BEIJING, Nov. 19 (Xinhua) -- China's snack industry is turning digitalized, as snack producers are steering toward digitalization by increasing their investment in online plus offline channels.
Besides, affected by the COVID-19 pandemic, consumers are looking for healthier food. To respond to this trend, brands have stepped up efforts to provide snack food with less salt, less sugar and less fat.
-- Prevailing trend of going digitalized
The snack industry in China is entering a fast growth lane, according to a report on snack industry released by the Circulation Industry Promotion Center affiliated to the Ministry of Commerce (MOC).
The report showed that the market size of Chinese snack industry grew from 424.04 billion yuan in 2006 to 2.22 trillion yuan in 2016, representing a compound annual growth rate of 17.98 percent. It is expected to hit 3 trillion yuan in 2020.
In recent years, the rapid rise of e-commerce has driven snack enterprises to seek digitalization for further development, as an effective digital system can enable easier engagement with consumers and timely access to consumer feedbacks.
For example, LYFEN, a Shanghai-based snack food chain, has applied internet technologies to integrate its existing information systems and build a business middle platform centered on membership, goods, marketing, transaction and inventory so as to innovate business, according to Yu Ruifen, founder and president of LYFEN.
Yu added that LYFEN has launched official App, mini program in WeChat, and online stores on e-commerce platforms to connect online and offline business, making products accessible in all channels.
Eying omni-channel digitalization, top snack producer Bestore started building its App four years ago. At present, Bestore has its marketing system covering e-commerce platforms, social media, stand-alone App, and brick-and-mortar stores.
Apart from running self-operated App, snack producer Three Squirrels has cooperated with e-commerce platforms such as Tmall and JD.com to offer products on online marketplaces. Meanwhile, the company has implemented a digital strategy, under which its advantages of online operation are used to build up offline supply chains and channels so as to cover a larger group of consumers.
Despite certain differences, the three snack enterprises are all targeting online plus offline coverage, said Li Yunzhou, distinguished partner of Allpku, a management consulting company in China.
Zhu Danpeng, a Chinese analyst focusing on food industry, moved further to mentioned that online-offline integration is expected to be the future development trend of fast-moving consumer goods in China.
-- Impetus from live streaming
Leading companies in the Chinese food industry have invested a lot in live streaming as the popular marketing mode, by enabling immersive consumer experience and personalized recommendations, to galvanize consumption.
During China's "Double 11" online shopping festival, Bestore launched its exclusive live streaming in partnership with the Chinese-Canadian actor and rapper Kris Wu on TikTok.
This is a high-end live streaming reality show for snack marketing that integrates variety show, cultural and life elements. Oozing out of the live streaming is the high-end characteristics of Bestore, according to Duan Wen, general manager of Bestore's social media e-commerce division.
During the online shopping festival, Bestore also put online 400 short videos about its products. The videos mimicked famous plots and invited online influencers to give recommendations to fire consumers' buying appetite.
Zhou Hei Ya, the Wuhan-based producer and supplier of duck-made packaged food and other related snacks, has sold 1.7 million boxes of products via five rounds of live streaming promotion since this April, along with the launch of live streaming for public service campaigns organized by Wuhan city.
Zhou Hei Ya tried independent live streaming and online celebrity-hosted live streaming during the "Double 11" online shopping spree. Partnering with celebrities in live streaming sessions has helped Zhou Hei Ya increase brand exposures and conversion. In the meantime, some of its stores in central China and south China have started communicating with consumers through live streaming, building a scenario-based marketing model.
Live streaming needs to be integrated with offline channels to generate more growth energies. The key to setting foot in the live streaming racetrack is that brand owners should know well about their consumers, products and consumption scenarios, said Yang Yinfen, president of Bestore.
-- Exploration into healthier snacks
Affected by the epidemic, great changes have taken place in consumer thinking and behavior, resulting in popularity of health-related sectors, said Zhu Danpeng.
For snack enterprises, producing healthier food is a way to stand out in the fiercely competitive market.
During the Third China International Import Expo, Mondelēz, a multinational snack food and beverage company, showcased BournVita, which is a kind of sugar-free brew drink with 13 vitamins and minerals developed for women's health. It also released Cadbury's 30 percent reduced sugar chocolate for the first time in China.
Joost Vlaanderen, president of Mondelēz Greater China, said the company found that Chinese consumers pay more and more attention to high quality products. Considering the fact, 60 percent of the exhibits Mondelēz selected were those that feature health benefit, ingredient control, sustainable raw material supply, etc.
After defining the strategy of developing functional snacks for pregnant and lying-in women as well as the fitness group, Bestore continued to focus on providing personalized products to meet different consumer demands during the "Double 11" online shopping festival.
Bestore offered healthy, nutritious and safe snacks suitable to feed babies, and convenient breakfast, delicious night snacks and party snacks targeting urban white collars and blue collars, said Jie Xiaofeng, general manager of Bestore's e-commerce division.
LYFEN is also dedicated to developing products specific for children and women, in a response to consumers' pursuit of health. For example, one of the product lines of Youngme, a sub-brand of LYFEN, takes women's health as its core and produces healthy leisure snack food for women, according to Yu Ruifen.
Speaking of snack food trend, industry insiders said the snack industry in China has evolved from traditional preserved fruits and Chinese pastries to Western-style puffed food and chocolate and now to healthy snacks. As snacks are one of the major consumer goods, they can transcend economic cycle and become high-quality assets in the capital market. (Edited by Su Dan with Xinhua Silk Road, sudan@xinhua.org)
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