In the imported fruit market, before the Chinese New Year, Chilean cherries were the most popular item. In this production season, under the challenge of a 25% year-on-year increase in the import volume of cherries and an early Spring Festival, what is the sales and market feedback? Freshplaza spoke to Mr. Don Lu from the Shenzhen Yuanxing Fruit Co., Ltd.
"First of all, the quality and taste of cherries this season have been very stable, which is significantly better than last year. In addition to the efforts of Chilean production areas, the rapid customs clearance in China and the smooth international logistics are important reasons. Although the Spring Festival is ahead of schedule this year, under the control of the place of production, the unripe fruit was not transported to the Chinese market. Second, prices are relatively stable this season. Last year, the price of cherries fluctuated greatly, which meant merchants took high risks, and many merchants suffered losses. This year's price fluctuates a little and the selling price is ideal. The average price is estimated to be about 20% to 30% higher than last year, enabling positive market profits."
"Although the arrival of cherries has increased significantly this year and the time is concentrated, the sales are stable and the overall sales are better than the previous years. At the beginning of the production season, the industry was worried about this year's market consumption and the development of the pandemic, but the reality is that sales are booming, better than expected. I think it has a lot to do with the liberalization of pandemic prevention measures: customs clearance is fast, products flow quickly, people flow freely, and consumers are more willing to spend money to enjoy the festival.
Regarding the popular varieties and their packaging specifications, Mr. Lu said that Kodia and Regina have the best taste and relatively high prices. For merchants, Santina, the mid-to-late ripening variety is ideal for sales and profits. Because Santina arrived around New Year's Day, the number of cherries arriving at that time was not large, and the taste, fruit shape, color, and price of this variety were relatively ideal, making it easy to sell. In terms of size and level, XL and J sizes are sold more in the early stage of the production season, while 2J, 3J, and 4J are sold better on the eve of the Spring Festival because the large fruit types meet the needs of gift-giving at that time. In terms of packaging, the "two-in-one" package of 2.5KG x 2 is the most popular, because it is suitable for gift giving. And the 5G small box size is also good because the price is not too expensive.
Talking about the post-holiday sales of cherries, Mr. Lu said that the most important method is to reduce the price and clear the stock. According to reports, the sales situation after the festival this year has greatly improved compared with last year, because there are fewer fruits arriving after the festival and there is not much backlog before the festival.
"From the current point of view, this year's post-holiday arrivals accounted for about 10% of the total production season, while last year was about 20%-30%. Moreover, the sales before the Spring Festival this year were smooth, and there was not much backlog. Last year, there was an excessive backlog due to slow sales. It is now the end of the production season, and the arrival of large ships by sea has ended. Recently, the market has basically reduced prices to clear the stock, and prices have dropped to a certain extent almost every day."
Shenzhen Yuanxing Fruit Co., Ltd. imports a variety of fruits from Australia and New Zealand, South Africa, Egypt, South America and other places. It has a variety of channels such as wholesale markets and direct supply to mid-to-high-end retailers. It also has a number of self-owned brands.