BAKERIES

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Bakeries and baked goods is somewhat of a social phenomenon in China, viewed by many as a Western sector, thus trendy and up market. There has been a strong increase in the consumption of baked goods in China in the last 10 years as part of the quest for ‘trendy’ western style products. In general Bakery offerings in China are less functional then NZ, and more ‘treat’ based, as Chinese consumers look for something special, not just a hunger-fill. In saying that, the health trend is definitely setting in and forcing leaders to expand or alter their range accordingly and more and more young Chinese are choosing bread as a more wholesome breakfast than traditional street food options. Chinese Bakeries can be loosely grouped into two categories, those who offer genuine European/Western style bakery products, or those who may look Western on the outside, but whose tastes and textures are decidedly “Chinesified” (think soft sweet white bread, Macha flavour, individual plastic packaging). The latter will be more sensitive to price, and potentially less interested in genuine imported ingredients.

TIPS

  • Many top chains have signature items, which differs from the more ubiquitous offering in New Zealand. Supplying an ingredient for a new signature item may be a fast track to healthy depletions.
  • As consumers become more health conscious, big players are looking for more innovative and ‘healthy options.’ Many outlets have completely dumped vegetable oil in favour of pure butter.
  • Western style breads and sandwiches are rising in popularity for quick, easy and healthy breakfast and lunch options and starting to replace typical Chinese options like noodles and steamed buns for their improved longevity and convenience.
  • Most Chinese bakeries tend to have regional focuses, as they are still limited by logistical capacity.

WHAT IS IMPORTANT TO BAKERY BUYERS IN CHINA?

  • HEALTH. Leading companies will continue to focus on products with health and nutrition benefits, such as sugar-free cereals, and products boasting high calcium and vitamins for children.
  • CONSUMER TARGETING. The strongest demographic at bakeries is currently young professionals and white collar workers. Older generations still regard bread as a foreign concept that hasn’t broken into their daily routine, although they do buy bread for grandkids as they see it as a nutritious product.
  • QUANTITY. Many of the key chains have centralised kitchens that produce huge volumes of products to be distributed to their individual outlets. They tend to purchase large quantities of raw materials to produce in bulk, so be prepared with a container if things go well, not just a pallet.
  • INNOVATION. Seems to be both a hot topic and a pain point within this channel currently, NZ exporters are well placed to come to he table with idea with ideas concepts and solutions

HARD DATA MATRIX

OUTLETS FOUNDED HOLDING ORIGIN
Holiland / 好利来 1000+ 1992 Private China
Christine / 克莉丝汀 900+ 1993 Listed (HKG) Taiwan
85 Coffee / 85度C 600+ 2004 Listed Taiwan
Ganso / 元祖 600+ 1981 Listed Taiwan
Sunmile / 向阳坊 400+ 1998 Private Taiwan
Bread Talk / 面包新语 400+ 2000 Listed (SGX) Singapore
Wedome / 味多美 350+ 1996 Private China
Paris Baguette / 巴黎贝甜 300+ 1988 Private Korea
Croissants de France / 可颂坊 100+ 1989 Private China
Ichi Bakery / 宜芝多 109 1999 Private China

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