wet tissue suppliers Missfresh’s continuous investment in its supply chain and internal food brands has helped the company achieve an excellent shopping experience, higher gross profit margin and overall competitiveness
Beijing, November 2, 2021/PRNewswire/ – Missfresh Limited (“Missfresh” or “Company”) (NASDAQ: MF), an innovator and leader in China’s neighborhood retail industry, has its own The sales of fresh food brands achieved sales in the third quarter of 2021, and “Xiang Anxin” increased by 250% compared with the same period last year. The significant increase in product sales is the result of Missfresh’s continued investment in its supply chain, and is also driven by the industry trend of private label products becoming a new growth driver for leading retailers.
Xiang Anxin was launched in 2016, which refers to high-quality products trusted by customers, providing value-for-money and safe fresh food. The series has grown to include more than 200 products such as meat, eggs, vegetables and baked goods.
Private brands—also known as private labels, private labels, or store brands—are increasingly popular with consumers because of their price points and unique product differentiation that provide great value. According to the “2021 China Private Brand Industry Development White Paper” released by private brand solution provider Dimon International, China’s private brand market will grow by 22.7% in 2020, and the ultra-fast consumer products in this segment will grow by more than 12 times. In particular, the fresh electricity product category is one of the categories with the highest growth rate.
Missfresh created the Xianganxin fresh brand for its on-demand online retail platform because it enables the company to more closely control and ensure product consistency and quality, achieve higher gross profit margins, and make AI-driven customers to manufacturers (C2M)) Produce and purchase directly from the origin of the product as much as possible, eliminating unnecessary middlemen.
Industry insiders agree that the reason why private brands can be on the front line of the highly competitive e-commerce arena is because companies can increase the gross profit margin of a single product and stabilize the quantity and quality of product supply. Retailers are also constantly creating new products to stand out from the competition, thereby providing consumers with diversified choices and avoiding homogeneity.
A good example: Missfresh adjusts its fresh food supply according to demand while minimizing food waste. For example, after discovering the customer’s preference for cartilage ribs, Missfresh repackaged and listed alternative cuts under the Xianganxin brand. The product quickly became one of the top ten products on the platform. Similarly, Missfresh noticed that customers in North China like to eat meat, and began to provide them with more Xiang Anxin ribs and pork belly. This method provides Missfresh customers with a wider variety of purchase options at a competitive price.
Missfresh is committed to continuously enhancing its supply chain and recently announced that it has expanded its network to include 200 farms and 350 factories and processing facilities in China, directly supplying Missfresh with fresh, high-quality products.
Suppliers of Missfresh Xianganxin products have been strictly screened and must have high-level production and management capabilities. For example, Missfresh signed an agreement with the well-known multinational dairy producer Fonterra to purchase SQF-certified high-calcium fresh milk for Xiang Anxin in most cases, containing 125 mg of calcium per 100 ml. China’s fresh milk strives to meet the ideal target of 120 mg/100 ml calcium content required for daily nutrition. The high-calcium fresh milk jointly created by Missfresh and Fonterra won the 2020 China Private Brand Big Gold Star Award.
In addition to enjoying peace of mind, Missfresh is also working on more private brands to improve the shopping experience and gross profit margin of the platform. These include the “Food Wonderland Workshop” series of dried fruit snacks, and the “Made by Missfresh” series of daily necessities, such as disposable noodles, plastic wrap and wet tissues.
Missfresh Limited (NASDAQ: MF) is an innovator and leader in China’s community retail industry. We invented the Distributed Mini Warehouse (DMW) model to operate an integrated online and offline on-demand retail business, focusing on providing fresh produce and fast moving consumer goods (FMCG). Through our “Missfresh” mobile application and small programs embedded in third-party social platforms, consumers can easily buy high-quality food at their fingertips and deliver the best products to their doorsteps in an average of 37 minutes. With our core capabilities, we launched the smart fresh market business in the second half of 2020. This innovative business model is dedicated to standardizing the fresh food market and transforming it into a smart fresh food mall. We have also established a complete set of proprietary technologies to enable a wide range of community retail business participants, such as supermarkets, fresh food markets and local retailers, to quickly start and efficiently operate their business marketing and smart supply across smart omni-channels and digitally. Chain management and store-to-home delivery capabilities.
Post time: Nov-16-2021