On February 3, Pagoda released its 2024 performance warning announcement. The announcement indicated that compared to the owner's share of profit of approximately RMB 362 million in the 2023 financial year, the company expects an owner's share of loss of RMB 350 million to 400 million in the 2024 financial year. Additionally, Pagoda expects its revenue for the 2024 financial year to decrease by no more than 15.0% compared to the 2023 financial year's revenue of RMB 11.3906 billion. Meanwhile, the number of Pagoda's offline stores in 2024 is expected to decrease by 15.9% compared to the 6,081 stores in 2023.

Despite the decline in annual revenue and the loss-making situation, Pagoda has demonstrated significant operational resilience through a series of strategic adjustments and optimizations. The second half of the year has shown an inflection point of improvement in performance. Notably, in 2024, Pagoda launched the "High-Quality and Cost-Effective Strategy", which not only represents an active adjustment to the downward economic market but also injects new growth momentum into the company's sales performance.

China is one of the world's largest fruit producers and consumers. In recent years, the domestic fruit retail market has undergone significant changes. With the rapid economic development and the improvement of residents' consumption levels, fruit consumption has become an essential part of people's daily lives. According to market research institutions, it is projected that by 2025, the scale of China's fruit retail market will exceed RMB 150 billion, indicating that the fruit market has broad development prospects and huge market potential.

Industry insiders have indicated that Pagoda has adopted a scientific pricing system to achieve scientific, simplified, and standardized pricing across all product categories. This will help franchisees set competitive market prices and ensure reasonable pricing. By eliminating the "product assassin" experience and implementing a "no questions asked" return policy, customer trust is enhanced.

Food Exhibition points out that China's fruit retail industry currently faces three major growth opportunities, bringing significant potential for development for leading enterprises:

Stable Growth of the Retail Market: With updated consumption patterns and increased emphasis on healthy lifestyles, fruits, as a category of healthy consumer goods, are suitable for consumers of all age groups.

Improvement and Efficiency Enhancement of the ToB Market: The fruit industry suffers from low efficiency and high losses due to the dispersed production and sales locations, which calls for large platforms to integrate and standardize operations.

Potential of the Overseas Market: China, with its rich fruit resources, is also the world's largest fruit consumption market, and the overseas market holds significant potential.

If you would like to learn more about the food industry, please visit the SIAL China website for more information.

Source: Leading Enterprises Branch of China Fruit Marketing Association

If there is infringement, please contact delete.