On March 29, foodplus held the theme: how to do a good job in the C-end market for prefabricated dishes? |Feii venture capital wind vane · seminar NO.2: live broadcast of prefabricated vegetables. In this event, we invited Pu Wenming, founder and CEO of Zhenwei xiaomeiyuan, Lin Zhenghuan, head of Dingding lazy’s own brand, Yu Lu, partner of zero one venture capital, and other three guests to share and discuss wonderful and selfless experience in the to C market of prefabricated vegetables from different perspectives of brand, supply chain and investors.
The development history of domestic prefabricated vegetable industry, source: foodplus research and analysis team
Since the 1990s, with the entry of Western fast food such as KFC and McDonald’s, there has been a clean food processing and distribution factory in the domestic market. Since then, the prefabricated food industry has entered a period of rapid development, and its development process can be summarized as the process from catering market to personal and family market, and from convenience to quality upgrading.
Although after years of development, the domestic prefabricated vegetable industry is still in a relatively early stage. We found that the domestic prefabricated vegetable companies will encounter various problems such as product selection, channel selection and brand positioning when developing the C-end market. We hope that through the continuous research on the prefabricated food industry, we can continuously output high-quality content and hold relevant activities to help the domestic prefabricated food entrepreneurial brands achieve better development.
Not to say much, the following is our careful arrangement of the contents of this seminar.
Note: in January 2021, we will hold a venture capital wind vane sharing meeting with the theme of prefabricated dishes. Starting from the IPO event of weizhixiang food, we share the industry logic, competition pattern and venture capital opportunities of prefabricated vegetables.
Guests introduce themselves to
First of all, let’s introduce ourselves.
Pu Wenming: OK, my name is Pu Wenming, and I’m also the founder of Zhenwei xiaomeiyuan. I just started my business in the second half of last year, and I’ve been making such a brand, and I’ve been making prefabricated dishes all the time. That’s about it.
Foodplus: Thank you, Mr. PU. Next, let’s invite Mr. Lin to introduce himself.
Lin Zhenghuan: Hello, everyone. My name is Lin Zhenghuan. I’m from Dingding fresh food. Now I’m in charge of the project of Dingding lazy people’s food, a prefabricated food private brand of Dingding fresh food. We started to make Dingding fresh food in 2018, but in fact, we didn’t follow the concept of prefabricated dishes at that time. At that time, we focused on convenience stores and retail, such as box horse, in terms of catering. In 2020, we officially established the brand of “tiktok” dish, mainly in the form of electricity supplier, including Tmall, Jingdong and jitter. At present, we have about 15 products, among which the popular product is sauerkraut fish, which we are mainly pushing online. Our store in tmall is called Dingding lazy food flagship store. You can search our products.
Foodplus: Thank you, Mr. Lin. next, let’s welcome Mr. Yu to introduce himself.
Yu Lu: Hello everyone, I’m Yu Lu from zero one venture capital. Our fund mainly focuses on early Internet investment, which was established in 2015. Now it’s a dual currency fund. The amount of a single investment is about 3 million to 5 million US dollars, which is an investment scale we can confirm. When we first started investing in tob, we started investing in B2B, supply chain and enterprise services. In addition, we also attach great importance to the C-end consumer track. In the whole field of prefabricated dishes, we invested in finding ingredients in tob, and then in Zhenwei xiaomeiyuan in TOC. Recently, we are looking at food and beverage products very seriously, including quick-frozen and other products. Welcome to communicate with us in entrepreneurial projects. Thank you.
Foodplus: the content of this seminar is divided into three parts: the first part is the discussion on the dimension of C-type prefabricated vegetables industry; the second part is the discussion on the dimension of venture capital; the third part is the question and answer session. We will select some questions from the audience who have signed up for the seminar, and give the audience the opportunity to ask questions to the guests according to the time of the seminar.
The first part: Discussion on the C-end market of prefabricated vegetables
Foodplus: Chinese consumers are happy now. They can eat in all kinds of restaurants, order takeout, and eat all kinds of convenience food if they are lazy. So we are thinking, from the perspective of category characteristics, what are the advantages of prefabricated vegetables for consumer goods? From the consumer’s point of view, why should we choose prefabricated dishes instead of other solutions?
Pu Wenming: we think that prefabricated food is an upgraded version of food ingredients. Because now more and more young people are in charge of their own business, but their cooking skills may not be as good as those of their parents. When most young people choose to cook at home, they can only cook two or three dishes. If he only eats these two dishes every day, he may be a little bored, but he can’t go out to eat or order takeout every day. Because I think that after we get married and have children, we are basically willing to cook at home.
At this time, prefabricated dishes become a better choice, because young people are very busy now. They may work overtime until 7 or 8 o’clock in the evening every day, or go to bed when they get home. With prefabricated dishes, you can eat better.
We all know that in the past, the take out subsidy was only 9.9 yuan, but now at this point, it’s almost 30 to 40 yuan for a take out meal. Cooking at home will become a common thing for people to do at home, so it gives a better opportunity for prefabricated dishes.
Lin Zhenghuan: first of all, I agree with President PU. Then I add two points. Although takeout is very developed, it is also very important to eat at home. Then, the quality advantage of prefabricated dishes can be reflected from two dimensions. On the one hand, the parents’ generation, on the other hand, actually return to the cost performance, which can use the price to leverage the users to buy the products of prefabricated vegetables. Now it costs 20 yuan to take out. It’s not much, it’s salty, and it’s not much staple food / meat. But the prefabricated cauliflower costs about 20 yuan, which can basically buy 2-3 people’s meals. The same thing can be bought at a cheap price for a small family. It’s still attractive to consumers. This is the core of the product structure. From this dimension, the price of prefabricated dishes may be within 20 to 50, and there are certain advantages. I would like to discuss these two points.
Yu Lu: let’s take apart the meal from the perspective of user needs. If we have a universal machine, in the most extreme case, how to solve the problem of eating. I want to eat, immediately can eat, without any processing, to achieve more fast, better and save four standards. This is obviously unrealistic. Fast and save can be perceived immediately, good and many are advanced solutions in the same state. Therefore, we divide the meal solution into two quadrants: time and price. The existing food companies, take away platforms and catering enterprises are trying to analyze in the same quadrant.
Due to the existence of takeout, the price and time limit can refer to the standard service of takeout, within 49 yuan, 30 minutes.
There are also many disadvantages in takeout
1) The ingredients are not good enough: the cost structure of takeout is roughly 25%, which basically means that if you eat a takeout of nearly 50 yuan, the actual cost of the ingredients is about 12.5 yuan. In the current depression of the entire catering industry, with the continuous increase of platform percentage and rent, businesses have a strong demand to reduce the cost of each link. 12.5 or even lower cost of food materials, really can not eat very good things.
2) The food is not good enough: the 15-20 minute delivery time has reached the extreme and can not be further improved. A lot of food, the first out of the best to eat, this is the iron law of food delicious, this gap can not be crossed.
3) Not healthy enough: the use of ingredients in takeout is generally not as good as household consumer goods. For some people who have more pursuit of health, there are very few takeout options.
4) Breakfast scenes are not well covered: breakfast scenes have high frequency and strong demand. It used to be a scene where all major takeout platforms tried to overshoot the order volume, but later it was not the main scene. The main reason is that the demand for timeliness is high, and the room for improvement is limited. At present, in the breakfast scene, the penetration rate of takeout is low.
Photo source: 0.1 venture capital
But in the general trend, the time users are willing to spend on cooking is getting shorter and shorter, and the demand for good food is getting stronger and stronger. The trend from ultimate staple food to ultimate food is also very obvious. Prefabricated vegetables and all kinds of fast food products for consumption upgrading can provide different solutions in the quadrant of 3-30 minutes and 3-45 yuan, which is definitely a category with market space.
Foodplus: not necessarily based on your existing business model. From your cognition, what kind of business is C-class prefabricated vegetables? For example, what are the barriers to this business? How do production costs, business cycles, seasonal changes, regional culture, or other key factors affect our business? Combined with these factors, can the C-type prefabricated vegetables business make money continuously?
Pu Wenming: it’s a good business for C-end prefabricated vegetables. The main reason is that its profit will be higher. For other fresh products, its gross profit is better. However, for entrepreneurs and startups, it still has a certain threshold, especially for supply chain research and development. The third point is that the regional elements are actually quite crucial, because the local cuisine, including the taste and taste, is quite different from north to south. The main thing to say is that it can be stable in a certain region, and then slowly expand to the whole country. In short, prefabricated dishes are more profitable.
Lin Zhenghuan: my point is that the category of prefabricated vegetables needs to be innovated. And from the three dimensions of supply chain, channel and brand to enter. If the brand is well done, the customer evaluation will be higher. In this process, we see several important aspects. The first is the stability of the supply chain, and the cost can be continuously optimized.
The second is the season. For food, the season is very different. Because it is quick-frozen food, the second half of the year is significantly more advantageous. Another big difference, for prefabricated dishes, regional taste is very different. The main thing is to do the brand market, but how to do the brand? In terms of online, it is faster to build a brand and introduce it. Therefore, from this point of view, the company should do a good job in the three dimensions of supply chain channel and brand, each of which needs to be done, and the plan drives every link.
Yu Lu: I just answered what kind of food it is. I think prefabricated food is a fast-selling product. So just now, including President Lin, a FMCG needs a brand, a supply chain and a channel. I think it’s very right. Among these three dimensions, supply chain and channel play a more important role in the early stage. Because we found that there are many factories in the upstream. You want to make a batch of goods. In fact, it’s not difficult. The difficulty is that you have to make some differences between goods. How to achieve better quality of goods, in the supply side is to need a lot of accumulation to complete.
Second, prefabricated dishes can also distinguish whether the products are at room temperature or frozen. I think it’s different at this threshold. Normal temperature products can be sold in large quantities online, and can be delivered to each user through express delivery network, so the cost is relatively low. But for frozen goods, the whole domestic cold chain system is still not perfect, so the online sales cost is a little high, and it is not particularly suitable to do so.
But I think in the general direction, there are already excellent suppliers. For the prefabricated food track, with the current supply side and the user’s awareness of various conditions, the time point for the emergence of prefabricated food is relatively good. Then I just asked if the prefabricated dishes can make money continuously based on these factors, including seasonalization, geography and culture. In my opinion, as a consumer product, prefabricated food is a product that can make money from the first day. Because users have demand and you can produce it, then users should pay for it. Therefore, it should be a product that can make money.
Foodplus: 2019 will become a huge industry with a scale of 10320 billion yen (about 650 billion yuan) in Japan’s Chinese food industry. We would like to ask whether there will be a similar huge market for C-type prefabricated vegetables in China in the future? What is the potential market space?
Pu Wenming: we have also read some reports. Now the total tob and TOC of the whole prefabricated dish may be about 300 billion. It may be a compound growth rate of about 20% a year. If we follow this growth rate, it may reach about 1 trillion in five years’ time. Among them, we judge that 70% of them are on the tob side, and maybe 30% will be on the TOC side. Therefore, for the TOC end, we predict that in the next five years, it should be able to reach a market scale of about 200 billion to 300 billion.
Lin Zhenghuan: at least it’s a trillion yuan market. Compared with Japan, after all, the population base is here. Of course, the stage is not the same. The volume of frozen food is about 200 billion. The scale of prefabricated food should reach at least 100 billion in a relatively fast time.
Yu Lu: there are 1.37 billion people in China. The whole dining market is 12 trillion. Dining out accounts for 4.67 trillion. The epidemic situation has declined. Eating at home accounts for 7.8 trillion. Among them, seasonings in 2020, the 410 billion market, 10% growth, compound seasoning nearly 150 billion market, 15% growth. In 2019, there will be 17.7 billion of prefabricated dishes and 23.3 billion of new instant noodles, which will add up to a stock market of 40 billion. The first step in the future is to develop into a 100 billion level market like polyphony, which is very clear. The second step is to develop to the same 400-500 billion market as seasoning, which is also visible. Even at that time, it’s only 4% of the 12 trillion, which is equivalent to 3 out of 90 meals you eat in 30 days a month. Do you think it can be achieved.
Let’s split it up. For example, for prefabricated vegetables, there are several market segments that can be benchmarked. One is the condiment market, which may have a market of more than 410 billion by 2020, with a growth rate of about 10%. Among them, seasoning is the 150 billion market, and the growth rate is 15%. The market size of prefabricated vegetables in 2019 has a very clear figure of 17 billion 700 million, the latest added value is about 23 billion 300 million, plus the size of forty billion. The customer list of prefabricated dishes is much higher than that of seasoning. So I think the first step for prefabricated dishes to develop into a market similar to compound seasoning is about 150-200 billion yuan, which can be seen in the next two or three years.
And then it will develop into a market like seasoning. 400-500 billion should be seen in five years. In fact, even at that state, the 4.5 trillion yuan market accounts for only 40% of the total 12 trillion yuan of meals, which is equivalent to eating in 30 days, even eating vegetables, cooking three meals at home and using prefabricated dishes. It’s not so difficult to imagine this, so I think we can see the situation in three or five years when we reach the market of about 400 billion to 500 billion.
Foodplus: in recent years, there are more and more prefabricated food brands in China. Does this mean that the C-end market of prefabricated food has reached a favorable development opportunity? What are the restrictive factors for the development of the market at present or in the next three to five years.
Pu Wenming: Well, it was said that there are more and more prefabricated food brands, and that’s actually the case with the C-end. Why do we choose this point to start a business? Last year, the whole epidemic accelerated the possibility of the development of prefabricated vegetables to the C-end, so we chose this opportunity to do it. We are particularly optimistic about this track. We think there will definitely be brands, but now there are more regional brands and less national brands. At present, most of the prefabricated food brands are still in the stage of retail packaging in some restaurants.
At present, most of the brands are prepackaged food made by restaurants, and its pricing logic is different from that of our fast-moving products. Products like this are likely to follow their better dishes in terms of research and development, and then turn into prefabricated dishes to be sold through channels. In fact, there will be problems with its pricing logic. If it sells cheaper offline or in the channel, will it affect its business in the store. If it’s expensive to sell and the consumer says that I didn’t enjoy my service in the store, why should I sell so expensive? The consumer may not pay for it. This is the current majority of catering brands do prefabricated dishes, will encounter some big confusion.
For us, it is a fast-selling brand. Because I hope to give you a price that you can accept, and then taste better. In fact, when we started a business, we often talked with the manufacturers and said that the products were still more important. In terms of research and development, it is crucial to select the products that young people like.
After selecting a good product, how to present it to customers and through what channels to sell it to customers are the problems that some of our C-end prefabricated food brands will encounter. The difficulties may lie here. In my opinion, the supply chain and R & D may be a little simpler in making prefabricated dishes, that is, how to choose. In fact, I think it’s a bit more difficult for a channel to fit the customers and give them satisfied products.
Lin Zhenghuan: I think so. This is a very good opportunity for development. That day, a friend, they do catering, because the catering market is really too big, there is still a lot of room for penetration, and this is the same for prefabricated meals. Although there are many brands of prefabricated dishes, from the data of tmall, it is not enough. The overall demand growth is greater than the supply, and the number of businesses is not enough relative to the demand side.
At present, the development is difficult. I may think that it takes time for prefabricated dishes to penetrate into the family in a wider range. In fact, it takes time to cultivate consumers’ habits. So we can see from the data that the user acceptance in coastal areas is obviously higher. It has been educated in some markets. They say that they can accept the concept of ready to eat. In other areas, the pace of follow-up is relatively slow.
From the perspective of user age, the core age group of 25-45 years old has a good acceptance. But at present, there are not many people who have really used prefabricated dishes. Most consumers need to have a better experience first. For example, according to the menu steps, they can make a satisfactory dish within 30 minutes. With this experience, users will buy again. With the increase of products and the decrease of prices, the penetration rate should be accelerated. At that time, the development speed of the whole prefabricated vegetable industry would be faster, and now it is just beginning.
Yu Lu: I agree with you very much. Now is a very good time. Especially during the epidemic period, this is our subjective experience. Cooking at home is particularly painful. Prefabricated food products are a good solution. During the epidemic period, many users tried a new way to place the first order. The comrades who sell goods all know that the first order is the most difficult. But the epidemic helped the whole industry to cultivate user habits. At the same time, there are two sets of supply to promote the education market: one is the demand of users, so there will be many entrepreneurial teams to do this. Another wave is that catering enterprises have been greatly impacted by the epidemic. Therefore, making prefabricated dishes or other retail products is the second business line for catering enterprises to actively expand. So we can see that chain restaurants have launched or are preparing to launch such products during the epidemic period. In the future, we will see more and more prefabricated dishes in the market. Both the demand side and the supply side of the whole industry are cultivating this market. As President Lin said, there may be some deficiencies in the cultivation of users’ habits, but I believe that if the whole industry does this together, it will be very helpful for the birth of new brands. Prefabricated vegetables is a new category, but now it is in a state of accelerated development, so this is a very good opportunity for development.
Speaking of difficulties, I feel that one of the difficulties is the problem of user habits just mentioned by President Lin. Because frozen food is not fresh enough for users. Chinese people think the meat hanging there is fresh, but young people have a high acceptance of frozen food. Another difficulty is sales network and performance system. Prefabricated vegetables are frozen. In the way of e-commerce sales, the logistics cost is very high, it is difficult to start large-scale production. The offline cold chain sales network is still the original Ka channel, such as CVs, which takes time to lay. There are some new channels, such as community fresh food stores and community discount stores, which are just emerging. Their warehouse construction and distribution system are different from the original offline system, which needs time to polish.
Foodplus: at present, there are several types of prefabricated food brands in the market. We have a simple classification of foodplus. For example, there are special prefabricated food brands, which we call professional. There are also catering brands, such as Xinya and Haidilao. There are also supply chain oriented ones. For example, the upstream can raise pigs, chickens and cattle. Similar to this, it has its own supply chain and factories in the upstream, and it has its own prefabricated vegetable brand. There are also retail oriented (E-Commerce Oriented), such as HEMA and meituan, which have launched their own prefabricated food brands. There are also similar to Daxidi such a large single type. These are the basic categories. And in different types, it can also be subdivided. For example, the professional prefabricated food brands include weizhixiang and haodelai, which adopt the franchisee and agent mode, and the fast-moving product mode brands such as Zhenwei xiaomeiyuan’s professional and Dingding lazy food (which may be more supply chain oriented). With the participation of many participants in this market, what is the competition pattern of the C-terminal prefabricated vegetable industry in the future? Will it form a market in which many brands compete completely, or a market dominated by several stronger brands? What kind of business model enterprises will have more competitive advantages in this market?
Pu Wenming: we have roughly judged that the professional type, catering type and supply chain type may do well in the region. Then we think that if we only make a large single product, it may not do much. Then I personally feel that the final trend of the market will be the same as that of hotpot enterprises. In the future, it is most likely that there will be a few slightly larger national brand leaders in the C end, and some catering brands will do well in various regions.
The trend of prefabricated dishes can refer to the hot-pot/" 22375 rel="nofollow" target="_self">hot pot five years ago or ten years ago. There may also be big brands like Sanquan, Xiangxiang and hailuowang with some monopolies, and then there will be regional, better and relatively distinctive brands. There will also be retail stores like woquan, which should basically copy the trend of hotpot products. This is a possibility for our team to think about the follow-up development.
Lin Zhenghuan: we are divided into three types: the first type is catering type, the second type is factory type, and the third type is retail type. For example, Haidilao is a type of catering. Its brand is a mature brand, and consumers have long accumulated knowledge of it. In fact, if the R & D cost of the whole food and beverage chain coincides with the retail price, then it has the disadvantage.
The second kind of factory type, at present, is to change the packaging of products and supply them to the C-end market. Whether it’s e-commerce or offline channels, its biggest advantage is cost, and then it’s good to maintain a single brand. It has its own shortcomings.
The third type is retail, which can integrate the supply chain or own factories. Then based on the online market, or their own advantage channel market. The advantage of this kind of brand is that there is no burden to make products, and products are launched according to the demand. The disadvantage is that the brand awareness is low in the early stage, so we need to continue to build consumer awareness. There are opportunities for all three types of players. In the end, all flowers will blossom. Every enterprise will have a lot of space to do what it is best at.
Yu Lu: I seem to have combined some of the views of the two. I think the target of the prefabricated dishes is the catering itself. Because it is a solution for eating, I think its distribution state should also be very similar to dining. Then there will be two dimensions, one is the national or regional scope, and the other is the type of catering, such as Sichuan cuisine or home style series. There may be some national brands. I predict that they may be related to Sichuan cuisine or hot-pot/" 22375 rel="nofollow" target="_self">hot pot. Because at present, the real national catering company is Sichuan cuisine, which has a high proportion and high acceptance.
Next, there are regional types. One is the catering companies mentioned just now, such as Dongpo in Meizhou, zhiweiguan in Hangzhou, century old brands like Xinya in Shanghai and Guangzhou restaurants. It’s hard for you to erase some of its impressions from the minds of consumers, so when consumers see their brands, they will buy things. There are also some start-up companies. At present, what we are going to do in our own industry may be a regional brand at the beginning. After all, the whole prefabricated vegetables still need cold chain transportation, so it is likely that at the beginning, it will be in a certain area or give priority to the taste of users in a certain area to deeply penetrate the regional market.
Going further, Mr. Lin mentioned factory type just now. At present, the listed companies are all factory type. Indeed, they have advantages in cost structure, including those who used to make tob. They are likely to make prefabricated dishes in a way that is cheaper and better.
What kind of company has more competitive advantage? In fact, the essence of this matter is FMCG, and the final core is to let you have enough supply chain advantages in the production process. Whether it’s online or offline, the core is to build their own scale advantage through sales volume, so as to reduce the cost as much as possible and obtain their own profits. So the difficulty of this matter is how to spend more money, and the ROI is higher. You can get 300 yuan with 100 yuan.
Foodplus: which C-end brands do you think are good at home and abroad? Why?
Pu Wenming: I think the catering brand is better at present. First, they did it earlier, because they may be more popular with customers because of the century old brand. Because I am in Shanghai, I may hear more about time-honored brands like Xinya. Most of the brands like weizhixiang and haodeli are better known in the industry. In terms of C-end consumer perception, century old brands like Xinya or Hangzhou zhiweiguan may be better known in the north of Dongpo, Meizhou, but it is still regional.
Lin Zhenghuan: in fact, these enterprises in China have just started. Looking at the Japanese market, such as nikolin and various brands, they are doing very well in Japan. They can cover almost all kinds of food, and they have established their system after a long period of development.
I think it’s a big reference. Recently, I’ve seen a lot of catering brands in China, including some popular items in e-commerce, such as crayfish, which are also prefabricated dishes to some extent, but in fact, consumers don’t think they are prefabricated dishes. In fact, from the industry and enterprise point of view, such a large single product is prefabricated vegetables. This type of prefabricated food, its overall channel play, to the advantages of the supply chain, has a lot to learn from, will be more advanced than the current prefabricated food brand.
The second part discusses the dimensions of venture capital
Foodplus: we can see that Dingding lazy people’s food products are relatively rich. We have launched products such as sauerkraut fish, pork tripe chicken, meicaikou meat and old Changsha self heating midnight snack pot. What kind of logic is the current product developed according to? What kind of selection criteria are there?
Lin Zhenghuan: our selection is like this. In the whole selection process, we have mastered some key points. Referring to catering, we think that the items that can be opened in a restaurant should be quite suitable for making prefabricated dishes, such as sauerkraut fish, preserved pork with preserved vegetables and pork tripe chicken. The reason behind this is that in terms of demand, this dish does not need to educate consumers, and they are very familiar with this product. From the perspective of supply chain, if it can form a chain, restaurants have a certain scale, its supply chain is relatively easy to integrate. Today, we don’t need to have our own technical breakthrough. We can make clear products by combining the two ends. So the 15 items in front of us come out like this. Now that we have the data of e-commerce, we will refer to some data of e-commerce to see which items may grow faster. We will focus on this factor.
From the perspective of the whole food raw materials, we will consider ourselves on a single main raw material, which will have some advantages. One is pork products, one is chicken products, and the other is fish products, which are also raw materials for consumers to supply protein. At the same time, based on the advantages of our own supply chain, we may give full play to this advantage in product development.
Foodplus: we see that the products of Zhenwei xiaomeiyuan are also very rich. Your company has also launched the products of sauerkraut fish, and they sell well. What kind of method does the product follow at present? What kind of selection criteria are there. In addition, at present, there are more than 50 SKUs for xiaomeiyuan’s dishes, and the total number is expected to reach 80-100 by the end of the year. What kind of methods will be adopted for effective management of many SKUs?
Pu Wenming: Well, we’ve only been founded for half a year. Why are there so many SKUs? Because we start off the line, I also hope to be able to reduce some SKU, hoping to focus on the whole channel. But it’s really not up to us to start offline. For example, we want to push a good sauerkraut fish or Wellington steak with hemma today. Hemma’s purchasing said that we may not need this product. For example, when we go to talk with Ding Dong to buy vegetables, he may prefer to serve dried mushrooms and go to RT Mart. RT Mart says I want that product, but I can’t get one or several products to spread all channels.
In the early stage, our strategy is to do addition, first to make some relatively good products, but also more traditional products. We want to run fast and iterate step by step, so we have been doing addition in the early stage. After half a year’s work, we gradually developed our own methodology. Because in the early stage, there were some products that were easy to sell, some that were not easy to sell, and there were also some mistakes in the front. At present, we have more than 50 products, but the ones that really sell well are more than 20. We will gradually eliminate some products, and now we are slowly starting to do subtraction.
Our selection methodology is also relatively simple. We have precipitated a few dimensions. First of all, from the perspective of product logic, we need products with a higher rate of finished products, which must be convenient. In this way, young people are more willing to take photos after the rate of finished products is higher, and do spontaneous dissemination by themselves.
Another is that the processing method is relatively simple. We made some products in the early stage and thought they were very good, but the processing method was very troublesome. In the end, the consumers didn’t know much about them, because we wanted to treat all the consumers who bought prefabricated vegetables as Xiaobai. He really didn’t know anything. Therefore, the processing method should be relatively simple, such as baking, frying, steaming and boiling.
Third, it should have some net red attributes. What is net red attribute? We are more willing and have a higher face value. Young people like it more. They are willing to spread it spontaneously. Maybe they are willing to take photos and share it.
Fourth, we need to have some addiction, such as spicy food. Why do you like Sichuan food? Because the more spicy you eat, the more fragrant you are. The more you eat, the more you want to eat. There are also smelly, memory, screw powder like this fire, like durian, people who love to eat will not stop eating, such as some addictive products.
In terms of product quality, as a prefabricated dish, I still hope its raw materials are better and put a little more raw materials. It’s similar to our prefabricated dishes. There are more shredded meat in fish flavored shredded meat, which makes customers feel that my product is more valuable. Next, we need to give customers more ingredients. For example, our chicken fillet will be filled with dried dishes and ketchup in the future. We can choose some of these products to fit the dimension of young people. We have gone through a lot of detours in the early stage. At present, the product development ideas we have slowly summed up, including the products we will push out in April or may this year, will move towards these dimensions, from the appearance to the packaging to the ideas of young people. This is the logic of our selection.
Foodplus: Thank you, Mr. PU. Mr. Pu said it in great detail. Now let’s ask Mr. Pu and Mr. Lin a question, what are the popular products of the company, whether the company will classify the products and what are the classification standards?
Lin Zhenghuan: our popular product is sauerkraut fish. Around the fish, we have tomato fish and fish fillets to sell. In fact, we have formed a set of system to communicate with consumers for the whole product classification. Because our brand is positioned as lazy food, we have made a quantitative distinction about laziness and divided it into three levels. The first level is called standing lazy. In fact, it needs to be processed simply. You have to stand to do this. We call it standing lazy.
The second kind of products is called sitting lazy people. Today you sit in this way of self heating hot-pot/" 22375 rel="nofollow" target="_self">hot pot. This is sitting lazy people. Just sit and add water to play with your mobile phone. This is a sitting lazy man.
There is also a kind of lying lazy, what do you mean? You don’t need to move anything. Today, you’d better take it and open the bag. In this way, we define the convenience of the whole product and divide the product. This is a method we will use when communicating with consumers. Internally, we divide our products according to the whole price band and raw materials. It’s not so intuitive to communicate with consumers. We use it internally.
Pu Wenming: we started our business for more than half a year. We don’t have such a detailed classification. In fact, we also have a lot of popular products. Our classification is based on our own scenes. We have breakfast and dinner scenes. For breakfast, we choose one or two pasta staple food products. For example, the old Shanghai onion cake is the first popular product. It’s the first one to be popular with the box horse.
We have more products for dinner scenes than other products. I was also surprised by our second popular style. On January 27, Weiya brought us a hand-made chicken fillet, which was very popular. After Weiya brought it, some big anchors, such as maomei, also wanted to bring this product, including laoluo. Everyone wanted to bring this product. This also gives us some development in the selection ideas behind. It’s still a product that everyone likes, not our own internal definition. If we want to make it a popular product, it can become a popular product. This should be combined with the market demand. The second big money we got by accident. Now the monthly sales may be over several million. This is our big big money.
Sometimes there is chance and uncertainty when a popular product comes out, but finding a methodology from uncertainty in the future must be popular among the public. Products that are easy to operate and suitable for most groups are willing to buy may become popular products. This is what we get. At present, the two most popular products of our whole company.
Foodplus: next is Mr. Yu’s question. How do you think about the selection logic of the brand side? From the perspective of investment institutions, which market segments of China’s Prefabricated vegetable industry are worthy of special attention?
Yu Lu: I think the current situation is like this, because we all think that last year was the first year, and now it is gradually accepted by users, so it has an overall growth process. At present, the most acceptable products for users are pastry products similar to breakfast scenes, because when you go to the supermarket, you will find that many frozen steamed buns and dumplings are highly accepted by users, so it is important for users to place the first order quickly in the breakfast scene.
In addition, I think it’s a kind of instant lunch. Products that can be finished by a person with a meal and several actions are relatively easy to be accepted by users. At present, we pay more attention to the products that can make users quickly place the first order.
Foodplus: Dingding lazy people’s food is a brand of Dingding fresh food. It seems to be a natural thing to do to C brand from the original supply chain. Is there an independent team operating Dingding lazy people’s food at present? Does the original business of Dingding fresh food bring some advantages to Dingding lazy dishes in terms of production and circulation?
Lin Zhenghuan: Yes, it operates independently now. At present, we are independent of each other. We have an e-commerce team and a small product team which is specially responsible for the C-end brand. In fact, the head office gives a lot of support. On the one hand, it’s products. Because we have our own factory and our own R & D team, our products can actually be shared with the company’s overall products. In the early days, we made a series of semi-finished products for him in HEMA, including the pork tripe chicken in HEMA in Beijing. This product was pushed out and made together with them. This product has become our online best seller, although it is not a popular product.
Tiktok, which is now in the channel, is also being done by the electric business, offline, Tmall and jitter. Under the line, including box, daily, fresh and community group purchase, we are also covering the whole channel of the company’s channels, and the product is going to cover more channels. This is a relatively big advantage. It’s still relatively difficult for us to set up this dish by ourselves, and we’d better use the company’s greater support to do penetration.
Foodplus: does Dingding lazy food have its own factory? How to do quality control and cost management well in production?
Lin Zhenghuan: at present, we have our own factories. In fact, we are also Dingding’s own factories. We have controlled several factories through investment or leasing of equipment and venues. In terms of production, in fact, to do a good job in quality control and cost management is divided into several modules. The first module is the control of the whole raw materials. For example, where do we buy pork from, where do we buy chicken, and where do we buy fish? We basically want the top three raw material suppliers in this industry. At least it will choose it only when it has a relatively large scale and its own quality guarantee.
On the other hand, it is the control of the whole process, which actually needs the continuous running in of R & D and factory. Because our products basically start from 0, in this process, many product formulations need a running in process in the early stage under different market scales, so as to ensure the stability and safety of our overall production.
This aspect of the cost depends more on the refined operation and scale. The scale may have a greater impact at this stage, because the cost of FMCG can not be reduced, and the scale will be limited. This is the process of controlling the cost and the whole channel in our own factory.
Foodplus: we can see from the public information that the company has established cooperation with the foundry. How can the company do a good job in quality control and cost management in production? Will we build our own factories in the future?
Pu Wenming: our whole brand has been paying close attention to quality control since the first day of business. Although our company is relatively small and has just started business for more than half a year, in fact, our whole supply chain has been very perfect. We have our own quality control and R & D personnel. Our OEM is also our own shareholder, and we also start a business together. We all regard it as our own business.
How do we do quality control? What we get up from offline means that big channels like HEMA, RT mart, Carrefour and Wal Mart have a relatively professional set of things for choosing suppliers or brands. We need to cooperate with these channels. They must arrange their third-party audit personnel to audit our processing plant once a year. Basically, every channel will go once a year and entrust a third-party organization such as SGS and its to audit according to Wal Mart’s standards, RT mart’s standards and Carrefour’s standards. Our factory can only be used after layers of audit.
What is our quality control? We also have our own standards, our quality control will go to the factory every month. Our quality control mainly focuses on the raw materials instead of the process. We will pay attention to the raw material purchase of the factory, its account and purchase channel, and who we purchase from. Our quality control is to ensure that all our products and products can withstand all food safety tests. Our products are basically researched and developed by ourselves. After the research and development, we get the formula to tell the factory that today we will use 1, 2 and 3 raw materials for processing. How do we judge our costs? For us, it’s very simple. We have our own formula table. We will make raw materials similar to pork, whose pork we need. Finally, we will have our own formula. After the formula comes out, there will be a so-called recipe card, which will make a general cost.
After we have this cost, we will give it to the factory. After the factory industrializes and restores it, we will add its marginal cost and factory rent to see if it is reasonable. If it is unreasonable, we will finally talk with the factory and reach a tacit agreement. We hope that eventually, because only when the quantity is large, can the marginal cost be reduced. We are also together. Maybe when they come up, their marginal cost will be increased a little less, which will be beneficial to our sales. After the same quantity is large, the cost will be reduced naturally. We control our whole cost and quality control through this method.
Foodplus: the next question is about Mr. Yu. From the perspective of your venture capital, you have invested not only in to B companies such as finding food ingredients, but also in brand companies such as Zhenwei xiaomeiyuan. When you look at projects in the field of prefabricated vegetables, what characteristics will your company pay more attention to?
Yu Lu: that’s right. Because our fund is invested in supply chain, enterprise service and B2B, I have been paying attention to the whole catering supply chain since 2015. Looking for food materials is a project we decided to invest in at the end of 2019 before the epidemic. At that time, I actually invested in it. First, I’d like to introduce to you what to do with food ingredients. It’s a to B company. Its main business is to sink into the third to fifth tier cities of the market. It’s a B2B platform for all the prefabricated dishes provided to food suppliers. They have their own brands and also act as agents for other people’s goods. At present, the whole distribution network is mainly in East China. When we saw that category at that time, we thought that it might be the supply of catering companies most like Sysco in China. Because all restaurants want to turn chefs into chefs. Chefs only need to do simple operations. The cost of prefabricated dishes is more advantageous than that of the normal purchase of many fresh foods.
When we observed the whole prefabricated food track, we first invested in a to B company. We also learned about the whole upstream production process of prefabricated food through the investigation of to B company. We have achieved very detailed results. All the dishes you can think of can actually find solutions in the supply chain. Moreover, it has produced the birth of supply through takeout and chain restaurants, which means that it will have some C-end brands sooner or later. So when looking for food materials, we already thought that there must be a chance to invest in a C-end brand in the future.
We didn’t expect that the epidemic accelerated the arrival of this time, and made the C-end prefabricated food brand appear in the public view faster. Later, we met xiaomeiyuan, and we made the investment decision quickly.
Just now, the host also asked what kind of characteristics some enterprises will pay attention to? I think the core is the ability of the supply chain, because it is a business that depends on scale, so all the control links of the supply chain should be accurate, including food, health and quality control. There is also the efficiency of the whole sales network. Because in this process, I just mentioned the cold chain, involving the C-end, the middle end and the small b-end. Therefore, the whole distribution network and logistics should be connected from the factory to the factory, and this efficiency is a stable and efficient one. This link is a point that we pay close attention to when we look at all companies related to refrigeration, whether they are to B or to C.
Foodplus: we find that different customer groups may need to be reached in different ways. For example, the core consumer group may be the elderly, and the channel may need to be in places like the food market or supermarket. For young white-collar consumers, fresh e-commerce may be the channel. So I would like to ask Mr. Pu a question: what is the portrait of your core consumer group and how do you get the first batch of consumers? From the public information, we can see that Zhenwei xiaomeiyuan now has sales in stores, supermarkets and small stores. What are the key channels of your company? Besides the above-mentioned channels, what are the other channels? What are the channel layout considerations? In addition, we can see from the public information that your company has set up four circulation and turnover warehouses in Wuxi, Tianjin, Wuhan and Foshan respectively. Why should you set up these warehouses in these places?
Pu Wenming: let’s talk about our three business segments first. The first business segment is e-commerce, which is online. It is mainly e-commerce platforms such as Jingdong, tmall and pinduoduo, which are directly connected to the C end. Because we are frozen products, we have to deliver the goods to customers within 48 hours. If we use one warehouse to distribute to the whole country, we will not reach the time limit. If we do not reach the time limit, our experience will be worse. In order to make our online experience better, we have set up four warehouses across the country, covering North China in Tianjin, East China in Wuxi, South China in Foshan and central China + southwest in Wuhan. Because the single quantity of the whole southwest is not enough, we will use Wuhan to cover it. If the single volume is large, we may have 6 warehouses or 9 warehouses to cover the whole country. This is based on the online logic. We have set up four warehouses, hoping to give customers a better experience.
After we finished online, we found that the online performance cost is very expensive, and our entire performance cost accounts for about 25% of the profit. So at present, I think it might be better to be offline. At present, there are mainly two lines for the whole offline channel laying. One is Ka line, which is similar to HEMA, RT mart and Carrefour. There are also Lianhua which will be settled soon, Yipin fresh in LKA, and many large chain enterprises. There is also the second line, small B, which is similar to a couple’s wife store, because we feel that the performance cost of prefabricated vegetables offline is far lower than that of online. We hope that the ultimate way out for the brand in the future is Omni channel and full coverage. So we start with the end, and we want to make the brand what it will be like in the future. Now we have begun to lay out some channels.
Why be a little B? We mainly hope to reduce the cost of performance through takeout. What is the concept of intra city retail that we have been talking about in the early stage? It’s a cost of one hour. We use these small stores as front positions. If we make efforts online, it’s a promising thing. This kind of performance cost may only cost 7 yuan per order, and the cost of taking out coverage may be a little lower than that of B2C’s “SF + cold chain + cold enzyme” coverage. Because the cost of performing an order online is about 12-15 yuan, and the cost of performing an order offline may only be about 7-8 yuan, we think that in the future, prefabricated vegetables may play a greater advantage in the retail industry in the same city.
After all, we are frozen products. The current B2C channel is called the so-called online channel. We are all doing high customer price. If we do high customer price, there will be some problems. Most consumers have limited refrigerators. When we do high customer price, we must let them buy more than one. If we want to buy more than one, it may be very cheap, but we may not buy it because the refrigerator can’t fit, These are some of the problems we encountered earlier. Why are we in Buxiao B? Small B can become our front position, through community group buying, through hungry, meituan, through Jingdong home, we will become a site in the future.
We will help these small B to do some empowerment, and help them operate hungry and meituan. Through this mode, we can help you sell goods online as well as offline. In this way, these small owners will be more loyal to our brand, which is probably the case. At present, we have a wide range of laying channels. Offline, we are basically laying channels that you are a little familiar with. Basically, the sales are going up. At present, 60% – 70% of our sales come from offline channels, and 30% of our sales come from online channels.
Foodplus: what is the core consumer group of your company?
Pu Wenming: according to the current data, it is mainly 25-35 years old. The first echelon is mainly young female users with economic strength, accounting for about 40%. Maybe the next 35-45 years old or female users are the second echelon. At present, most of our users are of this type, mainly in family scenes. She cooks at home.
Foodplus: Mr. Lin also answered the above question. In addition, Dingding fresh food should have more channel resources in convenience stores. Will it be sold in convenience stores?
Lin Zhenghuan: at present, our convenience stores haven’t put out the goods yet. Our rhythm may be different from that of general manager PU. At present, we focus more on the online, which is a relatively large plate. We hope that online can pull up a certain amount more quickly through live broadcast. It’s true that the cost of online performance is relatively high, but I still hope to make the brand deeper and faster. This is part of it.
In the second part, we have some products offline, but offline is mainly in the community group buying platform. Because this platform is also growing rapidly. We will give priority to some channels with independent growth capacity, so offline we give priority to the community group buying platform, which grows very fast. This is considered from the channel dimension.
Our consumer portrait is very simple. Now the crowd is relatively peaceful, from 25 to 45 years old. Among them, 25-35 years old and 35-45 years old are close in proportion. But in terms of the proportion of consumption power, the consumption of 35-45 years old is stronger. Most of them are women. The ratio of male to female in Jingdong is about 1:4, and the ratio of male to female in tmall is 2:8. This is the crowd advantage of tmall itself, so this is the user portrait of our whole online. In the community group buying will be more sinking. We will do small-scale group buying that can meet the customer’s unit price. At present, the mainstream crowd is probably covering the first tier cities to the third tier cities.
Foodplus: then I asked Mr. Lin, what’s the repurchase rate of consumers now? How do companies switch users and increase user stickiness?
Lin Zhenghuan: at present, we are going to do user conversion. We are mainly online. The biggest advantage of online is that it comes quickly, but the disadvantage is that it has relatively weak user stickiness. Tiktok is relatively simple. We are master of live broadcasting online. We cooperate with master in the jitter and Tmall platform, and pull new live mode. The biggest advantage of this way is that the new speed is faster, and a live broadcast can bring hundreds of thousands of millions of goods. However, the disadvantage is that there will be relatively few re purchases by users, because user stickiness is not always that high. This is based on the data of tmall global.
Foodplus: let’s invite President Pu to talk about the problem just now.
Pu Wenming: let’s talk about the repurchase rate first. In fact, our entire tmall store started to do it at the end of September last year, because the time is relatively short, because the traffic of tmall is still relatively expensive now. We are the same as Dingding lazy people’s food, and we are all in the live broadcast now. Live traffic is very large, a live broadcast may be instant 50000 orders, we did the Weiya one, five minutes may be directly on the 50000 orders, the total transaction volume of nearly 3 million. So there’s no way to look at the repurchase rate alone at this point, because there’s so much traffic coming all of a sudden, and maybe a lot of it is for the live broadcast room.
What are we doing now? Slowly push some coupons to the users who have bought our products in the live broadcasting room, and give them some discounts, so that they can continue to buy our products. However, the base is relatively large, and the effect is not particularly ideal now. We have been optimizing our performance and products, including some private actions. But at present, we are still groping forward because of the short time.
Offline, in fact, it doesn’t look at the repurchase rate, because the entire offline store covers the surrounding three kilometers of people, and basically all of them are old customers. There are few new customers there. Offline, we don’t look at the repurchase rate, we look at the dynamic sales rate. I’ll give you a data, because we’re doing better offline at present. We can’t say much about the dynamic sales rate of HEMA. It may be about 5 to 10 times that of other general brands, and about 5 times that of RT Mart. As long as the dynamic sales rate is greater than a certain value, its re purchase must be very good, because it is all regular customers, which is probably the logic. So we look at two such ratios, not only re purchase, but also dynamic sales.
Foodplus: what’s your brand positioning like now? What kind of mental point do you want to give consumers at the brand end? What kind of form do you want to build the brand? What kind of enterprise or brand do you want to grow into in the future?
Pu Wenming: Well, our own brand slogan is that we want to make “experts of prefabricated dishes” and make “eating” happier. This is the idea we always want to convey to consumers, that is, to be more convenient, faster and happier. On the brand building, we hope to penetrate some young people’s ideas through channels, small red books, jitter, and through content, through our product introduction and tiktok. We also put in a lot of things in the little red book, including some interaction, in order to get some good feedback.
What brand do we want to make in the future? We still have a long way to go. We hope to start with the end. I have been talking to our team all the time about whether we can make Anji in the field of prefabricated vegetables. What is the beginning of the end? We have seen that enterprise. When we are doing it, we should take the lead in channel, supply chain and quality control. We probably hope to build such a brand.
Lin Zhenghuan: we are also at a very early stage, and relatively speaking, we still have a poor understanding of the prefabricated dishes. Therefore, our current strategy is to focus more on single products. We focus on sauerkraut fish to build consumers’ first experience and cognition of us. What we can do now is that we do the whole content in the little red book and tiktok, no matter in the form of pictures or text, or in the form of short videos.
In the live broadcasting room, because we basically covered all the head live broadcasting rooms. In the category of sauerkraut fish, they can basically think of us. For his fans, when they see our products, they will think of our sauerkraut fish. This is a small achievement we have achieved in single product, but it is far from enough now.
In the future, our relatively simple idea is that we hope to become a national leading brand in the field of prefabricated vegetables. We think that this matter should be composed of many products. It’s better to have multiple explosive products. At present, we have just captured the first explosive product. We hope that through our own R & D and supply chain capabilities, we can create the second and third explosive products, gain a firm foothold, and finally cover the whole country. This will be what we hope to achieve in the future.
Foodplus: what core competitiveness do you think you need to have to become an excellent enterprise or brand of prefabricated vegetables?
Lin Zhenghuan: I think the core competitiveness is the first supply chain, the second channel and the third brand that I mentioned earlier. FMCG has two logics: one is whether your mind can be recognized by consumers, whether it is significant enough, and the other is whether your channel penetration can be bought by consumers. If these two conditions are not met, it is difficult to become a leading brand. To support these two things, we need a complete supply chain, not only the supply chain of products, but also the turnover efficiency of various channels from the front to the back and the cooperation of the supply chain. From my point of view, supply chain, channel and brand should reach a more comprehensive level, and finally become a more competitive brand in the prefabrication industry.
Pu Wenming: my idea is similar to that of general manager Lin. Let’s subdivide it again. From the perspective of supply chain capability, I personally think that R & D is more important in the future of prefabricated vegetables, and R & D is the most critical. I think it is more important to provide consumers with products, so in our company, R & D is the first, quality control is the second, and channel is the third. After these three pieces are done, your brand will certainly rise.
What does the brand do next? Maybe through all kinds of content, marketing, distribution and publicity, we are adding points to our own brand. Therefore, we must give priority to the first three points to build a brand. If we say to do the brand first, then the supply chain and then the channel instead of today, it is difficult to do the brand even if your two are not good. The whole ranking of our company is like this. I have separated supply chain capability from R & D and quality control.
Foodplus: next, about Mr. Yu, from the perspective of capital, how can we help the prefabricated vegetable enterprises, and in what ways can we build barriers to competition?
Yu Lu: just now, we have been talking about the logic of FMCG as its core. We still adhere to the tenet that FMCG is a sales volume, that is, a brand. How to distribute goods in a faster way? No matter online or offline channels, the goods of this brand can be seen everywhere. To make it easier for consumers to see the products has a certain effect on the popularity and promotion of the products.
After sales, how to form scale effect faster, so that we can get the advantage of cost and price in the final supply chain, and also get profits in the process of selling goods, is also a process of continuous accumulation. In this process, there will be a lot of expenses. The expenses I said are not subsidies. They are not subsidies for the C-end to let the C-end buy my things. In this process, there are a lot of expenses for users to reach the goods, which can be assisted by capital. The more money we take, such as the R & D mentioned by President Pu and the brand building mentioned by President Lin, the more money we will have to do it.
If there is not enough R & D personnel, I can invite 5 or 10. We can do it in a horse racing way, which can be assisted by capital. The best way for capital to help is to speed up all links and every key point, increase the number of people and improve the efficiency. The team does not need to use the profits of the enterprise to lay and invest, because in this way, the snowball will roll more slowly, and the capital can help us roll the snowball more quickly.
The third part: Q & a link
Foodplus: Thank you, Mr. Yu. We have been discussing for a long time. Thank you for your warm sharing. The above is our discussion on the dimension of venture capital.
Finally, we will leave the rest of the time for the question session. First of all, we will give some good questions to the guests when they sign up. In addition, if they want to ask questions on the spot, they can leave a message on Gosling or submit the questions to Xiaoqi. Due to the time problem, we will select some questions. Those who are not selected can continue to pay attention to our foodplus. In the future, we will launch more in-depth content and activities in the prefabricated vegetable track. Please note the names of the guests who want to ask questions. First of all, we select two user’s message questions for all guests.
First question: from the perspective of the next 5-10 years, what are the important development trends of the prefabricated vegetable industry?
Pu Wenming: I personally think that the important trend should be in the product end, whether the product can continue to launch popular products, not one or two popular products. This is the continuous popular products, which can lead the whole prefabricated vegetable industry.
The second point is whether the emergence of leading brands will make the whole prefabricated vegetable industry more standardized. Because now most of the manufacturers of prefabricated vegetables are still in the primary stage, and some of them win mainly by price, because many of them drive out good money with bad money in this industry. For example, more moisturizers and water retaining agents are added to the product to reduce the cost. Some inferior raw materials are used to compete.
I personally think that in the next few years, who can grasp the product quality, who can ask for the efficiency of the supply chain and who can ask for the sales volume from the channels, will finally do more. This is my general idea.
Lin Zhenghuan: I think the enterprises mentioned by President Pu just now should grasp the points in the future. In this industry, each brand will do better and better in the future. I would like to say that there is a key point, which may lead to an inflection point in the development of the whole prefabricated vegetables. I think the post-95s in China today, who have just graduated from university or worked for one or two years, may be single and have not yet formed a family. When this part of the population starts to form a family, they have a higher frequency of cooking at home instead of dining out or ordering takeout. At that time, the whole market of prefabricated vegetables will have a relatively large growth. Or the whole acceleration will increase further. I believe it very much.
Because for this part of the crowd, his craft is relatively different from the post-90s or post-80s. At the same time, when this kind of people form a family, no matter what, because they have children or two people, they have to improve the frequency of cooking at home for various reasons. At that time, prefabricated dishes will become a very important choice. Just now, Mr. Yu also said that he may eat three or four meals in 90 days, or three or four meals in 30 days of a month. This frequency is very likely. Therefore, in terms of the overall market environment, the change of consumer behavior can drive the rapid development of the whole industry when this generation starts to form a family.
Yu Lu: it’s a big question, because prefabrication is a solution upgrade, it’s a trend itself. If we subdivide in the prefabricated dishes, we can compare several things. One is the product level. At present, we still divide the products into meal scenes, breakfast scenes, dinner scenes and so on. For example, snack products include children’s snacks and adults’ snacks. I think the development of prefabricated vegetables is probably in this way, which may be in the middle and late stage. Or the state of development of prefabricated vegetables, like other consumer goods, is a way of pouring. When there are children’s categories of snack consumer goods, children’s products will also appear in prefabricated vegetables, which is a kind of development mode of pouring in. So it will become more rich and subdivided in the scene, for example, more suitable for pregnant women to eat, or more suitable for children to eat. This is the trend of our standard snacks and related products.
The trend in the channel is that it is very clear that fresh e-commerce is a very good channel for everyone to buy all the pre prepared dishes related to dishes, with a long-term preservation and frozen products. In the fresh channel, different from fresh, its shelf life is longer, similar to fresh, are raw materials for cooking. So it will appear more in the fresh channel, and even slowly will appear in the community group buying channel, this is the state that we will see in the channel.
In the supply chain, due to the catering brands and entrepreneurial brands are constantly demanding that our supply chain achieve higher quality, better seasoning and more stable quality products. Therefore, the supply chain should also have a part of the upgrade, whether in packaging or quality control. There will be some upgrading of product quality, which is actually a good promotion for the whole industry.
Foodplus: another user asked an interesting question: will the company make condiments or compound condiments in the future?
Pu Wenming: I think it is possible, because our products are mainly ready to cook food. Many of our products now, such as fish flavored shredded pork or Kung Pao diced chicken, are ab package, with raw materials and compound seasonings. In the future, we may even take out a single brand to make compound seasoning. We don’t have a good idea at present, but we just follow the trend when we do it in the future, because our prefabricated dishes are larger and larger, and the requirements for the whole compound seasoning are higher and higher, including the taste. Now a lot of our R & D efforts are focused on the compound seasoning.
As far as package a of package AB is concerned, the taste of package a is not so changeable. Most factories make the same thing. Our main research and development is in package B, which is the compound seasoning. Because only that thing is unique to you, whether it’s formula or secret recipe, we are doing this thing, whether we want to re do the brand, we don’t think about it completely. Now we are going to make the whole prefabricated dish first.
Lin Zhenghuan: it’s a good question. We won’t at present, but we will consider it in the future. Our starting point is that the consumer population is consistent, and it may generate some new demands. For example, we find that some products are suitable for seasoning. When consumers make purchase decisions today, they are both my consumers. In this case, we may make seasoning. This matter must be prioritized. This is not the most important thing. In the future, this is really important.
Foodplus: let’s take a look at the problems on the spot. General manager Pu mentioned that relying on Weiya and Lao Luo to bring goods, including live broadcast and deduction points, will it be a loss to make growth, because these consumer goods rely on live broadcast to complete the rapid growth of early sales, but how to enter a more healthy and sustainable development state in the future?
Pu Wenming: the way we play is different from many traditional enterprises. Why do we choose Weiya? At present, we do not make money, we do lose money, but what is the reason? We regard it as a launch, we regard it as a product. At present, most of our sales are offline. We do offline, and the profit is pretty good. We are still relatively good offline, so the profit can support me. I can make relatively large investment online. Through big anchors, such as Lao Luo, Wei Ya and Li Jiaqi, I can quickly build up the brand voice. When brand voice is transmitted offline, maybe my offline business will be better and become a positive cycle. This is how I do it. We don’t do increment online, and then rely on it for financing. We don’t do that. We do the whole brand promotion online. We really don’t make money. We have a lot to say about this.
But slowly, we will make a profit and loss balance for these big anchors, and gradually make a little profit. Our main force itself is in the offline channel, because through the online anchor, we can quickly pass our brand awareness to customers. This is what we need to do. It’s not just selling goods. Selling goods is not our main purpose. It’s probably such logic.
Foodplus: Thank you again for your selfless and warm sharing! And the enthusiastic participation of your audience! I hope that with the joint efforts of all of you, the domestic prefabrication industry can develop better and better. I wish Zhenwei xiaomeiyuan and Dingding lazy dishes can become excellent prefabrication enterprises and brands! I wish zero one venture capital can invest more excellent venture projects in the food consumer goods track! This symposium on feii venture capital wind vane is over. Thank you for your participation!
Feii is the abbreviation of food Entrepreneurship & Investment Insights in English, and its Chinese name is food venture capital insight. Food venture capital insight payment community is a vertical community focusing on food consumer goods entrepreneurship, investment and innovation. It provides member services for food entrepreneurs, investors, major food companies and practitioners who pay attention to food innovation, providing value-added services such as in-depth research content, high-quality industrial activities, food networking, resource docking, etc.
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