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Interview with Huizhan Wholesale Merchant

"Choosing the right direction is the foundation of our sustainable development"

Zhejiang Sango Trading Co., Ltd. is a service-oriented fruit industry chain enterprise, integrating overseas trade, domestic wholesale, terminal retail services, and planting and processing. Currently, it has established outlets in major regional wholesale markets across the country.

Faced with the impact of the Shanghai pandemic on the company, Tim, the head of western trade of Sango, said that the pandemic does not affect the vitality of the enterprise itself, and he very much agrees with this point of view: "Whether an enterprise's vitality is sustainable depends on whether it chooses the right direction. Under the premise of the correct direction, the pandemic will not have a major impact on the core competitiveness of the enterprise, and only the rhythm of enterprise development will be changed; if it is on the wrong path, the pandemic is just accelerating the failure."

In the early stages of the development of the wholesale fruit industry, most fruit companies chose to start from primary wholesale markets such as Shanghai and Guangzhou, while Sango chose to start from secondary wholesale markets. "We chose a bottom-up development path, and we used out outlets in Nanjing, and then went to Jiaxing, Qingdao, Zhengzhou, Jinhua, Linyi, Shanghai and other places. Because the competition in the primary wholesale market is more intense, we started from the secondary market first. It is more stable to lay down channels and go deeper into the primary market.”

In recent years, Sango has been focusing on strengthening the integration of all aspects of the supply chain. "For western products, we choose products with higher quality and added value according to the current consumption trend; for domestic fruits, we pay more attention to the development of our own products, such as the Hainan pineapple. We were the first in the world to differentiate through product technologies."

The processing warehouse and equipment built by Sango for retail channel services in Nanjing
In terms of channel construction, Tim said that in the future, on the basis of multi-point layout and multi-channel layout, they will increase channel stickiness by providing good retail services and establishing strong product lines. With the development of the entire social economy, both supply and demand are increasing, which has brought many new consumption channels, and the richness of channel types has also brought more opportunities for fruit supply chain companies such as Sango.

"Ten years ago, all consumers only knew about going to the supermarket for groceries. At that time, the supermarket channel was very strong. Later, fruit chains such as Pagoda and Xianfeng Fruit, online retail platforms such as and Tmall, Douyin live streaming, and group buying(B2T) and other channels emerged one after another. There is competition among these platforms. For our supply chain companies, there is more game space upstream and downstream."

Tim further introduced that although the current channel is constantly developing, the overall situation is still relatively indeterminate, and the real pattern has not yet been formed. "I think once the big pattern is formed, all existing channels will be absorbed by the big platforms. So we are now more focused on establishing cooperation with big platforms, such as Hema Fresh, Meituan, and Dingdong."

In order to further establish cooperation with large-scale retail platforms, Sango chose the idea of ​​a "single-point breakthrough" and focused on the development of Hainan pineapples as a core product. Tim said that currently in the domestic fruit industry, it is Joy Wing Mau that has created the best retail service, and the major channels are relatively mature. "Joy Wing Mau made a breakthrough through the single product of Zespri kiwifruit, so all major channels interested in Zespri would actively establish cooperation with Joy Wing Mau, and then this stickiness will gradually spread to other categories."

Two years ago, Taiwanese pineapples were revoked from the Chinese market. Sango took aim at this market opportunity and invested in establishing a pineapple base in Hainan. The biggest problem with pineapples is that there are often flesh-damaged pineapples and black-core pineapples. Quality control is a major difficulty for this product. In response to this problem, Sango chose to cooperate with REEMOON, a leading domestic fruit sorting equipment supplier, to realize the detection function through technical means, and at the same time, grade the internal sugar content to achieve a stable and consistent quality of pineapple products.


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