Exhibitor Introduction Changning District Exhibitor Theland from New Zealand invites you to participate in CIIE


Reprint from Shanghai Changning Business

It is a significant move for the Chinese government to hold CIIE to give firm support to trade liberalization and economic globalization and actively open the Chinese market to the world. It facilitates countries and regions all over the world to strengthen economic cooperation and trade and to promote global trade and world economic growth to make the world economy more open.

Today, we will introduce a company that participates in the first CIIE in Changning District---New Zealand Theland. Let us explore how New Zealand Theland milk products are guaranteed to be “fresh”.

Yu Yaoxiang CCIC Shanghai Vice President
Low validity period makes “fresh milk” (not UHT milk) to have many difficulties in storing, transporting and trading part., especially for imported fresh milk. This types of milk have time costs due to the clearance process. All these problems become the main reasons to prevent oversea premium fresh milk to enter the Chinese market. Recently, Imp-Exp Executive magazine interviewed the director of operation in Milk New Zealand, Guanglu Ma, and vice president of CCIC Shanghai, Yaoxiang Yu. The interview report not only exposed the secret why Theland fresh milk can complete all processes from farm to table in three days with the help of the traceability service conducted by CCIC. Meanwhile, the report also dug deeper and provided some further analysis for the requirements of some overseas companies about the port facilitation service.

“Freshest” from New Zealand----the secret from farm to table in three days
January 2018, as one of the representatives for the facilitation pilot corporation, “zero waiting” for clearance has been achieved for Theland imported products under the innovative regulatory model of "overseas inspection and domestic clearance" implemented by Shanghai Customs and Changning District government, pre-inspection and post-regulation are carried out and the business environment has been fundamentally optimized for the company with the traceability from CCIC..

It means the New Zealand original imported fresh milk only takes 3 days to get to the table of Shanghainese from the “Michelin-starred restaurant for cows”--- Collin Farm. There is no need for customers to go outside Shanghai to restore the “freshest” experience.
Gold milk sources debut freshly
Though Shanghai local dairy companies is competing fiercely and there is no spare market share, Theland fresh milk still grabs the attention of “Chinese Stomach” as the milk is produced from the golden milk source in the original ecological natural pasture for over 200 years, located at the 40 degrees south latitude, which is called “the last pure land of the world” with nearly zero PM 2.5. The confidence of the company’s product is from the innovative business model of Theland fresh milk. According to the reporter, Theland improves the efficiency of the commodity supply chain through the professional selection and direct purchase. On the other hand, Theland uses a method called “Transoceanic Farm to Store” to jointly build the retail platform “self-owned commodity supply chain” through the reconstruction of the retailer-supplier relationship. More creatively, Theland provides the consumers with digital user experience, realizing the consumption drainage and the members’ precipitation for the retail platform and thus improve the efficiency of consumer user experience. It is reported that customers in the Yangtze Delta can purchase Theland fresh milk through Alibaba VIP membership channel online. They can also purchase from local supermarkets like RT-Mart, Lianhua and Sanjiang or from Ali’s new retail channel “Hema Fresh” to get exclusive treatment.
One code per bottle, “freshness” is guaranteed
As we all know, fresh milk only have 7 to 15 validity period. How to decrease the clearance time for commodity, lower the clearance cost and quality risk, increase the commodity shelf time are what customers and enterprises focused on. When talking about the “fresh” strategy for Theland fresh milk, the CEO of Theland Wenhao Sheng proposed that apart from the innovative attempt on the production process, the corporation with CCIC is also a good way to keep milk “fresh”. He pointed the traceable QR code conducted by CCIC on the Theland fresh milk bottle and said that it is the QR code on the bottle that achieves good marketing feedback and enthusiastic customers pursuit.

Imp-Exp Executive reporter scan the QR code on the Theland fresh milk bottle and found all the details related to safety control are transparent including overseas pasture, production, inspection, air freight, airport transportation, and port inspection. This QR code satisfies almost every customers’ quality safety requirements about the fresh milk from farm to table. “As the clearance time decreases greatly and customers can recognized product quality through traceability QR code, our sales volume increases from 3,000 bottles per week to nearly 40,000 per week with numerous praise from customers. The repurchase rate is 33%. Such a high repurchase rate is quite rare in FMCG field.” said Ma, excitedly.

Traceability service, breakthrough the level of “freshness”
The visual traceability of fresh milk not only meets the needs of the customers’ quality safety requirements but also improves the time and economic efficiency for Theland Company itself. Yaoxiang Yu, the vice president of CCIC Shanghai is responsible for the traceability project for New Zealand fresh milk. He said proudly to the journalist that the products with CCIC traceability service have already approved by part of the port supervision department in China. It makes the clearance more convenient, improves the clearance efficiency for imported goods and dramatically reduces the clearance costs.

Yu uses Theland as an example. In the past, when Theland fresh milk arrived at Pudong Airport for the clearance, it took 3 to 4 days to waiting for the reporting, controlling, inspection and visa process. 4 or 5 more days are needed if the products are required to have detailed inspection in the lab. After using the traceability service, it seems that one more session is added but it does not increase the overall time outside China as this service is conducted with the production process at the same time. When the product is ready to be supervised in the port, the staff member of the supervision department can have a good command of the quality safety condition at once so that they can complete the clearance quickly. Thus, the waiting time decreases from 3 to 4 days to 0.5 to 1 days. Based on the innovative supervision model of the traceability service, enterprise saved clearance time and extended the sales time on the shelf, which reduced the damage cost caused by the short shelf time.

Yu makes a simple evaluation for the enterprise: assume that the attrition rate is around 5%, the price is 50 yuan per bottle and the imported volume is 520 thousand bottles every year (10 thousand per week). The damage cost is about 1.3 million yuan. If the imported volume increases to 3.6 million bottles every year (300 thousand per month), the damage cost will be 9 million yuan. The ROI is about 1:9. It shows that the quality traceability service will not increase the cost of the company but reduce their damage cost. It can also help the company to reduce the cost for the crackdown on fake products.

Focus on “fresh” and look forward to Chinese market
Theland is the beneficiary of the business environment optimization and trade facilitation policy implemented by the Shanghai government and Shanghai Customs. It benefits from CICC traceability service as well. It is reported that the Shanghai port is the main clearance port for imported meat, edible vegetable oil, and dairy products in China. In recent years, with the increase of Chinese customer’s living standard and the national policy that encourage to import premium products overseas, the number of types and the value of products imported to Shanghai Port increases rapidly. The supervised department in Shanghai Port increases the effort of supervision to the quality of imported products. More and more companies start using CCIC traceability service to provide a quality description for their imported products and help them to realize the convenient clearance.
When asking Theland for the further requirements about the future port convenience, Sheng proposed: “Considering the order mode of the company, customers generally buy the monthly or quarterly product in one time continuously. Therefore, I hope the products can get access to clearance at weekends and on public holidays in the future. Meanwhile, Sheng forecasts that the sales volume will reach 100,000 bottles per week in the future if the transportation ability is improved. Now, these products are mainly sold in the Yangtze Delta Region. The characteristic of the products force them to dig the market much deeper. Not only the Yangtze Delta Region, Beijing, Tianjin, Guangdong, and Shenzhen will be the target area for the products. Theland expects that there are 300 million middle-class customers out of 1.3 billion Chinese people. It has a huge market potential with great profits for the consumption upgrade. Theland firmly believes that it is just a beginning now and the future is promising.

Source: CCIC Group Global Products Traceability

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