HUBEI
Qianyu Huang
16-11-2016
Location
Hubei lies in Central China, across two
important rivers, the Yangtze river and the
Han river. Hubei is bordered by the
provinces of Henan in the north, Anhui on
the east, Jiangxi and Hunan on the south,
Chongqing Municipality on the west and
Shaanxi on the northwest.
Main facts
■ Total area: 185,900 km²
■ Population: 58.5 million (2015)
Urban 33.3 million
Rural 25.2 million
■ Urbanisation rate: 56.85%
■ Climate: subtropical monsoonal climate
average 15°C ~ 17°C
■ Main cities: Wuhan (capital), Yichang,
Shiyan, Jingmen
Main facts
GDP and its increasing rate of Hubei 20112015
■ GDP: ¥2,955 billion in 2015
■ Cultivate area: 3420.51 kilo hectares
GDP billion RMB
3000
2500
2000
1500
1963,2
13,8
1000
■ Average disposable income:
¥20,026 (+9.5%)
2737,9
25
20
15
11,3
10
10,1
9,7
8,9
500
0
5
0
2011
■ Main crops: grain, oil-bearing crops, rapeseed
2225
2479,2
2955
%
3500
2012
GDP
2013
2014
2015
Increasing rate
Main agri-food products of Hubei in 2015
Product
Grain
Cotton
Oil-bearing crops
Rapeseed
Tea
Fruits
Vegetables
Production
(million ton)
27.03
0.28
3.45
2.59
0.26
6.16
38.49
Increase (%)
4.6
-22.4
1.0
0.6
5.1
0.3
4.8
Food industry in Hubei
Province
Shandong
Main business
Growth
income (billion)
Ranking Ranking
of output of growth
value
rate
1712
3.58
1
19
Henan
Hubei
Jiangsu
Sichuan
1060
792.5
711.5
655.4
8.3
10.93
8.9
5.38
2
3
4
5
12
8
11
16
Guangdong
620.5
3.21
6
20
2014
25/95 of the major growth-oriented industrial clusters are
agri-food clusters.
8%
21%
14%
57%
Agricultural and sideline food processing
Food manufacturing
Beverage
Tobacco
Food industrial clusters
■ 25/95 of the major growth-oriented industrial clusters are agri-food clusters
■ Can be divided into 4 types:
– Single brand (Baiyunbian, Zhijiang, Daohuaxiang)
– Based on special local products (tea, mushroom)
– Green/organic food products
– Others
Snack food
■ 8 types: puffed grains, fried nuts, fried potatoes, fried grains, sweets, meat and fish,
dried fruits, dried vegetables
■ Market size in China is 20-30 billion, the increasing rate is expected to be 15% in
the following years
■ Comprising 10% in major supermarkets which accounts 5% of the total revenue
Snack food
• Main consumers are young women
• 58.4% consumers are interested in new brands
• More focus on natural and healthy food, vitamin fortified products
Growing importance of eCommerce
% of online users
Market size of eCommerce
600
562,7
billion
500
400
33
34
349,1
300
200
100
93,9
79,3
74,5
42,6
0
33
Cellphone
■ Largest online market in the world
■ 2/3 of the transactions were done on mobile devices
■ Average age of users is 25
Pad
PC
Growing importance of eCommerce
Market share of B2C websites of China in 2014
Amazon
Tmall(Taobao)
Jingdong
Taobao and Jingdong have more than 80%
of the market share.
E-commerce and Cold chain logistics
■ E-commerce has driven the development of cold chain logistics
■ The cold chain logistics industry is expected to develop rapidly as demand for
commodities like food, medicine and cosmetics
■ Cold chain distribution and storage centers provide refrigeration services for local
agricultural markets
■ In Hubei total 324 food processing and distribution companies have the cold chain
business
Distribution channels
Distribution channels
Infrastructure and logistics
Highway:
253,000 km
Water route:
863.8 km
Infrastructure and logistics
Wuhan
Guangzhou
Hongkong
Infrastructure and logistics
Beijing
■ 73 train lines (2014.8)
Nanjing,
Shanghai
Hefei
■ Jingjiu:
Beijing <-> Hongkong
■ Jingguang:
Beijing <-> Guangzhou
 Xiangyu:
Xiangyang <-> Chongqing
Chongqing,
Chengdu
Liuzhou
Guangzhou,
Hongkong
Nanchang,
Fuzhou
Infrastructure and logistics
Wuhan (WUH)
Yichang (YIH)
Xiangyang (XFN)
Enshi
Shiya
Shennongjia
Jingzhou
Regulations
■ Comply with Food Safety Law
■ Must have Chinese labelling, instruction (sentence 66 of Food Safety Law)
– Name, ingredients, place, net weight (solids content etc.), production date
(yy.mm.dd), storage instruction, distributor
– The Chinese size must be not smaller than foreign words and > 1.8 mm
■ GMP, ISO9002 certified products need to submit support documents for approval
■ Taxes due to products
Useful contacts
■ Hubei Food and Drug Administration
– http://www.hubfda.gov.cn
– Tel: +86 27 87662639
■ Hubei Entry-Exit Inspection and Quarantine Bureau
– 588 Qintai Road Wuhan Hubei
– +86 27 58906226
■ Huazhong Agricultural University
– http://www.hzau.edu.cn