Economy

The expansion momentum of stores is slowing down, how can the braised food industry innovate and seek change?

2024-09-18   

Recently, several leading braised food product manufacturers have released their 2024 semi annual reports. From the data, it can be seen that the operating income of various enterprises has decreased to varying degrees compared to the same period last year, and some enterprises have reduced the number of stores. According to data released by relevant research institutions, the growth rate of the braised food industry has significantly slowed down, and the industry as a whole is facing operational pressure. Why isn't the braised food that used to be popular in the streets and alleys "fragrant" anymore? Faced with a decline in revenue performance, some companies attribute the reason to a decrease in sales during the reporting period, while others attribute it to the failure of store expansion to meet expectations during the reporting period. In fact, the lack of "fragrant" braised food is due to external factors such as changes in people's consumption concepts, as well as internal factors such as repeated quality control problems within the enterprise itself. In recent years, consumers have become increasingly concerned about health, and their demand for high salt, high-fat and other leisure foods has decreased. The increase in consumer health awareness has directly led to a decrease in the frequency and total amount of braised food consumption, thereby affecting the revenue of enterprises. In addition, the high prices of some braised products have deterred many consumers. "One jin of Shrimp balls is 144 yuan" and one jin of beef tripe is 190 yuan ". Some netizens said that they have no desire to consume when they see such prices. However, according to the semi annual financial reports released by several companies, their operating costs have decreased compared to the end of last year, mainly due to the year-on-year decrease in raw material cost prices. Raising prices when costs are high, while lowering sales prices when costs are low, has become a common practice for many businesses, affecting the release of consumer potential. In addition, with the entry of local braised food brands into the market, competition in the braised products industry has become increasingly fierce. Consumers have more choices and are no longer limited to individual businesses. It is reasonable for leading companies to experience a decline in sales and revenue. As a food production enterprise, food safety is the foundation, and product quality control is the foundation, while the quality control of braised food enterprises is frequently roast by consumers. On relevant complaint platforms, there are thousands of complaints about braised food enterprises, such as "hair on the tip of the wings", "spoiled duck neck", and "a certain store is short of weight". In this context, how can braised food enterprises break through? As the growth rate slows down, the previous business model of rapid expansion of stores clearly does not meet the current market demand, and multiple companies have begun to change their strategies. Some companies have expressed their intention to shift from a strategy of opening stores in a land grabbing manner to a strategy of intensive cultivation, while focusing on adjusting the structure of stores and franchisees, promoting brand upgrading, and building a digital operation system; Fully conduct market research, study the differences in dietary habits among different regions, conduct market demand analysis, and develop new products. From emphasizing scale to focusing on quality, from offline chain operations to integrating offline and online to expand consumer scenarios, many braised food enterprises are actively exploring new growth points. With the emergence and growth of new consumption models such as instant retail and new media marketing, some enterprises are actively expanding their online sales business. They are promoting the cloud migration of offline chain stores through the "online retail+brand chain" model, using online platforms to connect offline stores, promoting the creation of private retail new formats by locking terminal stores, and continuously improving market share. In order to enhance the brand's influence among a wider audience, braised food enterprises are upgrading their brands, creating IPs that match their corporate image, launching a series of peripherals, iterating packaging styles, and conducting cross-border marketing. Industry insiders believe that in the current situation where the consumer side is constantly pushing the industrial side to innovate and upgrade, how to match and meet the needs of the new generation of consumer groups will be a challenge that braised food enterprises must face. (New Society)

Edit:NiChengRan Responsible editor:LiaoXin

Source:Workers' Daily

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