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China: Organic fruit supply from Pagoda may increase in the future

“As a large-scale retail chain integrating fruit sourcing, post-harvest fresh-keeping, logistics, warehouse storage, and brand operations, Pagoda has been growing rapidly in the past ten years, and the number of stores in major cities across China has been increasing. The shares of imported fruit and locally produced fruit offered by us are 47% and 53% respectively,” said Zhu Qidong, Vice President of Pagoda Group, the largest fruit retailer chain in China at Asia Fruit Logistica. This is the first year that Pagoda took part in this event.

“By signing trade agreements with various countries and increasingly diversifying sales channels, more and more imported fruits are entering the China market. This undoubtedly brings us the opportunity to learn more from the growing practice overseas in order to constantly improve the quality of fruit grown in China. At the same time, it also forces us to work faster to raise the standards for fruit sorting and supply chain operations."

“Currently, Pagoda has fruit growing centers in China and abroad. Our overseas centers are mainly located in Chile and Southeast Asia, such as our durian growing center in Southeast Asia and our dragon fruit growing center in Vietnam. Adhering to the quality-centered guidelines, we send an international purchase team to the place of production to supervise the shipment and communicate with suppliers to clarify specifications. In the future, we hope to send more people abroad to purchase fruit, so that goods can be shipped after they are inspected and specifications are clarified.”

“In addition, we have a post-harvest research center and plan to establish an R&D center with other fruit research institutes in search of new varieties. Large research institutes and world-renowned seed companies will, of course, be involved in this project.

In general, organic fruit will become one of the new consumption trends in the next few years. Although our organic produce is mainly comprised of organic apples from New Zealand and the total volume is still small, it is gradually Increasing. We are ready to increase the supply to better meet market demand."

Store expansions
“In the past few years, Pagoda has been expanding vigorously. The number of stores has increased, and the market is showing a trend toward in-depth growth. According to our estimation, in the next five years, we will continue to expand into China's third- and fourth-tier cities, even to towns. In terms of sales channels, our online sales are expected to account for about 25% of our total sales this year, and it was only about 10% in the initial stage. Our plan is to increase its share to 30%-35% in the future."

“Facing fierce competition, one of the keys to Pagoda’s success is operating both online and offline. Although the share of our online sales is increasing, it will never completely replace offline sales, because offline sales can bring consumers a direct product experience. In addition, we have adopted a variety of sales methods to bring consumers the most convenient purchasing experience, such as smaller and finer packaging and pre-cleaned and cut fruit."

More information:
Zhu Qidong - Vice President
Company: Pagoda Group
Tel.: +86 400-181-1212

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