Digital transformation of wholesale incumbents in China’s regional markets of imported fresh fruits

This paper examines the overlooked influence of wholesale incumbents on the digital transformation of fresh fruit distribution in China’s regional markets, focusing on Shenzhen – a primary hub for imported fruits, particularly from Southeast Asia. Drawing on in-depth interviews with key stakeholders and case studies of dominant wholesalers, for example, Hongjiu Fruit Ltd and Jiangnan wholesale market, and platforms, such as Alibaba, it argues that imported fruit distribution has undergone strategic reconfiguration through incumbent wholesalers’ digitalisation per se, competitive and cooperative interactions with digital platforms, and negotiations with consumers and government agencies. By exploring the dynamic interplay between physical and digital distribution channels, this paper advances the firm-specific strategies framework in the global production networks theory by elucidating the critical role of incumbents in coordinating cross-regional markets in the digital era of platform economy.