Original title: Micro Zongzi Economy: Nai Xue and others entered the game, the gross profit margin was 40%, and some merchants’ gift boxes were sold out
The sense of ritual of the Dragon Boat Festival starts with eating a bite of zongzi.
Zongzi carries the food memories of generations, and also carries all the taste buds of a traditional festival.
The Dragon Boat Festival is still a week away, but the Zongzi market is already steaming hot.
Some companies said, "This year's overall sales kicked off in late April, and it was officially launched on the ninth day of May." Some brand owners said that the brand of dumplings had been "sold out" as early as May 20, and "a total of Nearly 130,000 boxes of rice dumplings."
In recent years, "Internet celebrity players" such as Nai Xue's Tea, Hey Tea, and Wen Heyou have competed to enter the game.
Some institutions predict that the size of my country's zongzi market will exceed 10 billion yuan in two years.
Behind the fierce market competition, the gross profit margin of the industry is still maintained at around 40%.
In order to capture the "stomach" of consumers, the taste of zongzi is becoming more and more "rolled".
This year, after abalone dumplings once made the hot search list, some merchants said that the elimination rate of new products exceeded 50%.
According to a brand introduction, it will be screened among nearly 100 flavors, and the well-known artist Nicholas Tse is deeply involved in the research and development process of his brand zongzi.
Stock up in advance
Nearly 130,000 boxes of zongzi with brands have been sold out
Compared with last year, this year's Dragon Boat Festival is nearly half a month earlier, and many zongzi manufacturers have been busy early.
It is understood that Quanjude began to stock up for the Dragon Boat Festival as early as March this year.
"This year's overall sales kicked off in late April, and it was officially launched on the ninth day of May, starting this year's dumpling sales." The relevant person in charge of Quanjude told the Beijing News Shell Finance reporter.
"Zhiweiguan", a well-known food brand in Hangzhou that has been producing zongzi for more than 20 years, also said that it had already started producing zongzi as early as mid-to-late April.
"There must be sufficient stock before the sales peak." Tang Zenglu, assistant to the general manager of Zhiweiguan, told the Beijing News Shell Finance reporter.
Fengwei is a brand created by the well-known actor and singer Nicholas Tse. In March last year, Fengwei and partners hatched a new brand - Fengweipai.
This year's Fengwei Zongzi is operated and sold by Fengweipai's team.
"This year's Dragon Boat Festival is relatively early, and the epidemic situation is repeated. In order to make good use of the sales demand of the Dragon Boat Festival, the KPI I set for the team is to sell out before May 28." Chen Yuwen, the brand manager of Fengweipai, was unexpected. Yes, on May 20, the team has completed the sales task.
"A total of nearly 130,000 boxes of rice dumplings were sold." Chen Yuwen believes that the products can be sold out in advance, thanks to the executive team's analysis and familiarity with the market, keen insight and high execution. "Our operation team, in terms of production and sales, The play style of the whole platform and the whole domain is very mature.”
In terms of sales strategy, Quanjude also stated that it has made adjustments, "for example, it has increased the development of the overall group buying business, increased the sales in the form of online platform combinations, increased the mobilization and development of a large number of online resources, and then It is to increase the sales business of retail single-bag small packaging offline, thereby increasing the consumption scene.”
It is understood that although the market demand is large, the production of zongzi is still mainly manual due to the crispy and easily broken leaves of the zongzi, and some enterprises can realize mechanization in filling and bundling.
According to Tang Zenglu, "the most skilled workers here can make 2,200 to 2,500 rice dumplings a day."
earning effect
The average gross profit margin is about 40%, and "net celebrities" such as Nai Xue's tea, Heytea, Wenheyou, etc. have entered the game
The little zongzi broke into the big market.
There are more and more players entering the dumpling market.
According to the company's data, there are 5,336 zongzi-related enterprises in my country. In the past five years, the number of registrations of zongzi-related enterprises in my country has been on the rise.
The Beijing News Shell Finance reporter noticed that in the prospectus, Beijing Daoxiangcun Food Co., Ltd., Jiaxing Zhenzhen Lao Lao Food Co., Ltd., Sanquan Food Co., Ltd., Zhengzhou Sinian Food Co., Ltd., Taoli Bread Co., Ltd., etc. It is regarded as the main competitor of Wufangzhai.
From the perspective of production, in recent years, many catering companies and snack brands have entered the dumpling market, especially Nai Xue's tea, Heytea, Wenheyou and other Internet celebrity brands have also entered the market.
According to the relevant person in charge, on May 20, Nai Xue's tea launched the Dragon Boat Festival Zongzi gift box, and the products have been listed in Nai Xue's tea Tmall flagship store and WeChat applet.
At the same time, the cakes in the Zongzi market are getting bigger and bigger.
According to the prospectus of Wufangzhai, it is expected that by 2024, the size of my country's zongzi market will increase to 10.291 billion yuan, and the compound annual growth rate from 2020 to 2024 is expected to be 7%, which will maintain a good development trend.
The competition is getting more and more intense, however, the gross profit margin of the industry is still maintained at around 40%.
Wufangzhai's prospectus shows: "The gross profit margin of the zongzi industry is generally at a relatively high level. From the data disclosed by the listed companies Sanquan Foods and Taoli Bread, since 2012, the average gross profit margin of the zongzi industry has fluctuated around 40%. The overall volatility is within a reasonable range."
The gross profit margin of Wufangzhai's own zongzi series products is also relatively stable. From 2018 to 2020 and the first half of 2021, the gross profit margins of Wufangzhai's zongzi series products are 46.70%, 46.91%, 46.56% and 46.18% respectively.
In the face of the influx of players from all walks of life, Chen Yuwen is not worried about the market share being seized. He feels: "The zongzi industry is getting more and more attention and attention from everyone, which is precisely the reflection of the rise of our country tide."
Chen Mengjie, chief strategy analyst of Yuekai Securities, said: "On the whole, we believe that the current industry lacks competition barriers and has a low moat, so the market competition pattern is fragmented. In the future, if we want to develop a great deal in the rice dumpling industry, we should focus on three aspects: Product upgrades, changes in sales channels, and strengthening of brand marketing create a strong brand effect."
New product development
The elimination rate of new products exceeds 50%? Nicholas Tse is deeply involved in the research and development process of Fengwei Zongzi
Taste is the first "magic weapon" to ignite the purchasing power of consumers.
With the increase of players, the taste of zongzi has also "rolled up". Netizens joked, "There are only things that you can't think of, and there are no things that can't be wrapped in zongzi."
According to Tang Zenglu, the team has started new product research and development work since September last year, "This year we have about 10 new varieties, including black truffle and black pig pork belly dumplings, abalone roasted pork dumplings, durian cheese dumplings, quinoa eight-treasure dumplings, Osmanthus fragrant chestnut dumplings, etc."
The new products of zongzi are replaced quickly and the elimination rate is high.
Tang Zenglu told the Beijing News Shell Finance reporter, "Zongzi's user stickiness is poor, and the elimination rate of new products will exceed 50%." Looking back, Zhiweiguan will basically introduce about 10 new flavors every year, and about half of the new products can be kept. to the next year.
"The main purpose of launching new products is to attract consumers' attention and attention. Of course, we will also check the taste, but once we realize that consumers' enthusiasm for this product has passed, we will withdraw it." Tang Zenglu He said that according to experience, the classic models based on the keynote of "sweet in the south and sweet in the north" are the most popular among consumers, but from a marketing perspective, they will still insist on launching new products every year.
"We are a brand in Hangzhou, and this year's sales have increased by about 8% year-on-year. Our goal is to first develop Hangzhou's special flavors, consolidate our moat, and then consider expanding to the whole country." Tang Zenglu said.
It is a common phenomenon in the industry to stick to the classic models and continue to innovate.
According to the relevant person in charge of Quanjude, "This year, among nearly 100 different flavors and fillings, we conducted multiple internal and external tests, and finally deleted nearly 30 flavors for listing."
It is understood that Nicholas Tse himself has been deeply involved in the research and development process of Fengwei Zongzi. "He has actually been engaged in the catering industry for many years. We call him chef. He will propose the general direction and basic concept of the product, and then the team will follow his requirements. When formulating a plan, he will participate in the process of implementation and debugging, such as the adjustment and optimization of taste and finalization, the suggestion and selection of raw materials, etc.” Chen Yuwen said.
There are not many new products launched by Fengwei this year. One of the main products is the dried scallop, abalone and black pork dumplings. According to Chen Yuwen: "The taste of dumplings is a good thing to roll up. The idea of the chef (Nicholas Tse) is also to promote innovation. Most brands focus on Generation Z, the so-called mainstream consumer group, who value experience, love appearance, and taste innovation can be favored by them.”
Eco-friendly design
Zongzi gift box packaging is a national trend, practicing the concept of environmental protection
In addition to taste, another force that companies compete for is packaging.
"Market competition in the dumpling industry is mainly reflected in brand, category, price, marketing, etc." Bai Wenxi, chief economist of IPG China, told reporters.
"Zongzi, as a food of traditional Chinese culture, is not only edible, but also reflects the sense of traditional cultural rituals." The relevant person in charge of Quanjude said.
According to his introduction, now the "outer packaging design of zongzi products is becoming more and more fashionable, with various designs resembling fashionable bags, various brand joint names, and various historical story elements have been added to the zongzi gift box design. It increases the traditional atmosphere of the Dragon Boat Festival and also increases the sense of ritual for young people to take pictures."
In fact, the Dragon Boat Festival is also an environmental protection festival. From the recyclable packaging of rice dumplings to the green and low-carbon sports dragon boat racing, to the hanging wormwood for environmental protection and epidemic prevention, the customs of this day contain multiple environmental protection elements.
First of all, as a wrapping paper, zongye leaves perfectly replace plastics and paper products, effectively reducing the generation of plastic waste and paper waste; secondly, according to media reports, zongye itself contains a variety of amino acids and chlorophyll, which can clear heat, reduce swelling and detoxify The effect is called natural green food.
Zongzi manufacturers also pay attention to the concept of environmental protection in the outer packaging of the Zongzi gift box.
"Our packaging design is mainly based on the national trend." Tang Zenglu told the Beijing News Shell Finance reporter, "We are very careful in packaging design. In order to create a visual impact, we will upgrade and transform every year, and even make a big change."
"At the same time, we will also pay special attention to the practicality of the packaging." Tang Zenglu said, "We have made the packaging beautiful and also use environmentally friendly materials. I hope that consumers can leave the packaging for storage after eating the dumplings. Some other things to achieve the reuse of packaging.”
Tang Zenglu also told reporters that this year should be the last time a "big packaged rice dumpling gift box" appeared on the market.
On May 26, the State Administration for Market Regulation held a special press conference to interpret the No. 1 Amendment List of the National Standard "Restriction of Excessive Packaging Requirements for Food and Cosmetics".
"The packaging of moon cakes and zongzi has the functions of protecting commodities, facilitating storage and transportation, and guiding consumption. However, excessive packaging not only wastes resources and energy, but also increases the burden on consumers. The packaging waste generated is even more harmful to the environment. It should be regulated and guided." said Liu Hongsheng, director of the Standard and Technology Department of the State Administration for Market Regulation.
Liu Hongsheng said: "In order to make moon cakes and zongzi packaging 'slim down' and 'lightly loaded on shelves', the State Administration for Market Regulation (Standard Committee), together with the Ministry of Industry and Information Technology and other departments, organized relevant standardization technical committees and technical institutions to formulate and issue the "Restricted Commodities". "Excessive Packaging Requirements for Food and Cosmetics" (GB 23350-2021) National Standard No. 1 Amendment Sheet, the implementation date is August 15, 2022."
Bai Wenxi told reporters: "Product appearance and packaging are an important part of marketing, especially the marketing methods of zongzi companies on packaging, which are an important basis for good marketing, regardless of whether it is to emphasize traditional culture, traditional craftsmanship and The packaging of natural materials is still the packaging that reflects the festive atmosphere and raises the product positioning, and the waste and inflated prices caused by excessive packaging need to be avoided.”
Beijing News Shell Finance reporter Yan Xia