This article was first published in feii community and updated on March 8, 2021.
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Author: foodplus San
According to 36 krypton’s report, the compound condiment brand “jiadianwei” has completed an angel + round of financing of nearly 10 million US dollars last month, followed by Hillhead venture capital, IDG capital, Yiling capital and old shareholder Qingshan capital. This round of financing will be used for marketing promotion, brand building, product platform and supply chain platform building. This is less than half a year away from the last round of angel round financing led by Qingshan capital.
It is worth noting that Jiadian flavor is a very young company, which was founded in September 2020. Its tmall flagship store was launched in January 2021, and the monthly data of the best-selling single product is only over 100. In this context, Jiadian flavor not only won the favor of head funds or well-known Angel organizations such as hillhood, IDG and Qingshan capital, but also won the favor of angel wheel In this stage, we have obtained nearly ten million US dollars of investment. Based on this, it can be reasonably inferred that in addition to the unique advantages in the team to attract investors, there is probably a complete and reasonable business model that has been recognized by investors. That is to say, they can answer the following questions well
1. Why is the complex seasoning industry a suitable entrepreneurial field, and why is it the current time point?
2. In such a 100 billion level market, there are many leading and mature enterprises. Why should consumers abandon them and buy products with more flavor?
The first is the macro problem of biased industry attribute and industry trend judgment, which is the problem that both enterprises and start-ups in the industry will face and think about. The second problem belongs to the micro level, which is to answer how to compete and win the competition as a start-up enterprise in the same market environment? That is to say, it is necessary to systematically expound and add some flavor, what kind of products will be used to face which kind of consumers, what marketing means and channels will be used to reach them, and what will be the ultimate means to achieve transformation and profit?
Next, let’s start with the second question, and try to restore the business logic that it may demonstrate with investors according to the foundation and ability that has been presented at the present stage?
1、 What’s the business logic of adding flavor?
1. Core consumers
As for the selection of core target consumers, young white-collar workers are the main ones to add flavor. Their core pain point is that their cooking technology is relatively weak. At the same time, their time in cooking is limited. However, they are in need of more personalized and delicious dishes. Adding flavor can help young consumers maintain a sense of ritual in their lives without occupying the majority It takes too much time to meet the demand.
Source: WeChat official account
2. Product and supply chain [iterative speed, new speed]
At present, Jiadian flavor has two product lines, namely, dining table scene for young people and kitchen scene. Facing the dining table, the scene is “every sauce”, and each sauce series has launched four SKUs: sour tomato beef sauce, thick cut beef sauce, charcoal braised tiger skin green pepper sauce, Sichuan Guizhou mixed lees chili sauce.
Source: WeChat official account
For the kitchen scene, the “quarter Clock Kitchen” has launched a series of pot dishes, including Thai style dongyingong soup bottom, Caiyun six kinds of mushroom soup bottom, golden soup fried chicken soup bottom and sunshine tomato soup bottom.
At present, there are only 8 SKUs, but it is only three months since the company was founded. In March of this year, some seasonings for cooking scenes such as new bittern and stew will be added, as well as a series of spring sauces and Japanese rice dressing products. It is closely related to the company’s R & D mechanism and the cooperation of the supply chain that we can promote the landing of products so quickly.
The R & D process of flavored products adopts a mechanism similar to internal horse racing, in which product managers form a number of small working teams. They all form product concepts in the form of “data input + Super elements + base”.
The data input here should include three dimensions: the first dimension refers to the hot elements appearing on the social media platform in recent years; the second dimension refers to the sales data of supply chain enterprises in the past; and the last dimension is the direct feedback from consumers, as shown in the figure below. With these data, we can extract super elements such as plant meat and tomato from them by adding some flavor, and then combine them with the core base such as beef sauce to form the prototype of products.
Photo source: wechat
When the product has a basic direction, the middle and back office team with a little taste will finally choose the winning scheme through internal voting and flow to the cooperative factory to form the finished product. The following is a screenshot of the comment area of the public comment official account. It can be assumed that the message from the team members can be seen from the perspective. The voting of multiple rounds of voting is an important part of the final product plan.
Source: WeChat official account
At the supply chain end, according to the report of 36 krypton, Jiadian flavor has accumulated nearly 100 factory resources in Shandong, Sichuan, Fujian and other places. We take “every sauce” as an example, and the four products are from three manufacturers. The producers of suanshuang tomato beef sauce and Sichuan Guizhou mixed lees chili sauce are Sichuan kedaxiang Food Co., Ltd., the producers of thick cut large grain beef sauce are Inner Mongolia grassland Huixiang Food Technology Co., Ltd., and the producers of tanshaohupi green pepper sauce are Sichuan chuanwazi Food Co., Ltd . The common feature of these three companies is that they are not only OEM enterprises, but also have their own brands, and they have sales data to check on online platforms such as tmall.
Through comparison, it can be found that the thick cut beef paste with a little taste and the charcoal roasted tiger skin green pepper paste are highly similar to the grassland Huixiang beef paste and the Sichuan Wazi charcoal roasted pepper paste owned by the OEM in product form and core raw materials, and the sales volume of these two products is higher than that of the similar products of the two enterprises.
Photo source: Grassland Huixiang tmall flagship store
Photo source: Sichuan Wazi tmall flagship store
In terms of the price of products, take the series of products of each sauce as an example, the price of each 100g is between 9.91 yuan and 13.78 yuan, which will be slightly higher than that of the private brands of Sichuan Wazi and other OEM factories and traditional brands such as Zhongjing (between 6-8 yuan), but lower than that of similar products of Fanye and liziqi, and their price is between 10-18 yuan. In this way, compared with Fanye, liziqi and other brands with more youth attributes, products with a little taste have a certain advantage in price.
3. Marketing and channel
In the operation link, adding a little taste is not much at present. It is mainly on the three platforms of micro-blog, WeChat and Xiao Hong tiktok, while the jitter is only an official number for the time being, but it has not been searched for the corresponding promotion information.
On the microblog end, Jiadian flavor is mainly promoted with the help of a small number of food bloggers, with the main label of “one person eating”; in xiaohongshu, in addition to publishing some grass planting notes on cooking and food, it also makes joint promotion with eye cream, humidifier, pearl cream and other brands. From the analysis of joint brands and categories, the target group should be mostly young women.
Photo source: Weibo
Photo source: little red book with a little taste
On the wechat end, there will be a little more content to promote the taste. The core of its content is to guide consumers in what scenarios and how to use the products with taste by recipes and recipes, and encourage consumers to print pictures and communicate. In addition, adding a little bit of flavor will also guide users to add WeChat or personal micro signals to the official account, and organize the activities such as reward evaluation, discount promotion and so on.
In terms of sales channels, Jiadian flavor has entered the mainstream online e-commerce platforms such as tmall, Jingdong, pinduoduo and wechat app, as well as the e-commerce channels such as daily Youxian and Netease strict selection. It is reported that Jiadian will start to expand o2o, offline convenience stores and high-end supermarket channels in the near future to make more links with users.
The above content basically presents the main business activities so far. Take it apart, there is nothing special about Jiadian flavor, but connecting the whole business chain is similar to making compound condiment with the idea of making beauty with perfect diary. That is to say, based on products with high quality and cost performance, content marketing is the core guiding way, and young consumers can purchase and re purchase through high-frequency product innovation and iteration Online channel to achieve fast order, instant purchase.
There are three important abilities and foundations
1. The speed of product iterations, and the ability to continuously build new products. The ability of Jiadian flavor in this aspect is based on the internal new product development mode and the support of external supply chain resources.
2. With products, we need to sell goods quickly, so how can we achieve high turnover? On the one hand, adding flavor depends on products, while products rely on data. Through the above analysis, we know that adding flavor products are the results of verification and testing of multi-dimensional data; on the other hand, relying on marketing, especially content marketing, to achieve the goal of reaching and transforming customers.
3. The attribute of compound condiment determines that this mode can be applied. Compound condiment can not only cook finished products quickly, but also produce pictures. This property can not only meet young consumers’ needs for life ritual and health, but also meet their willingness to print and share pictures on social media.
At the same time, the attribute also makes the content marketing have an important foundation. Compared with single condiment, its contribution rate to a food is relatively limited, and it can’t clearly show the appearance of a condiment in the final food by means of pictures, while compound condiment can be realized in both sauce and soup.
In addition, some kinds of compound condiments are used in a short or fast period, which undoubtedly changes the low-frequency purchasing characteristics of single condiment, and makes high repurchase possible, so as to reflect the value of content marketing.
Therefore, investors are willing to add some flavor to the early large investment. On the one hand, it may be because its business logic is feasible in the field of compound condiments; at the same time, the core competence of the business: the ability to drive products by data and the ability to influence consumers by content marketing, which is also possessed by the team. In this context, with a little taste, there is hope that the traditional giant will break through the tight encirclement on the channel where its monopoly position is not so high and it can better break through the regional barriers, and then cover and even monopolize a group of young consumers.
2、 Compound condiment industry worthy of layout
In the above space, we started from the company Jiadian flavor and sorted out its business development and business logic. What is the reason for Jiadian flavor to start a business in the compound condiment industry? What kind of market is compound condiment? Next, we will observe the development status and competition pattern of compound condiment industry from the perspective of industry, and add some flavor to the whole industry to observe its advantages and disadvantages.
1. Development status of compound condiment industry
According to gb-t20903-2007 “classification of condiments”, condiments include edible salt, sugar, vinegar, monosodium glutamate, sesame oil, sauce and other 17 categories. According to the composition, it can be divided into single flavoring and compound flavoring. Single flavor condiment refers to the condiment containing only one main raw material, while compound condiment is usually made of two or more condiments in accordance with a certain proportion.
In recent years, China’s condiment market scale has maintained a steady growth. Referring to the data of the National Bureau of statistics, from 2013 to 2018, China’s condiment market scale has increased from 232.8 billion yuan to 342.7 billion yuan, with an average annual compound growth rate of 8.04%. From the perspective of sub categories, the sub categories including salt, monosodium glutamate and chicken essence have entered a mature stage, and the overall growth has slowed down. However, the growth rate of compound condiment is obviously better than the average level of the industry, and its market scale has exceeded 100 billion yuan in 2018.
Photo source: Dongxing securities
However, compared with the developed countries such as the United States, Japan and South Korea, there is still a big gap in the penetration rate of compound condiments. These countries generally use compound condiments, and the proportion of compound condiments is more than 50%. At present, the penetration rate of compound condiments in the domestic market is between 20-30%.
To enhance the permeability of compound condiment, we need to further explore the properties and characteristics of compound condiment
a. From the functional point of view, the core of a single condiment is to improve the taste of food, change the color of food and remove the fishy smell of food; while the composite condiment is more to provide additional value, such as the realization of consumers’ pursuit of taste diversity and convenience. Therefore, from this dimension, single condiment belongs to the required consumer goods, while compound condiment has certain optional attributes;
b. In terms of product dimension, there are more kinds of compound condiments, more tastes, and relatively short product life cycle, which can make a high-frequency and multi purchase business, so it is a great test of the team’s ability of continuous and rapid research and development of new products; while single condiment is more similar, the logic of large single condiment, scale, cost and efficiency are part of the core competitive factors;
c. In terms of production mode, single condiment uses relatively few raw materials, and it is often large single condiment, so the demand for single raw materials will be large, and the raw materials are mostly primary agricultural products, so it is easier to achieve large-scale mass production; while the single raw materials of compound condiment are not large, and most of them are secondary processing raw materials, so the management ability and flexibility of supply chain are improved More requirements are put forward for the ability of sex production.
In general, the advantages of compound condiment in taste richness, product standardization and convenience are expected to be further enlarged under the promotion of the consumption ability of the main consumers, the change of consumption consciousness and the improvement of social supply chain ability.
2. Multiple factors are expected to boost the sustained growth of compound condiment industry
As far as condiments are concerned, the core sales channels of enterprises can be divided into three types, including catering channels, industrial channels and family channels. The first two belong to the b-end channel, and the third belongs to the C-end channel.
According to the analysis of catering channels, the market scale of China’s catering industry will exceed 4 trillion in 2018. According to Frost & Sullivan’s prediction, China’s catering industry will still maintain the growth rate of 5-10% in the future. At the same time, with the increase of chain catering, it is expected to drive the increase of the demand for customized compound condiments, which can not only improve the standardization and scale of dishes, but also reduce the cost Rely on chefs to balance labor costs. In addition, the continuous growth of the take out industry will also become one of the important factors to promote the development of compound condiments in the b-end market.
The sales of industrial channels include convenience food, quick-frozen food and other consumer goods enterprises. The raw materials for seasoning bags attached to their products often come from seasoning enterprises. The epidemic situation in 2020 has promoted the market demand for convenient food and quick-frozen food, and indirectly promoted the growth of compound condiments.
In the C-end channel, young people and white-collar workers in the first and second cities are expected to become one of the solutions to meet the demand for convenience and delicious food.
3. Add some flavor, put it in the compound condiment industry, what’s its advantages and disadvantages?
There are many kinds of compound condiments. According to product types, compound condiments can be further divided into chicken essence, hot-pot/" 22375 rel="nofollow" target="_self">hot pot condiments, western compound condiments, Chinese compound condiments and other five categories. According to Frost & Sullivan’s data, the market scale of compound seasoning in China will rise to 148.8 billion yuan in 2020, among which Chinese compound seasoning and hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning will be the fastest growing fine molecular fields, with CAGR of 16.9% and 15% respectively from 2015 to 2020, and the market scale of both will reach 26.8 billion yuan and 31 billion yuan by 2020.
The rapid development of Chinese compound seasoning and hot-pot/" 22375 rel="nofollow" target="_self">hot pot in recent years is highly related to the development of cuisine. According to the data in the listing prospectus disclosed by jiumaojiu, hot-pot/" 22375 rel="nofollow" target="_self">hot pot and Sichuan cuisine are the top two cuisines in the consumption structure of the catering industry. But even so, the market share of the hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning industry is still relatively scattered, and the top three enterprises Yihai international, Hongjiu and Tianwei still account for less than 30% of the total market share.
Photo source: Frost & Sullivan forecast, compiled by Everbright Securities Research Institute
The representative enterprises of compound condiment industry can be roughly divided into four types
a. National compound condiment enterprises, such as Yihai international, Tianwei food. First of all, these enterprises have rich product layout, including hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning, Chinese compound seasoning, condiment sauce and other categories; second, they have accumulated thousands of dealers’ partners in the channel, and their business is distributed throughout the country; finally, after years of accumulation, they have formed a certain reputation and brand effect, and Yihai also has the endorsement of Haidilao;
b. Comprehensive condiment enterprises, set foot in the compound condiment category, such as Haitian industry. Haitian’s advantage lies in the nationwide deep channel network and Haitian’s endorsement as a leading seasoning brand. But it doesn’t mean that Haitian will be in all segments of condiment. Because the endorsement of Haitian brand is quality and quality, but not taste endorsement, and taste preference is often adapted to local conditions, and there is taste memory;
c. Regional traditional compound condiment enterprises, such as Hongjiu. Most of the businesses of Hongjiu are concentrated in a certain region, and their product series are not too many. They focus on large single products, and make one market and one product larger;
d. Relatively new compound condiment enterprises, such as Fanye, Hubang, jiadianwei, liziqi, etc. These relatively young condiment brands often have a differentiation point in marketing, channel or other dimensions, and then expand their business around this advantage.
For the start-up companies in the compound condiment industry, such as Jiadian flavor, there is a gap between the traditional condiment and compound condiment enterprises in terms of product and supply chain manufacturing capacity. However, the domestic mature third-party supply chain network can make up for this deficiency to a certain extent. Comparatively speaking, the ability of continuous innovation and iteration based on consumer demand is a more core link in products. In this aspect, we should add some taste, take data as the driving force, and conduct multi-point feedback to form our own differentiation points to a certain extent.
In terms of channel and marketing, adding flavor relies on the attribute of compound condiment, selects young white-collar workers as the core target customers in the early stage, and combines their consumption attributes and habits, which can avoid the advantages of the previous leading condiment offline channel and traditional media to a certain extent. And then choose the content as the carrier, online channel as the main channel to realize the link with consumers. As for the effect, it will take time to observe.
In a word, in the current stage, adding some flavor has successfully found a small incision by combining the characteristics of the compound condiment industry. In the future, we need to pay attention to three points: whether we can catch some consumers in the era of change and stand firmly in the field of compound condiment
a. Whether the data-driven product innovation can continuously guarantee the speed of innovation, and the high-frequency products can be popular;
b. Whether the strategy of linking consumers with content is successful or not;
c. Whether it can build scale in at least one subdivided channel (in the short and medium term, the probability is still online). ) food venture capital insight by foodplus
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