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---China's candy industry in the development of the fundamental driving force

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Just received this proposition, I once fell into a deep loss among China's candy
industry, will undoubtedly be accompanied with the development of all other sectors,
which is based on the continuous improvement of people's lives to promote, but also
the historic mission entrusted by the times. However, if this industry if you want to go
into details about the development of the fundamental dynamics, a time for a bit
pointless really, thinking, doing so is either eaten stays in, or it could be really want to
do something about this industry. Key issue is whether we are through these efforts,
relatively close to the truth.




1, the product changes




From the product point of view, the new functional and healthy confectionery
products become a driving force source for development of the industry, which
became candy internal development of the industry. An advisory body released a new
study on the global confectionery one of the important result was confirmed by the
further development of sugar-free products are the major driving force in the coming
years, chewing gum has been the forefront in this regard. In the candy industry, this
trend is also directly expand the demand for natural ingredients, such as fruit juice and
vitamins and minerals to forms of high value-added additives demand.




As more consumer health awareness, for the white teeth with chewing gum and
reduction of dental caries of xylitol chewing gum ingredients and the demand
continues to rise. Chewing gum on their own more and more features, is expected to
continue to enhance its attractiveness for consumers. Now, functional confectionery
market share is already very close to the traditional candy market share, and has been
replaced by the trend.
Candy industry is China's most traditional industries. Common type candy in 2002,
until a candy industry sales protagonist. However, we should also see that behind the
ordinary type candy manufacturing processes, products, low technology content,
product quality is not high, single-package price and value are very low, mainly fruits
and hard candy, beef bar sugar, low milk mainly sugar and crisp candy, packaging,
packaging is also based on twisted mainly small pillow packaging products. Along
with greatly improved the living standards of Chinese consumers, multinational candy
big companies in the Chinese market and further market penetration of high-end
candy and guidance, as well as to YaKe represented by the emerging domestic candy
companies are high-end market for the confectionery market, followed by
development trend, the successful launch of the 120G as the concentration point of the
sandwich, fruit and toffee, containing 8.8 clatter DI active DI milk toffee candy and
other high-tech product in an attempt to change the pattern of China's confectionery
market products.




In this case, the functional appearance of a traditional candy confectionery brand to
the extension of high-end product category is consumer confectionery products of
high-level, multi-level needs of the inevitable result is multinational confectionery
company to enter the Chinese confectionery market The product strategy is to
differentiate the various confectionery brands the product of the operation. As the
degree of functional products to further cultivate the market matures, market
competition further intensified, the confectionery brand market to enhance the
intensity of the operation of differentiation., Functional confectionery market,
competition will become increasingly intense.




The gum market for home-based candy also show the following characteristics (1)
market grew steadily; (2) brand to brand-based foreign-invested enterprises; (3) for
health, convenience, fashion and other ideas for The main selling point products; (4)
in the confectionery products, plastic products, home-based candy highest scientific
and technological content; (5) products with high added value, the firm's profit is
extremely impressive, is the very development "career prospects," product category.
Finally, as the first products of heavy industry, candy, chocolate, but also show the
following characteristics:




1, a high degree of industry concentration, market is an oligopoly status: According to
an authoritative market research report shows that, at present, Dove, Cadbury,
Hershey, Le Conte four brand has occupied for more than 70% of China's chocolate
market share, state of the market was oligopolistic competition.




2, divided into three camps competitors: the first camp is a Dove, Cadbury, Hershey,
Ferrero Rocher and others as representatives of foreign brands, occupied the vast
majority of high-end chocolate market share; second camp is a Le Conte, Caesar as
the representative of the joint venture Vuitton brand, the leading mid-range chocolate
market; third camp is Shenfeng, snub-nosed monkey as the representatives of the
local brands, accounting for a major share of low-end chocolate market.




3, import, joint venture brand sales strong, the poor performance of domestic brands:
Regardless of the brand from a high altitude communication, advertising, or low-end
products shop city, a lively market-oriented and sales promotion, whether it is market
share or product awareness, import, joint-venture brands occupy a significant
advantage, local brands except "Le Conte," squeeze chocolate industry, three strong,
Shenfeng, Kai Sa Weideng emerge, all other brands were underperforming.




4, chocolate market trend is increasingly competitive; brand a high degree of
concentration; market share gradually moving towards a monopoly; by multinational
corporations to cultivate the market a long time, China's chocolate market has
changed from the market in period entered the market growth stage., increasingly
expanding market capacity.
Second, to improve the market environment in China




Confectionery industry is one of the external factors is that the external environment
for development. As China's market opening, combined with its relatively low
consumption of sweets as well as a large population, in order to provide a sales
growth of multinational companies an excellent opportunity. Many multinational
companies subject to low-cost labor and access to this vast market potential to attract
investments in China have increased the intensity of plant.




According to a survey shows that China has become the world's second largest after
the U.S. confectionery market, China's annual per capita consumption of only 0.7
kilograms of sweets, this number is only Europe and the United States, Japan, Korea
and other developed countries 1 / 10, less than the world's the average consumption of
1 / 3, unlimited potential. Beginning in 2002, China's candy industry maintained an
annual average growth of 8% in the number of degrees higher than the global average
annual growth rate of 6%.




At the same time, improved distribution channels to increase sales opportunities, the
share of supermarkets and convenience stores, candy sales share in China is growing.
This change in the Middle Ages such as developing markets is particularly important,
provided by modern shops improved storage conditions also improved the quality of
candy in the sales locations, greatly facilitated the hot season of chocolate products.




While the supermarket sales rose, but prices have also affected sales growth. To avoid
this, many suppliers are developing the impulse to buy the market, through the
convenience store sales wanted greater profits.




Modern terminal is bound to change channels, candy sales have far-reaching impact. :
Modern terminal channels in the consumer goods market the increasing proportion of
sales, it is because (1) point of view on consumer sites change; (2) the need for
convenience shopping; (3) product quality guarantee mechanism; (4 ) in modern
terminal can provide one-stop service; (5) the purpose of shopping from necessity to
the casual nature of change; (6) Retail Trade and the manufacturers in the increasingly
intense competition lead to "price butcher" to the terminal stores shopping cost getting
higher and higher; (7) Cross-K / A national distribution by key provincial cities sink
into the two capital cities and economic development of better cities at prefectural
level, the domestic K / A will be forced by the provincial cities to 2, 3 urban
subsidence, regional K / A was forced to transfer or move to the town market, a
24-hour convenience store business model, triggering a new round of Yetai "shuffle"
has increased the consumer enthusiasm for modern terminals and dependence, which
are further enhance the modern terminal in the whole Yetai proportion of sales.




With gradually raise the living standards of urban and rural residents, people get
married to this great event in life more and more attention, more and more stress on
the marriage happy sweet, ready for the wedding industry, bigger and bigger, happy
sweet shop came into being. According to incomplete statistics, every year there will
be 20 million pairs of couples married to each buy 500 pairs of new computing ready
for the wedding, happy sweet 10 billion a year market, the market capacity, happy
sweet as candy industry, another new exclusive sales channels, it is estimated the
national average 18% of individual areas, such as Wenzhou, Zhejiang, and even
accounted for 60%.




Third, the increasingly brutal competition in the market
Confectionery industry, the development of the two external factors, is forced by
competitors and competition. As the saying goes one moves to fall behind others
would like to thank the enemy is that they make us stronger.




We know that candy brand sales force influence the level of the obvious, in the
confectionery brands high concentration of high-end market is a foregone conclusion,
affected the country's top ten of the candy business sales accounted for 48% of the
national market share of Most small and medium enterprises are facing extinction
candy, but will survive in management, marketing, brand development Caihang fully.




In comparison, the vast majority of our candy companies do not have R & D patented
technology, without their own core production technology and formula, multi-rely on
foreign companies or by the introduction of foreign R & D Center's technical support,
did not form their own unique core of enterprise products competitive, this situation
will certainly be in the next few years, a certain degree of change.




Internal harmony and stability, while the external tigers waited for opportunities,
foreign confectionery companies have long coveted the Chinese confectionery market,
Johnson & Johnson, Guylian Belgium, Germany, RITTER, France, Silva, proud
rantauparapat China have increased the pace. On the one hand, domestic joint
ventures, foreign representative of the candy to increase investment in China have
acquired shares; the other hand, in order to Ferrero Rocher, represented by
foreign-invested enterprises in Guangdong and Beijing have set up factories to expand
chocolate, sugar gum, Tsuen the scale of production and operation.




For example, China has become the Wrigley Company In addition to the United
States outside the largest overseas market for Wrigley candy to the relevant areas will
also be extended to diversify. In addition, Johnson & Johnson, Guylian, RITTER,
Silva, proud blue and other foreign confectionery companies have also accelerated the
pace of entering the China market. These are consolidated operating
domestically-owned confectionery brand's ability to market, a severe test.




How to do, through resource integration and inter-industry capital operation. The next
period of time, inter-industry mergers and acquisitions will become more frequent;
not enter the Chinese market through mergers and acquisitions of foreign companies
enter the Chinese market, domestic enterprises to speed up the pace, only foreign
companies enter the Chinese market will also be candy local enterprises through
mergers and acquisitions to complete its strategic layout ; while the local candy M &
A activity between enterprises will become increasingly frequent and reasonable
resources to industry consolidation in order to achieve optimal product line, the
purpose of reducing marketing costs, and strive to become stronger and bigger in
order to resist a powerful enemy.




Since 2003, domestic confectionery market, a period of relative prosperity, during this
period, the entire candy industry has maintained a strong growth rate of around 8%,
candy candy companies and start paying attention to brand building, market inputs
and advertising investment increased, confectionery brands and product form are very
rich, large-scale foreign brands to enter the domestic market, to seize some high
ground, but also led to the development of enterprises throughout the nation candy,
domestic candy companies in the product, channel, promotion, brand, integrated
communication, marketing organizations, sales management and assessment and so
on an overall improvement, also have to create their own successful brand, UHA,
elegant passengers, Golden Delicious, Lotte and other new type of market or promote
a new concept product, can be said to have sprung up everywhere.




At present, China's domestic candy companies have grown to more than 5,000, the
industry has formed a golden monkey, such as Henan, Fujian Yake, Meilin, Shanghai
Guan Sheng Yuan, Jinjiang Golden Delicious, WoWo, Shandong Luzhou, Yuet House,
Beijing Yili, green too, the source Ma Dajie Beijing, Tianjin Aoqi Te, Anhui green
wave, Guangdong, Hsu Fu Chi batch of key enterprises, industry-wide there are five
key enterprises to enter China's food companies ranked 50 of the columns, there have
been several big brand monopoly, private enterprises greater market share than the
state-owned enterprises situation. Meanwhile, the domestic major food groups also
stepped up to the candy industry, investment, such as the giant energy group rubber
Tsuen sugar, Wangwang gelatin candy, jelly candy Lang-hi's and so on.




Chinese candy companies seeking to develop the fundamental driving force is the
product, management and marketing aspects of innovation, only in this way, local
candy companies can develop in order to secure a foothold in this market.




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