One of China’s leading courier firms is talking with a provincial government to launch a brand of sustainably-branded fish products for distribution nationwide.
Officials in the Ministry of Agriculture’s provincial office in Heilongjiang met recently with executives from Shunfeng (also known as SF Express), China’s second-largest delivery company by revenue, which has also built up operations in offline and online retail of food products.
After the meeting, Shi Lichen, head of general manager of Shunfeng’s Heilongjiang operations, announced a provincial brand – presenting its fish as high-quality and sustainable product – will be distributed through Shunfeng’s national delivery network and consumer-facing ‘Hei ke’ chain stores.
Bordering Russia, the northerly province of Heilongjiang is known for freshwater production of carp, Mandarin fish, and sturgeon, while provincial cities like Harbin have become hubs for trade with Siberia as well as domestic tourism.
“Brand-building is central to increasing the income and sustainability of Heilongjiang’s fishery and farming produce,” the Ministry of Agriculture’s provincial office said in a statement.
Co-launching a seafood brand with Heilongjiang authorities could boost margins for SF Express. The firm’s delivery carts and vans have become a ubiquitous sight in Chinese cities in recent years as urban consumers increasingly shift to buying groceries online. However, the company faces competition as leading players like JD.com roll out their own logistics operations as a revenue generator.
Shunfeng’s move comes at a time of intensifying competition between China’s ecommerce players for market share. Leading players like Alibaba, JD.com, and Yihaodian have struggled to increase profitability and margins, while small have suffered heavy losses and are exiting the market.
