In our last article, we made some predictions on the direction of the food and beverage (F&B) industry after 2020. Among them, a healthy diet, plant-based products, instant food and low-alcohol based beverages appear to be the major market trends. In addition to these, we shall also mention that different dietary needs are gradually increasing and customized products will occupy the market sooner or later. That said, how should existing brands make progress towards such a trend and broaden their business areas and channels while maintaining their market position? Continue reading to find out some of our suggestions.
Intelligent Sales Channel
Until recently, the traditional sales channels of the F&B industry were mainly offline such as supermarkets, convenience stores and restaurants. Online consumption has now evolved into maturity, which can more conveniently support structured F&B consumption behavior. Along with this, an increase in the hoarding of F&B products also represents an important manifestation of the change within consumption habits, which can also be seen in the consumption data of the latest Double 11 E-commerce Festival. In fact, according to the Analysis Report on Double 11 Sales Data in 2020 released by Syntun, within the sales data of all of the e-commerce platforms on the day of Double 11, F&B ranked seventh among the top 10 in the industry in terms of sales volume; the sales volume of beverages alone reached 700 million yuan, and the sales of leisure snacks even reached 3.2 billion yuan. In addition to this, a new type of consumption behavior called “Coupon Hoarding” is also showing huge potential by allowing consumers to buy consumption coupons or commodity exchange coupons, which can then be exchanged for discounts or physical goods within a certain period of time. According to the data released by ele.me, KFC, Starbucks, McDonald's and Wallace, all of these companies achieved sales of more than 100 million yuan solely in the period from November 1st to 3rd, marking a new record within the China-based F&B industry.
With the rapid development of online channels, the consumption environment such as pop-up shops, smart stores and smart vending machines have been greatly optimized thanks to the implementation of scientific and technological innovations. With the support of diversified consumption scenarios, the balanced development of online and offline Omnichannels will become an inevitable trend to which brands shall adapt to fast, if they don’t want to sink in the Chinese market.
Focus On Consumer Groups
The trend of focusing on consumer demand in order to produce customized goods is indeed gaining a strong momentum. In addition to the traditional specialized consumer groups, such as infants, pregnant women and fitness groups, some new labels are being used to redefine consumer groups. For example, new concept groups such as Generation Z, Sinking Market, “Parennials” (Parents of Millennials) and Seniors are all consumer groups who have strong purchasing power. It is of great significance to master the consumption demand, consumption habits and consumption trends of these consumers for the customized development of products and promotion forms.
Refers to people born in 1995-2009, also known as the Network and Internet generation. It refers to the people greatly influenced by the Internet, instant messaging, SMS, smart phones and tablet computers since they were born.
It refers to the market of cities, towns and rural areas below third-tier cities.
It refers to the parents of the post-80s and 90s generation who pursue scientific means of parenting.
Refers to the elderly, whose consumption power is gradually increasing in terms of population number due to the increasingly severe aging of the Chinese population.
Building Connotation For Brands
In the F&B industry, considering the extremely fast speed at which the market constantly changes, it is not difficult for some brands to obtain a certain popularity in a short period of time thanks to some kind of publicity stunt or celebrity involvement. However, the biggest risk of adopting such short-term-focused-practices is an overall lack of the brand’s stickiness to users, marking it with a lack of soul/connotation, and making it easily replaceable by later generations. Therefore, it is particularly important to adopt wise marketing methods, choose appropriate channels to export brand value in order to make it widely cover the consumer market and show the authentic characteristics of the brand.
When it comes to brand characteristics, the most intuitive elements usually are the taste and packaging design of the product. Moreover, grasping key words and key concepts to create momentum for the product is also a key content of marketing. Topics that can arouse consumers' resonance, such as national trends, tastes related to childhood memories, special foods for festivals, etc., often have a significant influence on consumers' desire to buy, while helping establish an emotional connection between brands and consumers.
As an industry closely related to the daily life of consumers, the trends of food and beverages is complex and changeable. However, the key to success is to always give priority to the needs of consumers while staying true to the brand’s values. For more information on trends in the food and beverage industry or more research reports on consumer behavior, don’t hesitate to contact us at email@example.com.
食品饮料作为一个与消费者日常生活密不可分的行业，其流行趋势必然是复杂而多变的，但无论如何走向，以消费者需求为先始终是不变的制胜秘诀。想要了解更多食品饮料行业的趋势或更多对消费者的行为研究报告，欢迎通过 firstname.lastname@example.org 联系我们。