Vending Machine China: The spring has come

21 Oct.,2024

 

Vending Machine China: The spring has come

Vending Machine China

Analysis Of The Prospects Under The Unattended Retail Trend

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As early as , China introduced the first vending machine. And vending machines are exactly the originators of the unattended retail. With the rapid development of applications such as internet technology, artificial intelligence, and mobile payment, the availability of unattended convenience stores, unattended shelves, and unattended restaurants have resulted in more and more consumptions of unattended scenes. At the same time, lifestyles are constantly generating new and interesting consumption patterns.

At this time, the long silenced Chinese vending machine industry is welcoming the spring. For now, among the three formats of unattended retail, there is doubt about the business model of unattended shelves. The unattended convenience store can be regarded as a large open vending machine. The industry chain of vending machines is mature and terminal forms are diversified. This is becoming the best carrier for realizing unattended retail sales.

1. The Spring of Vending Machine China

On the one hand, the beverage companies headed by Nongfu Spring and Wahaha are speeding up the layout. A competition for terminal retail networks with beverage giants participating in the game is in full swing. On the other hand, vending machines represented by unattended orange juice terminal Orange Juicenongfuspring.global and Aigelato ice cream machine also emerged in high-profile, revealing the diversity of the vending machine in China.

In future, the vending machine will become a mini supermarket that reaches users within a hundred meters in a specific scenario. And it utilizes the advantages of intelligent hardware + IOT to interact with users and complete a cloud + end refactoring. It&#;s a bit like the iPhone + app big explosion! This is a very promising future. This is exciting to beverage companies, as well as vending machine suppliers in China.

Vending machine is the originator of unattended retail, which has been around since the s in Japan. The rise of rents and labor prompted the rapid development of the industry. In many countries, vending machines act as &#;24-hour robots that bring wealth&#;. And people do not need to guard them. They sell their own products and collect money by themselves. TechNavio data points out that the ratio of US vending machines to convenience stores is 30:1. The CAGR of US vending machines is expected to be higher than 54.3% from to . And the US vending market will reach 13.34 billion USD in .

Great Development Potential

According to the data of &#;- Vending Machine  China Market forecast and Investment Strategic Planning Analysis Report&#;, which is based on research by the Institute of Forward-looking Industry, the stock of vending machines in China was around 190,000 units by the end of . And the industry of vending machine China has developed rapidly since . As of , the scale of the industrial market has grown by more than 14 times compared to . Overall, the volume of the vending machine in China has grown rapidly, but compared to China&#;s huge population base, the overall penetration rate of China vending machines is still very low.

According to a survey conducted by the Japan Vending Machine Industry Association in , Japan has about 5.8 million vending machines (corresponding to a population of 120 million people, or about 24 people owning one). And the United States has 6.91 million units (corresponding to a population of 310 million people, or about 44 People own one). In Japan, 70% of can drinks sales are through vending machines. In addition, the world-famous beverage company Coca-Cola owns 500,000 vending machines. And in China, about 90% of vending machines are beverage machines. Compared with Japan and the United States, the penetration rate of vending machine China still has great room for development.

Driven by Economic Growth

In addition, a research on the global retail market shows that the per capita GDP of 10,000 US dollars is the critical point for consumer demand for vending machines. By , the per capita GDP of China&#;s more than 390 million people has exceeded 10,000 US dollars. The rapid development of vending machines in China since has just confirmed this point.

With the steady development of the Chinese economy, the market demand for vending machines will be released in the coming years. The current consumers are increasingly demanding convenience shopping and the popularity of internet of things technology and mobile payment. The vending machine is the most flexible and largest density retailer channel that is close to users. The future development speed will surely achieve explosive growth.

2. Beverage Giants are Laying out

As of , Nongfu Spring owns more than 10,000 vending machines and established a special business unit to operate. Nongfu Spring&#;s vending machines not only spread throughout the cities but also penetrated into tourist attractions.

Coca-Cola&#;s current number of vending machines in China is around 5,000, and it will also focus on expanding this project in .

As early as July , Beverage giant in China Wahaha had clearly identified the entire field of vending machines. Zong Sheng Intelligent Technology Co., Ltd. was jointly established by Mr. Zong Qinghou and his brother Zong Zehe. The company plans to invest 2 billion RMB and deploy 100,000 vending machines to build a nationwide intelligent retail terminal network with high channel profits. In an interview, the reporter learned that after a short period of two years, with the help of Wahaha&#;s channel system, Zong Sheng&#;s vending machines have been distributing more than 20,000 units by , mainly in middle and higher schools, hospitals, large factories, and scenic spots. There is currently close to 500 in Sichuan. This is undoubtedly a fast-growing company in the field of vending machines.

In foreign countries, the vending machine market has been very mature, but the market of vending machine China is still just a bud. And there is a secret in the industry that the champion of the beverage industry will be the champion of vending machines.

At the end of , Wangwang Group finally could not sit still. According to sources, Want Want has set up a vending machine operation center. It expects to launch thousands of Wangwang intelligent vending machines across the country.

On January 8th, , at the new retail sharing conference held by Bestore, the company&#;s vice president Zhao Gang disclosed that Bestore has stepped into the field of unattended smart cabinets. And this will reduce the distance between stores and customers from 300 meters to 15 meters.

In addition to the recent actions of the above companies, other beverage brands such as Master Kong, Tongyi, Jinmailang have not been idle. They have all had trainings quietly and start to form &#;self-sale pilot units&#;.

3. Prospects

Vending machine in China is accelerating its popularity with strong momentum. According to information from the Chinese Chain Store & Franchise Association, the number of vending machines in China should be 2.7 million units in order to truly meet consumer demand. In , the number of China vending machine was close to 200,000 units, and annual sales were 7.5 billion RMB. It is expected that the number of vending machine China will be over 1.4 million units in  and sales will be nearly 44 billion RMB. Currently, 90% of vending machines are operated by 40-50 professional operating companies, and the remaining 10% are operated by food and beverage brands.

Introduction | Vending Machine | Alipay Docs

Overview

The Alipay vending machine solution enables customers to pay with the Alipay app, freeing customers from the need to have loose change. Merchants can also have better control over the machine's inventory with this solution, and existing machines can be easily upgraded with little or no hardware cost.

Note: 

This solution is based on the Alipay app. For solutions that support multiple e-wallets, contact technical support at .

User experience

The customer uses the Alipay app to scan the QR code on the vending machine to pay for merchandises by using the Alipay wallet. See the following figure for an overview of the user interaction:

Figure 1. Checkout with Alipay on the vending machine

Steps to pay with Alipay on the vending machine:

  1. Scan QR code to

    enter payment page:

    For more China Vending Machineinformation, please contact us. We will provide professional answers.

    The customer scans the QR code on the vending machine with their Alipay app

    to access the payment page.

  2. Top up before purchase:

    The customer deposits a certain amount of money at the payment page.
  3. Choose merchandise from vending machine:

    The customer selects the target merchandise from the vending machine.
  4. Receive change:

    After the purchases are finished, any remaining balance is returned to customer's Alipay CN account.

Solution

benefits

At present, various kinds of vending machines are placed in sites such as subway stations, airports, and similar public places. However, in most cases, the payment methods supported are still traditional ones such as cash and credit card payment. The shopping experience will be greatly enhanced if Alipay users can use an app that they are familiar with to complete the purchase process on the vending machine, without bothering to exchange coins or worrying about the security of credit card usage.

Merchants can benefit from this solution accordingly:

  • Easy payment that enhance the shopping journey: Free your customers from the hassle of exchanging currencies or using cards.

    Attract numerous Alipay users by providing the convenience of paying in their

    familiar method.
  • Upgrade machines with little hardware costs: Extra hardwares, such as screen, are not mandatory. This solution can be adopted as long as the vending machines process transactions and sync the results

    online

    .
  • Boost sales with powerful

    marketing support:

    Alipay constantly reward users and merchants with various promotion programs. Merchants can even receive activity support and free POSMs from Alipay to carry out field marketing.
  • Gain data insights for business decisions: Derive insights from data and make better business decisions. For example, have a good control of the inventory based on customer purchase intension.
  • Good scalability for business growth:

    If new vending machines are added,

    the service provider can easily apply

    this solution by deploying new QR codes to machines.

Before vs. after

The following figure illustrates the change of transaction volume trends of an Australian beverage vending machine.

In the figure, the blue line shows the transaction volume trends with Alipay enabled, and the black line shows the transaction volume trends without Alipay enabled. By accepting Alipay, this beverage vending machine enjoyed an increase of 2,000 to 3,000 transactions per month.

 

Figure 2.  Vending machine transaction volume trends

Solution flow

Service providers can refer to the following solution flow as a reference for designing and deploying the system:

Figure 3. Vending machine (merchant QR code) solution flow

Are you interested in learning more about Custom Vending Machines? Contact us today to secure an expert consultation!