China Food

Crazy financing, seize the first share of new convenient food, Baijia food has a long way to go!

return to the perspective of the industry, with the rise of generation Z consumption and the outbreak of lazy economy, convenient food has a bright future, but the competition will also become more intense.
It can be said that the trend of consumption of instant noodles in recent years has gone from the hot-pot/" 22375 rel="nofollow" target="_self">hot pot to the hot food industry.
Combined with the impact of the epidemic, convenience food has also moved into a fast track of development since this year. The data shows that between January and may this year, the consumption amount of convenience food by Chinese consumers has increased by 1.5 times.
Behind the irresistible trend, the new consumer brand of convenience food has become a beautiful scenic spot in the business field in recent years. It can rise rapidly with a single category. The rapid growth path of Mo Xiaoxian and zihi pot has also activated the enthusiasm of capital.
Founded in 2001, Baijia food, with a weak sense of existence, has also ushered in a highlight moment by cutting into convenient food in the dividend of new consumption explosion. In addition to the rapid growth of sales performance of various categories, Baijia food has made frequent capital movements in recent years, and has quickly completed two rounds of financing totaling 300 million yuan, including Gaoling, Maotai, etc. Recently, it has been reported that it has signed a listing guidance agreement with GF Securities, and put it on record in Sichuan Securities Regulatory Bureau on September 28, and plans to list on the gem.
Naturally, the logic behind this is not complicated. For Baijia food, it has been established for 20 years, but its development is slow. It was not until around 2015 that we found the track and cut into the convenience food. However, at the key node of the capital promotion and the outbreak of new consumption dividend, the convenient food track not only becomes more complex in competition, but also shortens the brand growth path, so does Baijia food More money to cope with market changes.
At the same time, different from most consumer brands, Baijia food now has seven series and nearly 200 categories. While each series is powerful and competitive, it also faces higher costs. Of course, what’s more important is that compared with Master Kang and other comprehensive giants, as well as Mo Xiaoxian, zihaiguo and other online Red brands, Baijia food still can only be ranked as the “second tier” and seize the first share. There is still a long way to go in the future.

20 years old brand is not warm and not hot, with the tuyere bonus win?

According to public information, Baijia food was established in 2001, engaged in food research and development, manufacturing, sales and promotion. It has two brands of “a Kuan” and “Baijia Chenji”, and six product series, including convenient vermicelli, instant rice noodles, non fried instant noodles, whole dried noodles, convenient self heating hotpot, convenient self heating rice and Sichuan flavor compound seasoning, with nearly 200 single products.
However, the development has not been warm and not hot until 2016. So far, from the basic point of view, the layout of Baijia food in the convenience food track is more and more extensive. In terms of performance, public information shows that its average annual sales growth rate in the past three years has reached 45%, and the total sales volume in 2019 is 710 million yuan, with a 100% year-on-year increase in profit. The company expects to achieve 1 billion yuan of sales in 2020. At the same time, the data also shows that in February this year, its order volume once reached five times that of the same period last year, and the sales volume in the first half of this year is expected to increase by 120%.
Although the growth rate is obvious, such data performance is not convincing enough to prove the sustainable high growth in the future, mainly in two aspects.
On the one hand, such data is based on the small sales scale of Baijia food itself, and it is not difficult to find that, as an enterprise with seven product lines, Baijia food still has a small sales scale. Taking Mo Xiaoxian and zihi pot as examples, the sales volume of “moxiaoxian” this year is expected to reach 800 million yuan, and that of “zihi pot” in 2019 is expected to reach 800 million yuan More than 500 million yuan. In addition, according to Yihai international financial report data, its convenience food sales only recorded 668 million yuan in the first half of 2020. Another Haidilao self heating hotpot has an annual sales volume of 700 million in 2019.
On the other hand, the layout of Baijia food in the field of convenience food is multi system and multi category. If the overall sales volume is averaged to these sub categories, it may be difficult to compete with the top brands in various fields. Of course, more importantly, at the moment when the online popularity of convenience food is becoming more and more strong, Baijia food has not seen any popular products. This also means that it is still very difficult for Baijia food to participate in the competition in the second half.
Let’s go back to the whole convenience food market. With the diversified adjustment of convenience food product structure, the whole market is booming. In the first half of this year, convenient food manufacturing enterprises above Designated Size in China completed 137.15 billion yuan of business income and realized a total profit of 8.75 billion yuan. At the same time, the data shows that the market size of China’s convenience food has exceeded 450 billion yuan in 2019, and the outbreak of the epidemic has once again activated the market potential.
From this point of view, the growth of Baijia food in recent years, to a certain extent, has also caught up with the dividend released by the market outlet. However, with the further maturity of the market and the gradual appearance of the head brand effect, the future success probability of Baijia food is still unknown. Of course, the key is that in the new era of consumption, the new consumer brand is more reflected in the innovation of marketing, channels and so on. For Baijia food, it is also the short board at present.

convenience food track competition is changeable, Baijia food still faces several difficulties

From the current situation of the industry, it is not difficult to see that after a long time of jogging, convenient food has gradually entered the era of fast iteration of brands, products and channels, which naturally requires the help of capital.
Especially in the foreseeable second half, in the field of convenient food, more Internet playing methods will also become the norm, which is the key for enterprise brands to participate in the competition in the second half.
According to the introduction on the official website, Baijia food proposes to create a new strategic map of “new convenient food” and compound seasoning from the four new dimensions of “new technology, new products, new formats and new models”, and transform from the traditional channel as the main channel to comprehensively March online, realizing the operation mode of online and offline linkage and whole channel reaching consumers. However, from the current situation of the market, its “four new” has not made obvious achievements.
From the brand level, compared with Mo Xiaoxian, zihaiguo and other online Red brands, its brand popularity is far from comparable; compared with the traditional brands such as Zhengda and Kangshifu, Baijia food has no popularity. Of course, what’s more important is that there are many cross-border consumer brands such as Haidilao and Xiaolongkan in this market. For example, Haidilao is also making great efforts to arrange rice noodles and other categories in addition to the self heating pot. Therefore, fundamentally speaking, Baijia food still needs to spend more time and energy to achieve brand building.
Secondly, from Kwai Kok point of view, new convenience foods are more Z generation consumers. Diversified network channels are also the core channels of convenience food, new consumer brands, including jitter, tiktok, little red book, live goods and so on. This also means that the marketing level of the brand is becoming more and more difficult.
And from the logic of the rise of these new consumer brands, most of them are built on the impetus of a burst of money. As early as 2017, Zhuang hot-pot/" 22375 rel="nofollow" target="_self">hot pot and Taobao jointly launched a Juhuasuan campaign, selling twenty thousand boxes in ten hours. But Mo Xiaoxian had sold two boxes of 300 thousand boxes in the fast Kwai platform, and during the period of DTV, 1 million 90 thousand of the stocks were empty in the second time of the Li Jiaqi broadcast. For example, since hi pot has been a frequent guest of popular TV series. However, Baijia food is more traditional in this aspect, and it is not easy to realize the change of business model.
Moreover, the idea of multi system and multi category layout of Baijia food has its own advantages and disadvantages. The advantage lies in that it can absorb dividends in the dividend release period through category expansion, so as to realize the overall scale. However, the disadvantages are reflected in many aspects: first, it means more cost investment, thus diluting profits; second, it is very difficult to establish differentiated competitiveness in the post dividend era, and the difficulty of management will become more and more difficult.
Back to the perspective of the industry, with the rise of generation Z consumption and the outbreak of lazy economy, convenient food has a bright future, but the competition will also become increasingly fierce. More importantly, the speed of iteration and change of product categories in the convenience food market will also be faster and faster, especially in the accelerating industrialization pace of local snacks (related articles: professional classes and industrial parks, exploring the industrialization wind of snack lake from “spicy bar”), the speed of single category from hot to cool will also be accelerated, which means for the brand side The higher the requirements of product layout and innovation will be.
Fundamentally speaking, although there are several major systems of Baijia food, there are strong enough competitors in each system. In the current brand building is not good, channel layout is not perfect, want to achieve breakthrough is not easy.
Author: Populus euphratica; source: yimingtmt, reprinted with authorization.
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