Commenting on the rise of snack stores in China, SMU Associate Professor of Finance Fu Fangjian pointed out that third- and fourth-tier cities not only offer lower operating costs but also cater to the demand of the lower-tier markets for rich experiences, diversity, and novelty with their affordable and high-quality products, demonstrating immense development potential. From a more macro perspective, Assoc Prof Fu believes that the rapid nationwide rise of bulk snack retailers is driven by the advancement of China's "unified national market" initiative. He explained that improvements in China's logistics and infrastructure have laid the foundation for market integration, fostering the development of standardised operational models. This allows businesses to adopt uniform management approaches across different regions, thereby reducing both management complexity and costs.
