Niu Honglin, Li Yi, and Josh Cotterill discuss the rising prices of baked goods and whether they are worth it. They delve into the popularity of premium bread brands in Beijing and the influence of social media influencers on consumer preferences. They also talk about market research and adapting to the Chinese food market, as well as offering support and advice for overcoming struggles.
The bakery industry in China is witnessing changes with the rise of more expensive and high-end bread options, and despite the high prices, these premium bread brands remain popular among customers.
Consumer knowledge and expectations are increasing in the bread market in China, making it harder for lower quality bread to compete, highlighting the importance of understanding local consumer trends and conducting market research.
Deep dives
The Bakery Industry and Expensive Bread
The bakery industry in China is witnessing changes with the rise of more expensive and high-end bread options. While there are complaints about the increasing prices, there is also a clear price hierarchy in the market. Cheap bread can be found in supermarkets, while bakery chains offer bread priced between 10 to 20 yuan. Premium bread brands, especially in bigger cities, can sell bread for nearly 30 yuan or even higher. Despite the high prices, these premium bread brands remain popular among customers.
Consumer Preferences and Trends
A survey conducted in China shows that most consumers prefer to spend between 10 to 30 yuan on a loaf of bread. Less than 10% of respondents are willing to buy bread priced over 50 yuan. While younger people are more inclined to try expensive bread influenced by social media, the majority of consumers are still conservative in their choices. Consumers expect high prices to be justified by quality, and there is an emphasis on freshly baked bread over pre-packaged ones.
Bread Varieties and Influencer Impact
Bread markets in China are diversifying with various flavor combinations and creations, including adding chili sauce or seafood to bread. Internet influencers play a role in educating consumers about quality bread and pastry. Social media influencers share expertise on aspects such as the texture, flavor, and good design of certain bread products. Consumer knowledge and expectations are increasing, making it harder for lower quality bread to compete. Market success in China requires understanding of local consumer trends, geographic location, and market research.
As some bakeries push the boundaries of creativity, their prices are also becoming more and more jaw-dropping. Are these treats reaching new heights in taste and quality, or are we witnessing a dough dilemma as prices soar? Are the prices worth the treat? / Heart to Heart - please send your audio questions to ezfmroundtable@foxmail.com (20:43)! On the show: Niu Honglin, Li Yi & Josh Cotterill
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