【Summary】

 1.Introduction

Compared with other industries, baking is a typical instant and fast-consuming food industry. With the rapid market environment change, consumers' demand for the quantity and quality of baked food is increasing, which promotes the market scale and output to expand continuously. With the continuous evolution of consumption upgrading, the baking industry should realize the back-end management of enterprise finance, sales, and supply chain integration, and meet and support the innovation needs of front-end business such as online, store and member marketing.

Combining industry data and a large number of practical experiences in baking new retail, the report discusses the development of the baking industry from multiple dimensions such as industry trends, consumption habits, store operation, and operation increment, expecting to inject more new thinking information into the baking industry and create more and greater incremental value.

2. Baking development presents five major trends

The Report combines Youzan's private practice and exploration of the baking industry and summarizes five typical trends in the development of the baking industry at present.

The industry is developing rapidly, and the growth rate far exceeds the global average

Although compared with European and American countries that have always regarded baked food as breakfast and staple food, China's baking industry started late, and baked goods have not been eaten as dinner due to different living habits and eating styles. However, due to the increasing awareness of consumers on baked goods in recent years, China's baking market is growing rapidly, far exceeding the global average, and it is expected to maintain a growth rate of 8% within 5 years.

Capital admission to help the diversified development of the baking track

In 2021, many capitals noticed the potential of the baking track, with 26 investments and an investment amount of 6.14 billion yuan, which gave birth to several new baking pastry brands and made the whole industry show a diversified development trend. A single product can no longer meet the needs of consumers, and brands need to evolve from the aspects of product appearance, production materials, product packaging, and marketing methods to meet the needs of consumers.

Consumers present diverse characteristics

At present, both online and offline, women and young people are still the main consumers of baked goods. With the development and integration of culture, the diet structure of Chinese people has also changed. Many consumers have developed the habit of consuming baked food every week, and the consumption frequency and amount are rising continuously.

The growth of traditional festivals has slowed down, and classic flavors and small-sized cake categories are the most popular

During 2019-2021, the growth of the Mid-Autumn Festival and Dragon Boat Festival slowed down, among which 2019-2020 had the greatest impact, and the online sales of the Dragon Boat Festival experienced negative growth. In Double 11, New Year's Day, Christmas, and other festivals, the consumption of baked goods is growing rapidly, with an average annual growth rate exceeding 100%, which is related to the increasing popularity of emerging festivals among young people in recent years. In category selection, western cakes are sold more online, while freshly baked foods are more popular offline.

"Online" has become an important part of the development of the baking market

Although offline is still the core channel of the baking market, the online penetration rate has increased rapidly in recent five years, exceeding the market scale by 10%. Among many online channels, third-party platforms including Meituan and Hungry are the first choice for consumers to shop, while small programs are the second largest purchase window, which highlights the importance and feasibility of privatization of brand traffic.

3.Incremental Insights into Core Scenarios of Baking Stores

The baking track is at the crossroads of development. On the one hand, baking consumption is still in the primary stage in China, and the consumer base is large, so the market increment is also large; On the other hand, the cost of bringing new products to traditional channels/traffic platforms continues to rise, and the increasingly demanding consumer demand also leads to many hidden problems in the development of the industry. So, how should baking practitioners open up incremental markets？

First, based on the digitalization of customers, the value of customers, especially member customers, should be brought into full play.

In the new retail era, the business demand of taking users as the king and the market competition situation of incremental stock transfer further highlight the importance of digital marketing of members.

Second, pay attention to the construction of the family network, and enhance the penetration of the birthday cake sales crowd.

At present, the cake is still the category with the largest share in the baking industry, which contributes greatly to the overall business profits, and the consumption of this category has extended from individuals to the "whole family bucket" scene. Therefore, merchants should build a network of core consumer groups of birthday cakes, and fully tap their consumption scenarios according to the subdivision characteristics of members in the network, to effectively bind a family's annual birthday cake consumption.

Third, constantly upgrade products in terms of health, face value, and stories, and continuously provide users with products that meet consumption scenarios and needs.

At present, the head effect of the baking market has not yet formed, and the dividend period is still there. No matter how many variables are full in the future, for baking players, cultivating core business capabilities and paying attention to the long-term value of users is always the key to promoting performance growth.

Source: Global Baking Guide:https://mp.weixin.qq.com/s/lMBIgR_CNHeUNtEWVKP5fQ