“Creating A Common Prosperity Future Together”
PARIS and SHANGHAI, 24th February 2022 – On 17th and 18th February 2022, The Consumer Goods Forum (CGF) successfully held the fourth edition of its annual China Day series of events. Held at the Shangri-La Qiantan in Shanghai, CGF members from the Greater China Region and industry experts came together to discuss the major challenges and opportunities of the consumer goods industry and explored the building of a common prosperity future. The series of events also included the 2nd CGF China Health and Sustainability Collaboration Conference and the 1st edition of CGF China Digital Supply Chain Conference.
The 4th CGF China Day was attended by more than 400 delegates. It provided a professional and diversified exchange platform for companies from across the industry and key external stakeholders interested in having a positive impact on the consumer goods industry.
The work of the CGF in China is focused on four key pillars: food safety, health & wellness, sustainable development and the end-to-end value chain. Together, members collaborate on finding solutions to regional challenges and in positioning the Chinese industry on the global stage and at the forefront of sustainable development.
On 17 February, Day 1 of the CGF China Day, Daniel ZHANG, Chairman and CEO, Alibaba Group & CGF Board Co-Chair, opened proceedings. On behalf of China’s Board of Directors and the Global Board of Directors of the CGF, Daniel ZHANG welcomed all the guests. He stressed that consumption power needs to be guided and the key to consumption growth is providing all-round experiences for consumers in supply, services, and operations, to make them feel like they are part of it and are being cared for. He also shared the first Carbon Neutrality Action Report of China’s internet companies recently released by Alibaba Group, showing a timeline of the measures taken by the group to become more sustainable, revealing that the group’s goal of carbon neutrality will be achieved by 2030. Finally, he emphasised the significance of the development of the CGF China Action Alliance and called on more partners to promote food safety, health & wellness, sustainability, and the end-to-end value chain.
Weiwen HAN, Managing Partner, Bain & Company, then moderated a panel entitled, “The Road to Carbon Neutrality 2060 – Value Chain Collaboration”, which was attended by David (Xiqiang) ZHANG, EVP of Nestlé Group & Chairman and CEO, Nestlé Zone Greater China; Jeffrey LU, CEO of Mengniu Group; and Tino Zeiske, President of Metro China.
David (Xiqiang) ZHANG introduced Nestlé’s experience in sustainable development as well as its pre-2025 goals. For example, zero deforestation will be realised for its main supply chains, 20% of key materials will be produced by renewable agricultural methods, and sustainably-certified palm oil, cocoa, and coffee will be purchased. Sustainable packaging, the use of renewable energy, green logistics, and carbon removal will also be promoted.
Jeffrey LU, CEO of Mengniu Group, said that carbon neutrality is a great challenge to China’s dairy industry and requires the full collaboration of the whole industry chain to create a “net-zero carbon era”. “Only by respecting nature and pursuing a harmonious co-existence with nature can we achieve sustainable prosperity.” Jeffrey LU clearly pointed out the path toward realising sustainable development of the consumer goods industry. In his view, the industry must confront the challenges brought by climate change while providing better products and services.
Tino ZEISKE, President of Metro China, stressed that as a pioneer in sustainable development, Metro has always been integrating its success with social sustainable development, following high standards for food safety, and actively responding to the call of the Chinese government and the sustainable development goals of the United Nations to contribute to China’s economy, society and environment.
Jessie QIAN, Head of Consumer and Retail, KPMG China, delivered an overview of the “2021 Review – The Consumer Goods Forum Report: Collective Action Today, Impact at Scale Tomorrow”, which introduces the CGF’s efforts in four strategic areas (food safety, health & wellness, sustainable development, and the end-to-end value chain). This is the CGF’s first annual report, produced with the support of KPMG, which aims to promote the collaborative successes of the CGF and its members, as well as look at learnings and next steps.
Wenzhong ZHANG, Founder and Chairman of Wumart Group/Dmall, delivered a keynote speech entitled “Seizing Opportunities for Digitalisation to Create the Future of the Consumer Goods Industry Together”. He said, “As digitalisation is a long-term process, we should firmly believe that digitalisation is the future. We have made great efforts, but those are only the first steps in a long march and account for 1% of the whole course of digitalisation. In terms of the whole retail industry and the fast-moving consumer goods industry, digitalisation is fundamental to our survival. Only by embracing digitalisation can we survive in the digital era.” In 2022, under the guidance of the strategy of digital China, the digital economy will receive unprecedented attention, and the development paradigm of the digital economy will be expanded, making deepening digital applications the prevailing trend.
In the afternoon, Jennifer YE, Mainland China Consumer Markets Leader of PwC China, opened the session with “2021 Global & China Consumer Insights and How Consumer Leaders Envision Tomorrow – The Consumer Goods Forum Report”, introducing global consumer trends in digitalisation, sustainable consumption patterns, and price sensitivity.
Uki ZHANG, Co-Founder of Chi Forest, delivered a keynote speech entitled “Invest in Sustainability, from Tree to Forest”. Uki mentioned that Chi Forest adheres to the corporate mission of “a group of loving people delivering loving products in a loving organisation” and is committed to doing “sustainable” business. Chi Forest strictly selects global, high-quality raw materials and does not add chemical preservatives such as sodium benzoate and potassium sorbate to its carbonated drinks to make good, healthy products that users really want and are willing to drink regularly, creating a national brand loved by young people. Chi Forest has developed the “Three Zero Factory” strategy, aiming to gradually achieve the goals of “zero-preservatives”, “zero-pollution” and “zero-carbon” in the production, and to promote “burdenless consumption” for all consumers.
Yajuan WANG, CMO of Xiaohongshu, delivered a speech entitled “2022 Consumption Trends”. She mentioned that Xiaohongshu, as a hub and consumer trends barometer, has identified three “future consumption trends” for young users in 2022: Outdoor sports, holistic health, and post-materialism. Companies face great opportunities and challenges in their product and consumer strategies in light of the new trends.
Amy CAI, ESG Managing Partner of PwC China, moderated a panel on the theme of “What’s Next – For a Sustainable Common Prosperous Future”. Shaohua PU, President of Bailian Group, Jasmine XU, Chairwoman & CEO of P&G Greater China, Anne Tse, CEO of PepsiCo Greater China, participated in the panel.
Shaohua PU, President of Bailian Group, then emphasised the importance of future innovation and shared their ESG vision. He hoped to push the model of the Bailian ESG concept from Huaihai Road to other sections in Shanghai and from Shanghai to other regions in China.
Jasmine XU, Chairwoman and CEO of P&G Greater China, discussed the theme of “Innovation, Leading to a Sustainable Future of Shared Prosperity”. She said that sustainable development is an opportunity of the times and is becoming a concern for consumers. P&G has always been consumer-centric, actively collaborating with upstream and downstream partners through whole-chain innovation and value co-creation, and striving to achieve responsible production, responsible sales, and responsible consumption. In addition, P&G is committed to achieving its Net Zero 2040 Ambition of net-zero greenhouse gas emissions from its operations and supply chain (from raw materials to retail) by 2040. Jasmine XU stressed that “many companies, especially manufacturing companies like P&G, believe that they should produce responsibly. This is very important, but not enough. We are also more concerned about whether we have influenced and driven the sustainable consumption habits of China’s 1.4 billion consumers.”
Anne TSE, CEO of PepsiCo Greater China, said, “We appreciate CGF’s efforts to drive sustainable development in the industry. PepsiCo has always been a consumer-centric company, adhering to a sustainability strategy as we continue to expand our brands for localisation investments. Our vision for sustainable plastic packaging aligns with CGF’s Golden Design Rules – developed by the CGF’s Plastic Waste Coalition of Action – philosophy. We are building a world without plastic waste by reducing, recycling, and reusing plastic packaging, and continue to contribute to China’s peak emissions and carbon neutrality goals through industry linkages and consumer awareness. ”
Finally, Wai-Chan CHAN, Managing Director of The Consumer Goods Forum, thanked every participant for joining the day’s activities. He said China is in a good position to influence the global agenda and welcomed more companies to join CGF as a global/local collaboration platform to help drive positive change and efficiency in the consumer goods industry and society.
To view photos from the 4th China Day, please visit the online gallery.
To learn more about the 2nd CGF China Health and Sustainability Collaboration Conference and the 1st Edition of CGF China Digital Supply Chain Conference, visit www.theconsumergoodsforum.com.
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About The Consumer Goods Forum
The Consumer Goods Forum (“CGF”) is a global, parity-based industry network that is driven by its members to encourage the global adoption of practices and standards that serves the consumer goods industry worldwide. It brings together the CEOs and senior management of some 400 retailers, manufacturers, service providers, and other stakeholders across 70 countries, and it reflects the diversity of the industry in geography, size, product category and format. Its member companies have combined sales of EUR 4.6 trillion and directly employ nearly 10 million people, with a further 90 million related jobs estimated along the value chain. It is governed by its Board of Directors, which comprises more than 55 manufacturer and retailer CEOs. For more information, please visit: www.theconsumergoodsforum.com.
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