New Hope Liuhe Bundle
Who are New Hope Liuhe's customers?
Understanding customer demographics and target markets is crucial for New Hope Liuhe Company in China's dynamic agricultural sector. Evolving dietary habits, particularly a shift towards poultry and beef, influence the company's strategic direction.
New Hope Liuhe's operations span from animal feed to meat processing, serving a broad spectrum of consumers and agricultural businesses. The company's financial performance, with net profits of RMB 474 million in 2024 and RMB 445 million in Q1 2025, reflects its adaptation to market demands.
What is Customer Demographics and Target Market of New Hope Liuhe Company?
New Hope Liuhe's customer base includes individual consumers seeking protein sources, farmers requiring animal feed, and businesses within the food supply chain. The company's ability to adapt, as seen in its recent financial upturn, is key to serving these diverse needs effectively. Understanding these segments is vital for continued growth, especially in light of market shifts detailed in the New Hope Liuhe PESTEL Analysis.
Who Are New Hope Liuhe’s Main Customers?
New Hope Liuhe serves a dual customer base, encompassing both business-to-business (B2B) and business-to-consumer (B2C) segments. This reflects its vertically integrated supply chain, catering to agricultural enterprises and end consumers alike.
B2B Customer Segments: Agricultural Enterprises
The primary B2B customers are farmers and agricultural enterprises purchasing animal feed and breeding stock. In 2023, the company was the global number one player in feed production, selling 28.76 million tons. Overseas market fodder sales reached 5.25 million tons in 2024, indicating a significant international B2B presence.
B2C Customer Segments: End Consumers
The B2C segment consists of end consumers who purchase meat products like pork, poultry, and beef. While specific demographic data is limited, broader market trends in China point to a growing middle class with increasing disposable incomes, influencing dietary preferences.
The company's revenue breakdown highlights the dominance of its B2B operations, with animal feed accounting for 56.1% of net sales in a recent period (likely 2024). Poultry farming contributed 14.4%, pig farming 13.6%, and food product manufacturing 7.2%. This underscores the importance of the feed business for its overall financial performance.
Strategic Market Focus
New Hope Liuhe has strategically adjusted its focus over time, emphasizing its pig farming business for direct revenue and profit contribution. The company also held leading positions in white-feathered table poultry and the food industry in specific regions. Recent strategic shifts, such as transferring controlling interest in its broiler and food processing sectors in late 2023, aim to optimize profitability amidst market dynamics, as detailed in the Growth Strategy of New Hope Liuhe.
- B2B: Farmers, agricultural enterprises, distributors (domestic and international)
- B2C: End consumers of meat and food products
- Key B2B Products: Animal feed, breeding stock
- Key B2C Products: Pork, poultry, beef, processed food items
- Revenue Drivers: Animal feed (56.1%), poultry farming (14.4%), pig farming (13.6%)
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What Do New Hope Liuhe’s Customers Want?
New Hope Liuhe's customer base exhibits distinct needs and preferences, largely driven by economic factors, safety concerns, and evolving dietary habits. The company caters to both business-to-business (B2B) clients, primarily farmers, and business-to-consumer (B2C) end-users, particularly in China.
B2B Farmer Needs
For pig and poultry farmers, the core requirements revolve around cost-effective and efficient animal feed. Robust animal health support is also paramount to mitigate risks and ensure profitability.
Cost Reduction Focus
The company actively works to reduce farming costs. For example, the cost per kilogram for fattened pigs reached approximately 12.9 yuan in April 2025, with ongoing efforts to lower this further.
Animal Health Assurance
Comprehensive animal healthcare systems, including disease monitoring and laboratory services, are provided to protect B2B clients from significant threats like African Swine Fever (ASF).
B2C Consumer Trends
End consumers, especially in China, prioritize food safety, quality, and health. There's a noticeable shift towards diverse protein sources and a willingness to pay more for perceived safety and quality.
Market Bifurcation
The Chinese meat market is segmenting, with higher-income consumers seeking premium options like beef and seafood, while lower-income groups may opt for more affordable proteins such as fish and eggs.
Commitment to Innovation
Significant investment in research and development, including RMB 880 million in 2022, underscores a commitment to enhancing feed efficiency and developing sustainable practices, ultimately benefiting consumer trust.
The company's vertically integrated supply chain is designed to ensure product reliability and quality from origin to the consumer's table. This integration, coupled with investments in technology like the 'Xinxiwang 10K 'pig chip',' aims to meet the evolving demands of modern consumers. Adapting to contemporary purchasing habits, the company also expands its sales presence through supermarket channels and online platforms, reflecting a keen understanding of Revenue Streams & Business Model of New Hope Liuhe.
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Where does New Hope Liuhe operate?
New Hope Liuhe demonstrates a significant geographical market presence, with its operations predominantly anchored in China and a strategic focus on international expansion. The company's domestic reach extends across over 30 provinces, solidifying its substantial market share in key agricultural sectors within China.
Domestic Dominance in China
China represents the overwhelming majority of New Hope Liuhe's net sales, accounting for approximately 89%. The company holds the global leadership position in feed production and is a top-three player in pig farming, having sold 17.68 million pigs in 2023. It is also recognized as 'China's number one' in white-feathered table poultry and 'West China's number one' in the food industry.
Expanding International Footprint
Beyond its domestic stronghold, New Hope Liuhe has established operations in 15 to 20 other countries and regions. Key international markets include Vietnam, the Philippines, Bangladesh, Indonesia, Cambodia, Sri Lanka, Singapore, and Egypt, highlighting a diverse global outreach.
The company views its overseas fodder business as a critical 'third pillar' for future growth, with ambitious plans for production and expansion. In 2024, overseas fodder sales reached 5.25 million tons, marking a substantial increase of 0.57 million tons from the previous year, underscoring the rapid development in these international markets.
Overseas Growth Strategy
New Hope Liuhe plans to add between 3 million to 4 million tons of new capacity over the next 3-5 years. This expansion will concentrate on core international markets, utilizing flexible investment strategies such as new construction, acquisitions, and strategic partnerships.
Regional Adaptability
The company's localized approach is vital for success, acknowledging that customer demographics, preferences, and purchasing power vary significantly across different countries and even within China's diverse regions. This adaptability is key to understanding New Hope Liuhe customer demographics by region.
Risk Mitigation
The extensive domestic and international presence provides a strategic advantage, helping to mitigate the impact of localized challenges like natural disasters or disease outbreaks on the company's overall operational stability.
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How Does New Hope Liuhe Win & Keep Customers?
New Hope Liuhe employs a strategic blend of acquisition and retention tactics tailored to its diverse customer base, focusing on value, quality, and support to foster lasting relationships.
B2B Customer Acquisition: Value and Support Focus
For agricultural businesses, the company prioritizes offering cost-effective, high-quality animal feed and robust technical assistance. By actively working to lower hog farming expenses, such as achieving approximately 12.9 yuan/kg in April 2025, the company enhances its appeal to farmers.
B2B Customer Retention: Trust and Partnership
The company builds loyalty through its extensive support network, including nearly 4,000 supported households nationwide, contributing over RMB 3.22 billion annually to farmer incomes. Its advanced animal healthcare system, featuring dedicated laboratories and real-time disease monitoring, solidifies trust and long-term partnerships.
B2C Customer Acquisition: Safety and Quality Assurance
For individual consumers, the emphasis is on food safety, product quality, and brand reliability. The company's 'farm to table' integration ensures strict quality control and traceability, addressing consumer concerns about food safety.
B2C Customer Retention: Brand Trust and Innovation
Subsidiaries holding certifications like ISO9001, ISO 22000, and HACCP bolster consumer confidence. The company utilizes both traditional and digital sales channels, adapting to market dynamics. Investments in R&D, such as RMB 880 million in 2022, drive product innovation and sustainable practices, aiming to cultivate enduring customer loyalty.
The company's strategic adjustments, including the divestment of certain poultry and food processing assets in late 2023, were designed to streamline operations and enhance profitability, ultimately supporting a more competitive market position. This approach to customer acquisition and retention is a key component of its overall Marketing Strategy of New Hope Liuhe.
B2B Value Proposition
Offering cost-effective feed and comprehensive technical support is central to attracting and retaining agricultural clients.
B2B Partnership Building
Extensive farmer support and advanced animal healthcare systems foster trust and long-term relationships within the B2B segment.
B2C Trust Factors
Emphasis on food safety, quality, and traceability through vertical integration builds confidence among consumers.
B2C Loyalty Drivers
Brand reliability, coupled with innovation and multi-channel sales strategies, aims to secure repeat business from consumers.
Operational Optimization
Strategic asset divestments in late 2023 were aimed at improving efficiency and profitability, indirectly benefiting customer service.
Investment in Future Growth
Significant R&D investments, like RMB 880 million in 2022, underscore a commitment to developing superior products that meet evolving market demands.
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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 is Sales and Marketing Strategy of New Hope Liuhe Company?
- What are Mission Vision & Core Values of New Hope Liuhe Company?
- Who Owns New Hope Liuhe Company?
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