Retail giants bullish on consumption rebound
Editor's Note: This year marks a critical milestone as China concludes its 14th Five-Year Plan. To help in assessing the success of the process, we have asked multinational executives to share with our readers their insights about their business achievements in the past few years and further expectations in the years to come.
Q1 What's your view on this year's two sessions? Do you expect any specific policy measures for further deepening reforms and expanding high-standard opening-up? What more should China do to create a more enabling business environment for foreign investors?
LIU: The two sessions introduce policies focused on deepening reforms and expanding high-level opening-up, especially those in line with initiatives like the 2025 Action Plan for Stabilizing Foreign Investment. Hainan Free Trade Port's critical role in China's new phase of openness is of great significance. Multinational corporations highly recognize Hainan FTP's potential and are eager to understand relevant policies. We hope to see transparent policies that ensure equal treatment for both domestic and foreign enterprises, promoting fair competition, lower costs and improved services. With these reforms, we believe Hainan will become a world-class international consumption hub. DFS, backed by LVMH's global ecosystem, is confident in playing a vital role in Hainan FTP's development.
ZHANG: Policy measures from the two sessions further optimize the business environment for foreign enterprises. We look forward to leveraging these initiatives to drive business growth and serve more consumers in the market. We greatly appreciate the government's commitment to high-level opening-up, which has consistently created opportunities for Bimbo China. Notably, Mankattan Beijing, our subsidiary, recently received certification as a Beijing Foreign-Invested R&D Center by the Beijing Municipal Science & Technology Commission and the Zhongguancun Science Park Administrative Commission. This recognition strengthens global Bimbo's confidence to further inject funding to build local R&D innovation capabilities. We have sensed more practical support from local governments for Bimbo China.
ZHU: We believe the two sessions significantly advance reforms and opening-up. As an ultra-premium New Zealand pet food brand in China, Ziwi has experienced China's open and supportive approach toward foreign businesses, which has strengthened our commitment to investing here. To further enhance the business environment, we hope for streamlined Customs procedures for pet products, faster inspection and quarantine processes, and stronger intellectual property protections. These measures would enable us to deliver high-quality products to Chinese consumers more efficiently.
YOOVIDHYA: China's commitment to reform and opening-up has been clear. This year's two sessions introduces further concrete measures to enhance market access and business confidence. Over the past year, we have seen the removal of foreign investment restrictions in manufacturing, the expansion of pilot projects in key sectors and the introduction of 20 new measures to stabilize foreign investment. As a global company invested in China's long-term growth, I look forward to policies that streamline administrative procedures, enhance regulatory transparency, and promote high-quality consumption growth, creating more opportunities for businesses like TCP Group. At TCP Group, we see these reforms as essential to fostering a thriving, consumption-driven economy. A transparent, predictable, and well-structured regulatory framework will allow businesses like ours to contribute more effectively to China's economic vitality and global integration. We remain committed to deepening our presence and working closely with stakeholders to drive sustainable growth in this dynamic market.
Q2 "New quality productive forces "is widely seen as key to helping China achieve industrial upgrade and "high-quality development". How can your company help cultivate such forces in China?
LIU: DFS contributes to China's high-quality development through global-local synergy. Our Yalong Bay project, opening in Hainan FTP, will integrate over 700 luxury brands while incubating local talent and sustainable practices. By blending LVMH's global resources with AI-driven innovations — such as personalized shopping experiences and smart supply chains — we aim to elevate Hainan's luxury sector into a globally competitive industry. This model not only supports China's industrial upgrade, but also sets a benchmark for sustainable, tech-driven retail.
ZHANG: Between 2023 and 2024, Grupo Bimbo invested an additional $72 million in China to enhance product safety, upgrade production facilities, expand manufacturing capacity and improve factory environments. We place product safety as a No 1 priority. We drive product innovation through our Beijing and Shanghai R&D centers, developing safe, healthy and delicious products to meet evolving consumer needs. For sustainability, Bimbo China implements Global Bimbo standards consistently. For example, we are gradually shifting to eco-friendly logistics solutions with new energy vehicles.
ZHU: Ziwi is deeply committed to developing "new quality productive forces" which align closely with China's vision for high-quality development. At Ziwi, we prioritize innovation and technology to drive long-term growth and sustainability. By leveraging globally advanced pet food production technologies and utilizing big data to deeply analyze market demand in China, we develop high-quality, nutrient-rich pet foods that promote technological advancement and transformation within the pet industry. We are steadfast in our commitment to sustainable development, adopting eco-friendly production methods to reduce our carbon footprint. This philosophy is integral to Ziwi's brand messaging, as we aim to inspire both industry peers and consumers to embrace environmentally responsible practices. Through these efforts, we actively support China's "dual carbon" goals and contribute to a greener, more sustainable future.
YOOVIDHYA: The development of new quality productive forces is a critical driver of China's high-quality growth, and at TCP Group, innovation has always been at the core of our strategy. We are committed to a technology-first, innovation-driven approach, continuously integrating cutting-edge advancements across production, operations, sales and R&D to enhance efficiency and create greater value. In manufacturing, our Sichuan TCP Group Red Bull Beverage production base is a prime example of this commitment. We have introduced industry-leading high-speed automated production lines and intelligent three-dimensional warehouses, seamlessly integrating production, storage and resource optimization. This not only boosts efficiency, but also enables us to meet global green factory standards, reinforcing our dedication to sustainability. On the R&D front, our China R&D center leverages AI and big data analytics to gain deep consumer insights and accelerate product innovation. A key milestone was the launch of China's first bottled Red Bull product in 2023, a testament to our ability to adapt to evolving consumer needs through advanced technology.
Q3 DeepSeek has been a buzzword and surprised the world starting this year. AI technology has been deeply integrated with various industries around the world. What opportunities do you foresee for your business from AI technology? What's your view on China's ability to sustain innovation in breakthrough technologies in the coming years?
LIU: AI will redefine luxury retail through hyper-personalization and immersive experiences. At the DFS Yalong Bay project, we plan AI-powered tools like virtual stylists and AR try-ons to enhance customer engagement. China's rapid AI adoption, fueled by strong R&D and a tech-savvy consumer base, positions it as a global innovation leader. We are confident in China's ability to maintain breakthroughs in AI — driven by retail solutions — which is in line with our goal of providing excellent customer experiences.
ZHANG: DeepSeek is indeed an innovation that has surprised the world. Bimbo China pays high attention to AI education and leveraging. Within the company, IT experts provide AI training for our team, encouraging associates to use AI to improve work efficiency. On the commercial side, we are also attempting to leverage AI to generate creative ideas and constructive solutions to resolve business issues. China's rapid rise in AI, robots, integrated circuits and digital infrastructure will reshape competitiveness dynamics in related industries globally. Bimbo China aims to leverage these new technologies to improve its operating efficiency, speed of innovation and cost structure.
ZHU: In recent years, artificial intelligence has been a hot topic, and now China's advancements in AI technology have taken this conversation to new heights, showcasing its leading position in the industries. "Made in China" is further influencing the world, particularly through progress in AI and the global impact of sectors like new energy vehicles, highlighting its strong potential for sustained breakthrough innovations. We are confident in China's leadership in transformative technologies, which will enhance our operational efficiency, especially through data-driven insights, to better understand Chinese consumers and help us better meet the consumers' evolving needs. By leveraging advanced AI and data analytics, we can significantly enhance our new product development process and improve consumer-brand communication efficiency. These technologies enable us to analyze data on consumer preferences, market trends and nutritional needs, allowing us to identify gaps and opportunities in the market.
YOOVIDHYA: AI is reshaping industries at an unprecedented pace, and at TCP Group, we see it as a game-changer for the food and beverage sector. From R&D and production to consumer engagement and supply chain management, AI presents vast opportunities to enhance efficiency, personalize experiences and drive innovation. Our R&D center is already leveraging AI and big data analytics to gain deeper consumer insights and accelerate product development, thus ensuring that we stay ahead of evolving market trends. In manufacturing, AI-powered automation is helping us optimize production lines, improve quality control and enhance operating efficiency. Meanwhile, AI-driven predictive analytics and smart logistics allow us to respond to consumer demand with greater precision, reducing waste and improving supply chain resilience. China's thriving AI ecosystem and commitment to innovation provide a strong foundation for sustained technological breakthroughs.
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
LIU: China's consumption potential remains robust, driven by a growing middle-income group and policy incentives like duty-free expansion. Hainan's Spring Festival duty-free sales surged to 2.09 billion yuan ($289 million) in 2025, reflecting strong demand. DFS will capitalize on this by creating multi-category luxury experiences in China, targeting younger demographics through digital campaigns and entertainment-retail fusion. These strategies will drive profitability as China ramps up efforts to boost domestic demand.
ZHANG: With its 1.4 billion population, China's market presents unparalleled potential for baked goods industry growth. We have seen the government make significant efforts to stimulate domestic consumption, which has begun to show positive results from the end of last year. This year, I think the government may continue to focus on building consumption confidence and creating more job opportunities by doubling down on efforts in new technology fields, etc. When people have a sense of security, they tend to spend more. Looking forward, we believe that domestic consumption in China will gradually recover. This will give Bimbo confidence to deepen investment in the China market, helping speed up geographic and category expansion. With the right strategies and plan implementation, in 2025 Bimbo China will improve its profitability to enable the company's reinvestment in the China market for stronger capabilities in innovation and manufacturing.
ZHU: We are optimistic about China's consumption-driven economic growth and its potential to fuel our success. The rising demand for high-quality products, particularly in the premium pet food sector, aligns perfectly with Ziwi's offerings. As pet owners increasingly prioritize their pets' health and nutrition, Ziwi is well-positioned to benefit from this trend. The government's efforts to boost domestic consumption have created a favorable environment for our business. By expanding our product lines and optimizing distribution channels, we expect to achieve further growth in sales and market share. This will not only enhance our profitability, but also solidify our leadership in the premium pet food market. We remain confident in China's consumption potential and its ability to drive our long-term success.
YOOVIDHYA: China's focus on expanding domestic demand and boosting consumption reflects both global economic uncertainties and the country's transition to a new stage of high-quality growth. With a massive and evolving consumer base, China holds tremendous potential for a consumption-driven economy, particularly as demand for premium, functional and health-oriented products continues to rise. As a leading company in the global energy drink industry, TCP Group sees significant opportunities in China's market, where Red Bull is already a trusted and well-established brand. We anticipate that government-led consumption stimulus measures will further enhance market vitality and drive new growth opportunities. We believe that China's resilient consumer market and pro-consumption policies will create a strong foundation for sustainable growth. By deepening our presence, expanding local operations and continuously innovating our product offerings, TCP Group is well-positioned to benefit from China's shift toward a more consumption-driven economy while delivering long-term value to both our consumers and stakeholders.
Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what opportunities do you anticipate for your business as this process gains more traction? Will you increase investment in China in the coming years? How will you further expand your footprint in China?
LIU: DFS is committed to China's focus on high-quality development. We are increasing investment in China, particularly in the Hainan FTP, where the DFS Yalong Bay project will open as a seven-star retail-entertainment hub. By partnering with over 700 global brands across fashion, beauty and hospitality, we aim to be a key player in China's luxury sector, contributing to the country's modernization and positioning DFS as a bridge between global luxury and China's evolving consumption landscape.
ZHANG: China's high-quality development and modernization path present exciting opportunities for Bimbo to align with health-conscious consumption, intelligent manufacturing and rural vitalization initiatives. We're enhancing R&D efforts for nutritional products like zero-sugar and high-fiber whole wheat options to meet evolving consumer needs. Chinese modernization also gives us the opportunity to expand our business in the China market quickly. On top of club stores and discount stores, O2O business is also growing faster. We will enhance cooperation with winning channels. On top of this, geographically, Bimbo is aiming to expand beyond eastern and northern China to wider regions through partnerships with suitable distributors. The recent strategic partnership with Jingxitong (a platform under JD.com) helps Bimbo expand its national grocery coverage smoothly. China's compelling market potential and our established operational success reinforce our confidence in this market over the long run.
ZHU: We are highly confident in the tremendous growth opportunities within the Chinese market. China's 14th Five-Year Plan has achieved remarkable progress in promoting high-quality development, which has created unprecedented opportunities for the pet food industry. As China continues to advance along the path of Chinese modernization, the growing demand for high-quality and healthy pet foods presents vast potential for Ziwi. The company will further increase investment in China, optimize our distribution channels and deepen our commitment to the Chinese market. We plan to strengthen our online presence while expanding our offline investments to enhance brand influence and market share. By integrating online and offline strategies, we aim to provide Chinese consumers with a more convenient purchasing experience and solidify Ziwi's leading position in the ultra-premium pet food sector.
YOOVIDHYA: China's commitment to high-quality development and modernization presents significant opportunities, and TCP Group is fully aligned with this vision. Over the past five years, we have invested 4.36 billion yuan. But our vision extends beyond production. We are accelerating digital transformation, enhancing R&D and forging deeper partnerships to align with China's priorities in innovation, sustainability and industrial upgrading. China is not just a key market for TCP Group — it is a strategic hub for innovation and long-term growth. As the country continues to drive consumption expansion and technological advancement, we will deepen our investment, scale our smart manufacturing capabilities and introduce more innovative products tailored to Chinese consumers. Our "In China, For China "strategy remains unchanged, and we are committed to playing an even greater role in China's economic future.
