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Baking Expo | Low-price Strategy in the Baking Industry

Recently, a new type of bakery called "Super Cake Factory" has quietly emerged in several cities, attracting customers with a model that offers a selection of items for just 9.9 yuan. These shops are predominantly bright yellow in color, with simple and bright interiors, and offer a rich variety of products, including common Chinese and Western bakery items.

About 30% of the products are finished on-site in a designated production area within the store. A closer analysis reveals that from the store's decorative style to its location strategy, the 9.9 yuan bakery shops bear a strong resemblance to common snack discount stores which also employ a low-price strategy to attract customers and typically choose locations with large volume of people.

The "Super Cake Factory" model has attracted the attention of many snack franchisees who already operate discount snack stores, such as "Busy For You" and "Super Ming." They mention that despite positive data from lower-tier markets, such as some Hebei stores achieving daily turnovers of over ten thousand yuan on weekdays, the overall investment is substantial and requires careful consideration.

However, this model still faces several challenges:

Dependence on the supply chain: Most products are supplied through the supply chain, and even those made on-site often undergo preliminary processing in a central factory.

Lack of standout taste: Reviews on social platforms for these stores often say, "Not expensive, but not tasty." A consumer from Qingdao posted on Xiaohongshu, saying, "The cream is of poor quality, and the taste is ordinary, similar to convenience stores." This comment sparked numerous follow-up discussions.

Numerous imitators: There are more chain low-price bakery brands on the market. Although these low-price bakery brands do not offer all items for 9.9 yuan, 90% of their products are priced under 10 yuan, with some items costing as little as 5 yuan.

According to the baking expo, the sustainability of bakery brands largely depends on taste. Whether the low-price strategy can continue to attract consumers while ensuring product quality and profit margins is still a question worth exploring. Whether the 9.9 yuan bakery model can truly take root remains to be seen and will require time to verify.

Bakery China 2025 will continue to share more industry professional content with you, so please stay tuned!

Bakery China 2025, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China 2025 is the Asia Pacific's leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry. It is the first-choice trade fair to enter China's bakery market.

(source: canyin88)

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