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Condiment industry future development trend
Since 2003, the seasoning industry has entered a period of rapid development. The annual growth rate of the industry in the last five years has reached about 20%, and it has achieved an annual growth rate of more than 10% for 10 consecutive years. At present, the total output of the condiment industry has exceeded 10 million tons. In 2007, the enterprises above designated size for condiment and fermentation products achieved a total output value of 91.4 billion yuan, a year-on-year increase of 27.9%, indicating that the brand era of the condiment industry has arrived. After several rounds of industry consolidation and domestic and international capital integration, the Chinese condiment market has transformed from a relatively lagging industry to a fierce market competition industry. With the continuous escalation of consumption and the intensification of market competition, seasonings have shown a trend towards high-grade development. The market capacity of medium-to-high grade condiments has further expanded, and the market share of branded products has further increased. With the continuous regulation of the condiment industry by the country, the threshold has been gradually increased, and international, professional mergers and acquisitions have been successively staged. Concentration of the condiment industry will gradually increase, and the survival of the fittest will be accelerated for SMEs. Traditional condiment production companies have invested in technological transformation, and the technical content of condiment products has been increasingly strengthened, and the quality of products has been further improved. The penetration of foreign capital in the domestic condiment market has increased, but due to the obvious regional characteristics of condiment consumption in China, domestic famous brands will still dominate the market for a long time to come.
First, the industry shuffles too polarized
Kikkoman, Japan’s largest soy sauce producer, accounts for one-quarter of Japan’s total output, while second- to fifth-ranked companies account for one quarter of the total, and its market concentration is very high. In contrast, the soy sauce market in China has a scale of 5 million tons, while Haitian, the largest soy sauce condiment manufacturer, only accounts for 4% of the national production. Another example is the “four famous vinegars,” which are mainly mainstream consumption in their respective base areas.
This is because China’s geographically large transportation costs, the regional differences in consumer tastes, and the impact of traditional business practices, China’s seasoning industry is still dominated by local brands. With the deepening of reform and opening up and the development of market economy, some The company has gradually developed into a regional brand and its products have radiated to the neighboring provincial markets. However, there are not many real national brands.
Last year, Haitian spent RMB 1 billion to establish a soy sauce base in Guangdong. By expanding the scale of the company, the total cost of the sauce was greatly reduced, and the market share was targeted at 20%. However, people in the industry believe that although Haitian relies on production in the first place, but the condiment industry in the region of the melee situation, so Haitian in the short term to expand the market share of wishful thinking is not so easy to achieve. At present, the domestic seasoning manufacturing industry is mainly concentrated in Shanghai, Guangdong, Shandong, Beijing, Shanxi and Sichuan provinces and cities. Among them, Shanghai has a market share of more than 30%. From the point of view of brand structure, the brand can be heard in the national market. The proportion is less than 1%. "Long-term local operations, limited market coverage, and weak brand awareness" are a serious realistic issue for the condiment industry.
According to Guan Zhirong, sales director of Shanghai Taoda Foods Co., Ltd., with the internationalization and professional merger and reorganization, the condiment industry concentration will gradually increase, and the survival of the fittest will be accelerated for SMEs, but due to the long-standing existence of regional strong brands, The expansion of national brands is still very difficult.
II. Specialization of category management
The high density coverage of condiments, the diversity of the categories, the differences in demand, and the complexity of the pathways make it harder for rivals in FMCG. The shape of the pocket, wide market, stable income, high degree of involvement, complex categories, full channel - the accumulation of all these attributes, making this industry presents a kind of easy to live, grow up difficulties, the mountains everywhere, a scattered situation.
The national brand of the condiment industry can be described as extremely rare. Soy sauce is only the hegemony of Haitian, chicken has the wife too proud, humble eye of the brand of spices Wang Shouyi Shi Sanxiang also has an absolute market share in the category market, and most of the seasoning brand is also based on the competition in the regional market. How to get ahead in the regional market and how to get out of the house to achieve the rapid expansion of the market? This is a market puzzle for many condiment companies.
The current seasoning industry is still in the era of extensive marketing. The low cost, low threshold, low added value, and long consumption cycle are the salient features of the condiment industry, which has led to the company's inability to invest a lot of advertising costs in the growth period. The competition between condiment brands is still confined to individual marketing links such as price, category and channel, but from the perspective of market competition development, integrated brand marketing is an inevitable stage of condiment competition.
Small condiment companies want to stabilize and base themselves on the local market. Medium-sized condiment companies want to seek greater market coverage. Large-scale condiment companies also have ambitions to disregard the national market. What do they rely on to achieve such business objectives? Brand building is an inevitable trend. Integrating brand marketing is a matter that must be considered.
Third, subdivision of product innovation
The condiments specially designed according to various cuisines or specialties have been seen by Wal-Mart, Wells, and other supermarkets. The variety of condiments is extremely rich. They can occupy a whole row of containers in supermarkets, including soy sauce, vinegar, and sauce, including Amoy. The brands of Dazhong, Weishida, Lee Kum Kee, Haitian, and BB all subdivide their products. For example, sauces are divided into six or seven types, including rib sauce, dumpling sauce, pork roast sauce, stalk sauce, bibimbap and so on. According to reports, each sauce is suitable for different foods, such as pork rib sauce suitable barbecue food, pork sauce suitable for pickling food, all the time the sauce is suitable for cooking meat and vegetables and so on.
"Now the soy sauce can also be divided into a variety of types. It is no longer a bottle of soy sauce before it can be used with a variety of foods." According to the official sources of the official website of the Legend brand, fish, meat and seafood are now all equipped with different soy sauces. Make different kinds of food more delicious. According to reports, the subdivision of soy sauce is mainly to distinguish between raw materials and technology, such as steamed fish soy sauce contains dried scallop juice, soy sauce soy sauce is made of black beans and soybeans and so on.
Fourth, high-end product development
Condiment products pay more attention to nutrition and health on the basis of paying attention to taste, traditional condiments and compound seasonings will show a trend of professional development, and the market will further subdivide and strengthen functional condiments (such as iron fortified soy sauce), using each A variety of seasonings (such as abalone soy sauce) that are extracted or deep-processed from seasonings are listed. With the advancement of science and technology, various new technologies have also been widely applied to the production of condiments, such as bio-enzymatic technology, immobilized yeast technology, membrane technology, extraction technology, and microencapsulation technology, which greatly improved the quality of condiments and Various biochemical indicators.
V. Diversification of channel operations
The sales channels of condiments can be divided into two places, household consumption and catering consumption, and their channels are roughly divided as follows:
1, large-scale retail terminals: KA Damai Chang, warehouse shopping center food sales area.
2. Supermarkets: These supermarkets are mainly food and daily necessities, and are mainly distributed in B or C stores in communities or commercial areas.
3, dry fresh seasoning store: set up in the farmers market, they are an important channel for the sale of spices, but also have the dual functions of wholesale and retail
4. Community Convenience Stores: Small grocery stores that are spread across family houses or communities. Some stores also provide door-to-door service
5. Food and beverage outlets: Direct consumption terminals for condiments and one of the most important consumption channels for condiments
It can be seen from the above that condiments have the characteristics of wide-channel sales, and there are huge differences in the operation of these channels. Each channel has different requirements for brand, variety, quality, distribution, and service, and covers the required channels. There are significant differences between the funding requirements and operating costs. Therefore, it also creates a living space for condiment companies of all sizes. With the requirements of specialized operations, condiment stores will also emerge quickly.
VI. Nationalization of regional brands
After several rounds of shuffling in the condiment industry, the pattern is basically clear. Some small and medium-sized enterprises originally operating in the regional market or local market, whether it is out of response to the deterioration of the competitive environment in the local market, or want to break through geographical restrictions, have embarked on an expansion path. Some of the companies that have completed their original accumulation and have the advantages of branding, technology, research and development, capital, and talented people are also referring to the national market. However, in addition to restrictions on the formation of competition barriers by local brands, condiments are particularly limited to low-value transport costs due to high value and low price competitiveness. Condiment companies must have high value-added products and marketing techniques and capabilities when expanding in the region. When expanding to a certain scale, they must also build production bases that meet their service radius and business scale.
Seventh, the enterprise integrates aircraft carrier
At present, the domestic condiment industry has gathered the capital power of Europe, the United States, Singapore, Japan and other parties, and mergers and acquisitions between enterprises have become hot. Huiya has invested more than 200 companies in 22 years in China, of which more than 60 have already achieved listing. Last year, Ajinomoto Co., Ltd. in Shanghai announced that it had invested HK$1.845 billion to complete the acquisition of Amida Foods, a subsidiary of Danone Group. This was the beginning of Japan’s Mizuno’s “Beijing Hetian” and the holding of “Longmen Hetian”. After the "Tiger King He Tiankuan", the transnational giant was another important move in the condiment market in China. In addition to the two major mergers and acquisitions by the above-mentioned multinational corporations, Beijing Wangzhihe Group also recently announced the merger and reorganization of the Guilin Rufu Plant in Guangxi with the establishment of Wangzhihe (Guilin Sufu) Co., Ltd., and several other famous domestic and foreign foods and seasonings. The Group also is in full swing planning mergers and acquisitions.
There is no shortage of small and medium-sized condiment companies in China, but there are not many large-scale condiment companies. Haitian is one of the larger companies. Its market share is about 10%. According to Haitian’s expansion plan, it will achieve 10 billion yuan by 2010. Sales scale. Therefore, the condiment industry mergers and acquisitions are limited, the industry's output value is relatively small, product differentiation, large-scale enterprises need more factors than other industries, this point and the daily chemical industry is very different.
With the opening of a new round of internationalized professional mergers and acquisitions, industry insiders generally believe that the Chinese condiment industry has entered a period of major changes, major adjustments and major polarization. On the one hand, it is a professional M&A that is in line with the international standards. On the other hand, the traditional industries are exposed to international competition in the development process. The confusion and stubborn disease are exposed. The seasoning industry is not improved enough to reduce the obstacles on the big development road.
Analysis of the development status of seasoning industry