Jianong group, the leader of fresh supply chain, started the transformation of “brand building”.
“Fruit is a fast-moving consumer goods, which has the characteristics of short shelf life, perishable and other industries. Generally, there are only general commodities in the market, and the brand concept is very weak. Now, the homogenization development of the industry also makes the transformation of the industry very difficult. Therefore, we should occupy the minds of consumers and upgrade and build brands on the premise of ensuring product quality based on our own cold chain system.” On January 16, Liu Zijie, founder and chairman of Canon Food Holdings (Group) Co., Ltd. (hereinafter referred to as “Canon group”), said in an interview with a small range of media including surging news,
The business of Canon group began in 2002. It is a leading enterprise in China’s fresh food supply chain service industry. Fruit and vegetable import and export business with bananas as the main products, emerging business with meat, seafood and leisure food as the main products, and distribution of well-known brands such as New Zealand Jiapei kiwi fruit. Chinese customers include large supermarkets, e-commerce, fruit chain stores, new retail stores and large wholesalers.
On the same day, Canon group and Focus Media Information Technology Co.Ltd(002027) held a brand strategic cooperation conference at Canon headquarters and signed a strategic cooperation agreement. Liu Zijie said that as a comprehensive fruit fresh company in the industry, the product itself has a very wide distribution network and has done a lot of work in offline in-depth distribution. However, the investment in brand building is not enough. The strategic cooperation with Focus Media Information Technology Co.Ltd(002027) also marks the start of Jianong group’s entrepreneurship again.
Based on the industry characteristics of short shelf life and weak standardization, it is difficult for comprehensive fresh fruit enterprises to become bigger and stronger. Why did Canon choose to upgrade the brand at this time?
Liu Zijie said that after the headquarters of Canon group was changed to Shanghai 10 years ago, Canon’s processing capacity can fully carry the standardized needs of consumers in first tier cities for small portions of fruits, sell them by individual, root and box, and turn simple fruit products into leisure food for marketing. In terms of gift attributes, Canon also has upgraded cognition. Coupled with the original foundation of in-depth distribution, it has reached the stage of detonating the brand.
“In 2022, the cooperation between Jianong group and Focus Media Information Technology Co.Ltd(002027) is expected to have a significant increase in performance.” Liu Zijie said that focus advertising will first choose office buildings and residential buildings in three first tier developed cities: Beijing, Shanghai and Shenzhen. The company will supervise the distribution channels based on product quality control. Based on the launch of Focus Media Information Technology Co.Ltd(002027) , Canon will strengthen in two scenarios. First of all, the main offline channels include shopping malls, supermarkets, fruit stores, etc. online cooperation platforms such as HEMA carry out standardized control on Wuxi Online Offline Communication Information Technology Co.Ltd(300959) products such as slogans and brands. Secondly, adapt to various festivals including the Spring Festival and upgrade the gift attribute of fruit.
“By 2025, Jianong group plans to achieve 12 billion yuan of sales in the fruit sector.” Liu Zijie said that with the business development, there will be expansion and transformation of some full load market cold storage, and the investment in prolos cold storage will be strengthened in the future.
It is reported that last year, the sales volume of the fruit sector of Jianong group was 5.3 billion yuan. Canon will double its sales in four years.
“At present, Canon group has good cash flow and has done enough work in the direction of IPO to strive to be natural.” It is reported that Canon submitted a prospectus in 2019, planned to sprint for A-share listing, and terminated the review in 2020. Liu Zijie introduced that the entrepreneurial partnership system has been implemented within Jianong group, which provides institutional guarantee for the future business expansion of the group.
