China Food

It is about to become the first stock of convenient fast food. Why should ah Kuan food?



with lazy economy and convenient fast food
The development of any enterprise is inseparable from the general trend. With the rise of lazy economy, more and more people choose convenient, fast and rich products.
According to the 2021 insight report on instant food industry released by cbndata, the scale of instant food industry has grown steadily in recent years, and the domestic market scale is expected to exceed 250 billion yuan.
As an alternative to the traditional dinner, convenience food can greatly reduce the dining time; Compared with meal alternatives such as takeout and light food in convenience stores, it also has the characteristics of high standardization, high cost performance and easy preservation, which can better meet the needs of consumers.
This makes a Kuan brand one of the choices of users.
A Kuan food, founded in 2016, is mainly engaged in technology research and development, production and manufacturing, marketing promotion and brand operation of new convenience foods and composite condiments.
At present, there are two brands of “a Kuan” and “Bai Jia Chen Ji”. The products cover four series of instant noodles, convenient fans, convenient rice noodles and self heating food, with nearly 200 single products.
According to the prospectus, the company’s main business income is divided by product category, with instant noodles accounting for 60%, and the proportion increases year by year, followed by convenient fans, accounting for 23.07% in the first half of 2021, and the proportion gradually decreases.
▲ the picture is from a Kuan food prospectus
For a Kuan food, which focuses on instant noodles (fans / rice noodles), it is a witness and participant in the change of the era of instant noodles.
Instant noodles was first born in Japan after World War II. It was originally used to solve the problem of long waiting time in Ramen restaurant. It mainly adopts cooked Ramen drying and rapid rehydration technology, and initially realizes industrial production.
Since the 1990s, the global total demand of the instant noodle market has continued to grow at a high speed, broke through the 100 billion mark for the first time in 2012, and entered the stage of stable development.
In general, instant noodles has become a world food deeply loved by consumers of men, women, old and young.
According to the data of the world instant noodles Association, the global demand for instant noodles reached 116.6 billion copies in 2020, an increase of 10.1 billion copies compared with 2019, equivalent to 320 million copies of instant noodles consumed every day in the world.
China is undoubtedly a big consumer of instant noodles. In 2020, the demand for instant noodles accounts for 39.75% of the total global demand, which is much higher than that of other countries.
The development of China’s instant noodle industry is mainly divided into two times: the traditional instant noodle era (1970s to 2016) and the new instant noodle era (2016 to now).
In the era of new instant noodles, the overall diversification of instant noodles is obvious, and the product matrix is becoming more and more rich. At the same time, the distinctive convenient fans and convenient rice noodles products are also beginning to be favored by more and more young consumers.
According to the 2021 insight report on instant food industry, in the statistics of mat2020 tmall instant food category with the fastest growth, instant vermicelli and rice noodles ranked first, with a growth rate of 26 times; Convenient fans and rice noodles ranked second in the list of convenient fast food and night snack.
For example, Guangxi snail powder, Chongqing hot and sour powder, Hunan rice powder, Xinjiang fried rice powder, Nanchang mixed powder and other products continue to strengthen consumers’ repurchase intention by restoring local characteristic flavor and unique addictive tastes such as acid and spicy, so as to establish a new category cognition. The market develops rapidly and continues to occupy a larger market share.
Under the background of this era, a Kuan food has opened up its own blue ocean by relying on differentiation strategies.
Differentiation strategy: another way in the Red Sea
1. Market competition pattern of instant noodles
At present, there are three types of enterprises in the instant noodle market, namely traditional brands, cutting-edge brands and cross-border brands.
The industry as a whole presents a highly concentrated competitive situation, and manufacturers such as Master Kang holding and unified enterprise occupy an absolute dominant position in the traditional instant noodle market.
According to the data, Master Kang achieved a revenue of 67.6 billion yuan in 2020, of which the instant noodle business contributed 29.5 billion yuan, accounting for nearly 50%; Unified enterprise achieved revenue of 22.8 billion yuan in 2020, of which 9.1 billion yuan was contributed by instant noodle business.
Its advantages are mainly reflected in strong brand effect, large-scale production capacity and mature production technology.
Compared with these giants, the overall strength of cutting-edge brands such as a Kuan food, ramen and zihi pot is still very weak.
Take a Kuan food as an example. In 2020, the operating revenue of instant noodles was 1.11 billion yuan, accounting for only 1.36% of the overall market share.
New and cutting-edge brands are usually established for a short time. They mainly promote medium and high-end price products and grow rapidly. They are the main force to promote the rapid development of the new convenience food industry in recent years.
Cross border brand participants include: leisure food brands such as three squirrels, liangpin shop and baicaowei, and catering brands such as Haidilao. These brands have loyal customer groups, perfect market channels and strong brand power. Entering the new convenience food market can enrich their customer group choices and maximize their customer value.
In order to reduce investment costs, such brands usually choose convenience food categories with fast growth and high market ceiling. Instead of large-scale self built production capacity, they entrust processing with the help of the relatively mature supply chain of small and medium-sized manufacturers in the industry.
For example, a Kuan food also provides OEM services for three squirrels, baicaowei, Li Ziqi, Netease yanxuan and other customers.
So, in this expert lined instant noodle market, how does a Kuan food stand out?
2. Differentiation strategy: seize the regional characteristics of food
Differentiation strategy is the strategy for competitors to survive the goods they produce through mastering the industry standards.
This strategy is a kind of investigation and Research on consumers’ hobbies, clarify the unique good “differences” different from standard products, and then let consumers choose their own goods.
From the level dimension of consumers’ preferences, a Kuan food focuses on regional specialties and accurately locates young people who love local cuisine.
At present, a Kuan food has nearly 100 original pieces of more than 30 characteristic flavors, such as a Kuan Sichuan paving noodles series, a Kuan Chongqing small noodles series, a Kuan fresh mixed noodles series, a Kuan pasta series, Chengdu sweet water surface, banquet barbecue and so on.
The diversity of products not only meets the consumer psychology of users, but also meets users with different tastes in different regions.
Among them, a Kuan red oil pastry is the most distinctive “star product”. It has become popular online with the characteristics of new categories and good taste. In 2020, a Kuan red oil pastry sold 120 million bags (barrels) throughout the year, far exceeding other categories.
A Kuan food captures the regional characteristics of delicious food, constantly innovates, and constantly radiates new vitality in the field of convenient fast food.
From the vertical dimension of price positioning, a Kuan food is positioned at the middle and high end, avoiding the price war with the head players.
In the low-end market, for example, instant noodles are highly monopolized and have a high profit margin.
▲ the picture is from Guosen Securities Research Institute
According to the comparison of the sales growth rate of instant noodle price segment by Guosen Securities Research Institute, the compound growth rate of high-end product sales from 2016 to 2020 reached 15%, while the growth rate of low-end products was – 15%.
Under the background of consumption upgrading, convenience food will also develop towards a more mature and efficient direction.
This is also one of the main reasons why a Kuan food chose medium and high-end positioning.
Grasp the development trend of convenience food
1. Product side: diversified, medium and high-end and healthy
In order to meet the changing needs of consumers, enterprises are racking their brains to develop new products and constantly inject new elements. Hope to give consumers more choices.
The concept of product diversification has changed from “this is the flavor” to “what flavor you need, there is what flavor”.
In terms of raw materials, in addition to rice flour, flour, potatoes and other raw materials, there are also some emerging food raw materials in the market, such as dried vegetables and beef jerky, which greatly enrich the categories of raw materials.
From the perspective of product flavor, convenience food enterprises use regional characteristics to launch products with local classic flavor to avoid homogeneous competition.
With the continuous improvement of residents’ disposable income and support, the trend of quality and high-end consumer demand has become more prominent.
At present, the post-90s young people are the main consumers. They pay more attention to “pleasing themselves” consumption, so they have higher requirements for product quality.
After the epidemic, the overall health awareness of the people has gradually improved. When consumers buy food, the primary consideration is food safety and health, which is also the red line of enterprises.
The health of convenience food has always been the theme of the industry and the direction of industrial upgrading and transformation in recent years. For example, most enterprises produce healthy products for consumers with the goal of “locking flavor, reducing salt and reducing oil”.
According to the statistics of the 20th China convenience food conference, 68% of the instant noodle products that won the “innovative products” award selected by China Society of food science and technology from 2019 to 2020 are non fried products.
2. Marketing side: relying on data analysis, the content and form are diversified to realize precision marketing
In the digital age, marketing content is not limited to traditional forms of advertising, posters or official account, but rather short form video, live broadcast, variety, games, communities, small programs, video numbers and so on.
In the presentation process, we should be able to convey the brand information to consumers in a more interesting and interactive form, so as to capture consumers’ minds and realize fine management.
For example, a Kuan food adopts different marketing strategies on different social media platforms.
The tall, rich and handsome tiktok made a variety of attractive plots. Meanwhile, chowhound accounts are mainly tiktok, such as: Midnight naughty eating, snacks, teachers and girls, fruit and so on.
Then, the company launched a WeChat official account, and the article was exposed to millions of articles. In addition, Taobao shop link was attached to the product to guide users to buy products.
In addition, it also exposed itself to the greatest extent and successfully attracted the continuous attention of young groups by designing cartoon IP images, sponsoring sports E-sports leagues and hip-hop carnivals, and jointly launching theme activities with popular Xiaosheng Huang Minghao.
3. Channel side: relying on new retail, online and offline Omni channel layout
The new retail model of integrated development of online and offline channels is conducive to meeting consumers’ more diversified consumption experience, and has become the mainstream trend of industry development.
Offline channels pay attention to commodity display, which can bring better experience to consumers, reduce customer price sensitivity and easily lead to impulsive purchase. Online channels can make it easy for consumers to buy a variety of food products.
According to the data of the National Bureau of statistics, in recent years, among the online retail sales of physical commodities, food commodities have maintained a rapid growth rate. In 2019, the growth rate of online physical retail sales of food commodities continued to increase by 30.9% on the basis of the sharp increase of 33.8% in the previous year, 15.5 percentage points faster than that of clothing commodities and 11.1 percentage points faster than that of consumer commodities.
Through the proportion of online and offline revenue of a Kuan food, it is not difficult to find the trend of omni-channel integration.
▲ the picture is from a Kuan food prospectus
According to the prospectus, in 2018, 2019, 2020 and January June 2021, the proportion of revenue realized by a Kuan food’s online sales channel in the main business revenue was 47.53%, 50.46%, 61.34% and 63.58% respectively, showing an increasing trend year by year. Online sales channel sales has gradually become an important sales channel of the company.
The scale of offline channels has increased steadily, but the proportion is decreasing year by year.
Generally speaking, a Kuan food has gradually transformed from the traditional offline channel to the sales mode of coordinated development of online and offline channels, and reached consumers through online and offline linkage and omni channel.
In the convenient fast food market where many giants compete, ah Kuan food relies on the “lazy economy” and develops its own blue ocean through differentiation strategy. It has become one of the representative regional delicacies.
This listing is the most solid step for a Kuan food from online red brand to Changhong brand.
reference material:
[1] A Kuan food prospectus, public information
[2] 2021 insight report on convenient fast food industry, first financial business data center
Author: Nicole; Source: consumer (ID: xiaofeijie316), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); for the sixth consecutive year, foodaily released the annual business hot spot of the food industry – exploring the development law of categories from 200000 new products around the world, studying the changes of global consumption, studying the changes of new consumers and consumption demand in combination with the in-depth insight into the Chinese market, and exploring the new value brought by the two new consumption drivers of technology reconstruction and brand popularity, Focus on the prospective discovery of category cracks / innovative products to assist new consumer entrants in anchoring market segments and category fission opportunities, and provide inspiration and decision-making reference for product innovation in the next year. (click the picture to view the detailed introduction) related reading

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