Annual Report 2016/17

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Chinese buy their chops online

Young people in China do their food shopping online. They don't have time to go to the shops, and instead order what they need via an app on their mobile phone or online.

Online sales of pork in China are growing. The company Yiguo, which is only 10 years old, is making a business out of this – quite a big one, in fact. During this period, they have established a comprehensive distribution network, which is enabling them to sell foods online and deliver the goods to consumers within 24 hours.

In 2017, the aim has been to grow revenue threefold from RMB 1 billion (=DKK) to RMB 3 billion.

Head of Procurement Celine Young from Yiguo knows what her customers want, and carefully chooses the right products to advertise on the website.

"We've been buying products from Danish Crown for two years now, and we're proud of being able to offer them to our consumers", she says.

Niels Knudsen, President at Danish Crown in Hong Kong, is delighted with the cooperation, and he's finding it easy to generate interest in Danish Crown's plans to build a meat-processing plant south of Shanghai.

"We're very interested in your plans to establish yourselves in China, and keen to develop new product concepts together", says Celine Young.

After a successful start-up, Yiguo has had two capital injections in order to expand its distribution system. The investors include Alibaba, one of the big three e-commerce businesses in China.

Today, online food purchases account for approx. 5 per cent of total grocery sales, but they are growing rapidly, in particular among young people aged 18-25 years.