Baolingbao Prepares to Open Online Shop of IMO End Product

According to CCM International's investigation on 22 June 2012 to Baolingbao Biology Co., Ltd. (Baolingbao), the largest isomalto-oligosaccharide (IMO) producer in China, the company is preparing to open an online shop on tmall.com, one main large business-to-consumer (B2C) e-commerce platform belonging to Alibaba Group in China, which aims at promoting its brand and an end product of IMO, also a health care product called "Shuang Qi Run Sheng" (SQRS). However, Baolingbao expressed that the specific launch date and the price have not been determined, according to CCM’s July issue of Sweeteners China News.

It is predicted that this online shop on tmall.com may help the selling and popularity of Baolingbao's SQRS in the future. According to Baolingbao, the company's opening an online shop on tmall.com is to help the brand promotion of SQRS, which may attract customers to buy the company's products in entity selling shops, while traditional sales channels will still be dominant , such as drug stores and supermarkets. Additionally, Baolingbao's gross margin of IMO decreased obviously from 2008 to 2010, so the SQRS may become a potential new profit growth point for the company's IMO.

 

In fact, Baolingbao has put efforts to promote its SQRS in the past few years. For example, Baolingbao opened an online shop on taobao.com, the largest consumer-to-consumer (C2C) e-commerce platform in China also belonging to Alibaba Group, to promote its brand and IMO in 2009. However, since the company hasn't received the end product selling license in China until 2012, it did not sell SQRS before 2012. 

There are two key reasons attracting Baolingbao to open online shop to sell its product on tmall.com.

 

Firstly, as the Internet has developed fast and online shopping has been accepted by more and more Chinese people over the past few years, Baolingbao hopes to promote its end product of IMO through online shop as a marketing strategy. In fact, according to China Internet Network Information Center (CINIC), the number of Chinese Internet users reached about 513 million by the end of 2011, and about 56 million were new users this year. Besides, in line with Alibaba Group, tmall.com has ever attracted 55 million daily visits before. And because of such a large number of Internet users in China, the company chooses network media for marketing.

 

Secondly, the rapid growth of Chinese e-commerce transactions also attracts Baolingbao to open this online shop. The company expressed that it is exploring various sales channels for its end product of IMO in China, and Internet sale may become a new important sales channel for the product in the future. As a matter of fact, with the improved living standards and the transformation of consumption pattern of Chinese people, more and more Chinese people prefer shopping online. Moreover, Chinese e-commerce has enjoyed a rapid growth over the past few years. For example, Chinese e-commerce transactions reached about USD943.3 billion in 2011, increasing by 28.8% over 2010, according to CCID Consulting Co., Ltd., a consulting company in China.

 

It's worth noting that many sweetener producers, including GLG Life Tech Corporation, Xiwang Sugar Holdings Company Limited and Shandong Futaste Technology Group Co., Ltd., etc., have opened online shops for their end products of non-calorie sweeteners in China during the past few years. It is observed that Chinese sweetener producers are tend to increasingly focus on the end products with high gross margin and diversify their sales channels, such as network marketing. For example, GLG Life Tech Corporation has opened an online shop on taobao.com to promote its tabletop sweeteners (zero-calorie one containing stevia sweetener only and low-calorie one containing stevia sweetener and sucrose) and other products in Jan. 2012.

Source: Sweeteners China News 1207

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1207:

China imported 254,046 tonnes of sucrose in May 2012

Industrial standard for L-arabinose launched

National HFCS summit forum to held in Beijing

JK Sucralose held meeting on implementation of Food Safety Law

Changzhou Niutang awarded as advanced enterprise in Jiangsu

China's import volume of corn increases by seventyfold in Jan.-May 2012

Tight supply of domestic sucralose in June 2012

Erythritol industry develops smoothly in H1 2012

Government launched 12th Five-Year Plan for National Food Safety Standard

Domestic crystallized glucose performs poorly in H1 2012

… …

If you are interested in CCM International’s July issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1130.html

Sweetener Industry May Benefit from Quality Credit System Construction

On 2 May 2012, the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China issued an announcement to promote the construction of Quality Credit System, aiming to strengthen the social consciousness of quality credit. And both food industry and food additive industry are listed as pilot units. Of course, as a member of the food additive industry, sweetener industry is also on the list. It is predicted that the construction of Quality Credit System may bring some new development opportunities to sweetener industry in China, according to CCM’s June issue of Sweeteners China News.

In fact, since people's consciousness of food safety has enhanced and food safety incidents have frequently emerged in the past few years, Chinese government has taken a number of measures to deal with food safety problems. For example, on 13 Oct. 2011, the Ministry of Health established the National Food Safety Risk Assessment Center in Beijing. This time, food industry and food additive industry are also involved in the announcement mentioned above, which is one measure taken by Chinese government to deal with food safety problems. According to the announcement, local governments shall take a series of measures to strengthen the social consciousness of quality credit: establish enterprise quality credit files with real-name system; found public service platform for products' credit information; strengthen quality credit evaluation system; intensify punishment for missing of quality credit and implement classification supervision by quality credit rating.

For sweetener producers in China, to become a quality credit demonstration unit will be conducive to their development.

 

Firstly, becoming a quality credit demonstration unit may bring them more opportunities. In fact, as a major downstream market of sweeteners, food industry (including both food and beverages) prefers sweetener suppliers with high quality credit in China attributed to the following two aspects. On one hand, food industry is also listed as a pilot unit in the construction of Quality Credit System. It is believed that in order to enjoy a good development in the future, food enterprises should make efforts to improve the quality of their products. On the other hand, food safety incidents have frequently emerged in China in the past few years, such as the scandal of carcinogens contained in dairy products of Inner Mongolia Mengniu Dairy (Group) Co., Ltd., a major dairy producer in China. Therefore, in addition to improving product quality, food enterprises will also put more emphasis on selecting those raw material suppliers with credible and good corporate image, such as sweetener suppliers with good quality credit. Moreover, if a sweetener producer is a quality credit demonstration unit, its products are easier to get preference from downstream companies.

 

Secondly, becoming a quality credit demonstration unit makes sweetener producers more likely to get government aid. Actually, Chinese government always encourages the development of those enterprises that follow the government's development plan through various ways, such as reducing tax and providing credit. Since Chinese government has put forward to promote the construction of Quality Trust System, it must encourage enterprises that are actively involved. For example, in order to promote the development of renewable energy and new energy, Chinese government has provided subsidies for fuel ethanol producers since 2004. COFCO Biochemical (Anhui) Co., Ltd., the largest fuel ethanol producer in China, for example, got a subsidy of USD86.46 million from the government in 2011, which is more than the company's sales deficit. 

However, how can a company become a quality credit demonstration unit in China? It is estimated that sweetener producers can make efforts in the following aspects: firstly, the quality of products should conform to the standards both at home and abroad or to industrial standards; secondly, they must pass the random check on product quality carried by local governments; thirdly, they should build up a positive image and reputation.

Source: Sweeteners China News 1206

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1206:

China's saccharin output reaches 3,043 tonnes in Q1 2012

CSA releases reward notice to against sugar smuggling

National food safety standard of maltitol launched

Output value of China's beverage industry increases in Jan.-April 2012

Global Sweeteners may suffer net loss in H1 2012

Layn to merge wholly-owned subsidiary

EU makes final verdict of anti-dumping investigation into Chinese cyclamate

Consumption of acesulfame-K in China expected to increase in 2012

Overview of Chinese sorbitol industry in Jan.- May 2012

Sweetener industry may benefit from Quality Credit System construction

FOS drives Shandong Baolingbao and QHT to perform well in Q1 2012

Xiwang Sugar further focuses on HFCS business

Shanghai Suzan starts sucralose project

… …

If you are interested in CCM International’s June issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1116.html