Channel Expert to Own Brand Development
Maximo: Four Years of Explosive Growth in China

Maximo built its success in China through precision market positioning as a channel expert, attracting a host of well-known brands on the way. Today, the company is developing in the own-brand sector while also powering ahead as a brand agent. Combining the two roles have proven that "one plus one can be greater than two" as the company racks up market gains.

Over the past four years, Maximo has developed in China with laser-focused market positioning starting with RT-Mart's sales channels and steadily growing to become a sought-after partner for a variety of brands. Marketing Director Mark Fu says that the own-brand market is the company's next goal.

Many industries have felt the impact of COVID since the onset of the pandemic in 2020. However, Maximo expects to attract new cooperation partners in each of the four quarters of this year. Fu says that Mondelez and Wanchai Ferry have traditionally supplied directly to channels. This is the first year they have been distributed through the RT-Mart channel in cooperation with an agent.

In addition to Mondelez and Wanchai Ferry, Maximo added New Zealand adult milk powder brand Fonterra, China's Gll Wonton, Wolfberry and US-based Wyeth Nutrition in the first and second quarter. In the third and fourth quarters, it plans to add infant formula Abbott, Kjeldsen's Danish butter cookies, and Sebamed to its brand portfolio.

In 2016, Maximo entered China with major international brands. It will continue to recruit other well-known brands from around the world, including China. Mark Fu cites the example of high-end Chinese wolfberry brand Ningxia Wolfberry, which has partnered with Maximo to access the Costco channel. The partnership also exemplifies Shanghai Maximo's focus on expanding channels for excellent brands.

"We're a channel expert, not a China-wide agent," says Fu. He notes that this clear market positioning has enabled Maximo to build a strong reputation and impressive results in four short years. Today, the company is a much sought-after partner by many brands. This has allowed Maximo to be more selective in choosing high-quality customers, creating a one plus one is greater than two situation.

Maximo is guided by a simple principle: "Work hard for and serve the customer," Fu says. Maximo combines an understanding of channel-end demand and operations with customized brand-end services and commitment to meet a spectrum of customer needs.

Maximo currently has two main channel types: hypermarkets (RT-Mart and Costco) and convenience stores (FamilyMart, Lawson, and C-Store). Fu says that, Maximo deeply understands RT-Mart's operational approach and can use that familiarity to help brands propose better solutions when contracting with the hypermarket chain.

It also made channels more willing to promote sales, creating a win-win solution. Fu believes that Maximo's familiarity with the RT-Mart channel enabled it optimize the return rate. This achievement attests to the company's success based on channel expertise. It is also one of Maximo's biggest competitive advantage in China.

Maximo also provides brands with special packaging services for market segmentation through Costco's channel. Fu says that Maximo has brought German beer brand Erdinger to FamilyMart, Lawson, and C-Store convenience stores. Another development focus this year is to build partnerships between Costco and Erdinger dunkel and Ningxia Wolfberry. Products sold through Costco need to meet specific packaging requirements. Maximo works with suppliers to facilitate packaging changes. It can also leverage its familiarity with Costco's processes and close relationship with the channel to help brands resolve problems.

Maximo will continue over the short-term to focus on RT-Mart, Costco, and the FamilyMart, Lawson, and C-Store convenience store chains. It plans to later expand to other hypermarkets, including Walmart and Carrefour, as well as high-end supermarkets, such as Fresh Hema. The company also aims to add online shopping channel, including Tmall, JD.com, and other big brands, or develop its own shopping platform.

In addition to own-brand development, Maximo has reached an agreement with Tabasco authorizing it to develop products for the brand. It is now developing instant noodles and potato chip products for the China market and sees good potential to develop other markets later.

Fu says that apart from serving an agent role, Maximo aims to develop its own-brand operations. The company hopes to handle everything from product development and mass production to market analysis and channel sales. It is also confident that, in combining these two roles, the company can achieve the "one plus one can be greater than two" philosophy.