Foreign Capital Cake Brand Expansion, Cake Industry Competition Intensified

In recent years, foreign foreign cake brands such as South Korea and Singapore have entered the domestic market "running horse circle".

In order to get rid of the dependence on traditional festivals, many traditional pastry enterprises are fighting for the Western cake market.

In the current fierce competition in the Western pie market, how can domestic chain brands cope with the pressure from foreign counterparts?

From operation to technology, there are still many problems to be solved in the process of branding of China's pastry industry.

When the traditional pastry industry moves to the Western cake market, every traditional festival, there are always customers in Tianjin's old brand shops and new western style bakeries.

Take GUI Shun Zai as an example. During the Spring Festival this year, 12 stores in the city realized sales of 18 million yuan. Among them, eight Chinese cakes and eight Chinese pastries, such as halal and big twist, successfully won the market share of 14 million yuan, and the daily sales volume reached the highest level of one million yuan.

According to the statistics of Tianjin pastry trade association, the total turnover of Tianjin's cake industry exceeded 100 million yuan in 2008, and the increase was obvious.

But the cake consumption boom of Spring Festival is only once a year, because Chinese cakes have a strong dependence on the festival, and the difference between the peak season and the peak season is quite different. The sales volume of the 12 shops is 100 thousand yuan or so.

As a result, many traditional pastry businesses fought for the traditional festival and fought for the Western cake market.

And some chain brand Western cake enterprises are keen on "horse race" in recent years to expand their market share.

From the daily sales, the middle point accounted for 6 of the total, while the West Point accounted for 4, but the profit brought by the west point was relatively high.

In addition, in order to cater to the tastes of young and middle-aged customers, the time honored brand must also expand its market share.

According to our understanding, not only is GUI Shun, but also other famous brand time-honored pastry shops such as "Bridge Road" have also focused on developing the Western Pie Market in recent years.

Gao Shushan, President of Tianjin pastry Association, said that profit is an important aspect. The profit margins of traditional Chinese pastry are basically fixed at around 30%, while western pastry is a newer category, with profits sometimes reaching 50% and birthday cakes up to 80%.

Therefore, these traditional pastry manufacturers will pfer the Western products with high profits, good sales and consumers like.

The competition in the Western pie market has entered the white hot market. In addition to rushing to look for new profit points, some individual bakery shops have also joined in the tide of nuggets, coupled with the "horse race enclosure" of the brand chain enterprises, and the competition of the Western Pie Market with higher profits has rapidly entered the white hot market.

It is understood that at present, there are more than 500 new and old brand shops in Tianjin, many of which are small businesses.

In such a small shop, all kinds of Western cakes are full of counters, and the prices are generally low. Because of the lack of brand advantages, many small stores have launched personalized cakes, customer service and other special services to attract people.

A staff member of a small shop said that counting the store rent, decoration, basic equipment and employment of salesmen, raw material expenses, and so on, it would take 200 thousand to 300 thousand yuan to start such a store.

In addition, subject to the scale of operation, the cost of raw materials purchase of small shops is much higher, so the cost pressure is a great test to the operators' capital and management ability.

The high profits of products such as cakes and bread attract more and more individual investors.

In this regard, the industry insiders said: "at present, the share of the market left to the small workshop" West Bakery "has been very small, and the cost of investment has doubled.

In addition, due to the weak research and development capabilities, it can not form brand influence, which is the main reason why many small cake shops are hard to maintain at present. "

In contrast to the individual shop which is smaller in scale and profit margin, some large chain enterprises have been able to expand their skills in recent years, and have intensified their "horse race enclosure" in many places.

There are seven or eight new chain stores in Tianjin, such as holly, paradise, Bako and so on.

In densely populated residential areas and commercial areas, various brands of bakeries, Western bakeries and cake shops have already started tit for tat competition.

According to introduction, in some developed countries and regions around China, the average 10 thousand people own a bakery, while in Tianjin there are 30 thousand people. So there is still much room for development in the market. By conservative calculation, the total number of Western bakeries in Tianjin will double in 3 years.

The brand and technology of Tianjin are the key to survival. According to the statistics of the pastry industry association of Tianjin, although there are more than 500 stores in the Western pie market, 60% of the market share is occupied by a dozen large chain enterprises, such as holly Lai and Jin paradise, and the ambition of these new forces is more than that.

At present, foreign brands such as "Paris Baini" and "bread story" of Singapore have entered the domestic market, which has aggravated the situation of "pastry enclosure" in Western cake industry.

Tianjin Jinlun cake industry Co., Ltd. chain sales division said that less than 4 years, Tianjin paradise development to the current 36 stores.

"These 36 stores are not yet a very ideal market share for us. By next year, we will probably open to 80 stores and expand into ports."

According to the analysis, if the Western pie industry wants to form the scale effect, only by chain operation will it have the advantages of logistics and management cost.

At the same time, the industry also reminded that chain stores open shop directly, and once the capital chain is broken in the process of enclosure, the whole enterprise will have joint risks. If we choose a relatively low cost way to join the market, then how to ensure the standardized production, operation, personnel training and standardized management of franchised stores is also a major test for chain enterprises. In addition, the lack of training institutions also makes personnel costs higher and the senior technicians lack. This also makes many domestic chain brands show weakness after "enclosure".

Xiaoxi bakery, which is bound by many factors, will not be able to survive quickly if it fails to develop its own characteristics quickly. However, how to cope with the pressure brought by foreign trade is not only dependent on capital, but also needs to solve many problems in the process of branding of China's western bakery.