SE Asia key focus for Panpan's expansion
Panpan Foods Group, a Jinjiang, Fujian province-based snack food maker, has continued to accelerate the pace of its international expansion, especially in markets involved in the Belt and Road Initiative.
So far, the company has exported products such as snack food and beverages to more than 50 countries. Taking Southeast Asia as a hub, Panpan has established a coconut plantation of about 67 hectares in Thailand as a raw material base for making coconut beverages.
The company has also built a factory in Indonesia that produces coconut milk and concentrated coconut water, and is building a food plant there.
By establishing a supply chain and strengthening research and development efforts overseas, Panpan aims to develop more snack food products that meet the taste preferences of local consumers.
"Such an overseas strategy will help us to reduce logistics costs and ensure the quality of products with our own raw materials. We would like to gradually build a food industry belt in markets involved in the BRI and continue to expand our presence globally," said Cai Jin'an, chairman of Panpan Foods Group.
Cai added that the Southeast Asia market stands as one of its main overseas targets, as a large number of overseas Chinese live in the region, with many of them having moved there from Fujian.
In addition, Panpan has strengthened its cooperation with domestic and foreign supermarket chains that are operating in China. These include Sam's Club, Costco and Freshippo, with Panpan providing beverages specifically for different supermarkets.
Founded in 1996, the private company said it next plans to develop more beverages with food and medical benefits to cater to the growing demand of Chinese consumers who are more health-conscious.
Fueled by the booming growth of e-commerce transactions in China, the company has continued to strengthen its marketing efforts of online sales, such as carrying out livestreaming sessions and cooperating with online celebrity anchors. In the first half, its online sales revenue jumped 43 percent year-on-year.
Besides Panpan, several top-ranking Chinese sportswear brands such as Anta, Xtep and 361 Degrees were founded in Jinjiang, a county-level city in Fujian, thanks to the burgeoning private economy in the region and a spirit of pioneering and entrepreneurship, which helped to create the "Jinjiang Experience".
Over the years, under the guidance of the "Jinjiang Experience", the city has grown its economy rapidly, mainly supported by the growth of the real economy.
Liu Longzhen, deputy director of the bureau of commerce in Quanzhou, said that with a spirit of daring, local enterprises have been continuously innovating and creating new consumption scenarios.
"For instance, Jinjiang-based Chinese menswear brand Septwolves cooperated with a tea brand in Fujian and put on a fashion show earlier this year. Such companies have been daring to try and willing to cooperate across different sectors," Liu said.
In the first half, Jinjiang achieved a regional GDP of 160.1 billion yuan ($22.3 billion), up 6.5 percent year-on-year, according to the local government.
Contact the writers at zhuwenqian@chinadaily.com.cn
