Food foundries from "behind the scenes" to "front stage"

It is no surprise that an iPhone comes out of the Foxconn factory assembly line, but what many consumers have not noticed is that many Internet celebrity snacks also have large-scale foundries

OEMs grab the market with "replacement"

Internet celebrity brands such as Three Squirrels, BESTORE, and Baicaowei all started out by OEM

Shredded bread is a very popular item for Three Squirrels.

For many consumers who pursue cost-effectiveness, the snack products produced by these foundries have fully met their needs

In fact, the industrial model of OEM is very common in industrial products

It is understood that many large snack brands have their own production plants that are generally small in scale, or even do not have their own production plants

For the foundry, its own processing technology is mature, and it has the advantages of large-scale production

However, with the fierce competition and the rapid decline in the threshold of e-commerce, many manufacturers are no longer satisfied with simple OEM, and have begun to transform quietly

After investigation, it was found that the number of fans of many common foundry stores is already in the order of 100,000.

or there will be a new round of shuffling

It's cheaper to buy something from a foundry, what's the logic? "On the one hand, foundries do not need to spend money on marketing.

And Xiao Feng, who has been engaged in food OEM for a long time, believes that because the OEM can share the production raw materials with the brand, and can rationally use the "defective products"

Xiaofeng explained as an example.

However, Xiaofeng also reminded that the brand can still represent product quality and after-sales guarantee to a certain extent

Xiaofeng said: "On the one hand, consumers believe in the brand's control of product quality to some extent; on the other hand, they are unwilling to pay the brand premium, so they hope to obtain more cost-effective products by purchasing directly from the foundry.

According to previous media reports, last year's "Double Eleven", "behind-the-scenes production factories" covering nearly 1,000 industrial belts across the country directly connected to consumers through online shopping platforms

Although there are frequent attempts to reach the consumer side, according to the financial data disclosed in the prospectus of Zhancui Foods, OEM is still its pillar business

In fact, the foundries at this stage are no longer limited to pure agency production, and their R&D capabilities are also improving day by day
.
There is also a certain degree of sharing of production processes and recipes between big brands and big manufacturers
.
For many foundries, opening an online store, making a name for themselves, and making money are more important demands than profit growth
.
"Cooperative OEM production is still the core pillar business
.
" A relevant person in charge of a foundry, who did not want to be named, said bluntly
.
According to industry analysts, as industry dividends gradually fade and foundries enter the game, there may be a new round of reshuffle
.

In the new consumption era, the model of emphasizing marketing and ignoring R&D has created batches of internet celebrity brands
.
But over time, young consumers have become less interested in the OEM model
.
After trying a product, if you think it is delicious, you can find a foundry.
Even if the packaging of the foundry is simpler and the amount of a single purchase is large, young consumers are still willing to pay the bill and try to hold all the price difference in their own hands.
in
.

　　There are also some consumers who are not satisfied with the configuration of Internet celebrity products, so they decide to go directly to the foundry and customize the products themselves
.
For example, snail noodles with a market of hundreds of billions of dollars, although there are many brands on the market, there are still some consumers who choose to find customized products from the foundry of brands such as Haohuanlu and Luobawang, which may be spicy and stinky, or double For yuba, customization seems to be a new trend
.

　　For the Internet aborigines of Generation Z, it is a simple matter to use all available network resources to obtain information, and it is easy to find cheap alternatives and foundry factories
.
The popularity of this consumption model is undoubtedly full of crisis for companies that rely on the OEM model for a long time, but lack the ability of independent research and development and independent innovation
.

　　Industry insiders believe that in the post-Internet celebrity era, the threshold for becoming an Internet celebrity product is too low
.
If it can reach the top, natural sales will be indispensable, and fans will also be indispensable
.
However, brands that fail to succeed still only have the card of marketing, and it may be difficult to grasp the psychology of Gen Z consumers
.
Just like finding bulk snacks, consumers must first get their approval before they will start to look for bulk alternatives
.
More importantly, as long as the brand can have enough strength on the R&D and production sides, it will become the confidence of the brand
.

　　(Comprehensive arrangement by Han Songyan)

"China Food News" (02 edition on January 11, 2022)

　　(Editor-in-charge: Han Songyan)