Innovative dairy supply leads consumer demand

Conform to the new trend of domestic consumption upgrading and promote the structural reform of dairy supply side

Innovative dairy supply leads consumer demand

Promoting structural reform on the supply side is an inevitable requirement for sustained and healthy economic development under the new normal, and it is also the only way for China's economy to move towards "double, medium and high", which concerns the overall situation and the long term. The central government proposed to promote the upgrading of consumption structure, give play to the leading role of new consumption, accelerate the cultivation and formation of new supply power, and release a strong signal to strengthen supply-side structural reform in the consumption field. In the face of the new trend of consumption upgrading, how to promote and deepen the structural reform on the supply side is a question that the dairy industry needs to seriously consider.

Find out the new context of upgrading consumption structure

Consumption demand upgrading is mainly reflected in four aspects: consumption quality, consumption pattern, consumption mode and consumption behavior

In 2015, consumption became the primary driving force for China's economic growth. The total retail sales of social consumer goods exceeded 30 trillion yuan in 2015, up 10.7% year-on-year after deducting price factors, and the contribution rate of consumption to economic growth exceeded 60%.

In addition to the growth of consumption scale, we should pay more attention to the deeper changes in the consumption field, that is, with the continuous improvement of China's per capita income, the upgrading trend of consumption structure is increasingly obvious, mainly reflected in four aspects: consumption quality, consumption pattern, consumption mode and consumption behavior:

Consumption quality changes from "able to eat and wear" to "want to eat well". Data show that in 2015, China's urban residents 'per capita food consumption decreased by 7.2% compared with 2013, while the per capita consumption of meat, poultry and eggs increased by 1.7%, 16.2% and 11.2% respectively compared with 2013; rural residents' per capita food consumption decreased by 5.5% compared with 2013, while the per capita consumption of meat, poultry and eggs increased by 1.5%, 7.5% and 9.2% respectively compared with 2013. It can be said that in terms of eating, the Chinese are no longer satisfied with the previous satiety, but also eat nutritious and healthy.

The consumption pattern has changed from "buying products" to "buying services". After solving the problem of food and clothing, people pay more and more attention to the quality of life. In 2015, housing, transportation and communication, education, culture and entertainment, and medical care accounted for more than half of the total consumption expenditure of Chinese residents. Especially in recent years, communication, film, tourism and other service consumption continued to be hot and gradually became new consumption growth points.

The consumption mode changes from "offline purchase" to "online purchase". The breakthrough of Internet technology in these years has driven the rapid development of China's e-commerce and is subverting the traditional consumption model. At the end of last year, China's Internet penetration rate exceeded 50%, and the number of Internet users reached nearly 700 million. In 2015, China's online retail sales exceeded 3.8 trillion yuan, up 33.3% year-on-year, significantly higher than the growth rate of total retail sales of social consumer goods.

Consumer behavior has changed from "standardization" to "individualization". In the past, when consumption capacity was low and consumer goods supply was insufficient, commodities were basically the same, and consumers had few choices. With the improvement of people's living standards and the increase of consumer goods supply, consumers of different gender, income and cultural background will make personalized consumption according to their own needs.

For dairy enterprises, only by conforming to the general trend of consumption upgrading, further innovating supply, tapping consumption potential and promoting consumption upgrading can the sustainable and healthy development of enterprises be realized under the new normal.

Multi-measures simultaneously increase the effective supply of dairy industry

China's dairy industry should take technological innovation and system innovation as the starting point, take brand consumption, quality consumption, service consumption and experience consumption as the main direction, and meet the booming new consumption demand.

At present, China has become a big country in milk production, processing and consumption in the world, but the per capita milk consumption level is still relatively low, about 1/2 of the Asian average level and 1/3 of the world average level, and the consumption growth potential is huge. Therefore, China's dairy industry should promote the structural reform of dairy supply side from four aspects: brand, quality, service and experience.

Tell a good brand story and create a good reputation. During the 2012 London Olympic Games, Yili launched the theme activity of "Ordinary Chinese, Extraordinary Stories", which inspired and inspired many Chinese to devote themselves to active and sunny sports. Yili's brand is also deeply rooted in the hearts of thousands of consumers. In the list of the most valuable Chinese brands released by WPP Group earlier this year, Yili ranked first in the food category with a brand value of US $5.1 billion.

Continuously improve quality and aim at the best in the world. For the food industry, product quality is the life of the enterprise. Yili has done a lot of work in product quality management. Taking standards as an example, Yili has set up internal control lines stricter than national standards on the basis of national legal standards, and set up early warning lines stricter than internal control lines on the basis of internal control to improve safety risk management and control capabilities. Many of the world's top dairy suppliers believe that Yili's standards are "unprecedented", and some of Yili's dairy raw materials even need to be customized by suppliers to meet the requirements.

Pay close attention to consumption demand and provide convenient services. In terms of traditional channels, Yili provides professional services for retail customers and dealers by establishing a multifunctional service team with "shoppers as the core"; in terms of emerging channels, Yili actively develops new resources such as e-commerce, convenience stores, restaurants and pharmacies, and strengthens strategic cooperation with Tmall, Jingdong and Suning. At the beginning of this year, Yili and Jingdong launched an intelligent hardware, consumers only need to press a button, the system will automatically order designated goods according to the consumer's settings and deliver them to home, truly realizing "one-click service."

Enhance user experience with cutting-edge technology. In the process of consumption upgrading, the trend of consumer demand shifting from "product" to "experience" is becoming more and more obvious, so Yili will persist in expanding factory visit activities from domestic to foreign countries for many years; in cooperation with search engines, with the help of panoramic technology and AR technology, you can visit all links of Yili's global industrial chain online and communicate with intelligent robots by voice. Up to now, nearly 50 million people have visited Yili's global industrial chain online and offline.

New consumer demand is the driving force behind economic development. China's dairy industry should take technological innovation and system innovation as the starting point, take brand consumption, quality consumption, service consumption and experience consumption as the main direction, effectively increase new supply and effective supply, create, guide and meet the booming new consumption demand, and promote the formation of new impetus for economic development.

(The author is Vice Chairman of All-China Federation of Industry and Commerce and Chairman and President of Yili Group)