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Recently, leaders from the Quanzhou municipal government, during a research visit to the food industry, pointed out that “Quanzhou has already established three major industrial clusters — textiles and apparel, footwear, and petrochemicals — each with a value exceeding 100 billion yuan, and is now pushing for the rapid development of the food industry into the same 100-billion-yuan cluster.”
Over the years, a number of food companies in Quanzhou have grown steadily despite intense competition. With increasing efforts in brand building, Quanzhou’s food industry has started to gain national recognition. Currently, the city boasts 9 China Famous Brands, 11 well-known Chinese trademarks, 33 provincial-brand products, and 32 provincial-famous trademarks. Leading brands such as Dali, Qinqin, Panpan, Huichuan, Zhonglv, Crayon Shin-chan, and Fuma have made a significant impact in the national market, while other excellent local food enterprises like Wushi, Ledangjia, Kuaibu, Yiqing, and Jinyuanshan continue to thrive in the Fujian market. Together, they form a powerful force in the food sector, carving out a unique development path for Quanzhou’s food industry.
How to Achieve the 100-Billion-Yuan Milestone?
Lin Qinghan, Secretary-General of the Quanzhou Food Industry Association, believes that innovation and development are the key themes for achieving this goal. Founded in 2006, Huitouke Food (Fujian) Company has fully tapped into market demand, precisely targeting its audience, and continually launching innovative products. The company has also integrated media and channel resources to enhance its brand image, developing a comprehensive marketing model that has placed it among the leaders in the snack food industry.
Expanding nationally is also the primary development direction for Quanzhou’s food companies. Lin Qinghan’s research shows that a number of Quanzhou’s food enterprises are experiencing strong growth, with sales increasing by 30% annually, and some companies seeing growth rates as high as 60%. A common characteristic of these companies is their ambition to expand nationwide. Fujian Mount Everest Food Co., Ltd., a company that integrates food development and marketing, has established a nationwide sales network and become an influential brand in the domestic market. Some originally local enterprises are also actively expanding beyond their home markets. For example, Wutexiang Food Co., Ltd., based in Quanzhou, plans to significantly expand in regions like Fuzhou, Putian, Zhangzhou, and Sanming, and Chairman Wu Weiguo has stated, “The company’s next step is to expand into large cities such as Chengdu, Changsha, and Wuhan, which have large populations.”
Overcoming Financial Challenges
While Quanzhou’s food enterprises are experiencing strong growth, many face challenges related to financial shortages. How to address this issue? The Quanzhou Food Industry Association, in collaboration with the Minsheng Bank Quanzhou branch, has pioneered the establishment of the Food and Beverage Industry Center, an initiative designed to provide financial support exclusively to local food enterprises. According to Dr. Wu Haibing, a representative from Minsheng Bank Quanzhou Branch, the center aims to provide capital support to help food companies strengthen and grow. Minsheng Bank Quanzhou Branch plans to invest 3 billion yuan over the next two years to support the development of the food industry and alleviate the financing difficulties faced by food enterprises. The bank also intends to contribute to enhancing the overall image and strength of Quanzhou's food industry cluster, promoting its healthy development.
Seizing Opportunities in the Expanding Snack Food Market
The market for snack foods is rapidly expanding, offering a significant opportunity for food companies. How can Quanzhou’s food enterprises seize this historical opportunity? Lin Qinghan suggests that they should always be market-driven, focus on brand building, and use technological innovation and upgrades as key drivers. Enterprises should highlight their unique features, quickly adjust their product structure, strengthen competitive industries, and enhance collaboration between industry, academia, and research to accelerate the commercialization of technological achievements. By fully utilizing new technologies and modern information technologies to transform the food industry, Quanzhou can optimize and elevate the overall image of its food industry cluster. This will help the entire sector move towards high-end, specialized, and large-scale development, with the goal of reaching a trillion-yuan scale in the near future.
(Report by Yu Zhichong, Chen Zhimin)