Insights from Frost & Sullivan Recently, driven by strict policy supervision and concentrated rectification efforts in multiple regions, the express delivery industry has witnessed a rare "collective price hike tide," breaking the years-long pattern of low-price competition. How effective has this round of policy-guided price hikes been, and what are the reasons? What difficulties have arisen during the process? Is the price hike trend sustainable? Will the scope continue to expand, and how can we avoid a resurgence of low-price competition in the industry?   Yang Lei, Consulting Director for Greater China at Frost & Sullivan (hereinafter referred to as "Frost & Sullivan"), was interviewed by the Economic Daily and Securities Daily to discuss the logic and trends behind the express delivery price hikes. Economic Daily, Securities Daily *Click on the end of the article Read the original article for a complete report   Q: How effective has this round of policy-guided express delivery price hikes been, and what are the reasons? What difficulties have arisen during the process?   Yang Lei Consulting Director for Greater China at Frost & Sullivan The core effect of this round of policy-guided express delivery price hikes is reflected in the effective containment of the long-standing "price-for-volume" vicious competition model in the industry, promoting the industry back onto a "value-driven" healthy development track.   Effect and Reasons   Firstly, from operational data, the effect is significant. In September 2025, several express delivery listed companies achieved synchronous growth in business volume and per-order revenue, presenting a positive situation of "both volume and price rising," which directly improved the profitability of enterprises and alleviated the previous operational pressure of "increment without revenue growth."   Secondly, the main reason for the price hike is the strong intervention at the policy level. The State Post Bureau and relevant departments have clearly opposed industry "involution," severely cracking down on dumping below cost prices through a series of regulations. This provides express delivery companies with the confidence and basis for price hikes, aiming to ensure stable operations at end points and the legitimate rights and interests of couriers, ultimately improving overall service quality.   Difficulties During the Process   However, the price hike process has not been smooth sailing, mainly facing the following difficulties:   Customer sensitivity and churn risk: Price hikes directly affect e-commerce customers who are highly sensitive to prices, especially merchants operating low-cost single-item goods. They may switch to cooperative courier companies or even move their warehouses to areas where courier prices have not yet risen in order to avoid cost increases.   Execution difficulties under the franchise model: In express delivery companies mainly based on the franchise model, the interests of headquarters and end points are not entirely aligned. Facing competition from major customers, some franchisees may choose to compromise to maintain business volume, resulting in discounts when the price hike policy is implemented at the end points.   Adaptation and competition within the industrial chain: Price hikes are a game process involving the entire industrial chain. Upstream e-commerce merchants have long relied on low-cost express delivery to control operating costs and need time to adapt and adjust their operational logic. At the same time, consumers may also face pressure from rising commodity prices due to cost shifting.   Q: Is the price hike trend sustainable? Will the scope continue to expand, and how can we avoid a resurgence of low-price competition in the industry?   Yang Lei Consulting Director for Greater China at Frost & Sullivan The price hike trend in the express delivery industry this time has a certain degree of sustainability, but the process will be gradual and full of competition. In the future, the price hike scope is expected to spread from point to other regions across the country.   Sustainability and Scope Expansion   The sustainability of price hikes mainly depends on several points: First, the country's firm stance and continuous policy pressure against "involution" provide institutional guarantees for prices to return to a reasonable range. Second, express delivery companies themselves have also realized the harm of low-price competition and have an internal drive to get out of the "profit dilemma" and pursue high-quality development. Third, market demand continues to grow, providing space for price adjustments. However, considering the complexity of the market, there is still a possibility of short-term price fluctuations or even small-scale declines, but it is almost impossible to return to an extreme era of low prices.   Measures to Avoid a Resurgence of Low-Price Competition   To avoid a resurgence of low-price competition, multiple parties need to work together to build a sustainable and balanced industrial ecosystem:   Strengthen policy supervision and enforcement: Regulatory authorities need to establish a dynamic cost monitoring system and cross-regional collaborative law enforcement mechanisms to ensure that the ban on "shipping below cost" is effectively implemented and prevent the policy from "going astray."   Promote enterprises to shift from "price wars" to "value wars": Express delivery companies should shift the core of competition from simple price comparisons to service quality, operational efficiency, and technological innovation. By providing differentiated and personalized services (such as door-to-door delivery, night delivery, etc.) to enhance brand premium capabilities and customer stickiness.   Accelerate technology empowerment and industrial collaboration: Promote the application of intelligent technologies such as automated sorting, big data route optimization, and unmanned delivery to continuously reduce costs and increase efficiency. At the same time, strengthen deep integration with the e-commerce industry, develop collaboratively through models such as warehousing and distribution integration, optimize the supply chain, and achieve win-win results.   Ensure end-point rights and stimulate vitality: A reasonable pricing mechanism should ensure that profits can be effectively transmitted to end points and couriers, guaranteeing their reasonable income and labor rights, stimulating the service vitality of the "last mile," which is the fundamental guarantee for improving service quality.   *This interview has been published in the Economic Daily and Securities Daily

The Tai Po Volunteer Team for Disaster Relief of Frost & Sullivan China GBA Offices Set up and Running   After the fire accident at Hong Kong's Grand Hyatt Macau, Frost & Sullivan (Frost & Sullivan) China announced a donation of HKD 500,000 to the "Grand Hyatt Macau Assistance Fund" established by the Hong Kong Special Administrative Region Government, aiming to support the resettlement of affected compatriots and post-disaster reconstruction efforts.   On this basis, Frost & Sullivan China's Greater Bay Area Offices also quickly responded by forming a dedicated volunteer team to actively participate in the Tai Po disaster relief efforts. This volunteer team will closely coordinate with the HKSAR Government's centralized arrangements to provide on-site assistance for post-disaster recovery.   Following the tragic fire accident at Tai Po Wang Fuk Court in Hong Kong, Frost & Sullivan China has announced a donation of HKD 500,000 to the "Wang Fuk Court Assistance Fund" established by the Hong Kong Special Administrative Region Government, aimed at supporting the resettlement of affected compatriots and post-disaster reconstruction efforts.   Furthermore, Frost & Sullivan China's Greater Bay Area Offices swiftly mobilized, setting up a dedicated volunteer team to actively participate in the Tai Po disaster relief efforts. This volunteer team will closely coordinate with the HKSAR Government's centralized arrangements to provide on-site assistance for post-disaster recovery.   Hong Kong Tai Po Grand Hyatt Macau Fire After the fire, Frost & Sullivan (Frost & Sullivan) China announced a donation of HKD 500,000 to the "Grand Hyatt Macau Assistance Fund" established by the Hong Kong Special Administrative Region Government, aiming to support the resettlement of affected compatriots and post-disaster reconstruction efforts.   On this basis, Frost & Sullivan China's Greater Bay Area Offices quickly responded by forming a dedicated volunteer team to actively participate in the Tai Po disaster relief efforts. The volunteer team will closely coordinate with the HKSAR Government's centralized arrangements to provide on-site assistance for post-disaster recovery.

Recently, Hong Kong Tai Po Hongfu Garden The serious fire accident that occurred is distressing. Frost & Sullivan Frost & Sullivan Frost & Sullivan) expresses its deepest condolences to the victims of the accident, pays the highest tribute to the firefighters, frontline rescuers and all teams involved in the rescue work who sacrificed their lives heroically in this incident, and extends sincere sympathy to the families who have lost their loved ones. May the deceased rest in peace and the relatives and friends mourn in accordance with the mourning period. The recent serious fire accident at Tai Po Wang Fuk Court in Hong Kong is deeply distressing. Frost & Sullivan expresses its deepest condolences to the victims and extends sincere sympathies to the bereaved families. We pay the highest tribute to the firefighters who bravely sacrificed their lives, the frontline rescue personnel, and all teams involved in the rescue efforts during this accident. Frost & Sullivan China today announced that it has donated HK$500,000 to the 'Tai Po Hong Fuk Yuen Assistance Fund' established by the Hong Kong Special Administrative Region Government. Frost & Sullivan China today announces a donation of HKD 500,000 to the "Support Fund for Wang Fuk Court in Tai Po" established by the Hong Kong Special Administrative Region Government. The disaster is unforgiving, but there is love in the world. Frost & Sullivan China is willing to do its part, walking alongside the affected compatriots through thick and thin, and sharing the hardships together. While the disaster is ruthless, humanity prevails. Frost & Sullivan China is committed to contributing its modest efforts, standing shoulder-to-shoulder with the affected compatriots, and helping them weather the storm together.  

“Shencheng·Data Gathering & Finance” Investment and Financing Theme Forum   To thoroughly implement the national digital economy development strategy, break through the financing bottlenecks of core digital economy enterprises, and promote the deep integration of industrial innovation and capital elements, the 2025 Global Data Merchants Conference &“Shencheng·Data Gathering & Finance” Investment and Financing Theme Forum, guided by the Shanghai Data Bureau, co-hosted by the Huangpu District Data Bureau, Shanghai Smart City Development Research Institute, Shanghai Data Merchants Association, and Shanghai Jiao Tong University Cost Management Center, was held at the Shanghai International Convention Center on November 26th. With the theme of “Digital Intelligence Innovation for Win-Win in Industry and Finance” and centered around “precise docking, practical efficiency, and long-term service,” the event constructs an innovative digital docking model, strengthens government-enterprise-bank collaboration, empowers the financing needs of more data merchants, and aims to create a benchmark platform for digital economy industry-finance cooperation with city-wide influence.   Wang Chenhui, the managing partner and president of Frost & Sullivan (Frost & Sullivan, abbreviated as “Frost & Sullivan”) in Greater China, was invited to participate in a roundtable discussion, engaging in dialogue with representatives from the business and academia such as Zhao Chunyan, chairman of Shanghai Jiao Tong University High-tech Co., Ltd., Luo Japan, general manager of the business department of Shanghai Branch of Bank of Communications, Peng Juan, associate professor at the Antai School of Economics and Management at Shanghai Jiao Tong University, and Xiong Zijing, vice president of Jingwei Venture Capital. Roundtable Discussion Wang Chenhui, managing partner and president of Frost & Sullivan Greater China   During the roundtable discussion, Wang Chenhui shared his insights on key topics such as digital economy transformation, data element markets, and innovation and entrepreneurship trends. Based on his practical experience in serving enterprises going public in Hong Kong and overseas for a long time, he brought systematic and forward-looking insights to the guests present.   When discussing how to judge the core criteria for “gazelle enterprises” and “unicorn enterprises,” Wang Chenhui pointed out that as a consulting firm that has been assisting enterprises in going public in Hong Kong and overseas for many years, Frost & Sullivan does not only evaluate enterprises based on valuation but also places more emphasis on the verifiable growth logic behind them. He emphasized that the evaluation system in the digital economy era has been upgraded from traditional scale expansion to three core dimensions: market ceiling (TAM) and penetration rate, differentiated technology commercialization capabilities, and the scarcity of data assets held by enterprises. “Today, having unique data sources is itself a huge valuation premium. Does the enterprise possess an irreplaceable dynamic data flow within the industry? This is a new core asset in the eyes of capital.” Wang Chenhui further explained.   When sharing the current market demand pattern for data products, he analyzed that data demand has accelerated its shift from the internet era to the deep-water area of traditional industry digitization. Financial institutions, local governments and urban investment platforms, and major central state-owned enterprise industrial chain leaders are becoming the main buyers of data products. “They are not buying raw data but decision certainty.” Wang Chenhui clearly pointed out. At the same time, he also identified structural pain points in the industry, including difficulties in data rights confirmation, pricing, transaction friction costs, etc., and emphasized that the construction of a credible data space and a third-party evaluation system are the key foundations for future industry development.   He further summarized the three characteristics of high-value data: authenticity, reusability, and ability to solve practical problems. He specifically explained that high-value data can be divided into business core data, scenario-related data, and high-dimensional multimodal data, and the realization of data value must go through four steps: “business dataization - data resourceization - data productization - data capitalization.” “Data value is not built up by technology but through systematic engineering.” Wang Chenhui added.   When discussing the strategic choices of technology-based startups, he bluntly stated that many technology founders have the typical problem of “looking for nails with a hammer.” Wang Chenhui pointed out that if startups want to enter the field of top-tier capital, they must complete a strategic leap from technology provider to industry enabler. “They must spare no expense to acquire a lighthouse customer and use industry benchmarks to leverage the entire industrial chain.” He emphasized this point. At the same time, he highlighted the importance of deep vertical integration and suggested that technology teams actively introduce industrial capital to make up for the shortcomings in cross-industry resources.   “Technology determines the lower limit of an enterprise, but governance structure determines its upper limit.” Wang Chenhui offered advice that founders with a technical background should complete the top-level design of their equity structure as soon as possible, form a complementary “iron triangle team,” and solidify the enterprise's mission, vision, and values. “From a ten-person organization to a thousand-person one, it ultimately depends on culture, not on managing people.” He added.   Finally, looking ahead to future entrepreneurial opportunities in the data track, Wang Chenhui concluded that entrepreneurs' opportunities do not lie in “bigness and comprehensiveness,” but in “niceness and specialization” and “cross-domain integration.” He believes that professional data vertical deep cultivation, multimodal data services, 3D data scenario applications, enterprise-level GEO tools, and data compliance and security services will become the most certain entrepreneurial directions in the next few years. “The core value of data lies in solving problems, and the core opportunity for entrepreneurs lies in filling gaps.” Wang Chenhui emphasized again.    

Insights from Frost & Sullivan According to information published on the Hong Kong Stock Exchange website, from September 20 to October 20, 2025, a total of 14 healthcare companies applied to the Hong Kong Stock Exchange for IPO listing materials within a month, doubling the number compared to the same period. What does this phenomenon indicate? What causes it? Among the IPO companies, there are also several A-share companies. Why are these companies seeking Hong Kong listings at this time? What are the benefits of listing in multiple locations?   Li Qian, Executive Director of Frost & Sullivan's Healthcare Business Unit in Greater China, was interviewed by SinoBiz to discuss the key factors accelerating Hong Kong healthcare IPOs . SinoBiz *Click at the end of the article Read the original article for a complete report   Q: According to information published on the Hong Kong Stock Exchange website, from September 20 to October 20, 2025, a total of 14 healthcare companies applied to the Hong Kong Stock Exchange for IPO listing materials within a month, doubling the number compared to the same period. What does this phenomenon indicate? What causes it? Li Qian Executive Director of Frost & Sullivan's Healthcare Business Unit in Greater China   This phenomenon is driven by both internal and external factors. Firstly, there is the window period effect. Recently, there have been signs of improved liquidity and investor confidence recovery. Coupled with a series of reforms promoted by the Hong Kong Stock Exchange, such as 'dual-currency settlement', 'lowering the threshold for new shares', and 'simplifying the review process', these have all increased the predictability of corporate listings. Many healthcare companies choose to 'grab the window' during this stage and complete financing before the capital market sentiment warms up; secondly, companies themselves have financing and internationalization demands. After preliminary pipeline research and development or product iteration, many companies enter the late clinical or commercialization stage, with a significant increase in capital needs. The international nature of the Hong Kong market makes it an important platform for Chinese innovative healthcare companies to raise funds overseas and gain international exposure. Finally, there is an adjustment in capital strategy. When the valuation rebounds, the market game space is reopened. Many early investors who experienced exit obstacles in the past two years are now urgently seeking some liquidity through IPOs after the market warming signals appear.   Q: Among the IPO companies, there are also several A-share companies. Why are these companies seeking Hong Kong listings at this time? What are the benefits of listing in multiple locations? Li Qian Executive Director of Frost & Sullivan's Healthcare Business Unit in Greater China   Recently, many healthcare companies that have already listed on the A-share market have also chosen to go to Hong Kong for their second listing, which mainly reflects new considerations in financing and international layout. On the one hand, the policy environment in the Hong Kong market has improved, the review pace has accelerated, and it is more inclusive of innovative and research and development-oriented enterprises, providing new financing channels for companies; on the other hand, compared with the A-share market, the Hong Kong market has a more mature international investor base and a valuation system for innovative drugs and medical devices, which helps companies gain recognition and pricing from international capital. In addition, listing in multiple locations can also enhance a company's global visibility and governance structure transparency, creating conditions for its overseas market expansion, mergers and acquisitions, and international cooperation. Overall, A+H or dual listings are not just financing activities but an important step for healthcare companies to establish a second growth pole in the global capital system and achieve long-term strategic upgrading. *This interview has been published in SinoBiz by Wang Yuling, with the original title: 17 companies in a month! Pharmaceutical companies intensively submit applications to the Hong Kong Stock Exchange, what's the reason?

  Frost & Sullivan's Insights Large models are emerging from the pilot phase and entering the stage of large-scale implementation. In which scenarios or directions is this large-scale implementation mainly occurring? AI applications have entered the agent stage, but there are still no killer applications on the consumer side. Which will see faster adoption rates between the B-side and C-side? What are the characteristics of B-side implementation? Overall, what challenges remain for AI implementation? From the pilot phase to large-scale implementation, has the AI application reached a critical turning point? What are the criteria for judgment?   Li Qing, Director of Frost & Sullivan Greater China, was interviewed by Lookout Finance to discuss the key trends and industry variables in the transition of large models from pilot to large-scale implementation . Lookout Finance *Click on the end of the article Read the original article to view the complete report   Q: The report mentions that large models are emerging from the pilot phase and entering the stage of large-scale implementation. In which scenarios or directions is this large-scale implementation mainly occurring? Can you use digital human technology as an example to briefly describe the application situation, especially in terms of replacing real people and real-time interaction? What are the obstacles to the implementation of digital human technology? Li Qing Director of Frost & Sullivan Greater China   Large models are transitioning from the pilot verification phase to large-scale implementation, with their core value lying in 'improving quality and efficiency'. Currently, large-scale implementation is mainly reflected in several major scenarios: the highest proportion is 'question-answering enhancement', followed by 'code assistants', 'document processing generation', and 'intelligent customer service'. In addition, industries such as finance, government affairs, and manufacturing are also accelerating the deployment of RAG, industry agents, and digital employees. Currently, the core obstacle to technology implementation is no longer cost but higher-dimensional strategic and application challenges, with the most prominent being 'unclear application scenarios that can generate real value', followed by 'lack of relevant technical talent', 'difficulty in ensuring data security and privacy', and 'difficulty in integrating with existing business systems and workflows of enterprises'.   Digital human technology is being widely applied in scenarios such as customer service, virtual anchors, online education, and corporate image endorsements. In terms of replacing real people, it has achieved a high degree of natural voice, expression, and body movement simulation, especially in standardized and repetitive real-time interactions, where it is stable and efficient. Taking Alibaba as an example, its 'digital human' technology has formed a strategic combination of 'cloud capabilities + Taobao implementation'. At the technical level, Alibaba Cloud provides an open platform for virtual digital humans, supporting text and audio-driven generation, supplemented by a low-threshold free experience; at the business level, Taobao Live has opened public domain interfaces to service providers, which has promoted the launch of nearly a hundred digital human live streaming rooms and brought an average viewing increase of about 5 times. Combining with the platform's potential energy of breaking through 1 billion views during the 618 period, a year-on-year increase of 53%, digital human e-commerce and store broadcasts are accelerating their popularization. However, large-scale implementation of digital human technology still faces major obstacles, including how to balance generation quality and cost, break through technical bottlenecks driven by real-time, clarify ethical regulatory responsibilities, and establish user trust.   Q: AI applications have entered the agent stage, but there are still no killer applications on the consumer side. Which will see faster adoption rates between the B-side and C-side? What are the characteristics of B-side implementation? Overall, what challenges remain for AI implementation? (For example, factors such as model hallucination, application cost, effectiveness, and enterprise acceptance can be analyzed) Li Qing Director of Frost & Sullivan Greater China   B-side implementation shows clear characteristics: the focus of enterprise decision-making is shifting from 'pursuing the strongest single model' to 'seeking optimal solutions for specific business scenarios'. This means that the market has entered a new stage of 'value-driven' over 'technology-driven', with enterprises placing more emphasis on scenario fit and commercial value, and their needs evolving into 'flexible integration + technology autonomy and control' solutions to balance cost-effectiveness, flexibility, and security and controllability. In terms of implementation challenges, the biggest obstacle is 'unclear application scenarios that can generate real value', followed by 'lack of relevant technical talent' and 'data security and privacy' issues. It is worth noting that enterprise acceptance is also an obstacle, and 'high training and inference costs' are no longer the primary pain point, accounting for a low proportion.   Q: From the pilot phase to large-scale implementation, has the AI application reached a critical turning point? What are the criteria for judgment? Li Qing Director of Frost & Sullivan Greater China   Yes, AI application implementation has reached a critical turning point, transitioning from the pilot verification phase into a new stage of large-scale implementation. The main criteria for judgment are threefold: 1. First is the 'explosive increase' in call volume. In the first half of 2025, the average daily call volume of Chinese enterprise-level large models reached 1018.65 billion tokens, a surge of about 363% compared to the second half of 2024, marking the full release of market demand. 2. Second is the shift in market focus, with the industry transitioning from 'technology-driven' to 'value-driven', and market attention shifting from 'extreme performance competition' to 'equal emphasis on scenario fit and commercial value'. 3. Finally, the core pain points faced by enterprises have undergone a structural change, and enterprises have entered the 'deep water zone'. The main obstacles have shifted from high costs in the past to 'unclear application scenarios' and 'difficulty in system integration', indicating that enterprises have passed the technology trial phase and begun to face the challenges of deep integration.   Q: From the perspective of model call volume, what are the characteristics of the industry pattern? What factors determine model call volume? How significant are the impacts of factors such as open source and AI ecosystems? In the future, will there be an increasing focus on leading players like Alibaba, ByteDance, DeepSeek, etc.? If a latecomer wants to catch up, from which directions should they strive? Li Qing Director of Frost & Sullivan Greater China   From the perspective of model call volume, the industry pattern shows a highly concentrated feature, with the advantages of domestic manufacturers 'accelerating solidification'. Alibaba Tongyi (17.7%), ByteDance DouPao (14.1%), and DeepSeek (10.3%) together account for more than 40%. The key factors determining call volume lie in the ecosystem and differentiated strategies: Alibaba Tongyi relies on its 'integrated deployment capabilities' and the delivery closed loop formed by Alibaba Cloud's foundation and PAI platform; ByteDance DouPao transforms enterprise-level large model calls through rapid iteration and layout of application construction platforms such as Coze and HiAgent; DeepSeek quickly breaks through with high cost-effectiveness and open source compatibility. At the same time, the impact of open source and ecosystems is extremely profound, and open source is becoming the preferred path for enterprise model selection. Driven by TCO pressure and data sovereignty demands, up to 70% of enterprises plan to increase open source models more in the future.   Given the agglomeration effect of top talents, high capital investment barriers, and computing infrastructure barriers, the future market pattern is expected to further converge towards leading manufacturers. Latecomers face extremely high competitive barriers and find it extremely difficult to catch up. If they seek a breakthrough, they need to deeply cultivate in niche tracks, such as in private deployment operation and maintenance response capabilities, in-depth customization of industry solutions, and the accumulation of expertise in vertical fields to build differentiated advantages. *This interview has been published in Lookout Finance. The reporter is Liu Baodan, and the original title is: Baidu's AI Transformation, at a Critical juncture

AIIC2025 Liquor Industry Innovation & Investment Conference   From November 18th to 20th, the AIIC2025 Liquor Industry Innovation & Investment Conference was held at the Xiamen International Convention Center Hotel, bringing together global leaders in the liquor industry, innovators, and investment experts to discuss cutting-edge industry trends and practical cases. With the theme of "New Growth for All Things," the conference focused on new policy interpretations, supply-side changes, and consumer iterations under the unprecedented changes of the past century. It broke new ground with authoritative content and annual cases, breaking the gravitational trap of involution and building a sustainable new industrial order.   Wang Chenhui, Partner-in-Chief and President of Frost & Sullivan (Frost & Sullivan, abbreviated as "Frost & Sullivan") in Greater China, co-founder and President of LeadLeo, was invited to attend and provided an in-depth analysis of "Insights into the New Trends in Chinese New Beverage Consumption in 2025" from a professional perspective. Wang Chenhui, Partner-in-Chief and President of Frost & Sullivan Greater China, co-founder and President of LeadLeo Wang Chenhui, Partner-in-Chief and President of Frost & Sullivan Greater China, co-founder and President of LeadLeo   In his keynote speech, based on the research results of the LeadLeo Research Institute, Wang Chenhui systematically interpreted the industry development stages, growth drivers, consumption trends, and brand opportunities, providing forward-looking insights for the new beverage industry. He pointed out that the new beverage industry is moving from "category expansion" to "in-depth operation," with the industry structure, consumption paths, and innovation models undergoing reshaping.   Wang Chenhui began with changes in growth logic. He stated that the past reliance on "internet celebrity momentum" and "light asset models" for growth is no longer effective, and the industry has entered a new stage centered on "supply chain capabilities, product research and development capabilities, and channel capabilities." Current industry competition has shifted from "short-cycle hits" to "long-term operational capabilities," with brand growth characterized by "longer time windows, stronger organizational capabilities, and more emphasis on supply-side construction." Since 2020, the market scale of new beverages in China has continued to expand, with the Z generation becoming the main consumer group. Healthy drinking, cross-border flavor innovation, and the export of national trend culture have become important trends, with sub-categories such as fruit wine and craft beer growing rapidly.   Regarding industry trends, Wang Chenhui highlighted "key challenges to industry transformation." He pointed out that new beverage companies still bear high costs in inventory management and logistics transportation, making it difficult to quickly respond to market demand. At the same time, instant retail has become a new growth engine, and the rapid improvement of online channels is driving industry restructuring. Online channels have become an important source for consumers to purchase beverages, with consumers showing a significant preference for "online purchases" in surveys, further blurring the boundaries between offline and online channels.   Moving on to industry-level trends, he pointed out that with changes in technology and consumption scenarios, beverage companies need to focus on "cross-border collaborations," "emotional value consumption," and "low-alcohol innovation." Among them, integrated innovations represented by "punk health" products are forming an important choice for young consumers. In terms of flavor, according to the research of the LeadLeo Research Institute, 75% of respondents prefer a "milk + wine" blend flavor, and 86.4% prefer a "tea + wine" blend flavor. These data reflect the growing demand for soft-tasting and more pleasant swallowing experiences among young users.   When discussing the external environment for industry development, he emphasized the "going global trend." According to the data of the LeadLeo Research Institute, China occupies an important share of the global spirits market, with Chinese liquor accounting for 24.9% of the global spirits market in terms of sales (2025E). However, in comparison, the global penetration rate of new beverage categories is only 0.3%, still in an extremely early stage. He stated that in the future, Chinese beverage brands have the potential to enter international markets in terms of supply chain stability, product standardization capabilities, and brand cultural expression.   In his consumer insights, Wang Chenhui pointed out that the low-alcohol consumption base in densely populated areas along the eastern coast is good for driving future growth in the new beverage market; consumers at all levels of cities prefer new beverages with flavors and taste, with first-tier cities valuing cost-effectiveness more; in terms of marketing methods, third-tier cities adapt to the "intimate economy" model. He further pointed out that Chinese new beverage users are showing an obvious structural stratification. Among them, "freedom drinkers" have an average monthly disposable income of 9,393.9 yuan, with a monthly alcohol expenditure of about 527 yuan, where emotional value and self-regulation become their main drinking motivations; "urban self-indulgent people" are more sensitive to "new flavors, light burdens, and visual design"; "time-honored drinkers" pay more attention to comfort and stable experiences. These differentiated profiles are determining the future product layout and communication direction of brands.   At the end of his speech, Wang Chenhui summarized that the Chinese new beverage industry is moving from "rapid development" to a growth stage of "stable quality." For companies to truly grasp the future, they need to find new balance points between product innovation, supply chain restructuring, consumer insights, and channel deepening. He believes that the industry will welcome new growth opportunities during the process of structural reshaping.

Currently, innovation is refreshing the world's face at an unimaginable pace. The drastic changes and driving forces it brings have gone beyond the conventional business domain, and are accelerating the global future development at the level of cultural imagination and social context.   The core driving force behind this process comes from the 'pioneers' of all industries—never before has there been such an astonishing spectacle: under the relentless upgrade of computing power, AI has profoundly subverted the production logic that has lasted for thousands of years; new energy and energy storage have broadened the runway for the next wave of productivity; the iterative efficiency of product, service, and business paradigms has accelerated the depreciation of all lifestyles and ways of thinking; business leaders occupy an absolute 'seat at the table,' where a press conference or a speech can shock the world—under their combined influence, innovation is not only a business tool but has become an unshakable 'world rule' and 'global approach,' and their own value has far exceeded the narrow definition of business leaders.   As a result, the semantic distinction between leaders and innovators is becoming increasingly blurred. Whether it is the leader's ecological niche that dominates the industry's innovation direction, or emerging innovators who suddenly become industry leaders, innovation has become one of the core elements considered first by Forbes China when presenting various business insights.   Against this backdrop, the globally renowned growth consulting firm Frost & Sullivan (Frost & Sullivan, abbreviated as 'Frost & Sullivan') and Forbes China jointly launched at the end of last year the first selection of the Forbes China Industry Development Pioneer Awards, a series of authoritative business observation practices covering multiple key areas with an emphasis on innovation impact and value.   Building on the success of last year's selection, which received widespread attention and influence, both parties have recently launched the 2026 Forbes China Industry Development Leaders Selection. This selection focuses on key areas such as AI technology, big consumer goods, healthcare, new energy, manufacturing, and service industries. Through rigorous data analysis and in-depth market research, it aims to identify and commend industry pioneers who have a wide influence and innovative spirit both domestically and globally.     Both Frost & Sullivan and Forbes China are industry-leading institutions with a global perspective, and they have long been deeply involved in the Chinese market. Frost & Sullivan provides global capital markets and corporate consulting services, integrating 64 years of global consulting experience. Over the past 27 years, they have dedicated themselves wholeheartedly to serving the booming Chinese market, helping more than 10,000 clients accelerate their business growth with a global perspective. It is reported that Frost & Sullivan's Greater China region has accumulated over 10,000 original industry research reports and white papers, covering 19 core national economic industries and more than 6,000 sub-markets with a strong knowledge base. The research data of Frost & Sullivan is widely recognized in the global capital markets.   This renewed collaboration between Frost & Sullivan and Forbes China brings together the two parties's top resources and professional teams in industry research and media communication. It will provide strong support and assurance for the second Forbes China Industry Development Pioneer Awards and continue to create a benchmark with high authority and influence.     Eligibility Details Award Settings   Main selection   Forbes China Industry Development Pioneer   Sub-selection   Forbes China's Leading Companies in Industry Development Forbes China's List of Innovative Brands in Industry Development Forbes China Industry Development ESG benchmark Forbes' Benchmark of AI Enterprise Services in China's Industry Development Forbes China's Emerging Industry Analyst       Main selection   Forbes China Industry Development Pioneer       1 Selection criteria   Candidates should be from key sectors such as AI technology, mass consumption, healthcare, new energy, manufacturing, and services;   Candidates should be industry pioneers with a good reputation and high visibility across various industries, including but not limited to corporate executives, founders/co-founders, analysts, experts, and scholars;   The candidate's career achievements must meet one of the following four conditions: The market value/valuation of the candidate's company is at the level of over 3 billion, and it must have been operating continuously and stably for more than three years; The candidates have been recognized by top international or domestic scientific research institutions and have made outstanding contributions to leading industry innovation; The candidate leads the enterprise to achieve the first market share in the industry and has the sustainable growth ability to maintain its industry position (*An industry research report issued by an authoritative institution and an industry position ranking table are required to be submitted).   2 Selection dimension   Self-growth trajectory Industry Empowerment and Leadership Enterprise operational capability Innovative response capabilities Future Vision and Planning       Sub-selection   Forbes China's Leading Companies in Industry Development Forbes China's Innovative Brands in Industry Development Forbes China Industry Development ESG Benchmark Forbes' Benchmark of AI Enterprise Services in China's Industry Development       1 Selection criteria   Candidates should be from key sectors such as AI technology, mass consumption, healthcare, new energy, manufacturing, and services;   Candidates should be industry pioneers with a good reputation and high visibility across various industries, including but not limited to corporate executives, founders/co-founders, analysts, experts, and scholars;   The candidate's career achievements must meet one of the following four conditions: The market value/valuation of the candidate's company should be at the level of 3 billion RMB or above, and it must have been operating continuously and stably for more than three years; The candidates have been recognized by top international or domestic scientific research institutions and have made outstanding contributions to leading industry innovation; The candidate has led the enterprise to achieve the first market share in the industry and has the sustainable growth capability to maintain its industry position ( *An industry research report issued by an authoritative institution and an industry position ranking table are required to be submitted   2 Selection dimension   National strategic response Innovation performance Business growth potential sustainable development capacity Industry influence       Sub-selection   Forbes China's Emerging Industry Analyst       1 Selection criteria   01. Basic evaluation criteria (All must be met)   Focus on industry areas: The research or content output of candidates should concentrate on one of the key sectors such as AI technology, mass consumption, healthcare, new energy, manufacturing, and services.   Public Influence: It is necessary to have publicly verifiable research achievements or content publishing channels (such as media columns, industry platforms, research reports, video accounts, official accounts, Zhihu, X, LinkedIn, etc.).   Good reputation: The candidate has no academic misconduct, data fraud, or negative business reports in the past year.   02. Achievement Metrics (Match any 2 of the following conditions)     Industry influence The cumulative number of views (reads) for industry analysis content (reports, articles, videos) published within the past year is ≥100,000; Or reposted, cited by mainstream media/institutions >3 times; Or have given keynote speeches/talking rounds at well-known conferences/forums.   Social influence Have ≥10,000 followers on any content platform;   The academic, technology or industry community leads with over 500 members actively operating the community; Organized or presided over industry-themed sharing events at the university level or above.   Innovation of research results Has released original industry models, data analysis methods, and prediction frameworks; Or drive a topic into the mainstream industry discussion through original research (such as ESG, AI-native, new consumer trends, etc.). As a core member, participated in innovative projects (such as participating in national business competitions, including but not limited to industry research competitions and innovation and entrepreneurship competitions), scientific research mentor projects, or related research topics; Has proposed original analytical models, research methods, or solutions in projects and received recognition from instructors or institutions; Possess a portfolio of personal project works related to the field (such as data analysis reports, business plans, product prototypes, in-depth evaluations, etc.).   Professional recognition Obtain citations, collaborations, or certifications from leading institutions (consulting firms, investment banks, media, research institutions); Has won industry media awards, research competitions, and honors for young scholars.   Growth potential and social impact Have a continuous output plan (such as series analysis or research columns); Or there may be practical impacts in driving the industry's youth group to learn/share (such as communities, open courses, podcasts, etc.).   The candidate enterprises must meet the following requirements The company's operating income for the previous fiscal year must have come from Mainland China, accounting for 51% or more; The corporate headquarters must be located in Mainland China; The enterprise has been operating stably for more than 3 years; The enterprise had no major labor disputes or safety accidents in the previous year;   2 Selection dimension   Industry development perspective Logical framework construction capability Multi-source data integration capability Forward-looking analysis of transformation capabilities     About Forbes China   Forbes was founded in New York in 1917, with the slogan 'Entrepreneurship, a tool for creating wealth', and has become a leader in the industry with its entrepreneurial spirit and innovative awareness. The lists produced by Forbes are known as the 'barometer of the economy' and the 'wind vane of wealth'. In 2003, Forbes officially entered the Chinese market.   As a business media brand centered on innovation, Forbes China adheres to the DNA of 'entrepreneurship, innovation, and wealth creation.' Leveraging its long-term observation and research on high-net-worth individuals, entrepreneurs, technology, investment, health, lifestyle, and other fields, it has launched a series of lists and content that have a significant impact on the economy and society. The fairness and impartiality of Forbes China's lists make it a benchmark in various fields, and its insightful content provides readers with multi-dimensional information references, thereby inspiring entrepreneurs and business elites to create more wealth and business value. At the same time, Forbes China is committed to building an enterprising interactive community for high-end clients, providing a forward-looking and shared environment, and constructing an information ecosystem for entrepreneurship and innovation. About Frost & Sullivan (Frost & Sullivan)   Frost & Sullivan (Frost & Sullivan, abbreviated as 'Frost & Sullivan') integrates 64 years of global consulting experience. Over the past 27 years, it has dedicated itself to serving the booming Chinese market. With a global perspective, it has helped over 10,000 clients accelerate their business growth, assist them in achieving growth, innovation, and leading benchmarks within their industries, and realize capital operation goals such as financing and listing.   Frost & Sullivan is deeply involved in global capital markets and corporate consulting services. By innovatively introducing 'Total Investment Management (TIM)', it provides comprehensive investment and financing as well as various other professional consulting services for enterprises, including investment and financing CDD, valuation services, technology advisor, financial advisor, ESG, fundraising and investment feasibility studies, bond issuance industry advisor, industry advisor, assessment services, award services, industry white papers, strategic and management consulting, planning consulting, technical insights, etc.   Frost & Sullivan's investment and financing business in China has achieved full industry coverage of China's national economy, including a high level of attention to all economic hotspots such as the new economy and new infrastructure. It covers digital infrastructure, consumer electronics, dual-carbon new energy, healthcare and life sciences, catering and new retail, semiconductors and integrated circuits, smart homes, automotive and mobility, health care services, food and beverages, information and communication technology, fintech, real estate and property management, mining and smelting, beauty and fashion, big data and artificial intelligence, logistics and supply chain, construction technology and decoration, special new materials, culture and entertainment, enterprise-level services, cross-border e-commerce trade, infrastructure construction, environmental protection and energy-saving technology, education and training, etc.   Since the Frost & Sullivan team began providing investment and financing advisory services to corporate leaders and their management teams, it has helped nearly 3,000 companies successfully list on the Hong Kong and overseas stock markets. It is a leading enterprise in the field of investment and financing strategy consulting in China. Over the past decade, Frost & Sullivan has ranked first in market share for professional industry consultants assisting Chinese companies in listing on the Hong Kong and overseas stock markets for consecutive years. In recent years, Frost & Sullivan reports have also been widely cited in the prospectuses of leading A-share and STAR Market listed companies, as well as primary and secondary market research reports and other capital market announcements.   For over 64 years, Frost & Sullivan has helped a large number of clients (including Fortune Global 1,000 companies, top domestic and international financial institutions, and other leading enterprises) achieve strategic goals through its nearly 50 offices around the world. Leveraging a powerful database and expert network, as well as rich professional knowledge and consulting tools, the firm has completed tasks including but not limited to due diligence, valuation analysis, and third-party evaluations. It has also created a series of market position research tools and methodologies, innovatively introduced the 'FSBVFrost & Sullivan Brand Value Model', and provided market position research and brand value assessment services to over 1,000 enterprises, continuously helping a large number of Chinese brands achieve domestic and overseas growth strategies.

Insights from Frost & Sullivan Price wars are the main theme of the ready-to-drink tea industry in 2024, reflecting a phase shift from rapid growth to competition for existing market share. In 2025, subsidies from food delivery platforms further pushed down the prices of ready-to-drink tea into extremely low ranges. However, using price to gain traffic is not a long-term strategy. As the concept of new tea drinks becomes less novel, ready-to-drink tea has begun to transition from an incremental market to a saturated one. In the future, whether ready-to-drink tea brands can widen the gap with their peers in terms of supply chain, health concepts, and brand mentalities will be key to success. From the perspective of supply chain capabilities, is the trend of the ready-to-drink beverage industry more likely to reflect product differentiation or homogenization? What is the underlying driving logic? What types of beverages are consumers more likely to drink? Brands like Starbucks and Bawang Tea Girl adhere to a strategy of focusing on value rather than price. In what other core dimensions may competition continue in the ready-to-drink beverage industry in the future?   Lu Siyi, consulting manager for Frost & Sullivan Greater China, was interviewed by CBN magazine to discuss how tea brands should focus their efforts in the next phase. CBN magazine *Click on the end of the article Read the original article for a complete report     Q: From the perspective of supply chain capabilities, is the trend of the ready-to-drink beverage industry more likely to reflect product differentiation or homogenization? What is the underlying driving logic? What types of beverages are consumers more likely to drink? Lu Siyi Consulting Manager for Consumer Industry at Frost & Sullivan Greater China   My view is that the development of the supply chain in the ready-to-drink beverage industry is undergoing an evolution from 'having' to 'excellent' and then to 'unique'.   Basic supply chain capabilities are gradually becoming industry standard, especially for leading companies, but on the other hand, this may indeed lead to homogenized competition in mid-range products; however, through deep integration and innovation of the supply chain at the source level using technology, it will become the core key for leading brands to build true differentiation and win the market.   Overall, supply chain and product innovation are not contradictory. The focus of the supply chain is to improve efficiency, ensuring cost efficiency during product updates and iterations. As leading brands build their strong supply chains, it will indeed have a significant impact on small brands in terms of costs, which is an inevitable law of industry development. Some distinctive brands may still create some explosive products and new features in the future, but due to a lack of supply chain capabilities, if they cannot monopolize raw materials and other links, it is inevitable that large brands will use their supply chain advantages to launch similar products.   At the same time, we believe that when considering this issue, it is worth noting what consumers' needs are, whether they are for continuous differentiated products or after finding their favorite products, focusing on these signature products. We also see that some specific brands' strategy is to focus on their core flagship products and not innovate for the sake of innovation, but they can still attract a loyal core consumer base.   The underlying driving logic behind this is mainly divided into two parts.   Internally, it is driven by efficiency and cost. Industry competition has shifted from the number of stores to single-store profitability and operational efficiency. A complete supply chain is the foundation for reducing costs and increasing efficiency while maintaining quality, which will inevitably lead to convergence in basic capabilities;   Externally, it is driven by the upgrading of consumer demand. Consumers pursue healthier, fresher, more diverse, and more experiential beverages. This forces brands to trace upstream. To meet these advanced needs, they must rely on differentiated supply chain capabilities.   Therefore, based on the trend of supply chain evolution, consumers will not only be more likely to drink basic beverages with stable quality and high cost-effectiveness in the future, but they will also have the opportunity to taste more unique, healthy, and experiential new beverages brought about by deep supply chain innovation. Referring to the coffee industry, after the integration of specific origin labels and special fruits, it is still expected to become one of the representative directions of industry innovation.   Q: Consumers are increasingly concerned about 'drinking healthily'. In the future, will ready-to-drink beverages lean more towards using 'natural raw materials' or 'industrialized raw materials'? Lu Siyi Consulting Manager for Consumer Industry at Frost & Sullivan Greater China   From industry observation, the choice of raw materials for ready-to-drink beverages in the future is not simply a binary choice but moving towards a new stage of deep integration of 'natural value orientation' and 'industrial technology empowerment'. Using industrial technology to ensure efficient supply of natural raw materials represents the development direction of the industry.   Consumers' pursuit of health functions has made natural raw materials an unshakable value core. We see that 'real milk and real fruits', ingredients that are both food and medicine (such as goji berries), and the concept of sugar reduction have become key to brand competitiveness. Behind this is consumers' high sensitivity to ingredient transparency and health attributes.   However, pure agricultural product forms are difficult to meet the stringent requirements of brands at the store level for stability, efficiency, and scale. Therefore, the industry is leveraging advanced food industrial technology to achieve industrialized expressions of natural raw materials. For example, through technologies such as freeze-drying and modern extraction, high-quality fresh fruits and tea are transformed into standardized raw materials (such as freeze-dried tea powder and cold extract) that are stable in flavor, convenient for transportation, and storage. This not only retains natural flavors and nutritional components but also ensures consistency and efficient operation across thousands of stores. Ultimately, consumers will enjoy beverages with both health attributes, stable taste, and innovative flavors. The winners in the future will be those brands that can maximize the presentation of natural raw material values using industrial technology.   Q: Since February this year, coffee futures prices have experienced a trend of first soaring, then correcting, and maintaining high levels. Will consumers face price increases when buying ready-to-drink coffee in the future? Lu Siyi Consulting Manager for Consumer Industry at Frost & Sullivan Greater China   Looking at the current dynamics of the futures market and the industry side, consumers will indeed feel a certain pressure of price increase when buying ready-to-drink coffee in the future, but currently, there has been no widespread increase.   The factors behind this are as follows:   Firstly, cost pressure continues to be transmitted. Coffee futures prices reached a high at the beginning of 2025. Although they have recently corrected, affected by the climate and planting cycles of major global producing areas, the medium- and long-term cost center of coffee beans has been raised, making it difficult to return to the pre-increase price level in the short term   Secondly, there is price differentiation among different types of brands. Leading brands with strong supply chains and long-term agreements (such as Luckin Coffee and Starbucks) will buffer the pressure through large-scale procurement and digital operations. At the same time, considering their huge store and consumer base scales, an obvious price increase may have an impact on sales, and these brands tend to make invisible price adjustments, such as reducing discount intensity or guiding consumers to new products with higher profits. However, for small and independent coffee shops with limited procurement scales, a direct price increase may be the most direct means of survival.   Therefore, consumers may find in the future that they will have fewer opportunities to enjoy extremely affordable (below 10 yuan) freshly ground coffee, but the price increases for mainstream products in the general market range are controllable; while paying a higher premium for specialty coffee or special blends with high-quality beans or complex ingredients will become more common, and the prices of niche specialty coffees may experience a certain degree of increase.   Q: Brands like Starbucks and Bawang Tea Girl adhere to a strategy of focusing on value rather than price. In what other core dimensions may competition continue in the ready-to-drink beverage industry in the future? Lu Siyi Consulting Manager for Consumer Industry at Frost & Sullivan Greater China   My view is that the competition in the ready-to-drink beverage industry in the future will completely transcend simple price wars and turn into a value war across four core dimensions: deep supply chain, cultural innovation, global layout, and digital operations.   Firstly, the supply chain is the foundation: The focus of competition has upgraded to source locking of high-quality raw material producing areas globally and extreme optimization of distribution efficiency and freshness, which determines the upper limits of quality, cost, and stability.   Secondly, product innovation needs to be combined with cultural empowerment. Successful new products in the future need to deeply integrate regional culture or provide clear health functions (such as probiotics and natural herbs) to provide consumers with emotional and value experiences that go beyond thirst quenching.   Furthermore, brand globalization. Going global is also an output of cultural soft power. Brands need to choose a differentiated path, such as Bawang Tea Girl creating an Eastern aesthetic space in high-end markets in Europe and America, deeply binding their brand image with the East, and supporting positioning and premium through the brand.   Finally, there is digital competition. Through AI and big data for precise operations, marketing through digital tools, product innovation guidance, and building a private domain traffic pool for the brand to improve repurchase rates and product competitiveness.   Q: How do new tea drink brands mobilize consumer emotions? Which strategies are effective and which are likely to fail? Which are long-term mental strategies and which are short-term strategies? Lu Siyi Consulting Manager for Consumer Industry at Frost & Sullivan Greater China   My view is that the core of new tea drink brands in mobilizing consumer emotions is to upgrade from 'function satisfaction' to 'emotional resonance'. Whether a strategy is effective or not depends on whether it is sincere and systematic.   Effective emotional mobilization is rooted in an excellent product experience, a resonant cultural narrative, and a user relationship that is treated sincerely. Brands need to become 'value co-creators' and 'cultural interpreters'.   Short-term effective strategies usually involve creating immediate surprises and social topics of conversation, such as limited-time collaborations with popular film IPs or celebrities, launching high-profile peripherals, or launching viral challenges. However, if these strategies are executed improperly, such as marketing without supply chain support, rigid collaborations that do not match the brand's tone, and short-term price wars that damage brand value, they are very likely to fail and even backfire on the brand.   The strategy that can truly settle users and build a long-term brand mentalities is to internalize emotional value as part of the brand. This is reflected in three aspects: First, the product is emotion, such as through unique naming (such as 'Bo Ya's Farewell'), healthy concepts (without trans fats), and familiar flavors (such as nostalgic gardenia flowers), making the product itself a soothing, confident, or healing emotional carrier. Second, cultural resonance, where the brand becomes a symbol for consumers to express their cultural identity and self-identity. Finally, user co-creation, sincerely listening to feedback and quickly iterating (such as Bawang Tea Girl launching the low-cause series of teas according to user demands), establishing a sense of belonging where consumers are valued and maintaining a high repurchase rate through long-term strategies to win hearts.   *This interview has been published in CBN magazine, with reporter Lu Yanjun, and the original title is: Ready-to-Drink Tea: The Future's Competition Lies in Strong Supply Chains, Healthy Concepts, and Emotional Resonance

Frost & Sullivan insight What is the overall scale and development stage of the current Chinese beverage industry? What proportion does juice account for in it? What role does it play? What is the overall scale of the current Chinese pure juice (including FC and NFC) market? What changes have taken place in the competitive landscape of this market over the past few decades? What is the expected compound growth rate of the juice category in the next few years? How should this track be defined? For juice brands, which part should be emphasized more in building upstream and sales channels? Is it necessary and essential for brands to invest heavily in upstream construction?   Executive Director Cai Jinfeng of Frost & Sullivan Greater China, interviewed by Southern Weekend, discussed the upgrade of the juice industry and the structural growth opportunities for pure juice . Southern Weekend *Click on the end of the article Read the original article for a complete report   Q: What is the overall scale and development stage of the current Chinese beverage industry? What proportion does juice account for in it? What role does it play? Cai Jinfeng Executive Director of Frost & Sullivan Greater China   In recent years, the overall scale of China's soft drink industry has continued to expand, growing from about 986.7 billion yuan in 2020 to about 1,206.6 billion yuan in 2024. Currently, China's soft drink industry has entered a new stage of structural upgrade and quality improvement from a rapid growth phase, with consumers' demand for healthy, natural, and functional beverages significantly increasing.   As an important segment of the beverage industry, as of 2024, the market size of Chinese juice was about 158.4 billion yuan, accounting for about 13% of the overall soft drink market. In recent years, the juice category has also been improving quality and upgrading simultaneously, with significant growth in the pure juice category. Juice in the soft drink market is gradually shifting from a "quenching" beverage to a "healthy and nutritious" beverage, playing the role of representing consumption upgrade and quality life.   Q: What is the overall scale of the current Chinese pure juice (including FC and NFC) market? What changes have taken place in the competitive landscape of this market over the past few decades? Cai Jinfeng Executive Director of Frost & Sullivan Greater China   In 2024, the market size of Chinese pure juice (including FC and NFC) was about 36.7 billion yuan, accounting for about 23% of the overall juice market. Over the past few decades, the pure juice market has evolved from being dominated by foreign investment to a rise of domestic brands and then to a diversified competitive landscape.   In the early days, the Chinese beverage market was mainly composed of soda beverages and fruit-flavored beverages. At the beginning of 1986, local Chinese juice brands began to emerge, such as Coconut Tree Coconut Juice and Tianjin Orange Treasure Orange Juice, symbolizing the vigorous development of the domestic juice industry. After 1990, local brands such as Huiyuan and Nongfu Spring rapidly expanded through channel penetration and cost-effective strategies; in addition, Cool Kids, Unifree Fresh Orange Multi, and Meiji Juice also actively laid out their markets on the Chinese mainland; since 2010, with the continuous upgrading and popularization of sterilization technology, brands such as Weiquan, Zero Degree Fruit House, and Daily Fresh have promoted high-end upgrades, presenting a dual-track parallel pattern of "FC popularization and NFC high-endization" in the market. Currently, the market has gradually shifted from single-price competition to comprehensive competition in terms of quality, technology, and brand experience.   Q: For example, what is Huiyuan's market share in the pure juice segment? Compared with competitors such as Weiquan and Nongfu Spring, what are its strengths and weaknesses? Cai Jinfeng Executive Director of Frost & Sullivan Greater China   Huiyuan still occupies a relatively leading position in the mid- to high-concentration juice and FC pure juice markets. At the supply chain end, Huiyuan has an integrated ability from planting to production and processing, and has a first-mover advantage in the layout of upstream fruit planting. In terms of product dimension, Huiyuan has a comprehensive coverage of juice concentration and taste in the juice track, but its production method is single, mainly concentrated and reduced; Huiyuan's juice products are mostly single-branded, with competitive unit retail prices, rich juice categories, and a wide price range, but the application and development process of new technologies is relatively slow, failing to quickly capture the trend of consumption upgrade;   In terms of channel structure, Huiyuan's online channels and CVS channels are inferior to competitors such as Nongfu Spring and Unifree, mainly relying on the comprehensive operation of dealers' KA supermarkets and direct company channel layout. At the marketing strategy level, Nongfu Spring, Weiquan, etc. have established relatively mature brand and channel coverage in the market, with obvious marketing and channel expansion, but Huiyuan's marketing activities are relatively conservative, and its layout in the new retail and convenience store system is weak.   In contrast, Weiquan's refrigerated FC series products have quickly established a reputation among urban white-collar consumers through convenience store scenario layout; Nongfu Spring has successfully captured the high-end market with its "100% NFC" series and full-channel marketing, and is better at brand rejuvenation and product creation.   Q: What is the expected compound growth rate of the juice category in the next few years? How should this track be defined? Cai Jinfeng Executive Director of Frost & Sullivan Greater China   It is expected that from 2024 to 2029, the annual compound growth rate of the Chinese juice market will remain at a low single-digit growth rate, but the growth rate of the pure juice category is expected to reach nearly 10%, significantly higher than the overall industry.   We define the juice track as a "structural growth track driven by health upgrade". It is no longer a traditional soft drink branch, and the consumption of low-concentration juice will continue to decline; in order for the juice market to integrate high-potential categories such as healthy consumption, quality life, and diversified scenario combinations. Future growth mainly comes from increased consumption frequency, price increase, and diversified categories.   Q: For juice brands, which part should be emphasized more in building upstream and sales channels? Is it necessary and essential for brands to invest heavily in upstream construction? Cai Jinfeng Executive Director of Frost & Sullivan Greater China   Today's juice production technology has become increasingly mature, but strict control over raw materials and the adoption of more advanced production processes remain the competitive advantages of current mainstream brands. Upstream construction is a "necessary but not sufficient" condition, which ensures product differentiation and supply chain security, but without strong channel and brand capabilities, it is difficult to achieve large-scale commercial success. Therefore, we believe that the "strong upstream control + wide channel coverage + strong brand awareness" three-wheel drive will be the most core competitiveness of brands. *This interview has been published in Southern Weekend, with reporter Mei Ling, and the original title was: 'Loving Each Other and Killing Each Other' with Capital - Huiyuan's Repeated Battle with Major Shareholders