China Food

“Doorway” in cereal: is this Singapore brand still growing after 30 years?

“ 
the Chinese cereal market still has a long way to go.
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According to the insight report on 2020 online healthy grain consumption trend, the penetration rate of cereal in the overall healthy grain food population in China is increasing day by day. It is estimated that China’s cereal market will grow by 12billion year-on-year in 2024.
However, despite the predictable market growth, the market pattern of Chinese cereal tends to be stable, and several familiar head brands have occupied most of the market share for a long time. Effective production management, grid sales channels and mature consumer cultivation constitute the operating chassis of cereal manufacturers. Like “Jinwei”, a brand that has been working in the Chinese market for 30 years, it firmly grasps its own territory by relying on its solid ability to fight and resist risks.
However, there is no doubt that the impact of the epidemic on factory production, logistics and transportation, as well as the rise in the global price of wheat raw materials, has had a certain impact on the whole cereal industry. In addition, there are more and more food choices in front of consumers, so I’m afraid that if you don’t advance, you will fall back.
It can be observed that “big brother” like Jinwei has recently started to make efforts to restructure the strategic layout. Whether it is the innovation and upgrading of the product end or the all-round opening up of the sales channel, a self innovation is in full swing
Products of weichi group
Image source: brand side
Focus on the Chinese market for more than 30 years
Seeking new breakthroughs in tradition
When it comes to golden flavor, I believe many people will have memories of this sweet and smooth cereal, but the brand itself is relatively “low-key”.
In fact, behind Jinwei is viz
branz weichi food group (hereinafter referred to as weichi group), which was established in Singapore in 1988. Since entering the Chinese market in 1992, Jinwei series of nutritional cereals have been welcomed by many consumers for their health, nutrition and delicious characteristics. As the first industry leader to introduce cereal into the Chinese market, Mr. zhuangkunping, then chairman of Singapore weichi food group and former founder of Singapore Jinwei group, enjoyed the reputation of “father of Chinese cereal”.
Up to now, Jinwei has occupied about 30% of the market share in the top economically developed provinces in China. Its composite cereal products are the leader in hot ready to eat cereal and enjoy a good reputation in the domestic industry and consumers. In addition, it also has instant coffee, pure raw oatmeal and other products. In view of the overall market environment, the cereal industry has encountered difficulties to varying degrees in recent years, but golden oats still maintain effective growth in the Chinese market. The sales of cereal in the past nine months have increased by 13%.
You know, golden oatmeal has a 30-year heritage. It can still maintain the stability of business and brand popularity without large-scale brand expansion and not many market media. It mainly depends on the stickiness of consumers and product quality standards accumulated over the years.
However, in such a stable development, Jinwei cereal is actively seeking new breakthroughs in the market. Jinwei also has its own set of plans for incubating more high-end, younger products with unique brand genes and advantages. Especially for the new generation of consumers, Jinwei will upgrade its brand and develop a series of new products such as jinxiaowei. In addition, golden oatmeal will also focus more on the Chinese market in the future, continue to innovate in the changes and move towards new development with a stable industrial foundation.
Breaking the industry dilemma
Accelerate the layout of new online channels
As a Singapore brand, golden oatmeal has a natural geographical advantage in Southeast China because of its Southeast Asian gene. It is reported that about 90% of the golden oatmeal business in China is concentrated in Zhejiang, Fujian, Guangdong and Hainan provinces. In the next step, in addition to continuing the refined operation in the above four provinces, Jinwei plans to continue to expand its business market in another 13 provinces, focusing on Hubei, Guangxi, Henan, Jiangsu, Hunan and Jiangxi. In the next five years, Jinwei hopes to expand the business proportion outside the core four provinces from 10% to 30%.
However, the epidemic situation in recent years has brought challenges to the whole cereal industry. From processing and production, logistics and transportation to terminal supply, the industry is inevitably affected. Under the new situation, how to adjust the logistics supply chain and sales model has become very important. Many brands are taking urgent strategies to deal with it.
For a long time, the main sales battlefield of Jinwei cereal has been located in offline channels. This year, Jinwei began to vigorously build e-commerce business, including traditional e-commerce channels such as Taobao, as well as new social shopping platforms such as pinduoduo and Tiktok. In 2021, Jinwei’s online sales accounted for less than 2%, but this figure is expected to reach 5% by the end of this year.
Secondly, relying on the solid foundation of Jinwei’s offline business layout, the o2o community group purchase model has also been accelerated since the beginning of this year, and has achieved good results.
In order to adapt to different consumption scenarios, golden oatmeal has even made product packaging improvements for some special sales channels, such as the introduction of cup products suitable for convenience store sales and the separate packaging of hanging strips suitable for traditional small stores, so as to reach more consumers and consumption scenarios.
Golden nutritious cereal classic series original flavor – Cup
Golden flavor and ziziya seed nutritious oatmeal – Cup
Image source: brand side
Different from the disadvantages of weak offline sales and unstable foundation of some online popular brands, golden oatmeal has opened up the online and offline Omni channel layout, stabilized the foundation and made up for weaknesses, and ushered in considerable sales growth with a new distribution model and market strategy.
Product innovation and upgrading
Building younger consumption communication
According to the 2020 online insight report on the consumption trend of healthy cereals and foods, women and young people represented by the post-90s and post-95s are becoming the main consumers of online cereal. Facing the new demands of new consumer groups, how to reconstruct the consumption communication of cereal brands is a problem that the whole industry needs to face. In this regard, Jinwei has made a series of product improvements for its core products, focusing on nutrition and supplemented by new packaging design.
Since Jinwei entered the Chinese market, its classic series of cereals has occupied the channel of offline supermarkets, creating a brand representative product of “one product dominates the world”, which can be called a “sales myth”.
Golden nutritious cereal classic series original flavor
Image source: brand side
Now, in the face of the healthy demand of the market and the trend of youth, Jinwei boldly upgrades and improves the competitive disadvantages of old products, and upgrades a series of core products focusing on nutrition, increasing calcium, fiber and iron, and reducing fat and sugar, which is more in line with the dietary trend of the current population.
In April this year, Jinwei launched four new instant cereal products with black sesame, Qiya seeds and prebiotics as the main raw materials, providing more high-end nutritional formula choices; Younger and healthier visual elements are also used in the product packaging, which is fully refreshed and upgraded.
Golden nutritious oatmeal
Image source: brand side
On the basis of instant cereal, Jinwei has further extended its product matrix, launched fruit cereal, and built it as a cold food and snack series. For one thing, unlike cereals that need boiling water, fruit cereals are more popular in cold seasons. Instead, they can be eaten as snacks, yogurt and cold milk. They are more convenient and convenient to eat, and have a wider range of eating scenes. They can fill the off-season market for instant cereals; Second, the fresh taste and the sense of free snacks can be loved by young people.
Golden fruit cereal series
Image source: brand side
Although for Jinwei, there is already a strong support for the operation of the classic series of Cereals, if the brand wants to have the ability of long-term growth, it still has to rely on strong product power. From the improvement and upgrading of products to the continuous expansion of product matrix, it can be seen that Jinwei is actively adjusting its actions to follow the change of consumption trend of the times, so as to eliminate consumption communication barriers to a greater extent and meet the experience needs of young consumers. This is probably an indispensable spirit of exploration for a mature brand.
Over the past 30 years, Jinwei has been rooted in the domestic cereal market, adhered to the in-depth layout, gained public praise in product quality and won trust in production and sales. In the face of the recent changes in the environment, Jinwei actively launched a series of strategic measures to lead the brand to a new future. It seems that it is also proving with its own actions that the Chinese cereal market still has a long way to go
reference material:
1. cbndata “2020 online healthy grain consumption trend insight report”
2. AVCJ《Portfolio:Investcorp and Viz Branz》
( https://www.avcj.com/avcj/analysis/3026946/portfolio-investcorp-and-viz-branz )
Source of cover image: Heho health reprint authorization and work: wechat: join the community: Cherry (wechat: 15262433826).
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