Since 1978, China has attracted countless foreign companies to invest in China with its vast land and one-fifth of the world's population. Most of these foreign companies that entered China in the 1980s and 1990s have a common characteristic, which is that they have a very Chinese name. , golden dragon fish, and are one of them.
As the pioneer of small-packaged edible oil in China, Singaporean Arowana has occupied 40% of China’s edible oil market and has defended its sales title for 12 consecutive years. Last year alone, the net profit was 226.2 billion, which is hard for domestic grain and oil companies to match. How did Arowana develop into China’s largest edible oil company? What impact will its development have on China's local industries?
1. The Golden Arowana in an uninhabited land
In 1978, China introduced a large number of foreign capital and foreign companies to prosper the economy. So in 1991, Singaporean Chinese uncles Kuok Henian and Guo Kongfeng founded Arowana in Nanhai, Shenzhen. Since then, Arowana cooking oil has entered the kitchens of thousands of families in China. Why was Arowana so quickly recognized by the Chinese market when it was founded?
Before Arowana entered the Chinese market, that is, before the 1990s, most of China's edible oils were oil pressed using ancient methods passed down from ancient times. In the north, soybean oil and peanut oil are the main products, while in the south, rapeseed oil and tea seed oil are the main products. Household edible meat oils across the country are mainly based on home-refined lard.
But whether it is vegetarian oil or meat oil, these edible oils have two fatal shortcomings. First, the quality of cooking oil is not good. Not only does it have many impurities, but it also produces a lot of cooking fumes. Secondly, except for home-made lard, most other edible oils are loose oils. There is no unified quality standard, and safety and hygiene are not guaranteed. To put it bluntly, they are the "three non-products" of small workshops.
As the economic level improved in the late 1980s and 1990s, people's demands for quality of life followed. The first thing to change was food. However, at this time, the development of China's local grain and oil industry was very slow. If you wanted to buy oil, you could only take oil stamps to the production team in exchange for bulk oil. There was nothing in the field of small-package edible oil with strict quality control.
It was when this product could not meet people's pursuit of living standards that Arowana took the first bottle of Arowana small-package cooking oil it produced, marking the first shot in China's transition from bulk oil to small-package oil. Coupled with the brand name Arowana, which has Chinese characteristics and culture, the meaning of auspiciousness, wealth, nobility and luck quickly attracted most Chinese consumers.
In the thirty or forty years since it took root in China, the development of Arowana can be said to be in an uninhabited country. There were neither strong established competitors before, nor rising stars that could catch up. Arowana's industrial chain has also expanded from small packages of edible oil to blended oil, soybean oil, rapeseed oil, etc.
's business scope ranges from China's famous brand products to the exclusive supplier of the Olympic Games, to the member of the China Culinary Association, hosting the eight major cuisines application and related competitions, opening arowana chef training courses, etc. Although it is a Singaporean industry, it takes on the responsibility of Chinese food in the development of the enterprise. No wonder some people call it a domestic enterprise.
Last year, Arowana won the sales championship with 40% of the market share , with a profit of 226.2 billion yuan, making it the largest edible oil company in China. As a necessary and fast-moving consumable product in Chinese kitchens, edible oil has such a huge market that local companies would not be willing to take a piece of the pie. What impact will the "Big Golden Dragon" entrenched in China's edible oil market have on the development of local companies?
2. The difficult development of domestic edible oil
. The market of domestic edible oil is small, only 30%
According to relevant data, 70% of my country's edible oil market is occupied by foreign companies.These foreign companies are either old brands like Arowana or emerging mid-to-high-end brands with very high consumer stickiness and very high subscription rates.
. Domestic grain and oil brands lack competitive advantages
Whether it is products or raw materials, domestic grain and oil brands lack competitive advantages. At present, the domestically produced edible oils are Wu Feng and Liangyou, which are slightly well-known. The taste of the oil is different from that of Arowana. It is a long and difficult process for people who are accustomed to eating arowana to change their taste. In addition, in order to meet market needs, raw materials for the production of soybean oil, olive oil, corn oil and other oils need to be imported from abroad. Domestic brands lack price advantages or have relatively low profits.
Conclusion
Based on the above, my country’s edible oil market has been dominated by foreign companies for a long time and will be for a long time in the future. The development of local brands is an arduous and difficult task. But no matter how difficult it is, we cannot give up. Guochao and domestic products must strive to be at the forefront of China's economic development.
The development of foreign companies in China has gone through the direct export of goods to China and the establishment of joint ventures in multinational companies in China. Until now, wholly-owned and wholly-owned foreign companies have flourished everywhere and made a lot of money. After the outbreak of the COVID-19 epidemic, the consumption power of Chinese people has risen against the world's decline, which has attracted the attention of the international community. Many foreign companies have increased investment in China. What are your thoughts on this?
