Faced with competition, China seafood distributor Sunkfa shifts to lower-tier cities
One of China’s best known seafood importers is aiming inland for future growth.
Shun Jing Fa Holding Group, also known as Sunkfa International Trade (Beijing) Co. Ltd. aims to have 50 seafood stores opened in lower-tier Chinese cities by the end of the year.
The company, which trades under the Sunkfa brand, is betting on steady economic growth and “higher demands for high-quality marine foods with good health and nutrition” among Chinese consumers, according to the company.
Having long operated out of the Jingshen wholesale market in Beijing, Shun Jing is looking to expand its national reach. , it’s opened shops across the country, from Haikou in the tropical south to northerly Harbin. To service the stores, the firm has signed 100 logistics “partners.” It has also established Wang Ju Xian (also trading as Ewfresh), a website targeting Chinese middle-class homes.
Company boss Weng Sheng Sheng set up the firm in 1989 as an offshoot of a conglomerate with interests in trading, heavy industry, and minerals which, like many Chinese peers, sought access to high-margin businesses like seafood trading. However, in recent years, Sunkfa has faced an onslaught of competition from online retailers like Alibaba and JD.com, which have also in turn been linking up with traditional retailers, who are interested in seafood imports due to the higher margins available.