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    Home > Biochemistry News > Biotechnology News > If Master Kong has not defeated Unity, will he "die" in the hands of the takeaway in the future?

    If Master Kong has not defeated Unity, will he "die" in the hands of the takeaway in the future?

    • Last Update: 2021-04-16
    • Source: Internet
    • Author: User
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    On March 19, Uni-President China (hereinafter referred to as Uni-President) released its 2020 financial report.
    On the same day, Uni-President Ice Tea's official Weibo, which had been warmed up for several days, also officially announced Di Lieba as its new spokesperson.



    Although the appearance of Di Lieba has doubled the number of readings and likes on the official micro-blog of Uniform Ice Black Tea, in fact, this matter did not cause too much heated discussion.


    It is because the traffic is not popular enough, or the spokesperson.
    Wrong choice?

    Comparing with the official Weifang of the next door Master Kong Ice Tea with Wu Yifan, Chen Weiting and Meng Meiqi, there is a big difference in popularity, but celebrities shouldn't hold back this matter.
    In fact, Uni-President’s financial report last year has already reflected the downward trend in its beverage business.



    The problem is that Master Kong is not the only competitor of Uni-President.


    In the field of beverages and instant noodles, rising stars have been catching up.
    For Uni-President, can the position of the second child of fast food consumer be stable?



    The growth has entered a bottleneck period, and the tea business is "expensive and thankless"

    The growth has entered a bottleneck period, and the tea business is "expensive and thankless"



    According to Uni-President’s 2020 financial report, the company’s revenue was 22.


    761 billion yuan, an increase of 3.
    4% from last year; net profit was 1.
    625 billion yuan, an increase of 19% from last year.
    There is still a lot of room for growth in net profit, but the scale of revenue is trapped.




    Looking back at UPC’s operating data over the past ten years, since 2013, the entire instant noodle industry has entered a bottleneck period, and UPC’s revenue has also experienced years of decline.


    It did not resume growth until 2016, but the growth is extremely slow and its operating scale Compared to 2013, there is almost no growth.




    Of course, if you compare the revenue data of Master Kong in the past ten years, Master Kong, who is also an industry giant, has also fallen into the dilemma of slowing growth after 2013.

    This was related to the change in domestic consumption patterns at that time.


    After 2013, with the rise of online food delivery, the eating habits of the Chinese people were completely changed.




    "Rong Finance" checked the relevant data for the 13-16 year period.


    During this period, the total demand for instant noodles in China fell from 46.
    22 billion packs to 38.




    In contrast, the takeaway market has risen courageously during the same period.


    The number of takeaway orders in the domestic market has increased from 370 million to 5.
    5 billion, an increase of 5.




    According to the "2017-2022 China Instant Noodle Market Supply and Demand Forecast and Investment Strategy Research Report", 13 years later, the market size of takeaway and instant noodles will be quite different.



    Everyone may wish to recall the catering consumer market around 13 years ago.


    Before 13 years, the "Thousand Regiment Wars" had just ended, and various group shopping networks were finally integrated into several takeaway brands led by Ele.
    me, Baidu and Meituan.
    "Officially opened.




    Back then, the subsidy provided by the food delivery platform was very high.


    A piece of crayfish that could buy KFC, McDonald’s, and a hundred dollars could be taken home with a 50% discount.
    In this case, for consumers who have been eating instant noodles for 10 years, a more convenient, healthier, and more delicious way of eating is born.


    At the same time, the Chinese people's demand for nutrition and health is gradually rising.
    Many people must have heard this "rumor": eating instant noodles once requires liver detoxification for 32 days.
    For consumers who are too lazy to distinguish between true and false, isn't it more delicious to eat hot rice and hot dishes instead of greasy instant noodles? There is no doubt that the takeaway platform finally won, and the instant noodle market began to plummet.



    Of course, with the shrinking instant noodle market, we cannot just dump the pot to the takeaway platform.
    In fact, this is also related to the development of the entire domestic market economy.
    For example, with the development of the domestic transportation network, fast transportation such as high-speed rail gradually replaces traditional green-skinned trains, greatly reducing people's time on the journey, and the demand for instant noodles, a convenient food for travel, is greatly reduced.



    Around 2010, instant noodles were a best-selling item on trains.
    For migrant workers and students, cheap and warm instant noodles were naturally the best choice for migrant workers and students on a 10--20-hour train journey.
    At that time, nearly 20% of instant noodles were available.
    Sales appear on the transportation system, with trains accounting for the highest proportion.



    But today, with the increase of urbanization rate, the number of migrant workers is also decreasing year by year.
    Whether it is on green trains or high-speed trains, instant noodles are no longer actively sold.
    One is because there are fewer people buying; 2.
    Therefore, many people think that instant noodles have a strong smell and are not suitable for consumption in airtight public places such as trains.



    In this context of consumption, both Uni-President and Master Kong have experienced consecutive years of decline in revenue scale.
    It was not until around 2017 that people began to pay more attention to convenience food due to the end of the “price subsidy war” on the food delivery platform and the rise in the price of food delivery.
    .



    Compared with the unified food business, its beverage business is more affected by new categories.
    In 2020, Uni-President’s food business revenue increased by 10.
    9% year-on-year, of which, instant noodle business revenue increased by 7.
    2% year-on-year.
    The unified beverage business accounted for 55.
    2% of the overall revenue, and its annual revenue was 12.
    56 billion yuan, down 1.
    3% from the same period last year.



    In fact, "Rong Finance" sees that in recent years, the proportion of the unified beverage business in the overall revenue is declining year by year, from 58% in 2019 to 55.
    2% in 2020.
    This also shows that the unified beverage business is in Greater difficulties have been encountered in the development of the market.



    If it is said that the overall decline of the instant noodle market is closely related to the changes in consumers' eating habits, the reasons for the decline of Uni-President's beverage business are more from Uni-President itself.



    With the rise of the new generation of consumers in China, the upsurge of consumption upgrades that it has brought up requires companies to have faster and faster iterative demands for product brand tonality and quality innovation.
    In contrast, the unified overall innovation and upgrade speed Not fast enough.
    Simply put, product upgrades cannot keep up with the upgrade speed of the consumer side.



    We can understand by looking at a set of data.
    As mentioned above, the demand for instant noodles in China is closely related to domestic economic development.
    After reaching its peak in 2013, the sales volume of instant noodles declined year by year until it bottomed out in 2016.
    It gradually climbed later, but even so, the sales of the past two years are difficult to return to the peak period of 13 years.



    Contrary to instant noodles, the domestic tea market has continued to grow.
    If instant noodles are gradually abandoned by young consumers because of the peculiarities of the times, then the tea market is on the verge of becoming the favorite and demanded beverage category of young consumers.



    Therefore, the main reason for the decline of Uni-President's beverage business is not the trend of the market, but the company itself.
    But the problem is that, compared with the food business, Uni-President’s beverage business has a greater profit contribution.
    Uni-President’s instant noodle business has a pre-tax profit margin of 8.
    6%, and the beverage business’s pre-tax profit margin is 17.
    42%.
    The beverage business is much higher than the food business.



    The more profitable beverage business has continued to decline in performance.
    The food business, which is dominated by instant noodles, has been squeezed by the development of the times.
    Strangely, this does not seem to have much impact on Uni-President’s profits.



    Performance declines, but profits can "do not decrease but increase"?

    Performance declines, but profits can "do not decrease but increase"?



    In fact, the unified profit growth rate is not bad.
    Similar to the revenue situation, under the influence of the social consumption background, Uni-President’s profit has experienced years of decline after reaching a high of 916 million in 2013, but one difference is that after several years of adjustments, Uni-President’s net profit is returned to the parent.
    It began to climb gradually after 2017, with double-digit growth every year.



    This is related to Uni-President's efforts to develop high-end product lines in recent years.
    After 2016, as the instant noodle market has entered the "stock market", instant noodle giants are seeking new growth points.
    High-end transformation is one of the directions, and Uni-President is no exception.
    .



    In the instant noodle product line, in addition to continuing to focus on “Laotan Pickled Cabbage Noodles”, Uni-President also launched the “Tengjiao” series, “Tang Daren” series, “Metropolitan Restaurant” and “Man and Han Restaurant” series; In the beverage line, in addition to the basic black tea and green tea products, "Xiaoming classmates" also began to make efforts in 2018, and the Assam milk tea, which increased by 7.
    3% year-on-year in 2020, also contributed a huge force.



    "High-end transformation" has opened up a new growth point of profit for the unity, but profit growth is not entirely due to the "high-end strategy".
    Since 2016, Uni-President's gross profit margin has been declining, and it was not until 18 years that it began to stabilize and rebound.



    However, its net profit margin is the opposite of gross profit margin.
    Not only did it not decline during the 16-18 years, but it even continued to rise.
    This shows that the company itself is also striving to increase profits by controlling costs in recent years.



    In fact, "Rong Finance" has seen that since 16 years, unified sales expenses and management expenses have been gradually reduced, which can confirm the above conjecture.
    The scale of revenue has not expanded year-on-year, costs have decreased year by year, and profits have increased year by year in double digits.
    These all illustrate a problem.
    The unification of profit growth in these years is not caused by the simultaneous growth of total revenue alone.
    Brought about by "compressing costs".



    It is foreseeable that this kind of profit growth is not necessarily a good thing for companies.
    First, reducing costs will inevitably reduce marketing expenses, including publicity and promotion expenses, which will bring certain restrictions on the promotion of new products; in addition, It is difficult to predict how much room for compression in terms of costs, and in the unlikely event of “overpressure”, it may affect Uni-President’s future profit growth.



    So, in addition to developing high-end products and reducing costs, where is the room for future growth in Unity?



    Where will the future growth point of Unity be?

    Where will the future growth point of Unity be?



    In the past few years, the unified "high-end strategy" has achieved initial results.
    From the sales data of Tmall Mall, although instant noodles based on "Tang Da Ren" are still the sales champion in the store, it is like comparison in recent years.
    The popular net celebrity style freshly cooked instant noodles also has good sales.

    But Uni-President did not blindly indulge in the popularity of Internet celebrity products.
    In Uni-President’s annual report last year, the star items that were highlighted include Tang Da Ren, Kai Xiao Zao, Assam and Cha Li Wang, among which "open small stove" It is a newly-developed single product in recent years, which can demonstrate the strength of the unity in product innovation.



    Data shows that Kaixiaozao will achieve a multiple increase in revenue in 2020.
    In the first half of 2020 alone, its revenue will exceed 170 million, a year-on-year increase of 15 times.
    In many e-commerce platforms, this product has always been out of stock.



    Although the output of instant noodles has been declining since 2017, and even recorded a double-digit decline in 2019, in fact, there is not much demand for instant noodles.
    Among them, in addition to noodles, rice-type instant foods The growth momentum is not weak.



    The consumer demand for instant noodles is declining, but from another point of view, the number of consumers and consumption scenes of "convenient food" are constantly increasing.
    Consumers are re-focusing on instant noodles, but the demand is different.



    In the past, consumers chose instant noodles because of its cheap and convenient characteristics, but for today's consumers, due to the changes in the market environment, they also have new dietary needs, which led to the birth of "new instant noodles".



    For example, convenience food is no longer the belly food for low- and middle-income earners.
    Delicate mothers and senior middle class will also choose convenience food to reduce the difficulty of housework.
    Everyone thinks that eating instant noodles is not a good thing.
    It was originally to "eat on the go" and slowly became "especially eat".
    Like in a hot pot restaurant, many people will get a pack of instant noodles after eating hot pot.
    This is not just to eat.



    In addition, the consumption scene of convenience food is also increasing.
    In addition to the "one-person food" scene, the rise of family dining, outdoor dining, dormitory dining and other scenes has brought new opportunities for "convenience food".



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