China Food

How to enter the frozen product track with medium and high-end positioning for the fish dumplings with an annual revenue of more than 100 million and once boarded “tip of the tongue 3”

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from catering to “retail”.
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Text: Julie

Source: hongwanshe (ID: hongwanshe 2020)

Chen Guoping, the founder of Yichuan Xiaoxian, is a “super sales”. He once acted as an agent for adinike for 11 years, from a small store with an area of 17 square meters to 1100 stores in six provinces and one city. When he was finally acquired, he had a scale of 2.3 billion. This experience made Chen Guoping deeply aware of the charm and value of the brand. In his heart, he secretly decided that he must make a brand that best represents Chinese culture when starting his own business. He thought of two kinds – Chinese food and traditional Chinese medicine. Finally, he chose dumplings, which best represents Chinese food culture from an international perspective.
“As a native southerner who eats fried rice with noodles, I almost overturned my understanding of dumplings after tasting Master Wang Guiyun’s fish dumplings. It turned out that seafood fish dumplings can be so delicious. I immediately felt that this thing was feasible. We must let more people appreciate the craftsmanship of national pastry masters. Teacher Wang Guiyun is the co-founder and chief product officer of Chuange fish dumplings and the second generation successor of Shandong pastry king.”
Chen Guoping participated in the co creation of chuangeyu dumplings in 2010. In his opinion, dumplings have at least three attributes, which are very in line with his entrepreneurial philosophy: they have Chinese characteristics, close to people’s life and can be expanded to the world. He told the red bowl society about the prosperity of Chuange fish dumplings: in fact, Chuange fish dumplings were originally a restaurant characterized by fisherman culture, and the main category was seafood fish dumplings.
“Since 2010, we have traveled from Qingdao to Jinan and Dalian, and then to Zhengzhou, Changsha and Shenyang. After regional running in, we closed some markets, and then re entered Beijing, Shanghai and Shenzhen. At present, we have 65 stores in 9 cities across the country.”
The epidemic situation in 2020 is a turning point of chuangeyu dumplings. Chen Guoping told Hongwan society that the business process over the past ten years made him realize that the sustainable growth of catering, cross regional management and regional consumption habits all put forward high requirements for the team. To do a good job in catering, in addition to the selection of categories, it is also significantly affected by the environment. The arrival of the epidemic also made them start to think about the second growth curve.
In 2020, Chen Guoping and his party separated the fish dumpling business from the original boat song restaurant and established “one boat of small fresh”. One boat of small fresh mainly focuses on seafood fish dumpling series products, which is significantly different from the traditional quick-frozen dumplings and mainly follows the route of medium and high-end dumpling products. According to Chen Guoping, one boat of small fresh has four sub brands, including boat song of fish dumplings, dumpling song, boat rise and boat song fresh food. “Our vision is to be the leading brand of Chinese fresh food and sell Chinese food all over the world.”
A boat of small fresh dumplings focuses on making healthy dumplings without additives. During the processing of stuffing and pastry, it is guaranteed not to put any additives used in traditional quick-frozen dumplings, so as to maintain the original taste and health of the ingredients. Chuange fish dumplings follow the exquisite positioning of the previous Chuange restaurant, focusing on healthy, fresh and high-end dumplings. The core user group is between 35 and 50 years old, and all dumplings continue the form of 100% handbags in the restaurant;
Jiaoxiaoge is mainly for young consumers aged 20-30. It provides standardized high-quality and fresh dumpling products. It is also younger in sales channels and promotion strategies. Moreover, in the supply chain, the use of raw materials of the two is highly complementary. These two sub categories are different from the domestic meat dumplings on the market. Boat songs and dumpling songs are mainly fish dumplings, such as cuttlefish dumplings, yellow croaker dumplings, Spanish mackerel dumplings, shrimp dumplings and other products.
Chen Guoping further introduced that the boat song fresh food, which will be introduced to the market at the end of the month, focuses on the category of prefabricated dishes that have been popular in the past two years. Chen Guoping said that diners have a primary intention that they hope to make it easier for more people to eat restaurant level delicacies, such as Jia Guolong Kung Fu food of Xibei. Chuange fresh food is mainly to use the dishes such as small seafood loved by customers in the original restaurant to make the original prefabricated dishes without adding with the original ingredients and spices, such as raw pickled crab forceps and clam meat, and then use the most advanced freezing and fresh locking technology in Japan to ensure the taste reduction of more than 90%.
Spicy clam meat
Create a factory with an output value of 1.2 billion
Chen Guoping has been engaged in retail marketing for decades and knows the importance of product power to brand. Especially in the face of consumer groups in retail channels, products can not tolerate any mistakes. He said that the catering scene and retail channel are two different “sales scenes”, so the brand cognition is also different.
Catering business products and services are based on stores, focusing on “instant food and pot gas”. The back kitchen of the restaurant undertakes most of the performance of the “factory”, and dumplings are completed on site in the kitchen. The food side is oriented to consumers across the country, and has higher requirements for brand marketing, supply chain of upstream industrialized production and new product R & D capability.
“After the establishment of Yichuan Xiaoxian, most of my energy is spent on the supply chain. For food, the first thing to firmly control before making products and brands is safety. I’m sure I can’t rest assured that our fish processing plant was officially put into operation at the end of 2020, using the most advanced quick-frozen equipment in Japan. The dumpling production workshop was put into operation in January 2021 and has been put into use.”
It is understood that a ship of small fresh factories are located in Jiaozhou and Laoshan respectively. Jiaozhou factory was put into operation at the end of December 2020. It integrates manual and automatic dumpling production lines, with an annual output value of 1 billion, covering an area of 25 mu (actually 27 mu), and a plant area of 16000 square meters. The factory has three production lines: pure manual dumpling making, modern mechanical dumpling making and fish processing. At the same time, it has a living center integrating accommodation, catering and leisure. Laoshan factory is located in Laoshan Scenic spot. It takes pure natural water from Laoshan and put into operation in 2018. It is a factory that makes dumplings by hand, with an annual output value of 200 million.
In addition to its own factories, the control of taste and taste and the research and development of new products are also important parts of consolidating the power of products. “Chuange fish dumpling has added some special seafood dumplings on the basis of cuttlefish, yellow croaker, Spanish mackerel and shrimp, such as sea urchin, crab roe, and even launched a series of flower dumplings jointly with Nicholas Tse’s’ Fengwei ‘, as well as the tiger pattern dumplings launched this year to meet the needs of more popular tastes and beauty. Based on the first three conventional models, Chuange positioning will gradually begin to expand to a higher quality and more exquisite dimension, and the development of Chuange The concept is’ only provide good dumplings’. “
Chen Guoping told hongwanshe that the frozen Chuange fish dumplings are aimed at the taste of the previous restaurant, so it is impossible to realize all mechanization. It is understood that the ratio of noodles and meat fillings of Chuange products is 1:2, of which only 7g noodles and 13.6g-14g fillings. Domestic dumpling machines cannot wrap fillings with 7g noodles. In addition, the higher the water content of dumpling dough, the more stringent the requirements for making machines. The water content of most dough on the market is about 38%, while the water content of Chuange dough is as high as 48%, which is more viscous and easier to deform. As a result, the hand-made dumplings can only be delivered according to the planned orders, but the retail market is full of changes, and more capacity must be available to meet the rapidly changing incremental market.
Therefore, the dumpling song, which focuses on standardization, scale and can provide a richer product line, was born. In terms of taste, the dumpling song gathers the technical team of “handicraft master + academic school + practical school” in Chuange. The research and development of boat song quick-frozen dumplings was completed by the studio led by Wang Guiyun, a national pastry master and the second generation successor of Shandong pastry king. The dumpling song also came from this studio. Technically, the patented dough machine used in dumpling Xiaoge series products makes the taste closer to manual wrapping. Most importantly, dumpling songs are more affordable and favored by young people because of their lower cost.
The law of steady growth in the post epidemic era
Baidu Index shows that since 2011, the search index of “dumplings” has been higher than that of “noodles” and “rice”. According to the data analysis of the frozen food industry released by AI media consulting, 73.4% of the types of frozen food purchased by Chinese consumers in 2020 were dumplings and wonton.
According to public data, the market scale of quick-frozen food in China reached 185 billion yuan in 2021. It is predicted that the market scale of quick-frozen food in China will exceed 190 billion yuan in 2022. The compound annual growth rate of domestic quick-frozen food is 10.14%, especially after the epidemic in 2020, which promotes the continuous expansion of the scale of quick-frozen food industry. In 2020, the output of quick-frozen dumplings in China was about 2.541 million tons, a year-on-year increase of 22.8%; The demand was 2.392 million tons, a year-on-year increase of 7.8%. By 2021, the market scale of quick-frozen dumplings in China will be about 53.55 billion yuan, with a year-on-year increase of 9.8%.
Report on development status analysis and investment trend prediction of China’s frozen and prepared food industry published by Guanyan report network
Chen Guoping believes that under such a background, the opportunity to break the situation of a boat of small fresh food comes from at least two aspects: first, the demand for quick-frozen ingredients increases, and the quick-frozen dumplings usher in differentiated and high-quality competition. A boat of small delicacies is positioned at the middle and high end, forming a brand separation from traditional dumpling products. “We are no longer satisfied with food, but want something good. The product upgrading and iteration triggered by this group of consumers who pursue high quality and good taste provide opportunities for innovative taste products such as Chuange fish dumplings.”
Second, there are many new retail channels, which can accelerate the rise of new brands. Dumpling songs are aimed at young groups, and the new retail channel is widely used by young people. In the past, quick-frozen food was mainly sold in supermarkets and convenience stores, but now the new retail and collage provide an efficient development path of online and offline integration.
Based on this opportunity, Chen Guoping disclosed to hongwanshe that the revenue growth rate of chuangeyu dumplings reached 100% in 2020. During 618 in 2020, chuangeyu dumplings increased by 108% year-on-year and 29% year-on-year on double 11. The annual revenue in 2021 exceeded 110 million yuan, with a growth rate of 30%.
“In the months when the epidemic was sealed and controlled in 2020, our workers were closed at home, and our production capacity could not meet the soaring orders. Although there was a short dividend after returning to work, the epidemic has been repeated in the past two years, which also led to logistics problems. For example, the epidemic in Shanghai, Jiangsu, Zhejiang and Shanghai was basically static. In short, the epidemic still had an impact on our e-commerce, new retail and Ka channel layout.”
In terms of channels, a ship of small fresh products has been launched simultaneously in e-commerce and offline supermarkets, including e-commerce platforms such as jd.com (self operated &pop), tmall.com flagship store, tmall.com, pinduoduo, youzan, Tiktok, and channels such as HEMA fresh, Carrefour, Ole, RT mart, park supermarket, and China resources. Chuange maintains its original brand positioning, mainly enters first and second tier cities offline, and jiaoxiaoge takes advantage of the basic advantages of Chuange, Layout for the whole retail link.
When it comes to brand building, Chen Guoping believes that at present, a ship of small fresh food has not reached the stage of large investment promotion, and the focus of work is still on the quality control of existing products and the dynamic sales maintenance of channels. In addition, Chuange fish dumpling has appeared in China on the tip of the tongue, which has expanded its popularity and has a certain audience base. The sub category dumpling songs will also rely on new traffic platforms and retail channels to embrace younger users.
Chen Guoping is an entrepreneur who is good at looking at the essence through the surface of problems. He has his own opinions on the financing and marketing of new consumer enterprises. Yichuan Xiaoxian once announced the completion of a round of financing of tens of millions of yuan in early 2021. The investor is hongchangsheng group. Later, he received investment from IDG. The funds are used in supply chain management, factory construction and channel layout.
For marketing, Chen Guoping believes that the essence is how to communicate with consumers. The wisdom of marketing means lies in how to spend the least money to communicate with consumers most effectively. “For example, brands such as Yuanqi forest and three and a half coffees have mastered the essence of users and category tracks. With the help of these new channels, they have risen rapidly. I am more concerned about what essence these players have grasped and whether it can help us.
Another example is prefabricated dishes. From the most essential point of view, Chinese food culture is so rich, but not every category is suitable for prefabricated dishes, barbecue and fried dishes are not suitable. What we experience is fireworks, not bags of cold spices. Players who enter the game must not make low-level mistakes in the choice of track and category. The trial and error cost of entrepreneurship in this era is much higher than that 20 years ago. Think about what to do and how to do it before making investment. Consumption is a track with a long stream of water. Seeing the essence of the problem all the time can save a lot of trouble. “
When asked about the challenges faced by a ship of small delicacies, Chen Guoping was also outspoken: the first is the instability of the supply chain. The raw materials of seafood fish dumplings are from nature. Unlike the “chicken” raw materials of KFC and McDonald’s, they are very mature and stable. Seafood will be affected by a series of factors such as natural phenomena, climate and freight transportation, which will directly lead to the price fluctuation of raw materials. However, for a ship of small delicacies in standardized retail, the price must not be changed day and night, which will put forward the most severe test for supply chain management.
Another is the management of the team. When the market of a ship of small delicacies is becoming wider and wider and large-scale marketing is needed in the future, whether the team can make correct and effective measures will test more and more people at the helm. Chen Guoping frankly said that an entrepreneur can see the trend in the next three years at least, but these “visions” will also affect decision-making. “My way is to jump out of the inherent thinking of the food retail industry and pay more attention to the playing methods of new consumer goods in other categories. The problems encountered are different, but through the phenomenon, the essence is the same.”
Original title: a boat of small delicacies: how to enter the frozen product track with medium and high-end positioning for the fish dumplings with an annual revenue of more than 100 million and once boarded “tip of the tongue 3”
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