terms of product quality: (1) optimize the production process and improve the product quality by exporting intelligent production technology to farmers; (2) Realize standardization and digitization and unify product specifications. (3) Accurately identify consumer preferences and needs through big data analysis and optimize products. However, we also note that there is a high threshold for retail enterprises to directly purchase fresh products, including procurement scale and stability, heavy asset investment and digital ability. We believe that as the source link of supply chain construction, direct fresh harvest is an important cornerstone to promote the refinement, standardization and digital development of fresh categories in the retail industry. The competition and evolution of the industry over the past years have also verified the importance of direct fresh harvest. At present, Yonghui Superstores Co.Ltd(601933) and other leading companies have the advantages of first release and resource endowment, and are expected to continue to develop and benefit in the future.
Industry Keywords: social zero data, jd.com, CMF lab, vipshop, jd.com 618, etc
[social zero data] in April 2022, the total amount of social zero in China was 2948.3 billion yuan, a year-on-year decrease of 11.1%.
[JD] JD’s revenue increased by 18% in the first quarter of fiscal year 2022, with 580 million active users.
[CMF laboratory] huaxizi unveiled the CMF laboratory established by China’s first beauty brand.
[vipshop] vipshop’s revenue fell by 11.1% in the first quarter of fiscal year 2022, and the number of super V active users increased by 37%.
[JD 618] JD 618 will be fully opened at 8 p.m. on May 23.
Plate Market Review
This week (from May 16 to May 20), the retail trade index closed at 265798 points, up 1.40%, 0.62 percentage points lower than the Shanghai Composite Index (up 2.02% this week), ranking 22nd among the 31 primary industries. Among the retail segments, the Internet e-commerce segment performed better this week, with the supermarket segment leading the increase since the beginning of 2022. In terms of individual stocks, this week China National Complete Plant Import And Export Co.Ltd(000151) (32.3%), Xinjiang Youhao(Group)Co.Ltd(600778) (16.8%), Guangzhou Ruoyuchen Technology Co.Ltd(003010) (14.1%) rose ahead.
Investment advice: focus on leading companies in cosmetics, medical beauty, gold jewelry and supermarkets
Investment main line 1 (cosmetics): continuous verification of large single product + multi-channel logic, focusing on recommending domestic beauty leaders Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Proya Cosmetics Co.Ltd(603605) , Lushang Health Industry Development Co.Ltd(600223) , and cosmetics raw materials leaders of beneficiary objects Nanjing Cosmos Chemical Co.Ltd(300856) etc;
Investment main line 2 (medical beauty): focus on recommending leading medical beauty products Imeik Technology Development Co.Ltd(300896) , Bloomage Biotechnology Corporation Limited(688363) ;
Investment main line 3 (gold jewelry and supermarket): pay attention to the increase of the market share of gold jewelry head brands, and highlight Guangdong Chj Industry Co.Ltd(002345) , Chow Tai Seng Jewellery Company Limited(002867) , DEA shares; Pay attention to the marginal improvement of the operation of leading supermarket enterprises caused by the change of market competition environment, and highlight Yonghui Superstores Co.Ltd(601933) and so on.
Risk tips: macroeconomic risks, repeated epidemics, intensified industry competition, etc.
