Cold Chain Logistics Market Study of Chengdu

Project Background

Faced with strong financial growth, the cold chain markets in Chengdu have both opportunities and challenges.

DCH, one of the major business leaders in the cold chain industry in China, is preparing to develop in Chengdu’s cold chain market. To grasp the first-hand information and understand the growing condition of Chengdu, DCH has commissioned BPS to conduct a market study of Chengdu’s cold chain industry, so as to assist DCH in deciding its market positioning. BPS will also formulate short-term and long-term development strategies to aid DCH in penetrating the cold chain market.

Project Challenges

Lack of market information for cold chain business
- Potential cold chain supplier details
- Potential client details
- Return on Investment of cold chain suppliers
Short of External Environmental Factors/ Risks information
- Political, Economical and Technological Factors
- Business, Compliance, Political and Financial Risks
Lack of short term/ long term investment plan
- Renting / Acquire current facilities for cold chain operations
- Purchase land from government for cold store facilities construction
- Rent / Setup cold chain truck team for delivery services

Project Timeline

Chengdu on-site study and report drafting

Project Results and Benefits

Market study including:

Statistics data collection of cold chain logistics market in Chengdu
Target logistics market segment and functional needs study
Information Study on Government policies to support logistics services
Industry and Market Trend Analysis
Potential Customer Study
• Requirement on Value added service, Temperature Range, Infrastructures, Expenditure and Revenues, Logistics Equipment etc.
Potential Supplier Study
• Business operating conditions, services level, strengths and weakness, Pricing level, Customers’ information, Investment plan etc.
Short & Long term development Strategies
Infrastructure and Transportation Network setup
Market environment and potential risks analysis

Investment Term

Assisted DCH to understand the Chengdu cold chain market
Interviewed with potential cold chain suppliers and recognized the service level and cold stores configurations
Interviewed with potential cold chain clients with understanding of their cold chain demand and selection criteria of cold store
Performed a market “demand and supply” analysis for the next 3 to 5 years ahead to present a clear picture on the current market conditions
Formulated a short term & long term cold chain development plan with investment details

DAH CHONG HONG HOLDINGS

Project Background

Logistics Consultancy Service In April 2011, Dah Chong Hong Holdings reached an agreement with IGLO International about securing the existing of the cooling logistics facilities and related consultancy services from IGLO.

Investment Term

Through the BPS provides the logistics consultancy service to DCH, the modern cold-storage of DCH is 22,109 square meters, the storage capacity is about 25,000 pallets, which is located in Shanghai. It coordinates the businesses development of DCH’s food produce and logistics in the Eastern China to achieve the goal of improving cost efficiency and productivity.