New Hope Liuhe Bundle
What is the Sales and Marketing Strategy of New Hope Liuhe?
New Hope Liuhe has strategically refined its sales and marketing approach, focusing on core agricultural strengths. This shift followed a significant divestment of non-core businesses in late 2023.
The company's recent performance, including a net profit surge of 122.99% in Q1 2025, highlights the success of this concentrated strategy. This turnaround demonstrates a powerful pivot towards enhanced operational efficiency and profitability.
New Hope Liuhe's sales and marketing strategy is deeply rooted in its position as a leader in the animal feed industry, selling 28.76 million tons of feed in 2023. It also leverages its standing as China's third-largest pig farming enterprise, with 17.68 million pigs available for slaughter in 2023. This focus on vertical integration and core agricultural production shapes its go-to-market tactics and brand positioning. Understanding the New Hope Liuhe PESTEL Analysis provides further context on the external factors influencing these strategies.
How Does New Hope Liuhe Reach Its Customers?
The company employs a multi-faceted sales channel strategy, deeply rooted in its vertically integrated farm-to-table model. This approach ensures a broad reach across various consumer and business segments, adapting to market dynamics and consumer preferences.
Traditional Offline Channels
Historically, the company has relied on wholesale markets to manage large volumes of production. This has been complemented by a significant expansion into modern retail, with products available in over 5,000 stores across major supermarket chains.
Business-to-Business (B2B) Sales
The company actively engages with downstream food processors and restaurant chains, demonstrating a strong B2B sales component. This segment is crucial for absorbing production capacity and building strategic partnerships within the food industry.
Digital and E-commerce Presence
In line with digital trends, the company has established a strong presence on major e-commerce platforms like JD and Tmall. This digital strategy aims to enhance direct-to-consumer engagement and broaden market access.
Strategic Divestments and Core Focus
A strategic shift in late 2023 involved divesting controlling interests in certain food processing segments. This move sharpens the focus on core businesses such as feed, hog farming, and animal slaughter, prioritizing B2B and raw material supply channels.
International Sales and Growth
The company's international sales strategy is a key component of its growth. With operations in 15 countries, including Vietnam, the Philippines, and Indonesia, it is expanding its global footprint.
- The overseas fodder business is a significant growth area.
- A sales target of 6 million tons is set for the overseas fodder business in 2025.
- Plans include potentially increasing overseas production capacity by 3 million to 4 million tons within the next three to five years.
- This international expansion leverages its position as a leading animal feed producer.
The company's sales and marketing strategy is deeply intertwined with its operational scale and market positioning. By maintaining strong relationships with domestic and overseas raw material suppliers, it ensures the efficiency and competitiveness of its entire supply chain. This approach underpins its overall Competitors Landscape of New Hope Liuhe and its ability to adapt to evolving market demands.
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What Marketing Tactics Does New Hope Liuhe Use?
New Hope Liuhe's marketing tactics are a blend of digital innovation and traditional relationship-building, emphasizing its integrated value chain and commitment to sustainability. The company focuses on enhancing brand awareness and driving sales through a strategy that leverages its industry leadership.
Digital Transformation Integration
The company's digital transformation strategy integrates business and digital technologies. The 'Hongtong digital nutrition system' is a prime example, connecting R&D with nutritional design and market feedback.
Smart Agriculture Focus
Aligning with national goals, the company is involved in 'Smart Agriculture.' This likely involves data analytics for customer segmentation and optimizing farm management solutions.
Traditional Engagement Channels
Despite digital advancements, the company likely continues to use direct sales teams and distributor networks. Engagement with farmers through physical retail and industry events remains a key approach.
ESG as a Brand Builder
The 'Tree of Hope' ESG strategy is crucial for brand building and reputation management. It supports rural revitalization and food security, reinforcing the company's commitment to agricultural prosperity.
Farmer Empowerment Initiatives
Programs like the '100,000 Green Collar New Farmer Training Plan' actively engage and empower farmers. These initiatives foster goodwill and strengthen supply chain loyalty.
Financial Performance as Marketing
The company's consistent profitability, such as in Q1 2025, serves as a testament to its robust operational and market strategy. This financial strength reinforces its market position.
Key Marketing Initiatives and Impact
New Hope Liuhe's marketing strategy effectively integrates its business operations with its social responsibility commitments. These initiatives contribute to its overall brand positioning and market approach.
- The '100,000 Green Collar New Farmer Training Plan' has significantly boosted farmer earnings, with contract farmers seeing over RMB 3.22 billion in increased income in 2024.
- The company's digital transformation strategy, exemplified by the 'Hongtong digital nutrition system,' aims to enhance product innovation and potentially offer personalized solutions to B2B clients.
- Smart Agriculture initiatives align with national digital integration goals for agriculture, projected to exceed 32% by 2028.
- The 'Tree of Hope' ESG strategy reinforces the company's brand by focusing on rural revitalization and food security, aligning with its core values as outlined in the Mission, Vision & Core Values of New Hope Liuhe.
- The company's consistent profitability demonstrates the effectiveness of its business strategy and contributes to its competitive advantage in the market.
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How Is New Hope Liuhe Positioned in the Market?
New Hope Liuhe positions itself as a leading, vertically integrated agricultural and food enterprise. Its brand identity is deeply committed to food security, farmer prosperity, and sustainable development, aiming to be a trustworthy force in society.
Core Brand Message
The company's core message is 'profiting farmers and benefiting food consumers.' This highlights its foundational role in the agricultural value chain and its dedication to societal well-being.
Brand Persona
Its consistent engagement in rural revitalization and food safety initiatives underscores a brand persona that is responsible, reliable, and dedicated to societal well-being.
Competitive Differentiation
New Hope Liuhe differentiates itself through immense scale and comprehensive vertical integration. It is the world's largest animal feed producer, selling 28.76 million tons of feed in 2023, and China's third-largest pig farming enterprise.
Unique Selling Proposition
Its unique selling proposition centers on quality, safety, innovation, and sustainability, emphasizing its role in building a 'safe and healthy food industry chain.' This approach is central to its Marketing Strategy of New Hope Liuhe.
Market Recognition
The company is recognized as a 'national key leading enterprise in agricultural industrialization' and 'China's trusted food company,' holding a corporate credit rating of AAA.
Validation of Reliability
Its past designations as a pork supplier for the Beijing 2008 Olympic Games and a supply-assuring entity for the Beijing 2022 Winter Olympic Games validate its reputation for quality and reliability.
Brand Consistency
Brand consistency is maintained across segments through its unified ESG strategy, 'Tree of Hope,' integrating sustainability into all operations.
Strategic Adaptability
Decisive strategic adjustments in late 2023 and early 2024, refocusing on core profitable businesses like feed and hog farming, demonstrate responsiveness to market shifts and a commitment to long-term resilience.
Fortune Global 500 Ranking
The company's consistent ranking includes being 378th among the 2024 Fortune Global 500, underscoring its significant global presence and operational scale.
Target Audience Appeal
Its appeal to farmers, B2B clients, and consumers is built on a foundation of quality, safety, innovation, and sustainability, reinforcing its market approach.
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What Are New Hope Liuhe’s Most Notable Campaigns?
New Hope Liuhe's sales and marketing strategy is deeply intertwined with its operational strengths and its commitment to stakeholder development. Key initiatives function as impactful 'campaigns' that shape its market presence and drive growth.
'100,000 Green Collar New Farmer Training Plan'
This long-term social responsibility initiative, active since 2018, focuses on cultivating skilled agricultural professionals. It aims to bolster rural economies and secure a robust supply chain through modernized breeding models and direct farmer engagement.
'Cost Reduction and Efficiency Enhancement in Pig Farming'
An internal operational campaign designed to revive profitability in pig farming. It emphasizes epidemic prevention, production management, and stringent cost control, leveraging technological upgrades and enhanced oversight.
These strategic efforts underscore New Hope Liuhe's integrated approach to market engagement and operational excellence, reflecting a comprehensive New Hope Liuhe business strategy that prioritizes both commercial success and societal contribution.
Farmer Training Impact
The '100,000 Green Collar New Farmer Training Plan' significantly boosted farmer earnings, with over RMB 3.22 billion generated in 2024. Projects in Guizhou, such as those in Shibing and Nayong, distributed substantial dividends of RMB 2.48 million and RMB 605,400 respectively in the same year.
Pig Farming Cost Efficiency
By April 2025, the complete cost per fattened pig from normal operational farms decreased to approximately 13 yuan/kg. The top 25% of operational lines achieved an even lower operating cost of 12.5 yuan/kg in Q1 2025, showcasing significant progress in cost management.
Profitability Turnaround
The focus on cost reduction and efficiency led to a year-on-year profitability in the pig farming business during the first half of 2025. This contributed to the company's overall net profit of RMB 445 million in Q1 2025, demonstrating the success of its internal reforms.
Brand Credibility Enhancement
The farmer training initiative enhances brand visibility and credibility by showcasing tangible social value. This strengthens the company's 'company + farmer' model, a key aspect of its market approach and Target Market of New Hope Liuhe.
Operational Excellence as Marketing
The internal campaign for cost reduction and efficiency, while not a direct marketing effort, bolsters the company's competitive advantage. Improved operational performance translates to better value offerings, indirectly supporting the New Hope Liuhe sales strategy.
Strategic Growth Drivers
These 'campaigns' are integral to New Hope Liuhe's growth strategy, demonstrating how operational improvements and community engagement contribute to overall market success and brand positioning.
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- What is Brief History of New Hope Liuhe Company?
- What is Competitive Landscape of New Hope Liuhe Company?
- What is Growth Strategy and Future Prospects of New Hope Liuhe Company?
- How Does New Hope Liuhe Company Work?
- What are Mission Vision & Core Values of New Hope Liuhe Company?
- Who Owns New Hope Liuhe Company?
- What is Customer Demographics and Target Market of New Hope Liuhe Company?
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