China is shocked network takeaway noodle industry has declined for four consecutive years

 
 
        The rise of instant noodles takeaway network had a direct impact, both consumer groups highly fit. Many of the original house at home by young people is the main force of instant noodles to survive network consumption, readily point, online payment might like a gourmet meal, this process is even simpler than the foam noodles. Even more critical is the network room in taste, the amount of food to be clearly far better than instant noodles.
 
For veteran instant noodles giant "Master" is concerned, these days some loss of face. Late last month, Master handed over the first half sales and net profit double down the performance of respondents, including profit Tingyi second quarter of this year is a record single-season the biggest decline in 10 years. Then, beginning from September 5, listed in Hong Kong main board Tingyi be removed from the Hang Seng Index constituent stocks.
 
Master is the end of 2011 was selected constituent stocks of the Hang Seng Index, the story is also largely on the performance of Master Kong in 2011 as the cut-off point - - 10 years before 2011, the Master shares rose more than 20 times, has become the most growth of the Hong Kong stock leading consumer companies. But starting in 2012, Master Kong profits began continued to decline. Some statistics show that since 2014, Master Kong's stock fell almost every quarter in 2014 and 2015 its right to re-shares fell 20.13 percent and 36.59 percent, respectively. From October last year to date period of one year, Master Kong shares from HK $ 13 to HK $ 8.93 and now all the way down, fell more than three percent. This is nearly a month since its share price performance after a rebound in June this year the share price had dropped to HK $ 6.4 Master, a record low of nearly nine years. Master Kong stock market value during this period also fell to HK $ 40 billion today to HK $ 140 billion from the highest, the book evaporated nearly 100 billion.
 
Market
 
Instant noodle industry for four consecutive years of decline
 
Master Kong is China's largest instant noodle brand, sales of more than all other brands and; the most important business at the same instant noodles is the Master, the income share of 40% within the group. Therefore comment was, in fact, performance is also Master of instant noodles market decline from flourishing shift course. Master and fight in unity for many years, although the performance of the first half of instant noodles better, but also experienced many years before the huge losses. Nielsen statistics show that the market share of Master Kong and unified way in the past years at 50% and 20% from top to bottom, the two accounted for more than Qicheng Chinese instant noodle market share, but two strong industry pattern perennial stability. But last year, Master Kong, unity in the earnings are continually disclose the risks of China's instant noodle market recession.
 
Single point of view from two of instant noodles, instant noodles Master income in the first half of 1.542 billion US dollars, down 13.95 percent year on year. Master Kong instant noodles is the most important since the business, revenue accounting for 36.79%, so the decline of instant noodles business, a direct result of the company's overall performance report atrophy. And while the decline in sales of instant noodles increased raw material prices also appeared to gross profit margin also declined, but at the same time improve the advertising investment, Master Kong instant noodles in the first half net profit cut, fell by more than Liu Cheng.
 
Big two days reflects the status of the entire Chinese instant noodle market. Data Chinese Institute of Food Science and Technology in China convenience food Congress released last week show that China instant noodle industry is the fourth consecutive year, and the adjustment continues. Data show that last year the mainland Chinese noodles total 36.249 billion copies, compared with last year decreased by 8.54%; sales of 49.091 billion yuan, down 6.75 percent compared with last year. This adjustment in the first eight months of this year continued, still not turned up. According to the country's 22 instant noodle business statistics, there are nine have a sales decline, many brands have begun to adjust the business direction.
 
Some analysts pointed out that the report, instant noodle market recession for several years, on the one hand and people's product quality, taste invariably on the other hand also on the market appears more and more alternatives are directly related. But in the end still lagged behind industry innovation, twenty or thirty years in form of instant noodles, taste basically nothing much changes, "People are tired of watching to see, let alone eat it!"
 
Response
 
High-end could not save the life of instant noodles
 
"Instant noodles in product innovation has been insufficient to force consumers to turn to other foods gradually, at the same time, the rapid rise of network delivery industry, but also the impact of the instant noodle market is huge, especially the Master Kong, unity center of the city where the first line, the more business delivery network to the more advanced, consumers through a very convenient way to meet daily dietary requirements, so the function of instant noodles diluted. "such analyzes have instant noodle industry consultant who now faces the dilemma.
 
Beiqing Bao reporter in an interview that, in fact, instant noodles companies are trying to find breakout mode, but eventually seems to have encountered a bottleneck. First, the face of the market is eroded, the large-scale instant noodles giants are doing to try to enhance the quality of instant noodles, hope to achieve high-end products, hoping to get rid of instant noodles is "cheap food" positioning, on the one hand can increase the income of the other also can adapt to people's tastes upgrade. Master Kong instant noodles on many occasions for its upgrade in the ingredients, soup, packaging and so on. After the Spring Festival this year, Master Kong launched a strong taste of the soup boil "black and white pepper" series varieties. Meanwhile, for the urban white-collar workers also launched a "soup master" end cup noodles. These products enable instant noodles price increase to more than $ 4.5 grade. Unity also diametrically opposed vigorously layout high-end instant noodle market, only the first half has launched a "Kodate will", "accompanied by a City" and "Man-Han Banquet" three new brands, through different brands and price layout of different consumer groups. The "Man-Han Banquet" pure play high-end market, the price actually set at 29.9 yuan, hoping to become a real meal replacement products.
 
But in fact, instant noodles companies performing this upgrade price strategy is also facing challenges. Master was in the fourth quarter of last year upgraded the product price increases, but immediately led to the sales channels of wait and see, marked decline in sales. According to data released by the Master, instant noodle sales decline in this period led directly to net profit last year of instant noodles business fell 23.99 percent, fell to $ 274 million.
 
And this situation has continued into the first quarter of this year, Master aspects admitted, through constant communication, performance decline rate in the first quarter of this year has been reduced. Master Kong instant noodles in the first quarter operating profit fell down to 15.82%. But poor sales during the stage and adjust the product structure, but also resulted in instant noodles margin declined year on year. Coupled with a substantial increase during the advertising, so the first quarter net profit fell 48.34 percent year on year instant noodles, only $ 48.66 million.
 
The uniform pricing of nearly $ 30 "Man-Han Banquet" on the market is not optimistic about the high cost of many large supermarket shelves simply no shelves. Some consumers for 30 yuan a box of instant noodles expressed surprise: "material and then I'll get enough to be comparable to its duties to sell it?"
 
Analysis
 
Defeated network instant noodles takeaway
 
Outside of this high-end transformation is not optimistic about the prospect of instant noodles, "although they would raise the price, but in the end is a small minority and can not form a normal consumption." Because we want to use to enhance the quality and price of the methods to grab the market is probably not realistic, I am afraid that once the price more than 10 yuan after people first thought might be a fast-food lunch and dinner! More critical is that in the instant noodles in people's consumption concept is not " decent food "at best only emergency no way to eat, and the formation of this impression is probably the price competition and unhealthy fried bread and instant noodles for a long time about the concept, is not able to solve overnight.
 
Each instant noodles enterprises also regarded as a strong fight for the young consumer groups, through various branding rejuvenation tries branding concept. Instant noodles from a few big giants invested heavily in television entertainment programs can see their desire for young people. But the report analysis, the rise of instant noodles takeaway network had a direct impact, "both consumer groups highly fit, even in the four-tier cities, it is also very easy to feel the change." Many of the original house at home by main force is the instant noodles young live network consumption, readily point, online payment might like a gourmet meal, this process is even simpler than the foam noodles.
 
Even more critical is the network room in taste, the amount of food to be much better than instant noodles obviously, in terms of price, while not dominant, but for $ 10 more than it is a direct high-end instant noodles stumbling block. Instant noodles companies are trying to reverse this situation, a unified introduced this year "will Kodate" series, is to flavor pasta specialties cities of China as the theme, trying to catch wandering out of the youth market. Master also has introduced a variety of flavors of products hope to impress young again reach for bowl, and not just in the last resort.
 
But these do not seem to block the takeaway attractive for young people. For instant noodle market downturn, consumers express the most important thing for decades tastes nothing changes, relying solely on the slag thicken sauces and vegetables taste model is clearly no longer meet the tastes of young people more and more cunning. The group of young people has been the biggest consumer of instant noodles. "We can only imagine according to the colorful patterns bag side edge swallow noodles, a decade later or so, killed not eat any more!" Mustaches in a network company, told reporters Beiqing Bao he is now basically every day than to sell for a living, he said four years of college experience instant noodles have been left to their own psychological shadow.
 
Financial Observer
 
 
 
Parody make instant noodles industry innovation power loss
 
In fact, in the instant noodle industry for people who taste instant noodles Tucao also well aware, an instant noodle makers said that technical and cost are the key to hinder the development of innovative instant noodles. Technically, can only do fresh vegetables dried vegetables prepared package varieties are relatively simple, there is no more advanced molding technology allows instant noodles and side dishes can be both long-term preservation together but in a short time through the hot water heated to restore the state, especially especially in meat products. Another point is the price of instant noodles once exceeds a certain range means that self-defeating, which directly determines the instant noodles to the actuarial cost of raw materials. "People of the ingredients have a high demand, the manufacturers need for strict cost control, both of which can be developed to limit the scope of instant noodles in a very narrow range."
 
Another key reason for instant noodle makers neglect innovation is unable to form an effective protection of innovation, when a brand new innovation and a taste of other brands will herd, from the name to the packaging design, colors are vividly imitate. Master braised beef noodles housekeeping varieties of red bags each brand has now become a standard product with taste. Beiqing Bao reporter saw at the supermarket, braised beef noodle brand of instant noodles is basically all main products. The unity lasted several years developed the old altar pickled surface is nearly two years, causing the industry to follow suit varieties, including Master, white elephant, Jinmailang so launched a similar product, the peer-purple bags are imitated trace not bad, in the supermarket without looking really difficult to distinguish. Even industry sources ridicule, "If you developed a taste did not imitate others, can only say that sales of this product will not do!"
 
Parody prevailing industry is mainly due to many SMEs are unable to inadvertently develop new products. According to insiders, in order to open a new nationwide taste of instant noodles, no one million orders of magnitude advertising is simply impossible. The current low-end instant noodles per package only 10% gross margin, that is one or two cents a pack. If there is no large scale sales, probably developed new varieties it is a loss, which makes many companies prefer waiting to imitate a share, rather than invest in the development test piece. This has led to domestic instant noodle [production] industry as several giant development of other brands follow suit to imitate situation. A high degree of homogenization of competition makes the developer's market share be affected, follow the trend can only follow the soup, which the entire industry is clearly unfavorable. "Red hot, blue ocean lonely," was described instant noodle market homogeneity, low-level, no difference in the current competition.