China Food

Hongzhang capital Weng Yinuo: take Chinese baking as an example to see the new work of old brands and the break of new brands under the new cycle

the problems encountered by old brands today must also be the problems that the so-called new brands will encounter in the future.

Recently, the second China new brand wave conference, hosted by Inspur new consumption and co sponsored by 48 top institutions, was grandly held in Shanghai.


The nine major breakdown lists with the deep participation of nearly 900 new brands were released, including more than 60 first-line brands and investment giants such as Nestle, Yuanqi forest, Huaxi biology, Zhong Xuegao, moody, bruco building blocks, Warburg Pincus investment and Sequoia Capital. They conducted a comprehensive and in-depth discussion and sharing around the key problems faced by the upstream and downstream of the new brand industrial chain at this stage.


Among them, Weng Yinuo, founding partner of Hongzhang capital, deeply shared the underlying logic of the rise of Chinese baking track, resumed the practical experience of time-honored Tang bakers for the first time, and abstracted the essential thinking on the new work of old brands and the breaking of new brands.


Weng Yinuo, founding partner of Hongzhang capital

“The whole baking track has never been paid so much attention in history as in the past two years. There is an opportunity to subdivide it, that is, the old categories are newly made, especially Chinese baking, which has good product scalability. Many old categories can be reinterpreted with new materials, tastes and flavors.”


Over the past few years, Hongzhang has done a lot of research and investment in “old brand new”, and Tang bakery is its representative case. As a time-honored brand established for more than 20 years, Tang bakery has a very strong understanding among people aged 30-50 in Shanghai with its “amazing” product power.


However, with the gradual decline of offline chain traffic and insufficient investment in packaging and brand, Tang bakery also began to gradually enter the downward channel. After the intervention of Hongzhang capital, it has carried out a huge process reengineering from strategy, talent and digitization to products, channels and supply chain.


“The new work of old brands is a very complex ‘system engineering’.” It is also in this process that Weng Yinuo increasingly realizes that there is no distinction between the old and the new brands. “These old brands were also sought after online celebrities in those years, and they have their own characteristics. The problems encountered by old brands today must be the problems that the so-called new brands will encounter in the future.”


In the past two years, the channel and traffic side have changed one after another. After seizing a wave of traffic dividends, the brand still has to face a more realistic thing: offline is still a very important main battlefield.


When everyone is talking about the sound and live broadcast today, ten years ago, tiktok said that the dealer management was bad, and for many new brands, it was new knowledge.


Especially in such an era of internal competition, the whole industry has entered a new business cycle. How to return to the more essential ability dimension, adhere to “endure” and control their own growth rhythm is the most important.


Intercept some wonderful content and share it with entrepreneurs and investors!


Speech by Weng Yinuo

Editor: Chen Wenxi


The organizer is an old friend of mine. Every time I participate in Inspur activities, the quality is very high.


Today, I’d like to talk to you about our thoughts on the revival of old brands, which is also our attempt in the past two years. Hongzhang capital focuses on the field of consumption. In the past, it mainly studied brands, retail and chains. Now it is also trying to break the circle and empower new things with the cognition and resources accumulated in brands and channels, including consumer technology, consumer services and consumer health.


Throughout the history of brand development, we can see all kinds of evolution. With the passage of time and intergenerational replacement, consumers will show new changes and ideas.



This year, we saw some very interesting things in a research report. For example, “curtilage”, when we took “curtilage” as a direction to land, we found a new flow mode called “night economy”.


We see that the channel of convenience pre warehouse appears. The flow end is mainly in meituan and hungry. The basic form is home. Young consumers are highly active at night, but lack of supply, so the sales volume and gross profit structure of new brands are very good.


Including now we are also deeply understanding the new needs of the new generation of elderly people. On the one hand, the “double reduction” policy has caused a great blow to the education and training of young people. On the other hand, there have been new changes in the difficulty of getting a vote for universities for the elderly.


Therefore, the traffic end is constantly updated and iterated, and future brands should adapt to these new changes at the traffic end.



Generally speaking, we believe that time is everything. In the long run, we are all the products of the times, so the timing of doing things is very important.


But the opportunity is often non renewable. In fact, some big brands that already exist today may not do so well in that era. They can be so successful because they step on the right time and easily go through the era of educating consumers. Today, it is difficult for us to replicate this success in the same way.


In the past year, we have done a lot of research on old brands and time-honored brands. Many time-honored brands actually have a sense of time memory, but now consumers’ understanding of time-honored brands is beginning to blur.


Many old brands have lost the support of channels and traffic, become more and more conservative, and even become gifts.


However, consumers’ sense of experience and trust in the old brand is still established. With this sense of trust, the brand does not need to make up a story. When planning a new brand, you often think about what the brand story is, but the old brand has natural attributes.


Why is Chinese baking a good business
Tang bakery is a brand with a sense of time. It has been 20 years. It is an old brand with great recognition and brand trust in Shanghai.
When I came into contact with this company four or five years ago, I didn’t feel it deeply, but later we did a lot of research and found that people aged 30-50 have a very strong understanding of this brand, so we used the word “amazing” to express its product power.
However, with the passage of time, the offline chain flow is gradually declining, and the investment in packaging and brand is not enough. Therefore, before Hongzhang investment, Tang bakery has begun to decline.
For example, it does not particularly emphasize the categories of main products. The founder of Tang bakery is from Taiwan, and the production level is very good. It has been in the industry for many years, and has a good reputation. The ingredients and raw materials used are also very particular, but it has not formed a selling point, and there is a lot of information and the image is not concentrated enough.
For example, it tried to build the IP of the Tang Dynasty, but it only made some virtual Tang cultural symbols, and did not explore the story and cultural sense behind it. Tang bakery has always been a more expensive position in its early years, but because you don’t maintain the design, packaging, brand and promotion, everyone will gradually feel worthless.
In the past two years, we have made great adjustments to the whole company, re positioning and overall design for it, including visual hammer, brand concept, logical sorting of product line and so on.
The upgrading of old brands has two core advantages. The timing of entry and brand trust are the biggest drivers of brand success.
In the competition Road, we have a good time to cut in.
The whole baking track has never been paid so much attention in history as in the past two years. In fact, baking is a very good track, especially the sub category of Guochao Chinese style is a hot spot.
Western style has experienced many iterative changes. In fact, the high growth of the total amount has been more difficult, and consumers’ cognition has begun to be tired. However, the development trend of Chinese style Guochao is very good, and consumers are very friendly to Guochao brands and even local brands.
Baking also has a great opportunity in the whole category of leisure snacks. It has been a well-growing sub category in the past five or six years.
“Everything can be a snack” is the logic of the development of food categories. Many things that would not be eaten as snacks have now become snack and convenient products. Due to the change of packaging form and flavor, more consumption scenarios have been derived.
For example, chicken legs and duck neck, in the past, people’s first reaction was to eat for brunch, but now they have become snack food. The same is true for tonic products. Originally, tonic products were made at home, but now we are not free. Some brands began to redefine consumption scenes and habits in the way of snacks and convenience.
This is the trend direction we have seen in the past five years, so the whole large snack category is growing, but the sales situation of many sub categories is different.
Baking is a relatively large track in the whole snack category. There is an opportunity to subdivide the old category into new ones, and define new flavors through the innovation of raw materials and forms. In particular, Chinese baking has good product extensibility, and many old categories can be reinterpreted with new materials, tastes and flavors.
For example, new ingredients have been used in pastry products such as cassava and butterfly pastry. Today’s food is very different from that in the past.
Tang bakery series is defined as the product line of Chinese pastry. On the basis of the original brand elements, we have combed and refined again, forming the current brand tactics map.
First of all, the brand constitution of Tang bakery is very clear. We look for its historical roots in such a big setting as delicacy, ingenuity and gifts, and highlight the main visual system of the Tang Dynasty in the packaging.
In terms of overall positioning, we have read the reputation evaluation of consumers on Tang bakers over the past few years. One of the most important words is “not sweet or greasy”. This is the cognition precipitated by consumers for many years, so we take it as advertising language.
Last year, Tang bakery’s quantity of gifts was very good. The existing factory has not undertaken such a large amount of production, and has begun to prepare the second factory to meet greater production.
After combing, the Tang bakery brand shows that it is mainly high-end handmade egg yolk pastry, which is also more expensive, and the court style of the Tang Dynasty is more high-quality.
The new work of old brands is a “system engineering”
As a whole, we have an experience that it is actually very painful for old brands to do new ones. We call it “system engineering”. You have to study where the existing value is.
First of all, we should consider positioning strategically. If the decision is misplaced, the cognitive system left to consumers and what we want to do are misplaced, so it is very important to reposition accurately.
The second is the channel. The new point of old brands often lies in the innovation of the channel end. The channel power that relied on for survival in that year is declining, so it is necessary to expand new traffic end. We are expanding various new channels such as e-commerce, and have formed a good sales growth.
When we think about these things clearly, the most difficult thing is people. People in old brand enterprises often have a very solid understanding of products, and there are many boundaries that cannot be broken through.
Especially in the channel, after the original channel is limited, it is basically unable to expand new channels. Therefore, it is not easy to introduce talents and invest resources to expand and improve the management and operation ability at the channel end.
Moreover, many old enterprises do not have modern management system, and their essence is product driven. However, today’s enterprise competition must be multi-dimensional, and even the lean of internal supply chain needs to be improved.
Therefore, in the operation area, when we sort out the brand marketing, the real difficulty lies in the internal. We need real process reengineering to reshape the internal organization and management in the front-end operation. For example, when the e-commerce team added up, there was no problem.
Why did your supply chain collapse? Because the flow plasticity of e-commerce is impulsive, which is very different from the original delivery logic of front store and back factory, the whole system needs to be compatible with the impulsive management of e-commerce flow. For an enterprise, this is a huge process of process reengineering.
Another example is digitization. Can all categories and cost management be analyzed in the same data language on one line? We spent a whole year and a half on digital transformation alone, not to mention lean operation in the future.
Therefore, in the whole process, there may be various difficulties, such as organizational running in, strategic radicalization, wrong growth rhythm and so on. This is a very complex “system engineering”.
For the new business of old brands, we have made a diagnosis process of 13 dimensions, which is divided into business flow and capability flow.
In terms of business flow, we have reshaped products and markets, supply chain end, production management and cost control, all of which are fine improvements and changes.
In particular, inventory and logistics are subject to the factory pattern of that year, which has not been completely solved today, so we need to find a new way.
In terms of capability flow, we have given data visualization, organizational improvement, it and corporate culture capabilities to support the sustainable development of the brand. In the past two years, we have made a lot of new investment in the whole company.
Under the internal competition, new and old brands have to survive
Overall, today’s new and old brands, whether they make great progress or encounter short-term problems, I think they are the products of the times. If everyone is doing new brand entrepreneurship, it shows that the barrier of this matter may not be so high, so there will be so many talents.
The core of this is whether you have the ability to form scale quickly. Income and growth are always the core points for us to measure value discovery and value creation.
When we look at the resumption of old brands, we have a feeling that these old brands were sought after online celebrities and had their own characteristics.
Its product innovation may be the appearance, packaging, taste, flavor or sales form, which was very prominent at that time, so it formed the precipitation of old brands, but the problems encountered in the process must also be the problems that today’s so-called new brands will encounter in the future.
Therefore, there is no distinction between old and new brands. Old and new brands are relative. Looking at the future, today’s new brands are also old brands. But the old brand has at least proved one thing: it is not dead, but also has retained value, so it is always in the process of change and iteration.
Back to the basic logic of building a brand, in fact, these things are not so complicated.
Under the background of such fragmentation of traffic end and media end today, always find the channel dividend suitable for your brand positioning. If you can’t afford it, you can’t solve the problem. This is the bottom thing.
In fact, there is no way to teach this thing. It depends on luck. Sometimes enterprises that catch traffic dividends can get up.
At the other end, for the channel traffic operation ability, we have to do global operation, and have to face a more realistic thing: offline is still a very important main battlefield.
If you don’t have the ability to connect with the retail bosses in these regions and with channels such as HEMA and Wal Mart, you still lack the ability.
When we were talking tiktok in the consumer brand channel, the Tmall chatting department, which talked most about three or four years ago, was used for the exchange of things and notes in the classroom.
Now I chat with many friends. Your more demand is, can you help find someone to talk to us about the offline dealer network? What changes have taken place in China’s channel structure? How to develop dealers?
Because we found that dealers actually have the value of dealers. What can really give you cash flow is dealers. Because brand is a matter of division of labor and cooperation, we need to face the complexity of channels through dealers.
So looking back, we found that the dealer management that we thought was outdated ten years ago is actually new knowledge rather than old knowledge for many new brands today. These things need to be re learned and laid out on the channel side.
In fact, these things are not so difficult, but we have to quickly learn and iterate our abilities at this time point, because now the channels are very fragmented, and none of them can be completely abandoned.
The current revenue scale is the sum of so many channels, and each plays differently, so today’s operating costs will only rise or fall compared with ten years ago.
This is what the new brand needs to break, that is, you have to face the old channels you are not good at, otherwise your income will not be able to support the required scale.
The same is true for media. In the past, media centralization can get good sales by simply making video streaming, but now the era of centralization is gone, and we need to constantly produce new and more attractive content.
In such an era of internal competition, brands can do more to adhere to, control their own growth rhythm, maintain the appeal points and concept points they want to express, deeply manage the channel ability they can operate well, and finally endure, and achieve the next great pioneer of “suffering” with thinking through the cycle and reverse layout.

Source: Inspur new consumption (ID: lcxinxiaofei), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Foodaily Expo 2022] foodaily Expo 2022 is the theme and invites 500 + the world’s most innovative brands and 4000 + middle and high-level industry decision makers… In the conference (foodaily fbic 2022) module, we set 2022.05.31-06.02. We’ll see you in Shanghai! related reading

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