In recent years, Japan’s vending machine magnates are racing to penetrate China’s vending machine market. For example, in 2013 Kubota established their branch office in Shanghai, in an attempt to radiate influence into other big cities, such as Beijing, Zhengzhou, etc, and their main targets are subway stations and airports. 2 years later, Fuji Electric also fixed its eyes on China’s promising market. Their first step was to introduce their paper-cupped beverage (beverage sold in paper cups) vending machines into China and their next step was also to set up a branch office. Seeing its rivals moving so fast, Sanden also quickened its pace to conquer China’s market. A new model of vending machines with capacity increased by 40% was put into China in 2015.
Since so many Japan’s vending machine magnates all aimed at China’s vending machine market, there must be great potential gestated in China. But what makes China such a promising land for vending machine industry? The reasons may be concluded as follows.
China’s Beverage Magnates Leading Forward China’s Vending Machine Industry
Many shrewd beverage enterprises in China are already taking action to expand into vending machine industry. For example, by the end of August, 2015, Nongfu Spring had deployed over 3,000 vending machines in China. Their plan is to ultimately put in 30,000 vending machines by the end of 2016. In the meanwhile, Wahaha Group had also signed a contract to cooperate with Ubox, a vending machine magnate in China. It is said that in the next 3 years, Wahaha Group will invest no lest than 2 billion RMB to build up its smart retail terminal network covering the whole country with 100,000 vending machines. It is believed that in the foreseeable future, more beverage companies in China will realize the enormous opportunity in China’s vending machine market and seek for partners with common interests. And their efforts will eventually lead China’s vending machine industry to move forward.
Ever-increasing Labor Cost and Rental Cost
According to a report released recently by Deloitte Consulting, in the last 10 years, China’s labor cost has increased by 5 folds and its growth rate seems unlikely to slow down, which means that in the near future, China can no longer take advantage of its low labor cost. What’s more, the ever-increasing rental cost is also an unbearable burden for many small retail stores. In some cities, rental cost can encroach on up to 50% of the stores’ profits. Every year, a lot of retail stores are forced to shut down. There is no doubt that with its obvious advantages of no labor cost and little rent, vending machines will be the choice for many people who want to enter China’s retail industry.
China’s Vending Machine Market Is Far From Saturation
China’s vending machine industry is still in a start-up stage. At present in China, there are only 120, 000 vending machines, a very small number compared with our population of 1.3 billion people. It is estimated that in the near future, the number of China’s vending machines will increase to 500,000. Therefore, there is still enormous room for the development of China’s vending machine industry. So if you want to penetrate into China’s vending machine market, you’d better hurry up before others fill the gap in the market.
Opportunities are always for people who are prepared. If you think your are ready to grasp the opportunities in China’s vending machine market, I strongly recommend the 5th China Int’l Vending Machines & Self-service Facilities Fair 2017 (China VMF2017). Supported by renowned enterprises at home and abroad, such as Ubox, Easy Touch, TKB, Kubota, Fuji Electric and so on, every year China VMF is full of decision makers who are haunting for business partners.
If you have decided to exhibit or visit China VMF2017, please contact us so that we can send you the information you need to ensure you a convenient trip.
The 5th China Int’l Vending Machines & Self-service Facilities Fair 2017 (China VMF2017)
Person：Ms. Eve Cheng
Tel：+86 20 29188156