CHINA March 2019
Yili Group has recorded a whopping 16.9% growth in revenue in 2018, which signifies its largest growth ever recorded in history. Its sales revenue reached Rmb 79.5 billion (US$11 billion). Yili was established in 1956, and in 1993, it was restructured to become Inner Mongolia Yili Industrial. Since 1996, the group has recorded sales growth every year. At present, 11 out of its 20 products are reaping sales of more than Rmb 1 billion (US$149 million). These key brands include Ambrosial, Satine, Chang Yi 100%, Chang Qing and Joy Day. Yili offers 6 main product categories which include liquid milk, powdered milk, cheese, yogurt, health and cold beverages. Yili attributed its growth to the aging population as well as the growing health-conscious trend among the younger generation. Growing urbanisation coupled with higher disposable incomes will accelerate its growth, and this is facilitated by both e-commerce as well as new sophisticated retail channels. With such optimism, Yili projects its sales revenue to reach Rmb 90 billion (US$13 billion) in 2019. Chairman Pan Gang said, “In 2019, Yili will take advantage of its brand reputation, sales channels, and its industry standing to actively promote new business models, build new sales channels, and penetrate into more instances where there are chances for consumers to spend." Kantar Worldpanel research highlighted that Yili was the most consumed food and beverage brand in China in 2018, surpassing many other global brands already existing in China. In terms of product categories, liquid milk contributed 83.4% of Yili's total revenue, however the greatest growth of 25.1?me from milk powder and milk products. Overall, this category contributed 10.2% of the total core business revenue. With regards to sales channels, e-commerce took the lead, as revenue increased by 61%, while brick-and-mortar sales also delivered good performance, as sales in maternal-infant stores went up 32%. To strengthen its offline business, Yili had increased the number of liquid milk offline retail points by 23.2%. By the end of 2018, it has 1.75 million offline point of sales selling liquid milk. To achieve its ambitious goal in 2019, Yili will focus on enhancing product quality, developing new products and develop its international business. Late last year, it acquired Chomathana, Thailand’s largest domestic ice-cream and frozen food enterprise and in September 2018, it had upgraded its R&D centre in Europe to an Innovation Centre.