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又一网红产品出圈,康师傅如何打造“可持续”的成长飞轮?

Another internet celebrity product has gone viral, how does Kang Shifu build a "sustainable" growth flywheel?

Gelonghui Finance ·  Sep 30, 2024 13:25

According to the majority of people's opinions, it is actually not easy for consumer goods to raise prices in the current overall environment. Recently, through observing the sales data on e-commerce platforms and consumer feedback, we have noticed that Kangshifu has 'gone against the trend', launching a high-end priced product which the market is quite receptive to.

This crayfish noodle priced at 15-20 yuan was quickly sold out when it first launched. One month later, on September 19, it was relaunched and sold nearly 3000 units in just 3 hours, once again selling out in a short period of time, demonstrating the continued demand for this product in the market.

The fact proves that as long as one can accurately understand consumer demands and meet them with suitable products, regardless of low, mid, or high price range demands, the market can always ignite enough consumer enthusiasm. Consumers do not reject high prices, they just require products at a corresponding price with higher added value and experience.

This time, Kangshifu targeted high-end price range products and successfully made the first move. For them, under the advantage of leading positions in other price ranges, deepening their layout in the high-end market will undoubtedly further strengthen their market dominance, while also bringing more performance and profit growth prospects.

The increase in volume despite the rise in price, validating the strategic correctness of focusing on higher price ranges

In the past, instant noodles were often labeled as 'low-priced' and 'emergency food', but the popularity of this crayfish noodles now demonstrates the diversification trend in the convenience food market.

Fundamentally, the reason for the popularity of this product lies in its unique taste and high quality, meeting the demands of modern consumers.

The product mainly targets new white-collar workers and senior middle-class citizens who pursue a high quality of life, while also successfully expanding its influence to the Generation Z young consumers, meeting their dual needs for food quality and convenience.

It is worth noting that this type of consumer group is often more willing to share their culinary discoveries in social circles, thereby becoming a strong promoter of high-quality fast food products, which also provides stable social topic support for xiong'an new power technology lobster mixed noodles.

It can be said that by truly catering to the market demand and positioning high-quality lobster mixed noodles in the high-end sector, Master Kong has found its suitable 'niche' market.

On one hand, it targets the high-end sector of instant noodles, strictly speaking, it is a segmented market in the instant noodle consumption sector, but it demonstrates the potential for sustainable development.

With the current economic structural transformation, consumers' demand for high-quality and personalized products is gradually increasing, and awareness of health is also continually strengthening. This trend makes consumers increasingly willing to pay a premium for high-end products, providing a broad space for the development of the high-end instant noodle market.

On the other hand, in the high-end instant noodle sector, there is currently no obvious leader, which also means that for Master Kong, it will be an arena full of opportunities, and the company's forward-looking layout can enable it to occupy a favorable position in the competition.

The Master Kong lobster mixed noodles priced at 15-20 yuan this time have received good feedback in the market, fully demonstrating the potential of the instant noodle industry to expand into the high-end market, and highlighting consumers' strong demand for high-quality fast food products.

A more in-depth analysis reveals that the instant noodle market is not as saturated as some people imagine, but instead still full of new opportunities. Even priced in the higher range, the lobster mixed noodles still achieved sales growth. This 'price rise and increase in quantity' phenomenon further validates the accuracy of its market positioning, which is worth paying attention to.

Therefore, it can be seen that Master Kong's success in the high-end market is by no means accidental but a natural result of precise market insights and outstanding product innovation. This also reflects consumers' extremely high acceptance of Master Kong's high-end products, providing an important reference for the brand's further expansion in the high-end fast food sector.

Perhaps Master Kang is opening up a new growth path through the high-end market. Considering the growth potential and high premium ability of high-end products, this also indicates that Master Kang's subsequent revenue and profit scale are expected to reach a new level.

Based on products, 02 resonates with market demand.

Looking at Master Kang's growth history, it is easy to see that the company has always adhered to product-centricity, continuously resonating with market demand, which has built a sustainable development path for the company, ensuring its leading position in the fierce market competition.

Emphasizing innovation, maintaining quality, and continuously enhancing brand power.

If Master Kang consistently regards product innovation and quality improvement as the core of corporate development, then through continuous technological research and product upgrades, it has successfully launched a series of products loved by consumers. And this crayfish instant noodles is undoubtedly another masterpiece of its technological innovation in the high-end instant food sector.

The innovative feature of this product lies in its breakthrough exclusive crayfish locking freshness technology, which allows the product to be stored at room temperature while faithfully reproducing and retaining the unique texture and delicious taste of crayfish. It is reported that no similar technology has been found in the market, providing a differentiated competitive advantage for this product in the same price range market.

It can be said that among the many products launched by Master Kang in recent years, not only have they met consumers' needs but also demonstrated Master Kang's keen insight into market trends and profound understanding of consumer demands.

It can be said that among the many products launched by Master Kang in recent years, not only have they met consumers' needs but also demonstrated Master Kang's keen insight into market trends and profound understanding of consumer demands.

In the field of food consumption, product innovation and quality control are the foundation for building consumer trust. Master Kong has won the trust of consumers by continuously innovating its technology and adhering to quality, which also lays a solid foundation for the continuous improvement of brand strength.

It is worth mentioning that on August 29th, at the 24th China Convenience Food Conference, Master Kong's innovative product under the 'Gan Mian Hui Series - Xiao Long Xia Mixed Noodles (Seductive Spicy Flavor, Golden Garlic Flavor)' won the 'China Convenience Food Industry Innovation Product' award, recognizing not only the innovation of Master Kong's 'Gan Mian Hui Series' products, but also affirming the company's innovation capability and market influence in the instant noodle industry.

Building a sustainable product flywheel and opening up new growth momentum.

Here, let's clarify the development path of Master Kong nurturing new products and continuously opening up growth momentum with the concept of the flywheel model.

First, Master Kong has initially driven market growth by introducing a series of high-quality products, such as Red Bull, Spicy Beef Noodles, and other classic products. We understand that these products not only meet consumers' demand for high-quality fast food but also receive positive feedback from the market for their unique taste and technological innovation.

High-quality products naturally gain good word-of-mouth from users, and this word-of-mouth effect becomes a key factor in continuing to drive the flywheel. Consumers' positive reviews and recommendations not only enhance the brand's reputation but also attract more new users.

With the spread of user reputation, product sales continue to increase. Master Kong has further expanded the market coverage of its products and achieved rapid sales growth through precise market positioning and effective marketing strategies.

The increase in sales directly drives revenue and profit growth. In this process, Master Kong has ensured profit maximization by optimizing supply chain management and improving production efficiency.

Subsequently, Master Kang will reinvest the profits obtained into product innovation and technological research and development, continuing to upgrade existing products while developing new product lines. Through this reinvestment strategy, it provides new impetus for the continuous rotation of the business cycle.

With continuous technological innovation and product upgrades, Master Kang is able to better meet consumer demands, continuously open up new growth areas, and achieve the company's sustainable growth.

From Master Kang's practices in the high-end series, it is clear that through the continuous introduction of a series of high-end products such as "Speed Noodle House," "Master of Soup," "Gan Mianhui," and "Royal Feast," the company has successfully expanded into higher-end consumer markets, elevating to a higher quality level and forming complementarity and synergy with classic product lines, jointly driving a new force for Master Kang's growth and injecting vitality into its continuous growth.

It can be said that through the construction of the above-mentioned "business flywheel," Master Kang has developed the momentum for nurturing the "second growth curve" continuously accelerating the rotation of the "flywheel" to achieve sustainable growth.

How to view Master Kang's competitive moat?

Within the rapidly turning "business flywheel," Master Kang has built a solid competitive barrier around profound market insights, relentless pursuit of innovation and quality, and continuous optimization of channels and supply chains, forming a competitive advantage of a moat.

Firstly, through deep market insights, accurately grasping consumer trends and demands, they can continuously focus on market opportunities with high growth potential.

Taking the example of the crayfish noodles, their layout of high-end products aligns with the market demand for high-quality fast food. Leveraging this move has also successfully opened up new market space in the fast-food industry.

In fact, Kangshifu had already started layout in the high-end market, actively investing in research and development, promoting product innovation to enhance the taste and nutritional value of instant noodles, continuously expanding consumer scenarios, expanding the product matrix to meet the diverse needs of consumers.

This product-centered, market-oriented development strategy has enabled Kangshifu to maintain a leading position in intense market competition and achieve sustainable development.

Secondly, in its long-term business development, Kangshifu has built strong innovation and product capabilities.

Whether in product research and development, taste innovation, ingredient selection, production process improvement, technological innovation, or food safety emphasis, Kangshifu has demonstrated outstanding strength.

Looking solely at the level of technological innovation, apart from the breakthrough exclusive technology of fresh-locking crayfish, its product seasoning packets have previously used a series of technologies such as FD, RP to enhance product quality and taste. The company's achievements in technological innovation not only enhance its own product capabilities but also provide a demonstration for the entire industry's technological progress and product upgrades.

It is not difficult to find that through continuous product innovation and market expansion, Kangshifu has also achieved continuous growth in revenue and profit, creating substantial investment returns for shareholders.

Lastly, Kangshifu's advantages in channels and supply chain have established a solid market position. In the fast-moving consumer goods field, it is undeniable that without effective promotion channels, even with outstanding products, it is difficult to reach consumers. The lack of effective supply chain management also hinders enterprises from leveraging economies of scale, directly impacting cost control and profit maximization, thereby affecting overall market competitiveness.

In the fast-moving consumer goods sector, it is undeniable that without effective promotion channels, even with outstanding products, it is difficult to reach consumers. The lack of effective supply chain management also hinders enterprises from leveraging economies of scale, directly impacting cost control and profit maximization, thereby affecting overall market competitiveness.

From the more than 30 years of development history of Master Kong, it is not difficult to see that on one hand, by establishing a huge "channel empire," continuously optimizing channel structure, improving channel efficiency, and ensuring rapid distribution and wide coverage of products. This channel construction and management capability not only enhances Master Kong's market response speed, but also strengthens its control over the market.

On the other hand, in terms of supply chain management, Master Kong has integrated upstream and downstream resources, optimized supply chain processes, and improved the efficiency and stability of the supply chain. This not only reduces production costs, but also ensures product quality and supply stability, providing strong support for Master Kong's market competitiveness.

With the advantages in channel and supply chain management, Master Kong has established barriers that competitors find difficult to imitate. These barriers not only protect Master Kong's market position, but also bring continuous competitiveness to the company, enabling it to maintain a leading position in intense market competition.

Conclusion of section 04.

Looking at the current situation, the performance of consumer stocks in the capital markets in recent years has not been satisfactory. However, with a longer time horizon, this market has always been a breeding ground for bull stocks.

Although competition in the food industry has always been very intense, few people can overlook the fact that for investors, it is important to identify companies with long-term growth potential and strong market adaptability, despite the current market fluctuations and challenges.

From Master Kong's performance, persistent dividend feedback is a strong validation of its good operational strength.

Especially in recent years, Master Kong has maintained a generous dividend policy, with dividend ratios not falling below 98% for six consecutive years from 2018 to 2023, and even exceeding 200% in some years, which is commendable in the current environment.

Considering the current background of the Federal Reserve cutting interest rates, the market continues to be bullish on the rebound opportunity of undervalued Hong Kong consumer sector, coupled with the catalytic effect brought by the company's product launching, which is expected to bring new opportunities for the company's valuation repair.

From a long-term perspective, the layout around the high-end market has already opened up larger development space, and Master Kong's growth potential will still be remarkable.
Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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