China Food

“Marinated F4” becomes a group. How can the new brand break the game?

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in 2020, the top five halogen products enterprises in China’s leisure halogen products industry were Jue Wei food, Huangshanghuang, Zhou Heiya, Ziyan Baiwei chicken and jiujiuya, with a total market share of only 20%, and the remaining 80% of the market is constantly separated by “houlang”.
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The marinated track with some snack food “inner taste” has been a little restless recently.
 
Recently, wuxiangju, a manufacturer and processor of stewed food, completed a pre-A round of 15 million yuan financing. Coincidentally, previously, she focused on the “hot halogen” track and wanted to be a famous brand of “hot halogen” in China. Aunt halogen also completed a round of financing from nearly 10 million angels from Huasheng people and capital.
 
However, looking back on the financing of the Luwei track, we can’t underestimate it. According to the incomplete statistics of the Research Report on the development of China’s Luwei cooked food industry in 2021 released by ncbd (meal treasure), as of September 1, 2021, at least 8 Luwei brands have completed a total of 10 rounds of financing, many of which are more than 100 million yuan.
(incomplete statistics of business data)
According to a research report of AI media data center, from 2011 to 2020, the market scale of China’s Halogen products industry has increased from 26.8 billion yuan to 123.5 billion yuan. According to the data of VERNOS Sullivan, the compound growth rate of leisure halogen products reached 24.1% from 2015 to 2020, becoming the fastest growing category of leisure food, and it is expected to continue at an annual growth rate of 13% in the next five years By 2025, the market scale will exceed 230 billion yuan, of which 40% are leisure halogen snacks and 60% are halogen products with meals.
 
In other words, the Luwei track is in full swing, which may also be the main reason for competing for new brands in the past two years.
 
Brand financing information in the primary market is frequent, and the secondary market is also lively. At the beginning of July this year, Shanghai Ziyan Food Co., Ltd., the parent company of Ziyan Baiwei chicken, submitted a prospectus and plans to be listed on the main board of Shanghai Stock Exchange. Different from the three listed companies of Huangshanghuang, Juewei and zhouheiya, Ziyan Baiwei chicken focuses on leisure brine, and Ziyan Baiwei chicken is positioned to be served with brine, focusing on husband and wife lung slices, roast chicken and pig feet And all kinds of cold vegetable dishes, if successfully listed, will become the “first share of stewed food” and form “stewed F4” with the three giants of the stewed track.
 
“Marinated F4” has become a group. How can the new brand break the game?
marinated track, giant
New brand financing is lively, but the “vanguard” in the industry is still senior players – Juewei, Zhou Heiya, Huangshanghuang and Ziyan Baiwei chicken.
 
From the scale of store, the flavor is relatively in the head position. As early as 2019, the number of storefronts has already broken through 1, and the annual report in 2020 shows that there are 12399 stores in Chinese mainland, while Zhou Heiya, huang shang Huang and Zi Yan Bai Wei chicken are 1755, 4627 and 4325 respectively.
Jue Wei’s biggest feature is that it has polished a set of self-contained management mode, opened stores on a large scale and passed   “Walking volume” earns income.
 
Jue Wei’s large number of stores has directly boosted its revenue and highlighted the advantages of scale effect. According to the 2020 financial report, Jue Wei’s annual procurement scale of raw materials is more than 3 billion yuan, including duck non-staple food products of about 2 billion yuan. It is the world’s largest purchaser of duck by-products. Its strong bargaining power makes it have the advantage of procurement cost.
 
From the perspective of supply chain, juewe’s supply chain efficiency is also higher than that of its peers due to larger sales volume and more intensive store layout. On the one hand, juewe’s franchise mode has a large number of stores, more cost sharing and short transportation radius. On the other hand, juewe has different production modes. Juewe has more than 20 production bases across the country, covering stores in the province within four or five hundred kilometers, and bulk products are vacuumized and delivered Shop.
 
The characteristic of Zhou Heiya is that the brand focuses on the medium and high-end user group. According to the data of offline stores, the unit price of Zhou Heiya’s main products is higher than that of Jue Wei food. Among them, the premium of marinated duck wing products over Jue Wei food reaches 28%, and the relative premium of marinated duck clavicle and marinated duck neck also reaches 24% and 14%; Zhou Heiya and Huang Shanghuang have more obvious price advantages in some products, including marinated duck clavicle and core The relative premium of stewed duck neck of heart products reaches 30% and 25% respectively. Consumers have high recognition of Zhou black duck’s main products and have a certain price advantage.
(pictures from the Internet)
In addition, Huang Shanghuang’s own advantages are to vigorously support franchisees and actively embrace the new retail model, such as participating in the marketing mode of live delivery and takeout distribution of online red, and the proportion of online business is growing rapidly. It is worth noting that Huang Shanghuang has gone against the trend in 2020.
 
According to the financial report, in the first half of 2020, Juewei’s revenue was 2.413 billion, and its net profit was about 274 million, down 30.78% over the same period. In the first half of 2020, Huangshanghuang’s revenue was about 1.365 billion, and its net profit was about 158 million, up 12.25% year-on-year. While Zhou Heiya’s revenue in the first half of the year was only 903 million, and its net profit was at a loss, about 42 million, down 44.43% year-on-year.
 
Ziyan Baiwei chicken, which has just rushed to the A-share market, as a representative of cooked food, has a strong ability to create new products. Under the condition that the main products form a stable reputation, Ziyan will make product innovation every year in combination with the bittern characteristics all over the country and market changes. In terms of taste, leisure brine snacks are spicy and salty, and people are addicted to them simply through heavy taste. The accompanying brine products pay attention to compound flavor and multi-level taste, highlighting the characteristics of freshness, which requires a variety of food ingredients, and the production process is more complex. Compared with Jue Wei processing duck neck, there are about 8 processes, while Ziyan has more than 20 processes, and the production technology threshold is higher.
 
So it seems that the giants of Luwei track can really afford the word “strength”, but the “back waves” of the industry are also pouring in and deeply favored by capital. How can the traditional Luwei stick to its position?
new brand tries hard to catch “young people”
In recent years, with the popularity of “home culture” and “eating for one person”, the consumption frequency of brine is gradually increasing, and the market is also expanding. The track has entered the node of accurate stratification, including fresh brine taking the young fashion route, large chain brands, grounded husband and wife stores, and brine snacks focusing on e-commerce channels.
 
The competition in the industry is becoming more and more intense. How can the new generation of bittern brands win a place in the market and enhance their competitiveness?
 
In fact, many halogen flavor brands in the industry are focusing on the same feature – leisure. Leisure snack is the self positioning of stewed food for decades, which liberates the stewed food from the formal table and becomes a leisure food that can be eaten anytime, anywhere and whenever you want.
 
According to Frost & Sullivan data, the total retail sales of leisure halogen products in China in 2010 was 23.1 billion yuan, reaching 52.1 billion yuan in 2015 and breaking 100 billion yuan in 2019. The CAGR of its market scale from 2015 to 2020 was 18.8%. As a rare meat product in leisure food, leisure halogen products started relatively late and are relatively small at present, but they have developed rapidly in recent years. Combined with the forecast value (8%) of the compound growth rate of the overall leisure food industry by China Food Industry Association in the next five years, it is estimated that the market scale of leisure halogen products is expected to reach 227.5 billion in 2025, and the market scale is really considerable.
 
What makes people wonder is where the new brand can compete with the traditional brand? What is the logic of new brands entering the market?
 
First, each category has its own focus. For example, most of the traditional stewed flavor is made on the “duck”, such as Jue flavor “duck” neck, Zhou Hei “duck”, but the new brand is not limited to one category, and the chicken feet and pig feet loved by young consumers are mostly integrated into the stewed flavor track as new categories.
 
Take Wang Xiaolu, a halogen snack brand, as an example. According to the data of Yibang power, its turnover increased 10 times to 200 million yuan in 2020, and the sales of double 11 in 2019 was only 20 million yuan, a year-on-year increase of 500%. It won tmall Jingdong chicken claw vertical No.1, of which the family strength is “tiger skin chicken claw”, and the quarterly repurchase rate is close to 40%.
 
In addition, the brine forms are different. For example, most of the traditional brands are cold bitterns, which are made by the central factory and distributed to various stores through the cold chain, while most of the new bitterns are hot bitterns in different forms, thus developing different expansion directions. Some turn to the business of young people in shopping centers, and some sink to the door of the community and expand around family tables, Behind different paths are different target consumer groups and business models.
 
Among the above emerging financing brands, shengxiangting, hot halogen Shiguang and halogen aunt are all hot halogen brands. From the front-line consumer market, due to the opening of stores into shopping malls, some online red hot halogen brands queue more young people than traditional halogen stores, which may also mean that hot halogen is more recognized by young people than traditional halogen stores.   However, from the perspective of store management, hot brine increases the production cost and labor cost, which may reduce the efficiency and increase the risk of food safety.
 
It can be seen that the emerging brands emerging from the Luwei track also have their own advantages, and in the context of current consumption upgrading, seizing the young people is seizing the main consumer groups. Therefore, some new brands continue to “do their best” in store location and marketing methods, so as to seize a large-scale market share.
 
Public data show that in 2020, the top five halogen products enterprises in China’s leisure halogen products industry are Jue Wei food, Huangshanghuang, Zhou Heiya, Ziyan Baiwei chicken and jiujiuya, with a total market share of only 20%. It can be imagined that the remaining 80% of the market is constantly separated by these “afterwaves”.
 
The market scale is huge and the industry is highly competitive. How about the business of brine?
is brine a good business?
What kind of food business is a good business? Buffett’s see’s candies model has always been talked about by people in the industry: brand loyalty, strong pricing power, small investment and high yield. Luwei, which has a strong mass base and the foundation of food culture, seems to be a “small and beautiful” business.
 
Similar to barbecue and hot-pot/" 22375 rel="nofollow" target="_self">hot pot, there are regional taste differences, but there is no crowd difference. If the categories are popular enough, the market will be relatively larger. In this regard, it is reasonable that the halogen track can run out of a market value of more than 100 million.
 
In addition, the biggest feature of bittern itself is addiction, and consumers are easy to place orders impulsively. For example, Sichuan bittern is heavy spicy, Hubei bittern is heavy sweet and spicy, and Jiangsu and Zhejiang are heavy oil red sauce. These tastes determine consumers’ addiction to bittern, which improves their repurchase rate and belongs to high-frequency consumer goods.
 
On the other hand, its product manufacturing process is relatively simple, with small investment and low cost and risk coefficient. It can quickly expand its scale through replication. Most leisure stewed dishes are mainly poultry, supplemented by vegetarian dishes. There are fewer varieties, and the brand is easier to replicate in the store. Taking Jue Wei as an example, as the leader of Luwei track, in recent years, its average number of stores per year can reach 800-1200.
 
At the same time, the brine sales channel is flexible and convenient for consumers to buy. Street markets, stations, airports, convenience stores, shopping malls and even online flagship stores, these halogen brands have penetrated into all traffic highlands.
(pictures from the Internet)
In fact, the halogen track is so hot that its gross profit margin is really not low. According to the financial report data, from 2018 to 2020, the gross profit margin of Zhou black duck was 57.53%, 56.54% and 55.5% respectively. The sales gross profit margin of Huangshanghuang and Jue Wei foods changes in the range of 33% – 38%. The reason for the large gap in gross profit margin among industry giants mainly lies in the differences in sales models of enterprises.
Zhu danpeng, an analyst of China’s food industry, previously said in a surging interview that the higher the proportion of direct sales, the higher the gross profit. If there are many franchisees, we should give profits to franchisees, so the gross profit margin of Jue Wei food is the lowest; Zhou Heiya’s direct marketing mode alone limits the speed of large-scale operation, so it releases the franchise, but the conditions for franchise will be relatively harsh; Huangshanghuang is walking on two legs, self built and joined, so the sales gross profit margin of Huangshanghuang is relatively at the middle level.
 
However, although the brine industry is developing rapidly, from the current pattern, small and medium-sized workshop enterprises are still the main force, and the industry concentration is low. With the industrial production, the safety and health problems of some small workshops have been exposed frequently, which has also made more and more consumers more sensitive to food safety. From this point of view, top brand enterprises are often easier to win the trust of consumers, as can be seen from the industry price, Most consumers are willing to pay more brand premium for food safety and taste.
 
Generally speaking, the strong standardized production of brine gives more possibilities for new brands, but with China’s gradually strict supervision of food safety, most players will be eliminated from the industry screening. It is also worth looking forward to how the halogen brands who have obtained financing can use their funds to give full play to their greatest advantages and be retained by the market.
 
Feng Zhuocheng, capital of all things and Qianshi venture capital, who participated in the financing of chrysanthemum bittern, said that there is huge growth space in the bittern market. At present, it is in a competitive pattern of one super and many strong. According to the ratio of per capita bittern stores in Chinese cities, there is still a lot of room to expand stores in the future.
 
At the same time, facing the ceiling of store density, how to seek a breakthrough in the current situation of consumer taste aesthetic fatigue and serious homogenization of the bittern market is still an important issue for “bitterns”.
Author: Duan ran; Source: business data (ID: business data), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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