China Food

The chicken breast driven by capital is shuffling


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pork left, chicken right.
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Text: Tang Bohu   

Source: bohufn (ID: bohufn)

Who would have thought that the “0 fat” diet trend would fly, as well as the dry, firewood and tasteless chicken breast.
The new consumer brand of substitute meal with the concept of fat reduction and light food has quietly risen. The track is too hot, and even the upstream chicken farmers have come in to stir up the situation.
But is this a gust of wind for the online red brand, or will it precipitate into consumption habits?
How can new consumer brands promoted by capital continue to survive after the flow dividend disappears?
Why is the chicken breast on fire?
The food on the Chinese table is shuffling.
Lean back on fat energy and 0 fat light food. Urban white-collar workers and fitness experts have gradually become loyal users of chicken breast.
As for how the market got up?
There is no secret. It is an obvious path from concept introduction to capital management, throwing money online and consumers paying the bill.
Early chicken food was cooked food in bulk. The channels were distributed in supermarkets, farmers’ markets, meat and vegetable markets and small mom and pop stores. The premium was not high, or even there was no brand premium.
Demand has been exposed from online data. Qiang Xiaoming, founder of shark fit, once described the beginning of 2017 with the popular logic. “At the beginning, the search volume of ‘chicken breast’ was very high, but the purchase rate was low. The reason behind this is that the experience of frozen meat is very poor and the supply and demand is unbalanced.”
This provides opportunities for new categories.
Chicken breast meat is low in calories, low in fat, low in carbon, rich in nutrition and cheap in price. It has naturally become the first choice for young people, especially fitness people. Chicken breast meat, which fits the new generation of consumer groups such as urban white-collar workers, fitness experts and middle-class Baoma, is actually not complicated – it is enough to have three points: health, delicious and convenience.
From this, three subdivisions under “instant chicken breast” are derived: fast food substitute with sufficient nutrition, chicken breast protein bar with low fat and high protein, and interesting and casual chicken snacks.
The start-up company tried to prove that the track seemed to be on fire with a set of consumption data – Shark fitter tmall store achieved a monthly sales of 5 million in 8 months, 10 million in 16 months and 20 million in 26 months.
The reason why we say “it seems to be on fire” also needs to be related to the capital behind it. According to incomplete statistics, more than 2 billion capital has entered light food instead of food in the five years since 2016. The input is significantly higher than the output.
From IDG, Hillhouse capital to Jingwei and other front-line institutions are sweeping the new consumption track, which is still the logic of burning money for the market. In the current pattern, no one dares to say what the retention and repurchase rate is.
Only when the heat wave recedes can we know who is swimming naked.
Pattern: downstream burning money, upstream infiltration
 
The players boosted by capital belong to the first category, including shark fitt.
Their advantages lie in brand marketing and online channels. Just like the perfect diary in those years, they are good at buying and washing.
The second type of players include keep and three squirrels, both of which belong to the user realization or category extension of the original business line.
For keep, the key to accurate target shooting of fitness users lies in the conversion rate.
For the three squirrels, the potential energy of the original brand can be borrowed, and the supply chain needs to be cultivated again.
However, most of the first two types of players, except three squirrels, are kept in captivity online channels. When the panning is completed, the traffic reaches the top, and the growth bottleneck is easy to appear. What they need to do is to quickly develop new products and expand categories, but whether they can bet on the next explosive growth point is still in suspense.
Unfortunately, the upstream chicken suppliers have also learned the secret of high investment and smashing volume – manufacturers including Shengnong and Fengxiang have also arranged early, becoming another pole that can not be ignored in the new consumption of chicken breast meat.
Shengnong development (SZ. 002299) was originally a supplier of KFC and McDonald’s. after grasping some consumption trends, it set up a food subsidiary in 2003 to layout the downstream 2C channel.
In online channels and private domains, Shengnong has also invested a lot in promotion. With the help of star advertising endorsements, small red books, grass planting and live broadcasting, the proportion of its 2C business in chicken food has increased from 17.5% in 2019 to 44.7% in 2020.
Another breeding enterprise, Chunxue food, has also submitted a prospectus to be listed on the main board, and the channel layout is similar to that of Shengnong.
According to public information, the fund raised by Chunxue food this time is intended to invest 850.6175 million yuan, which is mainly used for the construction project of intelligent factory for slaughtering 50 million broilers a year, the construction project of intelligent factory for chicken conditioning products with an annual output of 40000 tons, the construction project of broiler breeding demonstration farm, the construction and promotion project of marketing network and brand, information and intelligent construction projects, etc. it is ready to expand production capacity and strengthen product quality Brand promotion.
Fengxiang, which is still the main chicken breeder, launched the ready to eat chicken breast brand “Youxing” in 2017. At present, it has ready to eat chicken breast products such as salad chicken breast, chicken breast protein bar and one mouthful of unbearable intestines. Its series of products have been sold in about 30000 convenience stores and boutiques in China’s first tier cities. At the same time, it has opened brand flagship stores in tmall and JD.
In the first half of 2021, the sales revenue of “Youxing” was 238 million yuan, with a year-on-year increase of 195%. The proportion of this single product in the new retail revenue of Fengxiang shares also increased rapidly, from 21.6% to 51.4%.
Correspondingly, the sales expenses of its new retail business also increased significantly by 72.1% in the first half of the year.
It can be seen that the upstream is also willing to invest capital. Compared with the new brand, it needs to find a generation factory, and the integration advantage of the whole chain is stronger.
Channel resistance and length
A up owner bought chicken breast meat of the above brands from the market at his own expense. After comparison, he came to an amazing conclusion: none of them is really delicious.
“Delicious” was beaten in the face.
What is more worrying is that with the continuous growth of market scale and product homogenization, food safety problems occur frequently.
In the little red book, some users exposed that foreign bodies had been eaten in the breast of a brand of instant chicken, or that the goods had deteriorated after arrival, and some even ate them in the hospital.
Why is it unhealthy to eat substitute food for health?
In other words, in the product dimension, chicken factories have failed in both direct marketing and agent processing.
In this regard, perhaps we should learn from the Japanese ancestors of chicken breast, make products with ingenuity, health and safety always come first, and delicious is the long-term way.
 
Reference message:
1. Jingzhe Research Institute: hot money poured in and chicken breast “took off”
2. CICC highlights: ready to eat chicken breast: trendy, healthy and green
Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
Join the community: Cherry (micro signal: 15240428449).

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