Core Insights - The China International Import Expo (CIIE) has become a significant platform for New Zealand companies to expand their business opportunities and deepen cooperation with Chinese markets, with over 80 New Zealand enterprises participating this year, marking the largest representation to date [1][3]. Group 1: Trade and Economic Relations - New Zealand's trade minister, McClay, highlighted that the CIIE serves as a launch platform for New Zealand companies to introduce new products specifically for the Chinese market [5]. - The trade relationship between New Zealand and China has seen substantial growth, with total trade reaching approximately 40 billion New Zealand dollars (about 160 billion RMB) last year, making China New Zealand's largest trading partner [7][9]. - Over the past 20 years, bilateral trade has increased from several billion to over 40 billion New Zealand dollars, showcasing a successful trade partnership [9]. Group 2: Product Certification and Market Demand - The "New Zealand Certified Grass-Fed" label was officially launched during the CIIE, indicating that at least 90% of the feed for dairy livestock must be grass-based, with specific grazing requirements [3]. - New Zealand's high-quality and safe food products are highly favored by Chinese consumers, contributing to the increasing demand for New Zealand goods in China [5][7]. - Some New Zealand companies have achieved significant brand influence in China, with one kiwi exporter reportedly supplying one kiwi per Chinese consumer annually [5].

Core Viewpoint - The article discusses the challenges faced by the company Baiguoyuan, particularly its high pricing strategy and the disconnect with consumer expectations, leading to significant financial losses and a decline in market performance since its IPO in 2023 [4][6][21]. Group 1: Company Performance - Baiguoyuan's stock price dropped by 7% following public backlash over its pricing strategy, which the chairman defended as a commitment to high-quality fruit [4][6]. - The company reported a net loss of 386 million yuan in 2024, with a reduction of 966 stores and a 27.1% decrease in paid memberships [4][6]. - Revenue declined by 9.8% in 2024, with sales costs reaching 9.5 billion yuan, indicating that the company was selling fruit at a loss [13][21]. Group 2: Market Dynamics - The fruit industry is highly fragmented, with the top five retailers holding only 3.6% market share, and Baiguoyuan itself capturing just 1% [14]. - The company's strategy of direct sourcing and reducing upstream losses has not translated into expected profitability, as the industry faces high operational complexities and competition from e-commerce [10][18]. Group 3: Strategic Challenges - Baiguoyuan's attempt to create a high-end fruit brand has been complicated by the diverse and competitive nature of the fruit market, where consumer expectations are not aligned with the company's premium pricing [6][37]. - The company has struggled with its franchise model, as franchisee revenues have decreased from 884,500 yuan in 2021 to 739,600 yuan in 2024, leading to complaints about profitability and product quality [15][16]. - The rise of fresh e-commerce has intensified competition, making it difficult for Baiguoyuan to maintain its market position [18][20]. Group 4: Comparisons and Lessons - The article draws parallels between Baiguoyuan and successful high-end brands like Zespri, which has effectively created a monopoly through proprietary cultivation and branding strategies [30][31]. - Baiguoyuan's efforts to establish its own brands have not yet yielded significant results, highlighting the challenges of building a brand in the fruit sector [33][34].