In the "involution", the breakthrough road of condiment enterprises

In the second quarter of this year, the prices of soybeans, packaging materials, and freight prices continued to rise, resulting in the poor collective performance of listed companies in the condiment industry, with a collective drop of more than 50%

How can new brands break through in the "involution"?

Although the growth rate of the condiment industry has declined, it still cannot stop the ambitions of new entrants under the market scale of 100 billion

However, even the condiment giants have to face the fate of having to raise prices

Taking the young people's table New brands in the condiment industry have targeted the young people's table

The new condiment brand "Add a Taste" is to see this characteristic of young people.

Do meaningful product innovation and differentiation If "positioning" is to make the brand unique in the minds of potential customers and is the basic way to capture customers, then the product is to improve the repurchase rate and retention of consumers.

The flavors of condiment brands are all differentiated by nutritional condiments, and are a healthy upgrade of Chinese condiments

Packaging wins, fun and good-looking compatible Throughout most of the packaging of new brands, the words fun and good-looking are inseparable

Sichuan Fansaoguang applies animation to the packaging of most of its brands.

Focus on marketing and create brand memory is limited by the time of establishment.

Like traditional consumer brands, Zihaiguo is also keen on the release of drama series.

　　For new entrants in the condiment industry, marketing methods are universal to a certain extent.

Compound condiments become the only growth pole?

　　According to data from Frost & Sullivan, in 2020, the market size of compound condiments in China will be about 150 billion yuan, accounting for 22.

　　According to industry insiders, single condiments are more meaningful to Chinese consumers, although compound condiments mainly meet consumers' demand for convenience, match the consumption thinking and consumption behavior of the new generation of consumers, and have stronger technological content and functionality.

　　Where are the growth opportunities? Studies have shown that the investment value of a food and beverage company depends on product power, brand power and channel power

　　The industry believes that at present, consumers' demand for additional attributes of products is increasing.

　　Brand power takes precedence over product power and channel power, and the key to brand power is to express positioning with products
.
Taking Taste Quan as an example, the purpose of launching its first product, enzyme live soy sauce, is to fully express its brand positioning—nutritious condiments, and the second is to enter the appropriate channels to be selected by consumers
.

　　Today, with the increasing number of product categories, the products in the condiment industry are more replaceable, and even brands that are well-known to consumers may be abandoned on the shelves of supermarkets
.
Therefore, improving the added value of the brand is as important as product development, which is also the most important point of the "positioning" theory - positioning the product in the minds of potential customers.
If you start from this point, the new brand is not irreplaceable for the old brand
.

　　The channel strength is deeply integrated with the above two.
The brand image and product audience determine what kind of channel the product should adopt.
Just as HEYTEA will not be sold at roadside stalls, Qingdao's ice pack beer cannot be placed in self-built stores
.

　　The industry believes that in the next few years, the new and old competition in the condiment industry may become more intense, but after the fierce competition, the entire industry may usher in continuous upgrading and reshaping
.

　　(Comprehensive arrangement by Zhou Yan)  

　　"China Food News" (04 edition on October 28, 2021)

(Editor in charge: Zhou Yan)