How to cross the limit of growth for the convenience food of house economy triggered by the epidemic?

category:Finance
 How to cross the limit of growth for the convenience food of house economy triggered by the epidemic?


Driving force of food development

Under the epidemic situation, it is no accident that the sales volume of instant noodles represented by instant noodles soared. The data shows that in 2017, the market of instant noodles in China increased by more than 3% year on year, and the sales volume reached 84.2 billion yuan. There is a sign of bottoming out. In 2018, the sales volume exceeded 90 billion yuan, with a significant recovery. According to the statistics from China industry information network, the scale of Chinas convenient food industry is expected to exceed 450 billion in 2019, of which the market scale of instant noodles is about 100 billion. Binfu capital predicts that the growth rate of convenience food industry is expected to remain at about 6% in the next few years, and will exceed 630 billion in 2025.

Looking back on the development history of instant noodles in China, the growth of this industry in the past two years stems from development and innovation. Since 2017, with the deepening of consumption upgrading, new changes have taken place in the supply of convenience food market. For example, traditional convenience food giants have entered into high-end products with a per capita price of 10-20 yuan in response to the trend of consumption upgrading, from full stomach to nutrition, beauty and health of consumers. Whats more worthy of market attention is the emerging convenience food new forces in recent years, such as self heating products, local flavor recovery products, non fried wet flour wet flour products and so on. These innovations have injected new vitality into the convenience food industry.

It is based on the optimistic prospect of the future market that Baijia food, the first financing project of more than 100 million yuan this year, has completed a round of financing of 110 million yuan led by Tongchuang Weiye.

Billion Racecourse

System innovation leader

Out of the circle is a hot word in 2019. For the food industry, one is to jump out of the existing geographical scope, and the other is to expand consumption scenarios. Then, how can Chinas convenient food out of the circle?

Binfu capital pointed out that products, channels and marketing are the core innovation points of convenient food enterprises in the new environment. From the perspective of the product end, consumers demand is increasingly divided, situational and personalized, and it is difficult to form a sustained preference for a single brand or a single product. Such consumption characteristics force enterprises to constantly improve the ability of product definition, and put forward higher requirements for the research and development of new products, especially the ability to continuously push new products, and supply chain cooperation.

From the perspective of channels, online and offline channels are equally important and indispensable. Online consumers are mostly high-speed urban residents, with young people taking up a relatively high proportion; consumers are more easily driven by content marketing, and the closed-loop of e-commerce data is complete, so that enterprises can quickly test and adjust products and marketing methods, and easy to produce explosive products. And the immediacy of offline channels is a natural scene for convenient food sales. However, Chinas market is vast, offline channels are widely distributed, and the channel system is complex. The construction and operation of offline channels is a time-consuming and labor-consuming part of the brand, as well as a test and test of the teams operation ability.

From the marketing point of view, binfu capital believes that good products should have a dialogue with users, which is reflected in the consumer demand for convenient food, which has become not only simple, fast, healthy and delicious, but also harmony of tonality. In the era of fragmentation, how to use new methods, new technologies, new ideas and new platforms to transfer and shape brands, enhance popularity and even achieve the height of brand = category is a great challenge for enterprises.

Break through the boundary, Baijia food is positioned as restaurant level characteristic convenient food

Baijia food was led by Tongchuang Weiye to invest 110 million yuan in a round of financing. As the first project with a financing amount of more than 100 million yuan this year, Baijia food received market attention. Baijia food, with a 20-year history, is a representative company of new-type convenient food in China. It has seven product series, including convenient vermicelli, convenient rice noodle, non fried instant noodles, all ingredients noodles, convenient self heating hot pot, convenient self heating rice, Sichuan flavor compound seasoning, and more than 200 single products, which belong to a Kuan and Baijia Chenji brands respectively. Our products sell well all over the country and are exported to more than 30 countries and regions including the United States, Britain, Canada, Australia, Japan, Singapore, etc.

Different from the traditional fried or non fried dry instant noodles, including red oil noodle skin, sweet water surface, soul stirring rice flour, etc., many products of Baijia food are wet noodle and wet flour, highly reducing the characteristics of Sichuan, Chongqing, Yunnan and other places. Outstanding R & D ability, fast market reaction and consumer insight are the key to keep innovation of Baijia food.

There was a saying in the instant noodle Market: is it hungry that beat Master Kang, which shows the impact of takeout on convenience food. In response, Chen Chaohui, chairman and President of Baijia food, said that the rapid development of takeout market reflects consumers pursuit of more convenient, healthy and delicious staple food. At the end of 2017, Baijia food formulated the strategy of stepping into the field of new convenient food, which is the substitute for takeout, which goes beyond the scope of traditional instant noodles and faces 5000 Billion and growing take out market.

In this regard, Baijia food adjusted its product planning, positioned the industrial products of local traditional staple food and restaurant level staple food, and vigorously transformed its business model and channel structure to fully promote the omni channel operation. At present, the companys unit price of more than 10 yuan of new convenience food, in the proportion of sales has exceeded 30%. The sales scale of online channels accounts for about 40%, and its flagship stores of akuan and baijiachenji rank among the top 10 in the convenience food stores of the whole network. The company has formed an online and offline Omni channel operation. According to reports, stimulated by the epidemic, the companys sales volume is expected to exceed 200 million in February this year, an increase of 500% year on year. In recent three years, the companys average sales growth rate reached 45%. In 2019, its total sales exceeded 700 million yuan, and its profit increased by 100% year-on-year. At present, the company has launched an IPO plan, and is expected to complete the listing within three years. The company is expected to become the first new convenience food stock in the A-share market. Source: responsible editor of Securities Times: Yang bin_nf4368

In this regard, Baijia food adjusted its product planning, positioned the industrial products of local traditional staple food and restaurant level staple food, and vigorously transformed its business model and channel structure to fully promote the omni channel operation. At present, the companys unit price of more than 10 yuan of new convenience food, in the proportion of sales has exceeded 30%. The sales scale of online channels accounts for about 40%, and its flagship stores of akuan and baijiachenji rank among the top 10 in the convenience food stores of the whole network. The company has formed an online and offline Omni channel operation.

According to reports, stimulated by the epidemic, the companys sales volume is expected to exceed 200 million in February this year, an increase of 500% year on year. In recent three years, the companys average sales growth rate reached 45%. In 2019, its total sales exceeded 700 million yuan, and its profit increased by 100% year-on-year. At present, the company has launched an IPO plan, and is expected to complete the listing within three years. The company is expected to become the first new convenience food stock in the A-share market.