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Supply volume to the Chinese market continues to grow

Sales volume of New Zealand Sonya apples doubled

"Current data shows that the sales volume of New Zealand Sonya apples in the Chinese market doubled compared to last year." This is according to Mr. Don Lu of Yumsun Fruit. He recently talked about challenges that New Zealand Sonya apples face in the Chinese market where Yumsun Fruit is their exclusive distributor.

"The New Zealand Sonya apples did not perform well in the Chinese market last year. There were several retailers, and although the price was competitive, the sales conditions were chaotic and brand promotion was insufficient. In the second half of the season the price dropped. This year Yumsun Fruit is the only distributor of Sonya apples in the Chinese market. The company improved their marketing strategy and since then the sales volume of Sonya apples doubled. Sales are much better than last year."

"Our sales channels include large-scale supermarkets and wholesale markets. A key element of the marketing strategy this year is to distribute the Sonya apples to cooperating supermarkets throughout the country. At the same time, we also offer comprehensive support to wholesale traders, including reasonable set prices and compensation for waste.

"In addition, being the exclusive distributor is convenient because we do not have to guess how many apples other distributors have in storage or how the export price develops. We can adjust the price and delivery volume based on current market conditions. We only order additional supply when it becomes clear that the current volume is exhausted, so that we avoid overlap between old and new supply, and we can adjust the price accordingly," said Mr. Don Lu in an explanation of the marketing strategy of Yumsun Fruit.

It is also worth pointing out that the profit margin for New Zealand sellers of Sonya apples is better than last year. The delivery volume to the Chinese market is much bigger than last year.

The growing delivery volume of New Zealand Sonya apples creates challenges in the second half of the season: the growing delivery volume puts pressure on the price and slows down product movement. According to Mr. Don Lu, the delivery volume of New Zealand apples greatly increased after the 20th of August. Moreover, the product quality declined during the second half of the season and the ratio of waste has gone up, so the price went down. Red Rose apples in particular dropped from 300-400 yuan [41.66-55.55 USD] per box to around 100 yuan [13.89 USD] per box.

The delivery volume increased, according to Mr. Don Lu, because New Zealand suppliers saw Mid-Autumn Festival [10 September, 2022] as a great commercial opportunity. In addition, market demand from other countries declined and exporters shifted their apples to the Chinese market. The current market is shaped by excessive supply volume, large reserves, low prices, and slow product movement. In addition, this is the time of year when domestic apples enter the market, which has an impact on the market position of imported apples.

"Prior to the Mid-Autumn Festival, the price was low, but at least product movement was quick. After the festival, product movement slowed down." According to Mr. Don Lu, the company has recently improved product quality control and waste control, and they are taking advantage of reasonable prices to convince visiting traders to empty their storage space and purchase Sonya apples. The company team also increased product promotion. "We are lucky that wholesale traders are supportive and working hard to help us sell our apples."

Shenzhen Yumsun Fruit imports fruit from Australia, New Zealand, South Africa, Egypt, and South America. The company sells in wholesale markets and supplies directly to mid- and high-end supermarkets. They have many of their own fruit brands.

For more information:

Mr. Don Lu

Shenzhen Yumsun Fruit Co., Ltd.

Tel.: +86 159 9952 5366 



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