Two large Chinese seafood companies have reported huge increases in revenues in 2017, despite implementing very different growth strategies.
Shun Jing Fa Holding Group (also known as Sunkfa International Trade (Beijing) Co. Ltd., reported a 35 to 40 percent increase in revenues between 2017 and the previous year, according to company boss Weng Sheng Sheng.
Sunkfa’s growth figures, announced at a company Chinese New Year party, are similar to those announced by Dalian-based seafood importer and processor Rui Chi Group (also trading as Rich Seafood). Company boss Deng En Tang told staff at a New Year’s party that the firm had scored a 60 percent increase on revenues for 2017 compared to 2016, although the firm hasn’t announced real data or profit figures.
The results suggest that demand for seafood imports remains strong in China, as both Sunkfa and Rich Seafood rely heavily on imports, and Rich Seafood has signed several high-profile import deals with Western fishery firms.
However, the two companies have used different strategies to steer themselves toward success. Tang has positioned Rich Seafood to serve the high-end domestic market, while Sunkfa boss Weng has bet on higher demand for seafood from health-focused, middle-class Chinese consumers. Under Weng’s leadership, Sunkfa has opened new shops across the country, from Haikou in the tropical south to northerly Harbin.
However, Sunkfa faces growing competition from cash-rich internet-based firms like Alibaba and Tencent, which have been investing in both online and traditional stores in order to score high margins on imported and premium foods. To compete, Sunkfa established Wang Ju Xian (also trading as Ewfresh), an online shopping website targeting Chinese middle-class homes.
