Analysis on Strategies to Enhance Channel Advantages of Bright Dairy's Low-Temperature Fresh Milk in East China Market

Based on the information collected above, I now present a systematic and comprehensive analysis report for you.

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China’s low-temperature fresh milk market is in a critical window period of structural growth. According to industry data, from 2022 to 2024, the scale of China’s milk + yogurt industry declined year by year due to the sluggish overall consumer demand, and the industry as a whole was under periodic pressure. However, compared with room-temperature products, low-temperature dairy products have advantages in freshness and potential functionality, serving as an important carrier of consumption upgrading, with a growth rate significantly outperforming the overall industry [1][2]. In 2021, the proportions of low-temperature yogurt and low-temperature fresh milk in the total yogurt and fresh milk markets were 29.97% and 16.53% respectively, and they increased to 33.82% and 16.91% respectively in 2023 [1].

Low-temperature fresh milk has a relatively high premium compared to regular room-temperature white milk, and the premium ratio of China’s low-temperature fresh milk is higher than that of developed countries such as Germany, Italy, the Netherlands, South Korea, and the UK, which reflects that the market’s acceptance and willingness to pay for high-quality low-temperature products are increasing [1]. The low-temperature fresh milk industry is naturally fragmented: due to a sales radius of mostly 300-500 kilometers, shorter shelf life, and the requirement of using only raw milk for processing, the industry concentration is more fragmented than that of low-temperature yogurt. According to data from Huatai Securities, the combined market share of Yili and Mengniu in the low-temperature fresh milk market was only 28% in 2023 [3]. This provides room for differentiated competition for regional dairy enterprises.

East China is one of the most economically developed regions in China with the strongest consumption capacity, and it is also a core market for low-temperature fresh milk consumption. From the perspective of competition pattern, regional dairy enterprises have inherent advantages in their home markets, but this advantage is being weakened with the cross-regional expansion of brands like New Dairy and Junlebao [3]. For example, Weipin Fresh Milk under New Dairy holds a 40% market share in Shanghai’s boutique coffee shops, covering leading brands like MANNER and M Stand, directly squeezing Bright Dairy’s market space [3].

In the market share distribution of East China’s low-temperature fresh milk market, Bright Dairy accounts for approximately 14%, Sanyuan accounts for 9%, New Hope accounts for 6%, and the remaining brands together account for 72% of the market share [4]. Although Bright Dairy still maintains a leading position in the region, it faces dual competitive pressures from national leaders and emerging regional brands.

In 2025, China’s dairy industry presents a starkly contrasting situation of ‘liquid milk facing a slump while milk powder gains momentum’ [3]. The traditional liquid milk market continues to be under pressure, and the related business revenues of leading enterprises have generally declined; while segments such as low-temperature fresh milk and milk powder have performed prominently. Faced with this situation, dairy enterprises are actively promoting strategic transformation: on one hand, accelerating the development of B-end markets such as catering and tea beverage industries; on the other hand, seeking breakthroughs through product innovation and refined operation [2][3].

In terms of channel structure, the low-temperature fresh milk category is mainly distributed in convenience stores (31%), home milk delivery (27%), hypermarkets (20%), and e-commerce platforms (16%). Convenience stores have complete cold chain facilities and can meet consumers’ immediate consumption needs, while home milk delivery channels have advantages such as no overdue returns and strong closed-loop operation, which are more in line with the product attributes of low-temperature fresh milk [1].

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As a century-old dairy enterprise, Bright Dairy has profound channel roots and unique competitive advantages in the East China market:

is Bright Dairy’s core channel asset with the most differentiated value. Bright Suixinding is currently the largest fresh milk home delivery platform in China, with its positioning upgraded from ‘Milk Delivery Expert’ to ‘Fresh Food Home Delivery’ platform, serving over 3.5 million households nationwide, covering more than 1 million households in Shanghai [5][6]. In 2025, Bright Suixinding launched the nation’s first “‘Love Them? Subscribe to Milk for Them’ warm milk delivery service”, supporting consumers to customize personalized milk delivery for distant relatives and friends, regularly delivering both healthy nutrition and care [7]. This innovation has upgraded the channel from a simple commodity delivery carrier to a carrier of emotional transmission, expanding the service boundary of the platform.

are important support for Bright Dairy’s channel upgrading. Bright Dairy has in-depth cooperation with Alibaba Cloud, integrating online and offline businesses, and introducing diversified marketing methods, with a significant growth in user volume during the cooperation period [8]. The Suixinding platform drives product R&D and innovation through consumer big data analysis, builds a D2C digital marketing platform, and makes full use of digital technology, big data technology, intelligent technology, and cloud computing technology to make shopping scenarios contextualized, experiential, and convenient [6]. The platform’s products have expanded from a single category of dairy products to various high-quality fresh foods including meat, eggs, fresh vegetables, and milk relying on the Bright Group, successfully transforming into a B2B2C e-commerce shopping platform [6].

is the key infrastructure to guarantee channel service quality. Bright Lingxian Logistics has 58 warehouses nationwide, more than 1,500 refrigerated distribution vehicles, and covers 50,000 fresh milk delivery outlets across the country [5][9]. Bright Lingxian Logistics uses big data and RFID automatic identification technology to build an automatic sorting system, electronic label picking system, GPS vehicle and cargo tracking system, temperature control system, WMS system, and TMS system, realizing the platform-based, digital, and intelligent management of the cold chain logistics platform in all aspects from procurement, order management, in-warehouse operations to transportation management [5][9]. Currently, Bright Lingxian Logistics is the first and only enterprise in the industry to obtain five-star cold chain qualification [9].

is a benchmark for Bright Dairy’s intelligent manufacturing. As the world’s largest single liquid milk factory, the East China Central Factory realizes full-process digital management and control of factory production through digital application systems, comprehensively improving the intelligent manufacturing level of dairy processing and production [9]. The information from 5,000 sensors and 18,000 automatic control valves in the factory is transmitted to the central control room in real time, and the production process data of each bottle of milk can be clearly recorded [9]. The sterilization temperature can be precisely controlled at ±0.25℃, achieving a technological leap in pasteurization technology from 85℃ to 75℃, thereby retaining more active substances in the milk [6].

provides stable raw material support for the East China market. Bright Dairy has 25 own pastures and 21 dairy processing plants nationwide, with pastures close to consumer markets and prominent source advantages [1][6]. Bright Animal Husbandry uses Internet of Things and big data technologies, aligns with international pasture management standards, and adopts the exclusive ‘Thousand-Point Pasture’ standard evaluation system, comprehensively improving the technical integration level of dairy cattle husbandry while ensuring the safety, reliability, and high quality of raw milk [9].

are Bright Dairy’s core competitive barrier in the East China market. Bright Dairy adheres to the ‘Freshness Strategy’, advocates the brand concept of ‘Fresh Nutrition, Joy in Freshness’, continuously excavates the connotative value of the brand through brand activities that promote traditional Chinese culture, leads the ‘Domestic Product Trend’, and establishes the image of ‘Leader of China’s High-End Brands’ [10]. In 2025, Bright Dairy launched co-branded products with the Shanghai Museum, sponsored the Chenshan Grassland Radio Music Festival, collaborated with the Shanghai International Film Festival and Shanghai Television Festival, and participated in the Shanghai Design Capital Conference, deeply integrating the brand with urban culture [7][10].

provides continuous impetus for channel competition. In 2025, Bright Dairy accurately targeted the health demands of contemporary consumer groups and built an innovative product matrix covering diverse health scenarios [7]. The Bright Youbei 5.0 Protein Ultra-Fresh Milk Series adopts the industry’s first combined process of ‘nanofiltration concentration + microfiltration sterilization + low-temperature pasteurization’, achieving 5.0g of milk protein and 300mg/L of active immunoglobulin per 100mL, reducing sodium content while retaining natural active nutrients, and won the Nielsen IQ 2025 ‘BASES Breakthrough Innovation Award’ [7].

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DTC (Direct-to-Consumer) channels are important growth engines for the low-temperature fresh milk industry. Bright Dairy should continue to deepen the DTC channel advantages of the Suixinding Platform. According to industry trends, the channel structure of low-temperature fresh milk has particularities, with convenience stores and home milk delivery channels accounting for a relatively high proportion, and the gross profit margin of DTC channels is significantly higher than that of distribution channels [1]. From 2020 to 2024, the compound annual growth rate of Bright Dairy’s direct sales channel revenue reached 17%, significantly higher than the 5% of distribution channels [1].

Recommended measures include:

• Continuously optimize the “Four Anytime” service experience (subscribe anytime, pay anywhere, choose freely, switch at will) to enhance user stickiness
• Deepen emotional service innovations such as the “‘Love Them? Subscribe to Milk for Them’” service, upgrading the milk delivery channel into a carrier of emotional connection
• Expand the boundary of fresh food categories, extending from dairy products to high-quality fresh foods such as meat, eggs, and vegetables, to build a one-stop fresh food delivery platform
• Use big data technology for precise user operation, realizing the leap from ‘selling products’ to ‘selling services’

Continue to improve digital user platforms such as “Fresh GO” and build a full-cycle user operation system. Through global digital user operation, enhance the user lifetime value. In 2024, Bright Dairy’s global digital users grew by double digits year-on-year, and with the deepening of digital transformation, the proportion of DTC channels is expected to continue to increase [1].

At the end of 2025, Bright Dairy launched the Rushan High-Protein Greek Fermented Milk in Sam’s Club. With its pure ingredient list of “only raw milk and starter culture” and rich, mellow taste, it quickly became popular on social media [7]. This successful case shows that premium supermarket channels are effective ways to enhance high-end brand awareness and reach high-net-worth consumer groups. It is recommended that Bright Dairy continue to deepen cooperation with premium retail channels such as Sam’s Club and Hema, launch customized high-end product lines, and strengthen the brand’s influence in the high-end market.

• Coffee and Tea Channels
  : The in-depth strategic cooperation with MANNER Coffee provides a successful paradigm. In 2025, the co-branded product “Bright Zhiyou Juanshan Latte” was launched for a limited time in more than 1,200 stores across 20 cities, quickly becoming a viral hit at the start of the year [7]. It is recommended to continue expanding cooperation with boutique coffee and tea chain brands, integrating into the daily consumption chain of young office workers.
• Convenience Store Channels
  : As the second-largest channel for low-temperature fresh milk (accounting for 31%), it is recommended to strengthen data sharing and collaborative marketing with chain convenience stores such as FamilyMart and Lawson to achieve precise distribution and efficient turnover.
• Cultural Scenario Integration
  : Collaborate with cultural consumption scenarios such as the Shanghai Book Fair, Grand Bright Cinema, and Shanghai International Film Festival, combining themed spaces, interactive activities, and limited-edition products to deeply integrate dairy consumption with cultural experiences and attract consumers from different circles to check in [7].

Establish a full-process visual cold chain monitoring system with GPS positioning and temperature control sensors, and optimize routes through AI technology. The application of AI algorithms can provide guidance for the formulation of inventory strategies and ordering strategies, improve inventory turnover rate, effectively save transportation resources, and reduce transportation costs [6][9]. It is recommended to continue deepening the digital and intelligent transformation of cold chain logistics to ensure the freshness of dairy products while improving the efficiency of logistics dispatching.

In response to the special requirements of low-temperature fresh milk with short shelf life and the need for delivery within “T+1” or “T+2”, continue to optimize intelligent applications such as “Source Optimization”, continuously optimizing according to the needs of each factory and transportation routes [9]. Through full-chain integration, realize efficient collaboration from raw material allocation, supply to factory production and logistics transportation.

Continue to promote the implementation of projects such as SAP to improve the efficiency of production-sales collaboration. 8 factories including Bright Dairy’s East China Central Factory have successfully launched SAP, realizing the circulation of production-sales collaboration, sales, and delivery orders in the system [9]. It is recommended to continue promoting the intelligent upgrade of factories and replicate the “unmanned factory” experience to more production bases.

Learning from the functional upgrade experience of Japan’s Meiji Dairy (such as LB81 Bulgarian Yogurt, LG21 Probiotic Yogurt, PA-3 Purine-Free Yogurt), Bright Dairy can further strengthen functional product innovation [1]. The “Sleep-Improving Milk” series launched in 2025 has set a good start; in the future, it can continue to focus on functional directions such as immunity enhancement, gut health, weight management, and bone health to meet the increasingly segmented health needs of consumers.

Continuously improve the premium fresh milk product line, such as Zhiyou Juanshan and A2 β-casein premium products, to meet consumption upgrading needs. The success of Bright Youbei 5.0 Protein Ultra-Fresh Milk shows that technological innovation is the key to supporting high-end positioning. It is recommended to continue increasing R&D investment and realize product differentiation through process innovation.

For young consumer groups, launch products that are more in line with their aesthetics and usage scenarios. In terms of flavor innovation, appropriate reference can be made to the experience of brands such as Haihe Dairy to launch innovative products with topicality, while maintaining a balance between food safety and brand tone.

Continuously enhance the brand’s youth index through cross-border cooperation and cultural marketing. The 2025 collaborations with MANNER Coffee, Arcane Season 2, and esports have demonstrated Bright Dairy’s determination to embrace young consumers [7]. It is recommended to continue deepening youthful marketing strategies and seek cooperation opportunities in areas such as sports events, film and television variety shows, and esports games that fit the brand’s tone.

Deeply integrate into the urban cultural context of Shanghai, and build a core territory of cross-border cooperation through the “Culture+” strategy. Initiatives such as in-depth cooperation with the Shanghai Museum, naming and sponsoring cultural events, and collaborating with art exhibitions have established a strong connection between the brand and urban culture [7][10]. It is recommended to continue deepening the layout of cultural scenarios, deeply binding the brand with the urban cultural DNA, and strengthening the recognition of regional consumers.

As the only enterprise in the national dairy industry with a national key laboratory, Bright Dairy should continue to strengthen the endorsement of scientific research strength for the brand. In 2025, the self-bred breeding bull “Guanjunhou” with a GTPI value of 3389 and a global ranking of 92nd entered the top 100 of the international authoritative Top 200 TPI@Genomic Young Bull list, setting a new historical high for the international ranking of Chinese native breeding bulls [7]. It is recommended to continue increasing scientific research investment and strengthen the brand’s “Leading in Freshness” positioning through the industrialization of scientific research results.

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With national leaders such as Yili and Mengniu accelerating their layout in the low-temperature fresh milk track, and regional emerging brands such as New Dairy and Junlebao expanding, Bright Dairy is facing increasingly fierce competitive pressure in the East China market. In particular, New Dairy’s “Joint Fleet” model built through mergers and acquisitions, and the successful breakthrough of Weipin Fresh Milk in coffee channels, directly challenge Bright Dairy’s market share [1][3].

Response Strategies: Continuously strengthen DTC channel advantages, deepen emotional connections with core consumer groups; accelerate product innovation iteration to maintain differentiated competitiveness; deepen supply chain efficiency optimization, and support channel competition with cost advantages.

Since 2024, affected by the oversupply of raw milk and intensified industry competition, the price of raw milk in major producing areas once fell to a historical low of 3.02 yuan/kg [2]. Fluctuations in raw milk prices have an impact on the profitability of dairy enterprises.

Response Strategies: Optimize the raw milk source structure, increase the proportion of own pastures, and enhance the ability to control raw material costs; continue to promote product structure upgrading, offset cost pressure through the increase in the proportion of high-margin products; deepen supply chain collaboration, and improve the operational efficiency of the entire chain.

As a low-temperature fresh milk product, it has a short shelf life and high cold chain requirements, so food safety risk management is particularly important.

Response Strategies: Continuously improve the full-chain digital quality control system to realize full-process traceability from the source to the terminal; strengthen cold chain logistics management to ensure full-process temperature control; strengthen food safety awareness training for employees, and establish a sound emergency response mechanism.

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From a long-term perspective, China’s low-temperature fresh milk market still has broad growth space. Compared with developed countries in Europe, America, Japan, and South Korea, the proportion of low-temperature fresh milk in liquid milk in China is still at a low level, and the consumption upgrading trend will continue to promote the increase in the penetration rate of low-temperature fresh milk [1]. As the most economically developed region in China with the strongest consumption capacity, East China has particularly significant room for consumption upgrading of low-temperature fresh milk.

During the 14th Five-Year Plan period, Bright Dairy will adhere to the development strategy of “Stabilize Shanghai, Strengthen East China, Optimize National Layout, Joy in Freshness” [6]. Lead management transformation through “digital transformation” to achieve improved operational efficiency and business model transformation; focus on meeting consumer needs, continue to increase technological investment and research and application of cutting-edge technologies; adhere to the going-out strategy, and build a new pattern of industry development through dual efforts of endogenous drive and external expansion [6].

According to forecasts from securities research institutions, Bright Dairy’s revenue in 2025-2027 is expected to reach RMB 11.15 billion, RMB 11.81 billion, and RMB 12.63 billion respectively, with year-on-year growth of +4.6%, +5.9%, and +7.0%; net profit attributable to parent company is expected to reach RMB 720 million, RMB 860 million, and RMB 950 million respectively, with year-on-year growth of +34%, +19%, and +11% [1]. With product and channel upgrading and internal efficiency improvement, the company’s development potential is promising.

The core strategies for Bright Dairy to enhance the channel advantages of low-temperature fresh milk in East China should focus on the following four dimensions:

Strategic Dimension	Core Initiatives
DTC Deepening	Strengthen emotional services on the Suixinding platform, expand fresh food categories, and build a full-cycle user operation system
Scenario Integration	Break through premium supermarket channels, deepen coffee and tea channel cooperation, and strengthen cultural scenario marketing
Supply Chain Upgrade	Digitalize cold chain logistics, intelligentize production-sales collaboration, and continuously optimize factory efficiency
Product Differentiation	Functional innovation, premium market layout, and youth-oriented strategies

Through the coordinated improvement of “Four Capabilities” — product capability, channel capability, brand capability, and organizational capability — Bright Dairy is expected to consolidate its leading position in the East China low-temperature fresh milk market and achieve high-quality sustainable development.

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[1] Huaan Securities - Research Report on New Dairy (002946): “Strengthen Low-Temperature Value Leadership, Cultivate Internal Strength for Steady Development” (November 2025)

[2] Agridata - Analysis and Forecast of China’s Dairy Industry Development Situation (2025-2026): Grand Release (November 2025)

[3] Huxiu - “Liquid Milk Slumps, Milk Powder Booms: The ‘Two Worlds’ of China’s Dairy Industry in 2025” (December 2025)

[4] Industry Data - Market Share Distribution Map of East China Low-Temperature Fresh Milk Market (2024-2025)

[5] China农村杂志社 - Bright Dairy: Data-Driven Construction of Digital Collaborative Whole Industry Chain for Dairy Products (August 2025)

[6] Annual Report of Bright Dairy Co., Ltd. 2024 (April 2025)

[7] Xinhua News Agency/Phoenix Finance - “Gallop into the New Year, All the Way Bright: Bright Dairy Starts the 2026 New Journey with Fresh Power” (January 2026)

[8] Xinhua News Agency - “Great Beauty Digital China - East China: Accelerate Digital Transformation to Build an Industry Benchmark for New Technology Applications” (November 2022)

[9] Cold Chain Logistics Network/IT Time Network - Bright Dairy Explores Whole Industry Chain Digital Transformation (April 2023)

[10] Xinhua News Agency - “Advance with Three Capabilities, Take a Leap Forward: Bright Dairy Takes Solid Steps to Embrace the New Year” (January 2025)