China Food

Century old brand hunting post 00

consumption continues, and both old and new brands are heading in the same unknown direction.

“Five kernel milk tea, cow tongue cake milk tea and jujube mud milk tea?”

Previously, it was hard for many old Beijing to imagine that such a cry appeared in the store of Daoxiang village, an old pastry brand in Beijing that has been established for nearly 40 years.

In August 2021, “No. 0 shop” in Daoxiang Village reorganized in Dongsi North Street, where the former site of Beijing No. 1 business department is located. It not only launched Beijing milk tea with Chinese pastry taste, but also printed characteristic cultural elements such as “four treasures of study”, “Peking Opera facebook”, “Hutong House Number”, “cultural play walnut” on freshly baked pastries.

Two months later, Bi Guocai, chairman and general manager of Daoxiang village in Beijing, said in an interview: “a simple old brand is not a time-honored brand. We must keep up with the development of history and the requirements of the times, combine the new and old, inherit and innovate development, and constantly compose new chapters in order to become a qualified time-honored brand.”

Under the new consumption wave, not only Daoxiang village, but also old brands such as Arctic Ocean, Tongrentang, Dong’e donkey hide gelatin and Tao taoju are actively making themselves look “younger and younger”, trying to talk to young consumers to arouse the memory and identity of the new generation of old brands.

Time honored brands try to get rid of the stereotype of “relying on the old to sell the old and not being flexible”, gradually approach the narrative language of the new consumption era in form, conform to the rise of the national tide, and become an active participant in cross-border joint branding, opening flash stores and laying out new retail.

Can “national tide” make the time-honored brands cross the river of time, so as to radiate new life? Where is the ceiling of “emotional consumption”? Whether it’s product function innovation or taking the emotional route again, how should the time-honored brands take the measure between inheritance and innovation?

Time honored brands are losing young people

Century old stores are experiencing “old age crisis”.

According to CCTV finance and economics, at the beginning of the founding of new China, there were more than 10000 time-honored brands. However, most of their annihilation became history in the wave of the times. Despite a series of support policies issued by the central and local governments, time-honored brands still disappeared at a visible speed.

At present, the Ministry of Commerce has determined that there are 1128 Chinese time-honored brands in the first, second and third batches, of which only a few can make profits, and most of the time-honored brands are limited to varying degrees of business difficulties. Some enterprises are more and more lost in blind trial and error. They not only don’t please the younger generation, but also lose loyal old customers and don’t buy at both ends.

Time-honored Chinese Baijiu time-honored time-honored companies are also deeply bogged down in the slagmire of revenue and profits. From the perspective of industry distribution, A shares listed companies involving liquor, Chinese medicine, food, catering and retail sales. Due to the overall scale advantage of the Baijiu market, the liquor companies of the old time, such as Guizhou Moutai, Wuliangye and Luzhou Laojiao, are leading by market dominance.

Aside from the cultural and value specific Baijiu racetrack, the business involves food and catering, and the time-honored brand enterprises closely related to mass consumption, such as Quanjude, Guangzhou restaurant, Dong’e Ejiao, Tongrentang, Guangming dairy, Shanghai Meilin, Weiwei shares, GUI FA Xiang, Xi’an diet, etc.

From the perspective of operation, the performance of Quanjude, Dong’e donkey hide gelatin, Weiwei Co., Ltd., GUI Faxiang, Xi’an Catering and other enterprises has continued to decline in recent years. In addition to the impact of the epidemic, time-honored enterprises mainly engaged in offline catering business have suffered heavy losses and further expanded their losses.

Take Quanjude, which has a history of 157 years, as an example. In November 2007, this roast duck “golden signboard” was regarded as the “first share of catering time-honored brands” Listed on the Shenzhen Stock Exchange, its performance has maintained rapid growth for many consecutive years, and its revenue closed at a historical peak of RMB 1.944 billion in 2012, which was once no different. However, Quanjude’s revenue growth has almost stagnated since 2013, and its business situation has deteriorated since 2017.

Public comments on Quanjude’s “slow serving”, “dirty environment”, “poor service attitude” and “stale ingredients” are also common. “Dishes and services lose the dignity of old brands and will never come again.” a netizen commented disappointed that it can be seen that old brands can’t provide high-quality experience and are persuading more and more new generation consumers.

With the continuous emergence of alternative consumer brands, the famous traditional time-honored brands are no longer the reason to convince consumers.

Use the son’s spear to attack the son’s shield

Seeing that emerging brands have sprung up over there, the “rising stars” of many consumer goods have begun to occupy the minds of consumers. The old brands whose original voice and market have been impacted are worried and well aware of the urgent need for a self revolution.

How to present the products in a form close to the lifestyle of young people is the direction of time-honored brands in recent years. In order to give consideration to tradition and innovation, in terms of product manufacturing, try to combine more elements interested in young people, and slowly take steps to “try and make mistakes” has become the first choice for the youth of time-honored brands.

Food related time-honored brands all try to cross the popular coffee and tea tracks.

For example, in daoxiangcun No. 0 store, which specializes in Chinese pastry flavor milk tea, jujube mud flavor, five kernel flavor, tongue cake flavor and fresh rose flavor are uniquely integrated into milk tea flavor. A group of xiaohongshu netizens praised “salty milk tea is unexpectedly good to drink”, “tongue cake is addicted to salt and pepper flavor” and “five kernel milk tea is a little like tea color”, which has become a popular punch in Beijing. It is reported that at present, the average daily passenger flow of store 0 is between 1000 and 2000, and its popularity is far higher than that of ordinary Daoxiang village stores.

Beijing Tongrentang’s new retail business “Zhima health” starts from coffee, which adds herbal elements with the same origin of medicine and food, and introduces a series of traditional Chinese medicine health coffee, such as motherwort rose latte, licorice latte, siraito American style, cinnamon cappuccino, so as to convey and carry forward the concept of traditional Chinese medicine health to more young people.

Deeply aware of the importance of marking emotional consumption in the hearts of the new generation, brands represented by Arctic Ocean, Bingfeng, Tianfu Cola and Hankou No. 2 factory adhere to “familiar formula and familiar taste”, and more choose to make articles at the levels of packaging, product form and marketing mode, so as to attract more consumers.

Notes on “Beiping ice factory” in Xiaohong book

Source: Little Red Book app

In the experience store of “Beiping ice factory” in the Arctic Ocean, all the popular foods in the last century, such as old yogurt with engraved porcelain bottles, orange soda in glass bottles, chocolate that won the gold medal of Panama Expo in 1915, are displayed. The products follow the traditional classic formula. Whether it is soda, tea, popsicle, chocolate, yogurt, the products focus on health without addition, and the circle powder “punk health preservation” Young people.

In terms of marketing ideas, the transformation of time-honored brands is reflected in the way of building brand power by following the new brand. It begins to focus on building private regional traffic pools to enhance user loyalty, and to open up three positions of brand official App, WeChat official account or WeChat Mini program to cultivate private users, and establish a line marketing system.

In addition, many time-honored brands have upgraded their business models, such as trying to lightweight flash stores, entering new retail stores, building e-commerce promotion channels or establishing their own channel malls.

It can be seen that what remains unchanged is culture and feelings, but what has changed is the cognitive form closer to the young people in the new era.

What remains unchanged is the core, but what changes is the narrative style

“Old” word filter seems to be a reasonable explanation that a century old store should pursue tradition and lag behind the times.

Behind the “abandonment” of time-honored brands by consumers, it is time-honored brands that ignore the new consumer demand. It happens that a large number of new consumer brands born in the Internet era, closer to users and faster response speed stand on the stage, especially the “slow and slow” of old brands.

Chang Shuai, vice president of L catterton global opportunities, believes that trying to please everyone is a dilution of the brand spirit. Brands with long-term competitiveness have one thing in common, “which can make consumers have a sense of identity and belonging”. Grasping the discretion of inheritance and innovation has become another obstacle for time-honored brands to make decisions.

Product value is always the core asset of the brand. “The innovation of time-honored brands cannot be separated from the brand core and culture.” Shen Qinfeng, the marketing manager of big white rabbit, said, “after all, it is a state-owned brand and can’t do anything harmful to brands and consumers. Based on this premise, we can innovate again.” through the trial and error verification of the first batch of time-honored brands, we can not only maintain the spiritual core of time-honored brands, At the same time, the innovation of product power and brand power under the new consumption trend is a reference answer.

Take the Big White Rabbit returning to the “national tide” attitude as an example. On the one hand, the formula of the classic product big white rabbit milk candy is retained, the taste of the product is copied to ice cream, milk, yogurt, etc., and the cross-border joint name of the product is also used to enrich the extension of IP; On the other hand, it has entered social media on a large scale, arranged live e-commerce, and spread it through multiple channels to enhance consumers’ perception of the new image of the big white rabbit brand and establish emotional connection with the audience.

Time honored brands settled in the content platform

Tiktok: Taobao App

How can time-honored brands learn from new consumer brands to innovate their narrative methods?

With the rapid development of consumer goods, the marketing logic of new domestic “explosive products” invariably points to D2c (direct to consumer). Emerging brands generally attach importance to the construction of digital marketing ability, which is mainly reflected in four aspects: Volume cognition, private domain operation, mental influence and consumption transformation.

Whether in the marketing matrix of major content platforms, private channel operation and e-commerce platforms to guide sales and transformation, they have intentionally or unintentionally built a bridge to have direct dialogue with consumers, obtain feedback and quickly adjust products.

Time honored brands are trying to get close to new consumption trends and broaden consumption channels. Online and offline linkage layout is one of the formulas that time honored brands can learn from for innovation. Specific measures include the layout of local living platforms, the opening of offline self-service ordering smart stores, online e-commerce platforms, the integration of new elements to create trendy products, etc. At present, there are more than 700 time-honored brands on Alibaba retail platform, of which more than 400 Chinese time-honored brands have opened flagship stores on tmall.

According to the innovation report of China’s time-honored catering cities, the top five time-honored catering brands in terms of platform expansion are Yang Yuxing, Sichuan restaurant, Beijing Daoxiang village, wufangzhai and Huguo Temple snacks. At the same time, according to the data of the word-of-mouth hungry platform, brands that realized earlier that channels were laid in the way used by young people performed more prominently in the proportion of young customers, per capita consumption growth and order growth.

From the perspective of investors, consumption is endless, and the new and old brands are only relative propositions. “Investors not only pay attention to the trend and trend, but also think about the constant essence behind the popularity: the quality of the product itself, the brand power and the ability to establish emotional and spiritual connection with consumers,” Chang Shuai said.

The consumption track is broad enough, and any subdivision track has unlimited possibilities. In winning the favor of consumers, there is no old or new brand, and the opportunity is always equal.

Authors: Qian Yi, Liu Chenghong; Editor: Zhang Yuzhe; Source: billion European Network (ID: i-yiou), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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