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Analysis of China's Baking Industry
In 2008, 85°C surpassed Starbucks in the Taiwan market. In less than three years, 85°C sold more than 100 million cups of coffee in more than 300 stores, leaving Starbucks, which has been working hard for 8 years in the Taiwan market, far behind;
In 2009, Xilai Commune, which was established less than a year ago, received venture capital from Zhiji Venture Capital. In just one year, it “run” 9 stores in Shanghai;
In 2009, the sales of Wuhan Qianji, which cooperated with the well-known marketing planning agency Jinhuitong, exceeded 200 million yuan, becoming a strong brand in the baking industry in one fell swoop. Through the cooperation with Jinhuitong, Qianji cakes have grown from nothing, and the total number of stores has grown from one to more than 40 direct chain stores. It has become the only bakery brand in Xintiandi, which represents Wuhan's fashion.
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In recent years, the baking industry can be said to have flourished. The fast-developing baking industry has reached the critical point of competitive upgrading and brand reform, and is about to experience a major wave of brand reform.
For many Chinese bakery brands, how to take advantage of the trend and successfully break the situation as the industry undergoes profound changes? What reference and enlightenment does the successful case of Jinhuitong·Qianji brand planning give industry brands?
□Industry review: fragmented market, low-level competition
From the beginning of Hong Kong-style bread in the early 1980s, to the influx of Taiwanese-funded bakers in the 1990s, and the beginning of strength in domestic bakery companies in recent years, China’s bakery industry has experienced more than 20 years of development. Today, when we examine the development of the bakery industry, we will find that the growth trajectory of the young Chinese bakery industry has differentiated into two contrasting development lines, showing two obvious characteristics.
1. One of the characteristics: fragmented market
With the rise of the market economy and the changes in people's consumption habits, bakery products have been booming since they were introduced to the Chinese market in the 1980s.
According to an authoritative survey, my country's baking industry has maintained a growth rate of more than 10% in recent years, and in 2008 it has reached an industrial scale of 71.8 billion. According to relevant agencies, the baking industry will reach an industrial scale of 130 billion yuan in 2013. Experts even predict that the baking market will continue to develop in the next 30 years, and the growth rate of the baking market capacity in second- and third-tier cities may approach 30%.
The bakery industry bursts with vitality, and the huge market cake attracts many cannibals.
In recent years, although the branding and large-scale advantages of baking chain enterprises have been established, they are still mostly limited to the regional market. There are only a handful of local bakery companies that have truly achieved branded chains. Although the annual sales of Hollyland and Christine are about 2 billion yuan, Hollyland is missing in the South China market, while Christine is hard to find in the north. The baking industry has not yet appeared in the national market until now. An absolute dominant national leading brand.
At present, most of my country's baking market share has been eroded by some miscellaneous brands. In China, there is a baking market with annual sales of more than 70 billion yuan. However, as the leading baking brands, their sales volume is insignificant compared with the huge market capacity. .
This fully reflects: the current Chinese bakery industry presents a typical scattered industrial characteristics, there are many companies competing, no one company has a significant market share; and no one company can have a significant impact on the development of the entire industry. influences.
2. Feature 2: Low-level competition
The bakery industry has a huge market capacity and development prospects. At the same time, due to the low entry barriers, large and small "front stores and back factories" bakeries are blooming in the Chinese market, all over the streets and alleys, and more and more brands are entering the market.
The market is divided by many small and medium-sized brands, and brands of different levels are dividing different markets. The competition between brands is mainly manifested in product competition, channel competition, price and other levels. Very few really rely on brands to drive sales, resulting in the baking market still staying in an era of primary and low-level competition.
□Inflection point of the industry: competition upgrade and brand reform
The development of an industry must go through the inflection point test. As a young industry, China's bakery industry has always been developing upwards, without a decent callback, consolidation is inevitable. China's bakery industry has reached the critical point of competitive upgrading and brand reform.
The industry continues to mature amid upgrades and changes, and upgrades in competition and brand changes will become the general trend of China's baking market in the future.
1. Upgrade from low-level competition to brand competition
As mentioned earlier, the competition in China's baking market has remained at a low level of competition for a long time. The lack of brand awareness and lack of brand operation is a common problem in China's baking industry. Many companies only stop at designing, registering a trademark, or looking for a set of beautiful packaging for their products, thinking that this is the brand.
A brand is the trust, loyalty, satisfaction, value and other intangible assets of consumers, and it is the commitment and reputation of the brand owner to product quality and service. The "ignorance" of the brand has led to the lagging development of local bakery companies, narrow profit margins, and loss of consumers.
□Brand break: grasp the market opportunity of "turning point period"
The "turning point period" of the development of the baking industry is a major trend. The industry is moving towards competitive upgrading and brand reform, and this process will be accompanied by a cruel reshuffle.
For many companies, this is the turning point and the end has come. Companies with a lack of brand power and low added value will find it increasingly difficult to survive and will be marginalized until they withdraw from the center stage of the market. On the other hand, the turning point period is accompanied by new opportunities, and some companies will take the turning point as a new starting point and take off quickly.
For the masses of Chinese bakery brands, how to turn the turning point into a new starting point when the industry is undergoing profound changes?
1. Take advantage of the broader market: grasp the characteristics of fragmented markets
Only those who seek the general trend can achieve success.
Baking market demand will inevitably exist along with the economic growth, which determines the existence of a large living space for baking companies. This is an era where "everything is possible". The fragmented market means that everyone has market opportunities. The diversification of consumer demand in the baking market makes it possible for everyone to become a certain sub-category or even a leading brand in the industry.
Therefore, companies must examine themselves from the perspective of the entire industry, combine their own resources to make effective strategic decisions in the current competitive landscape, and establish their product positioning, market positioning, target consumer group positioning, and brand positioning around strategic decisions. Use capital operation methods and business methods to assess the situation and attack in a timely manner.
The bakery industry is a typical casual fast-consuming food. With the rapid economic growth of China in recent years, the per capita GDP of large and medium-sized cities has approached more developed countries, and a healthy, healthy and nutritious well-off breakfast has gradually replaced the fried dough sticks in the era of food and clothing. Porridge and pickles have become the first choice for middle and upper income groups. From this point of view, the market development prospects are very optimistic.
Industry characteristics of the bakery industry: Desserts and pastries are a kind of snack food with a strong fashion atmosphere, which can be positioned as a medium-to-high-end food. The main target customers are fashionable youth and children. There are two main types of business models in the market today: one is a single store operation of small shops; the other is a franchise chain store. In addition, the industry has strict requirements on raw materials, attaches importance to product taste and appearance design, and attaches importance to technological innovation. There are also special requirements for the decoration of the shop, which must have its own style and highlight individuality.
Opportunities in the baking industry (O): The political environment is safe and stable; the per capita income has increased, the living standard has improved, and the emphasis on leisure life (consumption concepts have changed) has made the market extremely broad; science and technology are updated faster, and more advanced machinery and equipment are invested Production, more nutritious and cheap raw materials are integrated into the product; once it fails, it is easy to withdraw (with lower exit cost); for large star hotels, there are only a few well-known dessert companies that can meet the requirements. Therefore, in these In front of customers, big brand companies have strong bargaining power.
The threat of the bakery industry (T): The tax is higher, which is evenly distributed to the product, which increases the cost; some female consumers refuse desserts in order to keep in shape, reducing part of the market share; for large brand companies, they have strict requirements on raw materials. There are only a few well-known companies in the supplier, so these suppliers have strong bargaining power; competition is fierce, there are many domestic and foreign companies in the industry competing for the market, and many new stores outside are joining; there are many alternatives.
Since food is a highly substitutable commodity, it is recommended that companies in the bakery industry define the main consumer market. This is conducive to the establishment of brand image, increase market recognition, and maintain an advantage in the competition.
Functional
In 2008, the National Development and Reform Commission's Public Nutrition and Development Center released the results of a survey on the prosperity of Chinese nutrition enterprises, showing that functional foods, nutrients and nutritional supplements are operating at a high level. This shows that nutritional and functional foods are one of the mainstream development trends in the food industry.
From the current food market, it can be found that more and more companies in food such as candy, beverages, dairy products, convenience foods, edible oil, flour, soy sauce, vinegar, etc. have developed many functional products and regarded the functions of the products as Marketing niche points for publicity and promotion. At present, the sales of functional foods on the market are also very promising. For example, Uni-President Orange Juice has been saying "more C is more beautiful" and it locks a healthy life", etc. There are countless examples. The bakery industry is not far behind, and the products are also closer to functionalization. Many bread manufacturers have added their new varieties: such as the popular calcium milk bread and vitamin bread, etc.
Fashion
The improvement of people's living standards has prompted great changes in consumption concepts. The consumer demand for food ranges from full and good food to fun and dazzling. More and more consumers are pursuing avant-garde, alternative and personalized consumption methods. In their view, non-fashion does not live. In their eyes, drinking coffee is a fashion, chewing gum is a fashion, and eating bread in the morning and having a pack of yogurt is also a fashion.
Fashion is everywhere in today's food market. Especially snack foods. In the past, the pastimes on the coffee table were mostly roasted seeds and nuts, such as melon seeds and peanuts. Now, more and more families pay attention to the fashion of snack foods. People are more and more like to open a package of signature films when watching movies and football games.
From these signs, it is not difficult to see that in 2007, food marketing will continue to develop in the direction of leisure and fashion.
Entertaining
Fashion and entertainment are twin brothers. Due to the abundance of people's material life, food has become a carrier of fashion, appealing and entertainment. While material consumption, they also enjoy the spiritual satisfaction brought by entertainment. Food with young people and children as the consumer group is an entertainment stage. Food is not only delicious but also fun. For example, Oreo’s advertisement puts forward the concept of “new one button, lick it delicious and fun”. So this kind of entertainment marketing has formed a clear trend.
Segmentation
The food industry has relatively low entry barriers and fierce competition. The food market has also moved from the mass consumption era to the segment consumption era. The consumption is becoming more and more diversified and personalized. This requires companies to be more targeted in marketing and must conduct market details. Provide specialized products, create market experts and bosses of a certain category or a certain group of people, and occupy the limited mental resources of consumers first, so as to become stronger and bigger.
Branding
What should companies do in the face of increasingly fierce competition and a highly homogenized market environment? Brand! The competition in the food industry has shifted from the original product and technology competition to the brand competition. Many companies have already understood that there is only one dead end in fighting for products, prices, channel wars, terminal wars, and advertising wars. After years of hard work, food companies have realized the importance of brand management. Because of this, many companies have begun to work hard on brand management. According to the author’s understanding, more and more food companies, including some large companies, have begun to take the initiative to join hands with "foreign brains", such as Mengniu, Missing and other food companies, and have moved from phased cooperation to full-process cooperation, and the service content has also expanded from the original marketing consulting to Brand strategic planning and other fields. All these show that companies recognize the value and significance of brands, which is an important change in the upgrading of competition in the food industry.
2. Survey and analysis results of Beijing's high-end bread market
Many baked goods tend to be homogeneous in terms of types, ingredients, and tastes. In terms of types, the innovation speed of China’s bakery market is relatively slow. At present, most bakery products on the market are mainly cakes, breads, and washes, and at most are supplemented by seasonal products such as moon cakes and fruit mousses. Age, products designed according to different geographical characteristics. In terms of ingredients, most of the baked goods on the market are made of milk, flour, and eggs as the main raw materials. The monotony of the ingredients results in a single nutrient composition, and the baked goods are far from rich in nutrition and refined in production. In terms of taste, more than 2/3 of the baked goods on the market are sweet, and only less than 1/3 of the products are original or salty.
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