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Guan Leiming

Technical Director | Java

Behind the transformation of new Chinese pastries: strategic competition between franchising, sub-branding and direct sales

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Open franchising: a powerful tool for market expansion

Open franchising is one of the important ways for new Chinese pastry brands to expand rapidly. Through franchising, brands can use the funds and resources of franchisees to quickly open stores in various places and increase the brand's market coverage. However, the franchising model is not without risks. For brands, how to ensure that franchisees can strictly abide by the brand's standards and specifications and ensure the quality consistency of products and services is a key issue. If franchisees fail to meet brand requirements, it may affect the brand's reputation and image.

Testing sub-brands: meeting the needs of niche markets

Some new Chinese pastry brands are trying to launch sub-brands to meet the needs of different consumer groups. Sub-brands can be positioned for specific consumption scenarios, taste preferences or price ranges to expand the brand's market share. For example, a more fashionable and innovative sub-brand can be launched for young consumers, or a higher-quality and more expensive sub-brand can be launched for the high-end market. However, the launch of sub-brands also needs to be carefully planned to avoid confusion or conflict with the main brand.

Direct sales model: the choice of adhering to quality

At the same time, the direct sales model also has its unique advantages. The direct sales model allows brands to better control product quality, service level and store image, ensuring that consumers can get a consistent high-quality experience. However, the direct sales model requires brands to invest a lot of money and manpower, and the expansion speed is relatively slow. In a highly competitive market environment, how to balance the quality advantages of the direct sales model and the demand for expansion speed is one of the challenges faced by brands. In the development of the new Chinese pastry industry, the concept of brand satellite stores has gradually emerged. Brand satellite stores are usually located in commercial areas or communities with large traffic, with a relatively small area, mainly providing some core products and convenient services. Brand satellite stores can increase brand exposure, increase consumer contact points, and also reduce operating costs. In addition, during the transformation process, new Chinese pastry brands also need to focus on product innovation and marketing promotion. With the continuous changes in consumer tastes and the intensification of market competition, brands need to continuously launch new products to meet consumer needs. At the same time, through effective marketing and promotion methods, improve brand awareness and reputation, and attract more consumers. In short, the collective transformation of the new Chinese pastry industry is a complex and diverse process, involving the comprehensive use of multiple strategies such as franchising, sub-branding, direct sales, and brand satellite stores. Brands need to rationally select and optimize strategies based on their own positioning and development goals in order to adapt to market changes and achieve sustainable development.
2024-08-10