China Food

The hundred billion business of a bowl of rice noodles

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“big but not strong” noodle market is a challenge as well as an opportunity for entrants.
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The rice noodle track is becoming more and more popular. Why hasn’t there been a national brand?

“Beautiful rice noodles are like a girl’s breasts, but in Beijing, you can only eat silica gel.” This is a poem written by director Chen Xiaoqing of “tip of the tongue” for Hunan rice noodles. A bowl of rice noodles keeps him in mind all the time.

The morning of southerners starts with a bowl of rice noodles. Sitting or standing, they go after talking and start a busy day.

Although there are many rice noodle shops all over the country, the best rice noodle in every southerner’s heart is always the one in front of his home.

In the south where rice is abundant, rice flour is an important product of the south, but it is also universal and can be promoted to the whole country.

Because of the simple operation and fast production of rice noodles, it has a kind of just needed products that can replace the dinner and is affordable and convenient. It is not only suitable for food in the hall, but also suitable for takeout, which has the potential to become bigger and stronger.

But the category is always in the market situation of “big but not strong”. Although there are regional brands emerging, there are no national brands at present. Compared with the fast food categories of rice and pasta, the development of rice noodle brand is much more low-key.

Today, let’s talk about the rice noodle racetrack, see which big black horse brands are running in the category, and analyze the market opportunities and challenges in “this bowl of rice noodle”.

The “Gang world” of rice noodles

Rice flour first appeared in the Zhou Dynasty more than 3000 years ago. Rice and wheat were used as raw materials to make paste like rice flour. Linear rice flour appeared only in the northern and Southern Dynasties. It was not until the Sui and Tang Dynasties that the technology of rice noodles gradually matured, but it was still a rarity. Only the dignitaries could enjoy the delicious rice noodles.

It was in the late Qing Dynasty and the Republic of China that rice noodles really came into the homes of ordinary people, and gradually changed different food flavors according to local characteristics.

Although the life cycle of rice flour is very long, the cultivation habit of rice in the South and wheat in the North has created a food pattern of “rice in the South and wheat in the north”. Where there is rice production, there is almost rice flour production, such as Guangxi, Hunan, Jiangxi, Fujian, Guizhou and so on.

Hand cut rice noodles

Image source: Internet

Rice flour is a kind of rice products made from rice as the main raw material through different processes. The branches of rice noodles are very complex and extensive, which can be roughly divided into rice noodles, rice noodles, rice noodles, rice strips and other sub categories.

Among them, rice noodles and rice noodles are the most similar, but not rice noodles.

The main raw material of rice noodles is rice, which tastes smooth, while rice noodles are mixed with sweet potato powder, potato powder and other raw materials, which makes the taste more soft and waxy, and the storage methods are very different.

Almost every city has its own unique taste, which also shows that the mass base is very broad and there is no need for market education.

Guangxi has rich varieties of rice flour, including Guilin rice flour, Liuzhou snail flour, Nanning Laoyou flour, Yulin niuza flour… Among them, Guilin rice flour is a household name with the highest degree of promotion and recognition.

Source: official account of chowhound in Guilin

Guilin rice noodles use fresh rice noodles made on the same day, in about 80 days ° Blanch in hot water for 20 seconds, mix with local star anise and cinnamon spices to make brine, match with beef and pot roast to be authentic.

Liuzhou snail powder in Guangxi is famous for its stink, which helps spread the popularity of snail powder and become a popular online red rice powder all over the country.

Photo source: Liuzhou on the tip of the tongue

The soup is made of snails, with shredded agaric, sour beans, peanuts, Yuzhu, and sour bamboo shoots of the soul. The smell, spicy and sour fragrance are all gathered together. Laoyoufen in Nanning, the capital of Guangxi Province, is cooked with sour bamboo shoots, chili peppers and Douchi.

Hunan is a land of fish and rice. The richness of varieties can not be explained in one or two paragraphs. Almost every city in Hunan has its own unique flavor.

Zhuzhou fish meal soup

Source: official account of box and horse Intelligence Bureau

On the contrary, Changsha rice noodle is the most typical one; Among the Changde rice noodle faction, Tianjin beef noodle is the most famous; Zhuzhou fish meal is the hottest, fresh fish and rice noodles are combined in red soup, fresh eyebrows are removed; In addition, there are various kinds of stewed rice noodles in Western Hunan, Shaoyang rice noodles

Image source: Internet

In the early morning of Nanchang, Nanchang people are awakened by a bowl of mixed flour and earthen pot soup, and Jiangxi rice noodles have the trend of becoming a master. There are many schools of hot flour, fried flour, mixed flour, soup flour, cold flour and so on.

Source: official account for kitchen

In the past two years, Jiangxi rice noodles have ushered in a small climax, so that we can see the power of Jiangxi pepper. Jiangxi people’s preference for spicy food is also reflected in rice noodles. Nanchang mixed rice noodles, Jiujiang fried rice noodles and Jingdezhen cold rice noodles are inseparable from Jiangxi’s spicy food.

Fried rice noodles and baked Nang in Xinjiang

Chowhound: the official account of the owner

In Xinjiang, the northwest corner of China, where hot pepper is abundant, the local fried rice noodles are famous for “hot”. The rice noodles are thick and chewy. They taste spicy and oily. It’s delicious after eating. Experienced diners will eat them with roasted Nang and dip them with fried rice noodles soup.

Guizhou Zunyi mutton powder

Source: official account for authentic scenery

Guizhou’s rice noodles are also famous for a long time. Zunyi mutton rice noodles. Rice noodles are coarse acid noodles. Blanch them in the original mutton soup, sprinkle some slices of local goat meat, and then add hot pepper and Zanthoxylum powder. The rice noodles are fragrant but not smelly.

In addition, Guizhou’s rice noodles are also worth reading. Kaili sour soup noodles, shrimp beef noodles, and Huaxi beef noodles are mouth watering.

Sichuan Mianyang rice noodles

Image source: Internet

Among Sichuan’s many delicious food categories, rice noodles are quite low-key, but there are many kinds, including Mianyang rice noodles, Nanchong rice noodles, Xichang rice noodles, Mianzhu rice noodles and so on.

Baoluo powder in Wenchang, Hainan

Image source: Internet

Hainan rice noodles have the taste of the sea. Fish skin and shrimps are products of the sea. They are naturally congealed in Hainan rice noodles. In addition, there are many kinds of Hainan rice noodles, such as Baoluo rice noodles in Wenchang, Milao rice noodles in Danzhou and sour rice noodles in Lingshui.

Rice noodles are popular in almost every city in the south.

The rice noodles mentioned above are just the tip of the iceberg among the numerous “gangs”. Rice noodles not only have a high degree of recognition of categories, but also have many factions, strong product diversity, huge consumption base, and obvious advantages in fast food track. In other words, such a bowl of flour breeds huge market opportunities.

Business experience from a bowl of rice noodles

In recent years, the market scale of China’s rice noodle industry has been expanding. According to the prediction of China Business Industry Research Institute, the market scale of China’s rice noodle industry will exceed 100 billion yuan in 2020.

Among the many sub categories of fast food, “flour, noodles” is an important single category of Chinese fast food, accounting for nearly 10% of China’s five trillion catering market share, second only to rice fast food category.

According to public data, in the second quarter of 2019, the number of Pan rice noodle stores exceeded 416000, compared with 223000 in 2016.  

Data processing: Lacquer ordering Restaurant

In recent years, the number of new rice noodle stores has been increasing. According to the enterprise survey data, there are more than 45000 newly registered rice noodle enterprises in the four years from 2016 to 2020.

Moreover, since last year’s epidemic, the rice noodle category has obvious advantages. As a just need, the consumer demand has increased, and the number of stores and profit efficiency of the category have bucked the trend.

Data processing: Lacquer ordering Restaurant

Nationwide, the largest number of rice noodle stores were born in the first tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, Guangxi and Hunan. According to the public opinion data, Shenzhen, Guangzhou and Nanning have the largest number of rice noodle related restaurants in China, followed by Chongqing, Shanghai, Beijing, Changsha and other cities.

Although rice flour has a long growth cycle and rapid development, and its market share is not small, it is still in a relatively traditional state. They are mainly husband and wife shops and regional brands, but there are few nationwide brands, showing the market characteristics of “big category, small brand”.

Next, let’s see which brands make this “bowl of powder” into regional black horse and chain brand.

According to the public data, some rice noodle chain brands

Data processing: Lacquer ordering Restaurant

In the rice noodle track, it is not the people from Guangxi, Hunan or Guangdong who make the rice noodle brand scale number one, but the people from Northeast China.

Among them, the nameless rice noodles made their fortune in Harbin, with 2033 stores becoming the first in the scale of rice noodles, and the Wugu fish noodles founded by Cheng Zhibin, a native of Northeast China, with 4425 stores becoming the first in the scale of fish noodles.

With Minmo rice flour as its key product, Mingming has opened more than 2000 stores in Northeast and North China.

Wugu fishmeal combines northeast grains with Hunan fishmeal to create a new type of Wugu fishmeal. Its brand is concentrated in Hunan, Jiangxi and other cities.

Photo source: qiaofenghuang official micro blog

According to the classification, there are many strong players in Hunan rice noodles. There are Baman founded by Zhang Tianyi, a master of Peking University, Siyou youth founded by Zhao Gang, a game industry graduate, Qiao Fenghuang founded by Wu Nai, a designer, Dafan founded by Zheng Jie, a Hunan native, and Xiaoman handmade powder combined with Japanese decoration. They have a high market position and brand influence and are the best in the track.

Among the more well-known chain brands of Guangxi rice noodles, there are Shuo fenlao, who got financing last year, Sanpin Wang, who focuses on beef noodles in original soup, and Bangzi Guilin rice noodles, who made a fortune in Dongguan. The former plays new tricks through the concept of blockchain, while the latter two open nearly 200 + stores in the local market through solid internal skills.

The popularity of “tip of the tongue” has brought snail powder into the public’s view. During the epidemic last year, snail powder continuously went on Weibo hot search and became famous. While driving online sales, offline brands also gained more attention.

At present, liuluoxiang has the largest number of stores, followed by luodingji founded in Changsha and wangweiluo, a local brand in Liuzhou.

At present, luodingji, with nearly 500 stores, has the largest number of stores, followed by liuluoxiang and wangweiluo, with more than 450 and 220 stores respectively.

In the past two years, the brands of Jiangxi rice noodles and Xinjiang rice noodles have begun to emerge. The local brand Wanfangyuan mixed flour and tile soup in Jiangxi has opened more than 120 stores, and Uncle Li Nanchang mixed flour, which specializes in online take out channels, has more than 73 stores.

Among the sub categories of Xinjiang rice noodles, Wujia rice noodles and Azhen flavor improved southern rice noodles are popular among local customers, with 270 and 260 stores in the local market. Loulan Xinxiang, a catering brand incubated by SaaS service provider Zaihui, focuses on Xinjiang fried rice flour and has more than 100 stores through online channels.

In addition, there are rice noodle brands focusing on the flavor of Yunnan, Guizhou and Sichuan. Luoguanzhong, which is located in Chengdu, has opened more than 320 stores by joining in, and xinhuaxi, which is rich in Suzhou, has opened more than 70 stores specializing in Yunnan Guizhou characteristic beef rice noodle.  

Photo source: photographing.com

In recent years, a number of rice noodle brands such as “original soup”, “hand-made flour” and “ready-made” have emerged, or rice noodle brands with “rice noodle plus” mode have begun to emerge. Although they have aroused a lot of attention, the brand scale is still small.

Finally, there are tens of thousands of husband and wife rice noodle shops hidden in the streets and around the community, which account for most of the market share.

In general, the development of rice noodles is still relatively traditional, the national brands of rice noodles are not yet available, and the regional brands are making money.

The rice noodle track is a good track with simple operation, fast production, wide category recognition, light investment and fast return. It is a super category that can be used for large-scale production. However, there is no chain brand of “local chicken” in the track, which deserves attention.

Due to the special situation of last year’s epidemic, rice noodles have been released as a new demand category, which has made many entrepreneurs follow suit. Rice noodles have also become a hot track in the fast food category.

Because of the limited space of this article, we will analyze the two segments of rice noodles in Hunan and Guangxi, and explain the business model of the top brands in seven thousand words, so as to analyze and discover the development opportunities of rice noodles.

Hunan rice noodles

Model innovation, each shine brilliantly

From 2010 to 2020, the rice noodle category in Hunan will grow rapidly.

In 2010, Cao Yunbo, the founder of nameless luck, and her husband Meng Xiangsong opened a nameless luck rice noodle shop with an area of less than 8 square meters in the ice city of Harbin. At that time, there was no southern rice noodles in Harbin. Facing the blank market, Harbin became famous by its smooth rice noodles.

In 2011, Wu Tianzhen, a designer and former brand manager of real Kung Fu, searched for rice noodles in Hunan, prepared with his partner for more than a year, and wrote more than 150 pages of business plan before he opened the first beautiful Phoenix.

In 2012, Chen Zhibin, a northeasterner who went out to fight, made Hunan fish meal by himself. Before that, he had been engaged in catering for more than 20 years and operated small chains such as small restaurants, hot-pot/" 22375 rel="nofollow" target="_self">hot pot shops, jiaozi city and Northeast Hotel Chain.

In 2014, Zhang Tianyi, a master of Peking University, opened a small beef noodle shop in Beijing CBD with an area of only 37 square meters. Everyone said that as a top student, he was “not doing his job”. Even Dong Mingzhu, chairman of Gree, commented on him: selling rice noodles after graduating from Peking University is a serious waste of educational resources!

With the help of the founder’s famous school in Beijing, Funiu Hall (now renamed as Baman) made a high-profile appearance, attracting capital investment and giving many entrepreneurs opportunities to see rice noodles.

In 2016, some new brands emerged in the rice noodle track. This year, Zhao Gang, who was born in the Internet game industry, went to Hunan and returned to Beijing to open the first Siyou young rice noodle shop.

Photo source: dafran official website

In the same year, Zheng Jie, a native of Hunan Province in Shenzhen, founded dafran. Before that, he founded several chain catering brands, including hotpot and tea restaurant, but he always occupied a place in the fierce catering market.

Today, ten years later, these brands have already grown into chain brands. Nameless edge has opened more than 2300 stores in North China and East China. Wugu Yufen combines northeast Wugu with fish, creating 4200 + stores for Wugu Yufen.

Rising stars are not only concerned by capital, but also rapidly expand the scale and channels with the help of capital. According to public information, Baman obtained five rounds of financing before and after, with a company valuation of 500 million yuan; When Qiao Fenghuang founded three stores, its valuation was over 100 million; Siyou youth and Dafan have obtained a round of financing respectively.

According to the public data, some Hunan rice noodle chain brands

Data processing: Lacquer ordering Restaurant

01 nameless rice noodles: invisible tycoon

In order to cure his father-in-law, Meng Xiangsong, the founder of nameless fate, owed a lot of debts. In order to repay the debt, he and his wife Cao Yunbo invested 128000 yuan to start a business and rented an 8 square meter shop in Harbin Manhattan. At that time, he didn’t have a way out, so he had to fight back.

At that time, the rice noodle category was still in the blue ocean in Harbin. The couple improved the southern rice noodle, and the price was close to the people. In just one year, nameless yuan joined more than 1000 stores.

1) Positioning: pioneer of Minmo rice noodles

In terms of products, meat foam rice noodles are the key products, supplemented by local snacks to increase product diversity and quickly achieve the goal of conquering the city.

In brand building, nameless edge knows how to build its own brand cognitive radius with sharp knife products, and then quickly realize brand expansion by joining in.

In addition to the brand products, Mingyuan has been innovating in taste and developing various fancy flavors. In addition, it has also developed a variety of products, such as hot and sour powder, laofen, mixed powder, bibimbap and snacks, to give customers and franchisees more choices.

2) Delicious, inexpensive and cost-effective

It is reported that the unit price of nameless rice noodles is about 20 yuan. The price is close to the customers’ wallets, so there is no burden on consumption.

Photo source: anonymous official website

In order to match the public fast food and cost-effective positioning, the opening mode of nameless edge can be stalls, streets, shopping malls, campuses… Just because of the standardization of rice noodles, the fast production and the scalability of the opening mode, the difficulty of opening a shop is reduced.

3) Cost performance comes from brand standardization

For franchise chain, the most difficult thing is chain standardization, but nameless edge is well versed in this.

Product standardization is one of the advantages of nameless edge to open thousands of stores. It is understood that the ingredients of nameless edge rice noodle stores all over the country are uniformly distributed by the central factory.

In addition to the small ingredients of green onion and coriander, all other products are packaged and processed separately, and then distributed to stores through the cold chain. The integrated standardization greatly improves the product stability of thousands of stores.

The speed of brand expansion depends on the low threshold of rice flour category, and the profit is relatively objective. For franchisees, they can open a store for more than 100000 yuan. According to the official website, taking medium-sized cities as an example, the cost can be recovered in 6-8 months, and the net profit can reach 30%.

Photo source: anonymous official website

In addition to offline expansion, in order to improve the turnover and profit, nameless Yuanheng has made a new retail layout and launched a number of new retail products, such as hot and sour powder, snail powder, chili sauce and so on.

Secondly, in order to find the second growth of the group’s performance, we should vertically explore the hot track of snail powder, open a new brand zhuluoji, and expand the scale with the franchise mode that the enterprise is good at.

Most of its stores are in northern cities, and “going south” is also one of its future strategic steps. In the south, where the competition of rice noodle track is fierce, if nameless edge wants to succeed, it is bound to adjust according to the local product taste.

In the same category, although nameless fate is not the most concerned, it has become a leader in the industry with solid internal skills. In the short run, the development of nameless edge region is stable, but in the future, if the brand chooses “going south”, the products and models will be challenged.

02 Wugu fishmeal: create a new fishmeal track

Wugu Yufen is a brand created by Cheng Zhibin, a native of Northeast China, in Changsha, Hunan Province. As a native of Northeast China, Wugu Yufen ranks first in the scale of fish meal and rice noodles by his own efforts.

Before that, he had been engaged in catering for more than 20 years. He had done all kinds of catering, big and small, and finally succeeded on the fishmeal track.

Photo source: Wugu Yufen official website

Fish meal is one of the characteristics of Hunan cuisine, which uses fresh fish and rice flour as raw materials. On the basis of the original, Cheng Zhibin made the Northeast grains into flour, and then combined them with fish to create a new category of fish meal. Once implemented, it won great favor from customers.

In 2012, the brand was established. In more than eight years, more than 4200 + franchise stores have been established in China, covering more than 600 cities around the world. Branches have been established in Wuhan, Zhengzhou and Shenzhen respectively. Therefore, Hubei, Henan and Guangdong have the densest store coverage, while other cities have a slight extension.

In terms of product structure, we have developed more than ten kinds of fish meal flavors, rice set meal and snacks to enrich the product structure. Although the business model is not novel, it’s better to be close to the people in price. The customer’s bill is about 15-20 yuan, and it’s up to the people to be frugal.

At present, we have established storage centers in Wuhan, Zhengzhou, Dongguan and Harbin to supply stores across the country, basically realizing the standardization of products.

Photo source: Wugu Yufen official website

The main revenue comes from two aspects: the cost of raw materials, and the cost of brand usage, decoration and equipment.

According to the official website, it only takes 50000-120000 yuan to open a Wugu Yufen store. The store types are divided into three types: stall store, economy store and standard store. The investment is small, the start is fast, and the return is fast. In addition, the business model has formed a template, so the store can be copied quickly.

03 rookies: Ba man, Siyou youth, Da Fran and Qiao Fenghuang

There are many kinds of rice noodles in China, but the new brands seem to prefer Hunan rice noodles. Funuitang, Siyou youth, qiaofenghuang and daflan mostly focus on the track of Hunan rice noodles. Different from the first two brands, the rising star has the ingenuity of four or two.

1) Baman: Tangshi + retail two wheel drive

Let’s talk about Funiu hall, founded by Zhang Tianyi, a master of Peking University, which was renamed Baman in 2018.

The main brand is Changde rice noodles. At present, there are more than 40 stores in Beijing, including physical stores and takeout stores. With feelings to attract investment and stories to attract customers, Baman quickly emerged from the catering circle and obtained five rounds of financing.

In terms of products, Baman insists on making authentic Changde beef powder, emphasizes the “Baman” spirit of Hunan, and regional culture makes the brand have personalized memory points.

At the same time, Baman regards catering as the flow entrance. In the early stage, it gathered nearly 100000 Hunan people living in Beijing through the community. As long as the community stickiness continues, Baman will have a steady stream of passenger flow.

Image source: Internet

In the later stage of brand management, Baman shifted its focus to the development of channel power, and made differentiation in the competition. Now, Baman’s retail products can be sold in e-commerce platforms, supermarkets and convenience stores.

According to relevant data, in the revenue structure of Baman, Tang food only accounts for 20%, and the other 80% come from takeout, e-commerce and offline retail. There are still a few brands like Baman that can eat well on both sides of catering and retail. Before that, there was only Haidilao.

Even Zhang Tianyi said in an interview: “if you look at food, I have my advantages. If you look at catering, I also have my advantages.”

2) Siyou youth: multi brand development

Zhao Gang, the founder of Siyou youth, has made great achievements in the Internet game industry, started an Internet marketing company, and is in a good business situation. However, in 2015, he chose to turn around and give up ten million shares to join the catering industry. At that time, he inspected many catering categories, and finally chose the rice noodle track.

At that time, there were many rice noodle brands in Beijing. Although the competition was fierce, they were mature, efficient and quick to produce. They were good products for scale reproduction.

Image source: Internet

Before entering the catering industry, Zhao Gang had never been in touch with the industry. With years of marketing experience, he started to scan the QR code and issue red envelopes and coupons from the beginning of decorating the stores. Without opening, he established a community of hundreds of people. On the day of Zhengzhen opening, the business was more than expected.

Since its establishment in 2016, it has opened nearly 50 stores in the mode of direct marketing and franchise. In terms of products, Jinshi beef rice noodles in Hunan Province is the main entry into the market, and in terms of structure, laotan pickled cabbage rice noodles, tomato and beef brisket rice noodles and other popular tastes are added to enrich the product structure.

In terms of channels, it is operated through the dual channels of Tang food and take out. According to public data, at present, four young people are engaged in take out and hall food, with a sales ratio of nearly 5:5, and a single store can sell up to 10000 orders a month.

In terms of supply chain, Siyou youth chose to cooperate with Shuhai and Baisheng to realize the “Haidilao” level supply chain, which laid a solid foundation for later expansion.

Image source: Internet

In order to increase the enterprise’s ability to resist risks, Siyou youth has formulated the structural reform of multi brand strategy.

Enterprises to rice track market deep ploughing, at the same time with the help of different brands of product features, to meet the individual needs of different consumers. At present, the company has a number of sub brands, such as huaxiaoxiao, which is mainly engaged in Xinjiang fried rice noodles, huaxiaoji, which focuses on dry mixed spicy hot, and liuxiaoxiao, which is involved in the category of snail powder.

3) Dafran: the innovation of rice noodles and snacks

Dafran was founded in Shenzhen and now has 26 Direct stores in Beijing and Shenzhen. Different from the first two cutting-edge brands, daflan uses the mode of “handmade rice noodles + Hunan snacks” to differentiate in the competitive market.

Da Fran is very flexible in the way of “rice noodles + snacks”. It has the characteristics of fast food consumption and leisure meal. On the product side, Hunan rice noodles are used to match with Hunan special snacks, steamed dishes and cold dishes to enhance the leisure meal attribute of the category.

Photo source: dafran official website

Last year, dafran entered the Beijing catering market from north to south. Now, it has opened two stores in Beijing market, and three stores are in preparation.

In the rice noodle brand competition and incentive of Beijing market, daflan has a good performance in the early stage, and the mode basically runs through. It will take time to test the future.

4) Beautiful Phoenix: combination of rice noodles and aesthetic culture

Qiaofenghuang in Guangzhou focuses on the relatively small number of Miao beef powder, taking the sour soup with Miao characteristics as the unique taste memory point of the brand, breaking the current situation of market homogenization.

In terms of brand culture building, Qiao Fenghuang has built a rice noodle shop with Miao aesthetics around the Miao culture visualization of Fenghuang ancient city, and even opened the shop into the shopping mall, completely breaking the inherent impression of Hunan rice noodle roadside stand.

Source: official account of the Phoenix Public

In the site selection, the shopping center with office bias is selected, which is consistent with the positioning of Qiao Fenghuang and the target group of refined white-collar workers. These people have high requirements for products, high consumption, and certain requirements for the restaurant environment. Qiao Fenghuang just meets their needs.

In 2018, it launched an attack on the Beijing market and opened three stores. However, due to the impact of last year’s epidemic on Beijing’s catering market, the public comments of the three qiaofenghuang stores show that they are temporarily closed. Whether this move means that Qiao Fenghuang will take back the front and deeply cultivate its strategic base, or whether it has other development directions, is still unknown.

Image source: Internet

In addition, Shanghai’s Xiaoman handmade powder, a rising rookie founded in 2018, has grown quietly in Shanghai, where catering brands are fighting fiercely in the past two years, and now has more than 30 stores.

It is mainly engaged in hand-made rice noodles steamed by stone mill and special snacks. By combining with Japanese decoration style, it improves the brand texture, and shows the products in the form of “good ingredients + good selling points”, which can be truly perceived by customers.

Among the rice noodle racetracks in Hunan, there are baichunyuan under wangxiangyuan, Jinshi liudeaf noodle restaurant, a time-honored brand in Changsha, Hunan, sanliangfen, a well-established brand in Dongguan, Guangdong, wanliji old Changsha rice noodle snack club, etc.

There are many excellent chain brands in Hunan rice noodle racetrack, but limited by the taste and raw material production and other reasons, it does not really go out of the large head brand or national brand.

Guangxi rice noodles

No national brand

In such a huge rice noodle racetrack, the demand of Guangxi rice noodle market can not be underestimated. According to the data released by Gaode map in 2019, there are more than 120000 rice noodle stores in Guangxi, accounting for 61% of the market, ranking first.

The market scale of Guangxi rice noodles is so large, and Guilin rice noodles and snail rice noodles are famous all over the country, but these two rice noodles do not have large-scale and particularly well-known chain brands in the market.

Photo source: photographing.com

Because in Guangxi, each family has its own way and taste inheritance, the category is mainly small family self-reliance, brand awareness is not strong, stores across the country, very scattered, did not form a unified brand.

At present, Guangxi rice noodle brands with some achievements, such as sanpinwang, Bangzi Guilin rice noodle and try not forget Guilin rice noodle, have about 200 stores so far, and the scale of other brands is not large.

01 sanpinwang: deeply cultivate the local rice noodle market in Guangxi

Sanpinwang was founded in 1999 by Du Han, a native of Guizhou Province. At that time, he and his friends invested 70000 yuan to open their first store on Taoyuan road in Nanning, Guangxi. Because fresh beef is used as flour every day, the quality is guaranteed, and the business of the store is very hot.

At that time, in order to ensure the freshness of food materials, we had to run out of one cow a day. Out of consideration, we opened three chain stores without making money, so we established the brand chain mode at that time.

In 2010, we joined hands with happy bee to establish a joint venture company to standardize finance, improve structure, introduce talents and expand brand scale. Later, because it was difficult to reach a consensus on the decision-making of foreign investment cooperation, and the expected goal was not achieved, sanpinwang recovered all the equity in 2016 and reorganized the enterprise strategic planning.

After breaking away from the shackles, the king of Sanpin changed and set the strategic goal of basing on Nanning, distributing Guangxi and marching towards the whole country.

Photo source: sanpinwang brand website

In terms of products, beef powder is the key product, and beef powder extension products are researched and developed. At the same time, Guilin stewed vegetable powder, Liuzhou snail powder and other characteristic products are added to enrich the structure. The price per capita is close to the people. The average price of the package is about 15 yuan, which is very cost-effective.

As for the location of the channel, the layout ranges from the residential buildings, commercial streets and shopping centers to the airports and high-speed railway stations. At present, we are strengthening our brand position by deeply cultivating Nanning’s birthplace market, and vigorously developing franchise stores in Liuzhou, Guangxi and Shenzhen, Guangdong to expand the scale.

Since 2013, sanpinwang has changed its business model from direct business to franchise business, and its brand scale has grown exponentially. According to the official website, the initial investment in opening a store is about 700000 yuan, which is higher than that of franchise stores of the same brand in the market, but it also ensures the integrity of the brand image.

02   The regional brand in the subdivision of rice noodles in Guangxi

1) Guilin rice noodles: many small shops for husband and wife

Guilin rice noodle, Shaxian snack and Lanzhou Ramen are known as the three national snacks. Because of the low regional and entrepreneurial threshold, it is difficult to have a relatively large chain brand in China, most of which are husband and wife shops, only a small part of which are regional chain stores.

According to the public data, some Guilin rice noodle chain brands

Data processing: Lacquer ordering Restaurant

Like spicy hot, string and other endorsement of Sichuan cuisine, Hunan rice noodles endorsement of Hunan cuisine, after entering the market, the cost of education is low, more easily accepted by consumers.

In addition, the spicy Hunan rice noodles and the stinky snail rice noodles are also easy to produce memory points, but Guilin rice noodles lack category selling points and vivid memory points, so it is difficult to promote to the whole country.

At present, there are very few brands coming out of Guilin rice noodles track. Only Bangzi Guilin rice noodles made in Dongguan and try not forget rice noodles in Nanning of Guangxi are outstanding in scale and number. They expand their brands by franchise mode and open more than 200 stores in the local market.

The rest are thousands of husband and wife shops, which form the “capillary” of Guilin rice noodles. However, due to the lack of brand awareness, it is difficult for large-scale chain dark horse to appear in the category.

2) Snail powder: blooming at both ends online and offline

Snail powder has become popular due to the popularity of the tip of the tongue. During the epidemic last year, snail powder “hard to find one powder” frequently appeared on the microblog hot search, and the online popularity also led to the development of offline brands.

According to the public data, some snail powder chain brands

Data processing: Lacquer ordering Restaurant

In recent years, snail powder brand also began to speed up the pace of layout, slowly moving towards branding, there are many chain brands on the track in low-key enclosure, dull sound to make money.

Photo source: liuluoxiang official website

Liuluoxiang, founded in 2008, currently has 450 + stores. It is a large-scale chain brand in the current track, with stores all over Guangxi, Guangdong, Yunnan, Hainan, Guizhou, Hebei and other cities, but 90% of its stores are still concentrated in Guangxi and Guangdong.

Because of its unique flavor and small audience, liuluoxiang has also developed Guilin rice noodles as an extension product on the basis of its products. In addition, liuluoxiang has also established the retail brand of “Guilin powder king” for online sales, with the joint efforts of online e-commerce and physical stores.

Luodingji, founded in Changsha in 2017, has more than 470 stores nationwide, and its franchise stores are distributed in 26 cities in China. Its profits mainly come from raw material procurement, franchise fees and other expenses.

Photo source: Wang WeiLuo official website

Wangweiluo, a snail powder brand founded in Liuzhou in 2009, now has 225 stores in Guangxi. It is understood that the brand first uses bag snail powder to pull the store running mode, and then uses the franchise mode to expand the market.

In addition, the snail powder brands that have opened more than 100 stores include Aimin snail powder, Xiaoman snail powder, luogong hall, pinluoxiang and other brands.

Although these brands have a certain scale, they are still mainly regional operation, and their popularity is not high, and their regional characteristics are quite obvious.

Although the stink of snail powder is the memory point of the category, some people think that snail powder is a strange food, some people reject it, some people love it deeply, and it is almost clear-cut. Therefore, the too obvious category characteristics also limit the category to be bigger and stronger in disguise.

Bottleneck and breakthrough of rice noodle track

Rice noodles have high gross profit, high turnover rate and wide audience. At present, there are not many strong players in this track, and there is still a lot of room for brand and scale. It is a good category with huge market potential.

But in terms of the current development situation, no matter Hunan rice noodles or Guangxi rice noodles, there are no national brands in the track. The current situation is still dominated by husband and wife shops, insisting on the inheritance of various techniques and tastes, not paying attention to brand and chain, which limits the scale development of the category in disguise.

01 bottleneck: Regionality and supply chain constraints

1) Rice noodles have strong regional differences

According to the analysis of people in the industry, the main reason for the “big but not strong” rice noodle category is that there are local unique rice noodle varieties and taste preferences, which also makes it difficult for the category to break through the regional restrictions and go to the whole country.

Although rice noodles are popular in China, consumers’ preferences for rice noodles vary from place to place. This is both an advantage and a disadvantage, which makes it difficult to expand the products to all parts of the country.

In addition, the operation of rice noodles is simple, and it is not difficult to open a rice noodle shop, especially in southern cities with high industrial convenience. Therefore, we can see that large and small husband and wife shops are scattered around the community and commercial streets.

In addition, some couple stores and street side stores all have instant thinking. The products are seriously homogenized and difficult to innovate. At the same time, they lack brand awareness, so it’s difficult to stand out from a crowd of rice noodle stores.

The most important point is that Hunan rice noodles and Guangxi rice noodles have many subdivisions and lack of obvious category memory points, so they do not perform well in the competitive catering market, which is extremely unfavorable for category development and promotion.

2) Barriers to raw material production and supply chain

Each city has its own main rice noodles, and the production of vermicelli also has its own unique process and formula. For example, an authentic Changde beef meal must be made of local early season indica rice, and sold every day.

Image source: Internet

However, fresh rice noodles are not easy to preserve, and it is difficult to transport them from local to other places. Therefore, some foreign brands will replace them with dry rice noodles or other rice noodles. In addition, in order to cater to the local taste, rice noodles are basically “changed” when they go out of the local market.

In addition, the planting pattern in the north of south rice forms the eating habit of eating rice flour in the south, so most cities in the South will have a complete rice flour industry chain, which can realize the efficient supply of fresh rice flour. But once the rice noodle brand to the foreign market, the industrial chain is not perfect, the brand is difficult to scale.

For example, one of the reasons why hot-pot/" 22375 rel="nofollow" target="_self">hot pot has become the largest category in the catering industry is that it has a complete industrial chain of upstream, midstream and downstream, which is enough to support the trillion scale of the category.

Image source: Internet

For another example, in the past two years, the Liuzhou government has vigorously supported the construction of the snail powder industry chain, so that the categories can blossom online and offline.

Then some people will say that building a central kitchen and a supply chain is also a way. In view of the current market situation of traditional category development and small scale of mainstream brands, most brands do not have the ability to build their own supply chain, and the establishment of central kitchen and supply chain system requires a very long time layout and capital investment, which can not be realized overnight.

02 breaking the circle: mode innovation and channel breakthrough

1) Mode innovation of “rice noodle +”

Although rice noodle is a good track, as a just need consumer, the customer order of rice noodle is low, so we can only increase the brand turnover by increasing the sales volume.

Secondly, because the entry threshold is not high and it is easy to be standardized, the categories are faced with the serious problem of homogenization. The main products of the same category in the market have high similarity, and the product structure is similar, so it is difficult to make differentiation.

If you want to stand out in the fierce competition, the mode breakthrough may bring inspiration to you.

Photo source: Beijing Business Daily

“Noodles + snacks” is the mainstream mixed mode in recent years, and the mode has also been verified. Similar brands include “rice noodles + snacks + sugar water” mode of Shanghai Xiaoman handmade flour, and “rice noodles + Hunan snacks” mode of daflan. Recently, it is combined with “Xiangxi Xiaochuan” to increase the attributes of brand leisure meals. These modes are worth learning.

Rice noodles have strong regional characteristics. It’s very suitable to make a combination with local snacks, and the combination sales can also improve the unit price of consumers. Not only that, but also make the fast food brand close to the leisure meal mode, greatly enhance the brand competitiveness.

In the wave of consumption upgrading, consumers’ health awareness has been enhanced, and the upgrading of food materials is also the direction of category breakthrough. Xiaoman handmade flour in Shanghai and Sanliang flour in Dongguan are all rice flour brands with the main selling point of “handmade rice flour”. The stores show the process of milling and milling, and upgrade the brand premium with the help of food materials, iterating over the traditional husband and wife shops and street side rice flour stores.

2) Excavation and shaping of local culture

Although there are regional restrictions on rice noodles, which makes it difficult for brands to unify the whole country, and can only be partial to one corner, regional culture has two sides, and poor utilization is a restriction. However, if applied properly, it can become a sharp knife to shape brand influence.

The new brands of Hunan rice noodles, such as Baman, Dafan, qiaofenghuang and Siyou youth, have found a new way to show the culture and charm of Hunan rice noodles to consumers with their own unique ways of playing. At the same time, they have opened their stores in the shopping center, completely breaking the stereotype of roadside stalls in rice noodle shops.

Image source: Internet

Among them, Qiao Fenghuang brand combines aesthetics and Miao culture, designs the brand around the Miao culture in Fenghuang ancient city, and forms a good consumer cognition in Guangzhou market by virtue of its unique regional culture.

In a word, mining the regional characteristics and culture of rice noodles, finding the fashion characteristics in tradition and innovation, and integrating them into the product and brand tonality can form a unique brand cognition.

3) Expansion of food retail channels

Last year, the online sales of snail powder and self heating hotpot were booming. At the same time, there was a bully who developed from off-line hall food to food retail. After a round of live broadcast, the sales volume was amazing, which made many catering people see the market opportunity of rice noodle food retail.

Photo source: Li Ziqi flagship store

From the snail powder track with mature industrial chain, the mode of online retail and offline hall food has basically gone through, and there are still opportunities for rice noodles to expand into retail food.

But at the same time, we should also take into account that the operation logic of restaurant food and food retail is completely different, and the requirements for supply chain, technology, capital, marketing and channel are very high. It is not an easy business to make money.

 

epilogue  

The “big but not strong” noodle market is both a challenge and an opportunity for entrants.

In the future, on the one hand, with the advancement of urbanization and the upgrading of urban appearance, most of the husband and wife shops will be replaced; On the other hand, the chain and brand of rice noodle enterprises will be the trend.

Moreover, rice flour is a kind of just need product with the advantages of convenience and economy, which is worthy of being bigger and stronger. For many competitors, refining a competitive business model and improving the supply chain can forge a stronger brand potential.

Data reference:

1. Where is the best rice noodles in China/ Tunnel scenery

2. Rice noodles track is more and more popular, why Hunan rice noodles is always unknown/ Red meal

3. The competition is no less than that of rice fast food. When will noodles be dominant/ Red meal

4. How do new and old brands reconstruct the rice noodle business/ Chopsticks play thinking

5. Cao Yunbo: the secret of 3000 stores’ operation is nothing but cost-effective / China Franchise Exhibition

Note: the store data is collected from the meal eye app, brand official website and public data, and there is a certain deviation from the actual number. The data is due to 2021 / 4 / 16

*Disclaimer: under no circumstances shall the information or opinions expressed herein constitute investment advice to any person.

Read the original

The hundred billion business of a bowl of rice noodles

*免责声明:在任何情况下,本文中的信息或所表述的意见,均不构成对任何人的投资建议。


本文作者:胡茵煐(yuelaoban)本文首发于漆点品牌咨询旗下媒体「漆点餐研社」,聚焦新消费、新餐饮、新零售等领域。
加入社群:Cherry(微信:15240428449);
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