Small Packaged Edible Oil Reduces Price for High-end Market

On the one hand, there is a huge potential for small packaged edible oils. On the other hand, the competition for small packaged edible oils is fierce. From the recent marketing conference held in Nanning, southwest of China, held in Nanning, Guangxi, it was learned that in many regions, small-packaged edible oils are quietly cutting prices. The core is to compete for a huge market share of high-end edible oil.

Wu Dong, a seller of small packaged edible oil wholesalers in Guangxi, Yunnan, Guizhou and Sichuan, cited the “giant” who quietly cut prices. From mid-April onwards, Jinlong Yu, a subsidiary of Yihai Kerry, was the first to cut prices nationwide. The drop ranged from 8% to 15%, and the price cuts included two categories of blended oil and soybean oil. In early May, as a competitor, the Fulinmen brand also reported price cuts. Soybean oil cut its price by 16% and reconciled oil prices by 9%.

Industry analysts believe that Jinlongyu's price cuts are based on the fact that the purchase point of its own raw soybeans is better than Fulinmen's, and that the price of raw materials has fallen as a whole, leading to the “price war” quietly starting. This year, soybean prices once fell from 8,800 yuan per ton to 7,700 yuan per ton.

Not only that, after more than 20 years of market-oriented operation, the concentration of small packaged edible oil in China has been very high, and the market share of the top five brands is already close to 80%. In such a fierce competitive environment, it is necessary to have powerful multiple means to really make a breakthrough.

The information from the conference was: As a "crocodile" of the small packaged oil market, China Grains has completed negotiations with supermarket chains such as Wal-Mart and China Resources Vanguard in South China. This year, a total of 80,000 sales outlets have been laid. At the same time, in order to achieve the strategic objective of staying at the top of the list, China Grain has adopted a follow-up strategy in terms of pricing, that is, any product in China Grain Reserve will be 1 to 2 yuan lower than the same products of Arowana, Fulinmen and Luhua.

Industry analysts believe that as the country’s consumption level rises, price fluctuations will not have too much impact on consumers’ mentality. It is the concept of health, safety and green that will be more inspiring. This means that the more transparent and transparent production, transportation, sales, and quality control concepts are the core competitiveness of the small packaged oil market in the future.