The baked goods market in china by Daxue consulting

TO ACCESS MORE INFORMATION ON THE KOL ECONOMYIN CHINA, PLEASE CONTACT DX@DAXUECONSULTING.COM
dx@daxueconsulting.com +86 (21) 5386 0380
April. 2019
HONG KONG | BEIJING | SHANGHAI
www.daxueconsulting.com
1
By DAXUE CONSULTING
THE BAKED GOODS MARKET
IN CHINA

© 2019 DAXUE CONSULTING
ALL RIGHTS RESERVED
OVERVIEW
I. KEY FINDINGS AND MARKET DRIVERS
II. CONSUMER ANALYSIS
III. COMPETITION ANALYSIS
IV. DISTRIBUTION & PROMOTION
V. MARKET TREND ANALYSIS
2

ALL RIGHTS RESERVED
Baked goods are becoming more popular in China’s market
The baked goods market is booming
3
Young consumers prefer smaller packages and varied flavors
Western brands are focusing on offline sales channels
Chinese brands mainly target the mass market
KOLs can easily influence people’s purchasing decisions

Market drivers for international brands in China
1.
2.
3.
4.
5.
ALL RIGHTS RESERVED
Baked goods are increasingly popular among young people
New flavors are being created and explored
Many people trust foreign brands for their high quality
Coffee shops and supermarkets are willing to have international suppliers
Social media and KOLs are effective ways of promotion
4

ALL RIGHTS RESERVED
CONSUMER ANALYSIS
5

ALL RIGHTS RESERVED
History of baked goods in China
6
1980-1990 1990-2000 2000-2010 After 2010
The modern baking industry started
to rise in China from 1980, but most
brands were from Hong Kong and
Taiwan.
China’s baking industry strode into the fast
developing period, more types of baked
goods entered the market and became
popular among consumers.
Foreign brands entered China’s market,
many of them built factories in mainland
China such as Mankattan, since China
had low labor costs.
The industry further expanded to tier-4
cities and rural areas, baked products
were purchased by more people as
breakfast and snacks.

ALL RIGHTS RESERVED
The main baked goods in China
 China’s baked goods market generally includes bread, cakes, biscuits/cookies, different pastries (such as pies,
tarts, quiches, croissants, etc.), muffin, doughnuts, etc.
 Among them, the most popular categories in China are bread, cakes, biscuits/cookies and pastries.
7
Bread Cake Biscuits / Cookies
China’s pastries Western pastries

ALL RIGHTS RESERVED
Consumption and market size in China
Source: http://www.chyxx.com/industry/201903/725118.html,
https://baijiahao.baidu.com/s?id=1589982018878166834&wfr=spider&for=pc
8
 The market size of China’s baked goods industry has been growing very fast in recent years, with more than 10%
YOY growth rate.
 The per capita consumption of baked products is still relatively low (6.9 Kg), comparing with the worlds average
level (18.7 Kg per person).
152.72
174.69 179.73
187.89
217.00
0.00
50.00
100.00
150.00
200.00
250.00
2014 2015 2016 2017 2018F
Market size of the baked goods industry in China
(billion RMB–2014-2018)

ALL RIGHTS RESERVED
Consumer analysis: the main consumers of bread and cakes
 Cakes and bread are the most common baked goods in China’s market.
 Chinese women are more interested in bread and cakes than men. Most sales came from those born in the
Post-80s and 90s.
9
Source: http://www.sohu.com/a/226657250_100093301
35%
65%
Consumers of bread and cakes in China by
gender (2017)
Man Women
27%
55%
18%
Consumers of bread and cakes in China by age
(2017)
Post-90s
Post-80s
Others

ALL RIGHTS RESERVED
Consumer analysis: consumers’ preference for baked goods
 Nowadays, it is common for Chinese people to have baked goods as snacks and breakfast.
 Young consumers and aging people have different preferences, however, both of them pursue healthy and
delicious baked goods.
10
Old peopleYoung consumers
(Post-90s and 80s)
• Purchasing Preference
Young consumers like baked goods with various tastes
and small packages that are easy to carry and put in
offices.
In big cities, young consumers are more attentive to
healthier baked goods with less sugar.
• Purchasing Channels
Bakeries, coffee shops, convenience stores.
• Purchasing Preference
Old people prefer baked goods with bigger packages
since they like sharing baked goods with their family as
snacks.
Most of them like soft baked goods with less sugar.
• Purchasing Channels
Supermarket and hypermarket

ALL RIGHTS RESERVED
Baidu index analysis- Interest trends (1/2)
Baidu index of bread Baidu index of cake
• The search index of bread fluctuated around its
average number in past one year and reached low
points in June 2018 during the Dragon Boat
Festival and February 2019 during the Spring
Festival.
• When people search for bread on Baidu, they
usually browse the definition of bread and websites
of popular bread stores/brands.
Data from 2018.5 – 2019.5
11
Baidu is the #1 search engine
in China. The volume of
search (more than ¾ of the
total search made on Chinese
Internet) exhibits the market
digital trends
• The search index of cake reached the highest
peak in February 2019 during the Spring
Festival.
• When people search for cake on Baidu, they
usually browse cake brands’ websites and
online cake stores on Taobao/Tmall.
Data from 2018.5 – 2019.5
The 2018 Dragon
Boat Festival
The 2019 Spring Festival
China 2019 Spring
Festival

ALL RIGHTS RESERVED
Baidu index analysis- Interest trends (2/2)
Baidu index of biscuit Baidu index of muffin
• The number of searches of biscuit fluctuated
around the average index, but in February the
search number declined and reached its the lowest
point because of the 2019 Spring Festival.
• When people search biscuit on Baidu, they
usually browse the definition of biscuit and
biscuit recipes.
Data from 2018.5 – 2019.5
12
Baidu is the #1 search engine
in China. The volume of
search (more than ¾ of the
total search made on Chinese
Internet) exhibits the market
digital trends
• The number of searches of muffin reached the
highest point during the July and August 2018,
because muffin was listed as one of the most
popular desserts on the Internet.
• When people search muffin on Baidu, they
usually browse the definition of muffin and
muffin recipes.
Data from 2018.5 – 2019.5
The 2019 Spring Festival
Muffin was listed as a very
popular dessert on the Internet

ALL RIGHTS RESERVED
Baidu Index – Semantic analysis (1/4)
The most related keywords to “Bread” are “Bread with milk flavor”, “Cake”, “Old-fashioned bread”, “Bread
websites” and “Learn to make bread”.
13
Bread
Bread with milk flavor
Cake
Learn to make bread
Specialized bread
websites
Bread with bean pastes
Old-fashioned bread
Learn to make cakes
Learn to make bread
and cakes
Oven
French bread
Learn to make bread Bean pastes
Search index: low High
Search trends: rising trend declining trend

ALL RIGHTS RESERVED
The most related keywords to “Cake” are “Learn to make cakes”, “Birthday”, “Steam cakes by a rice cooker”,
“Bake cakes”, “Bread” and “Oven”.
14
Cake
Learn to make
cakes Birthday
Bake cakes
Steam cakes by a rice cooker
Bake cakes
by oven Bread
Oven
Cream
Barbie doll cakes
Making strawberry
cakes

ALL RIGHTS RESERVED
The most related keywords to “Pastry” are “Cakes”, “Baoshifu” (a popular Chinese pastry brand), “The Chinese
pastries”, “Baking”, “Short-term baking lessons”, “Cake baking schools” and “Western pastries”.
15
Pastry
Baking
Baoshifu
Baking lessons
Cake baking
schools
Short-term
baking lessons
Western pastries
baking schools
Cakes
The Chinese pastries
Short-term baking
lessons
Western pastries
Training

ALL RIGHTS RESERVED
The most related keywords to “Biscuits” are “Cranberry biscuits”, “Biscuits brands”, “Pocky” (a Japanese snack
brand), “Original cookies” and “The biscuit recipes”.
16
Biscuits
Pocky
Original cookies
Cranberry biscuits
Biscuits
brands
Biscuits with eggs
Cream
Cakes
Cookies
Chocolates
Oven
The way of making
biscuits

ALL RIGHTS RESERVED
Consumers’ questions on Zhihu
How do beginners make cakes? What baked goods are easy to
make?
As for beginners, some baked goods with fewer materials and steps
are good options. Only need a few materials, simple steps and no
skills, people can easily make the food like the following:
1. Egg tart without cream 2.Milk and soda biscuits 3. Banana cakes
4. Muffins with jam
The classic breads of the world.
Baguette, the most classic French bread, every baguette has 250g,
50cm and 5 to 7 incisions.
Croissant, the crisp and sweet French bread, it can be the standard
breakfast with a cup of coffee.
Bagel, a kind of leavened bread, low oil and low sugar.
Zhihu is the first Q&A website. in
China, and has transitioned to a
social media sharing platform
gathering more than 100 million
answers on various topics. The
platform is especially relevant to
reach higher-, well-educated
social classes
17Source: sample of posts on Zhihu
On Zhihu, the most common questions and posts about baked goods consist of the following:
• How to make baked goods at home?
• What are delicious and healthy baked goods?
• Where to buy /how to pick good and healthy baked goods ?

ALL RIGHTS RESERVED
Consumers’ positive perceptions
The nutritive value of baked food
People love baked food because it is nutritious, most types of baked
food are made by nutritious materials.
Baked food’s main material is a wheat meal, its protein is 3 times of
rice and twice of corn flour. Its calcium is 4 times of rice and 8 times
of corn flour.
Baked food’s advantages, comparing with traditional Chinese food
1. Baked food is easy to store and carry. Common baked food can be
stored 3-6 days, easily packed and carried.
2. Baked food usually has quite varied tastes by using different
ingredients, such as nuts, fruit and chocolate.
Wechat is the #1 social
media in China and an
absolute must-have for a
market entry promotion. It
accounts for over 1 billion
active users
18Source: sample of posts on WeChat/Weibo
On social media (Weibo and WeChat), positive feedback about baked good focuses on the
following:
 They are delicious and nutritious, they have many different flavors
 Many of them have nice appearance (including packages and goods themselves)
 Easy to store and carry for most consumers

ALL RIGHTS RESERVED
Consumers’ negative perceptions
Be careful! The harm of baked goods
Cookies/biscuits, pies, doughnuts, fries and other baked goods or
fired food have a large number of trans-fatty acids, which can easily
cause weight gain, impair memory, hinder growth (for kids) and
cause cardiovascular diseases.
The possible healthy and safety issues of baked goods
1. Colorings: Chemical pigments aren’t totally inedible, but many
stores usually add lots of food colorings
2. Fragrances and preservatives: Many baked products sellers use
preservatives to extend shelf-life.
Wechat is the #1 social
media in China and an
absolute must-have for a
market entry promotion. It
accounts for over 1 billion
active users
19Source: sample of posts on WeChat/Weibo
On social media (Weibo and WeChat), negative feedback about baked goods focuses on the
following aspects:
 A large amount of trans-fatty acids, which will cause cardiovascular diseases.
 Too many colorings and preservatives.
 Some of them contain lots of sugar

ALL RIGHTS RESERVED
Context of consumption in China
The picture has been taken from a consumer’s home and shared
on Weibo. In the picture, the consumer is going to have biscuits
as breakfast with coffee and fruit.
The picture has been taken from a birthday party and shared
on Weibo. In the picture, the consumer is celebrating his
birthday with friends and sharing the birthday cake.
20
Source: sample of posts on WeChat/Weibo
Based on information from Weibo, WeChat and other Chinese social media platforms, the most common purposes
of buying baked goods among Chinese customers are:
1. Eating by themselves in breakfast, lunch and dinner. 2. Sharing with friends and family during some occasions,
such as birthday parties.
3. Eating as snacks during work and travel.

ALL RIGHTS RESERVED
Online trends : consumer perception
The package of cookies is easy to carry
and its design is cute. The cookies gave
me an appetite and the taste of their filling
is strong enough.
The cake is very delicious and it is much
cheaper than the same one from the
supermarket.
The delivery is very fast, there are two
different tastes of cookies, both tasty, crisp
and having faint scent.
The discount activity of cookies is fake, the
seller increased price before the discount
activity.
The cookies are not tasty at all, they are not
authentic South Korean cookies.
The product is not good, cookies stick
together and many of them broken into
pieces. The taste of cookies is not strong
enough. I feel they don’t like cookies.
Positive feedback on Tmall/Taobao and JD Negative feedback on Tmall/Taobao and JD
21
 On Tmall/Taobao and JD, other than good tastes, other positive feedback includes cost-effective food, nice-
looking packages, nutritious food, easy to carry, reasonable price and fast delivery;
 Negative feedback focuses more on bad taste, the quantity is not enough, broken packages, expired products
and high price.

ALL RIGHTS RESERVED
COMPETITION ANALYSIS
22

ALL RIGHTS RESERVED
Competition analysis: Bread
Brands
Domestic
vs
International
Sales on Tmall/Taobao
in April 2019
Top seller
price on Tmall
Price range on
Tmall/Taobao (RMB)
Dali Food
(达利园)
Domestic 669,027 items 59.8 RMB 9.9 to189
HORSH
(豪士)
Domestic 738,955 items 49.9 RMB 13.5 to 173
BreadTalk
(面包新语)
International 27,234 items 29.9 RMB 11 to 148
Jason
(捷森)
International 21,252 items 56.9 RMB 19.9 to 210
Source: taosj.com
23
 On Taobao/Tmall, the sales of domestic bread brands are higher than foreign brands, since Chinese brands
are better at appealing to local tastes.
 Besides, many international brands put more emphasis on offline channels (to be suppliers of bakery shops
and coffee shops) instead of e-commerce platforms (like Taobao/Tmall and JD).

ALL RIGHTS RESERVED
Competition analysis: Cake
Brands
Domestic
vs
International
in April 2019
Top seller
price on Tmall
Price range on
Tmall/Taobao (RMB)
Holiland
(好利来)
Domestic 108,653 items 78 RMB 28 to 6,999
GANSO
(元祖)
Domestic 14,942 items 198 RMB 10 to 1,258
Mcake International 2,081 items 198 RMB 53 to 1,000
Maruto
(玛露托)
International 629 items 26.8 RMB 8 to 168
Source: taosj.com
24
 Chinese brands also have much more sales than international brands on Taobao/Tmall even they have high
prices. The possible reason is that domestic brands can offer goods better fit Chinese people’s needs (tastes
and packages).
 International brands mostly come from France, Japan and South Korea.

ALL RIGHTS RESERVED
Competition analysis: Biscuits and Cookies
Brands
Domestic
vs
International
in April 2019
Top seller
price on Tmall
Price range on
Tmall/Taobao (RMB)
Three squirrels
(三只松鼠)
Haochidian
(好吃点)
Oreo
(奥利奥)
International 583,075 items 13.8 RMB 1.48 to 219
Pacific
(太平)
International 133,042 items 26.9 RMB 2.8 to132
Source: taosj.com
25
 Most biscuits brands built official stores on China’s e-commerce platforms (Taobao/Tmall and JD) to attract
more consumers and raise their sales.
 Large Chinese and International biscuits brands both have high sales on Taobao/Tmall, since they both
provide tasty biscuits with reasonable price.

ALL RIGHTS RESERVED
E-commerce landscape of bread
26
On Tmall, the price range of bread
with the same weight (such as
500g) is small (around 40 RMB).
Popular products are usually
about 30RMB.

In addition to the price, the flavor
is another important criteria for
purchasing bread online. And
milk-flavored bread is the most
popular one.
Top seller SKU
Brand: Three Squirrels
Price: 29.9RMB
Most expensive SKU
Brand: Hanszen
Price: 51.6RMB
Cheapest SKU
Brand: Qiansi
Price: 9.9RMB
Source: Tmall.com

ALL RIGHTS RESERVED
E-commerce landscape of biscuits
27
On Tmall, the price range of
biscuits is large. Popular biscuits
are at a relatively low price (about
10RMB-30 RMB) and usually
packed in small bags.

Thus, both the price and the
package are important criteria for
purchasing biscuits online.
Top seller SKU
Brand: Tango
Price: 19.9RMB
Most expensive SKU
Brand: Jenny Bakery
Price: 279RMB
Cheapest SKU
Brand: Youmaijia
Price: 9.8RMB
Source: Tmall.com

ALL RIGHTS RESERVED
E-commerce landscape of cakes
28
On Tmall, the price range of cakes
is between 9.9RMB and 225.2RMB.
Popular cakes are relatively cheap.
Imported cakes are usually
expensive and with less quantity.

Thus, the price is an important
criterion for purchasing cakes
online.
Top seller SKU
Brand: Hongyi
Price: 19.9RMB
Most expensive SKU
Brand: Tokyo Banana
Price: 225.28RMB
Cheapest SKU
Brand: Denner
Price: 9.9RMB
Source: Tmall.com

ALL RIGHTS RESERVED
Baked goods brands need adapt China’s market
 French-style baked goods are very popular in China, many brands (domestic and foreign) devote to imitate French
baked goods. However, most of them localized their goods to match the flavors of Chinese people.
 Many consumers are willing to buy those baked goods for their beautiful appearance and good tastes.
29
Leverage French
culture for marketing
Attractive appearance and
localized tastes to adapt local
market
Reasonable prices with
good quality to target
mass market
The authentic French baked goods are not
favored by Chinese people

ALL RIGHTS RESERVED
Business cases – Paris Baguette (巴黎贝甜)
Digital activity
Paris Baguette is a South Korean
bakery that entered China in 2003. The
official website of Paris Baguette
shows its main products (bread, cakes
and pastries), store locations, events
and brand stories.

Paris Baguette is focusing on offline
sales channels (bakeries) instead of e-
commerce platforms. It has more than
200 shops in China. The brand uses
French culture for marketing by
imitating French baked goods.

In order to attract children, teenagers
and young women, the brand launched
cakes with the Mickey Mouse design
by working with Disney.
http://www.pbchina.cn/
30Source: Taobao/Tmall and brand website
Platform Presence
Official
account
Volume (sales, product reviews or
traffic)
Pbchina.cn Yes Yes 64,672 visits per month
Taobao/Tmall No No
The brand mainly sells vouchers on
Taobao/Tmall
JD.com Yes No
Around 1,000 comments, the brand
only sell a few of goods on JD.
Kaola No No The brand isn’t selling on Kaola
Pinduoduo No No The brand isn’t selling on Pinduoduo

ALL RIGHTS RESERVED
Business cases – Paris Baguette (巴黎贝甜)
E-reputation in China
The most related keywords to
“Paris Baguette” are “Cakes of
Paris Baguette”, “The official
website of Paris Baguette”,
“Purchasing goods from Paris
Baguette’s website” and “The
price list of Paris Baguette’s
cakes”.

On social media platforms (Weibo
and WeChat), Paris Baguette
mainly releases info about its new
arrivals in China, discount
activities and other important
events (such as lucky draw
activities).
Platform Presence Followers
Posting frequency in
May 2019
Wechat Yes 177,624 5
Weibo Yes 816,783 30
31
Each week, Paris Baguette will
launch a promotional activity.
Designated types of bread or
cakes will be sold at a relatively
lower price in that week.
Franchise Paris Baguette
Cakes of Paris
Baguette
Cakes
Price
Purchasing goods on Paris
Baguette website
Paris Baguette
The price list of Paris
Baguette’s cakes
The official website of
Paris Baguette
Ordering cakes from Paris
Baguette's website
Cakes from Paris
Baguette's website

ALL RIGHTS RESERVED
Business cases – Breadtalk (面包新语)
Digital activity
Breadtalk is a popular bakery from
Singapore and entered China in
2003. Its official website is mainly
composed of its products (bread
and cakes), brand stories and
company events.

The brand has built offline bakery
shops in more than 50 cities in
China, it also sells products on e-
commerce platforms (Taobao/Tmall
and JD).

Breadtalk devotes into developing
baked goods made by all-natural
raw materials to adapt the
increasing demands for healthy
lifestyles among Chinese people.
http://www.breadtalk.com.cn/
Platform Presence
Official
account
traffic)
Breadtalk.com.cn Yes Yes 28,209 visits per month
Taobao/Tmall Yes Yes 30,559 sold items in April 2019
JD.com Yes No More than 10,000 comments
Pinduoduo Yes No Daily sales are 0

ALL RIGHTS RESERVED
Business cases – Breadtalk (面包新语)
The most related keywords of
“Breadtalk” are “The official
website of Breadtalk”, “Cakes”,
“The price list of cakes from
Breadtalk”, “Ordering Breadtalk’s
cakes online” and “The franchise
fees of Breadtalk”.

Breadtalk usually posts info about
promotion activities (luck draw,
free gifts, etc.) and its popular
goods on social media platforms.
The brand also launches goods
with the design of popular movie
characters, such as the yellow
Minions.
May 2019
Weibo Yes 182,101 8
33
Breadtalk cooperates with Glam Ever to
improve its sales of cakes. People who
purchase any cakes over 8 inches in
offline stores (only in Shanghai, Beijing
and Changsha) can get a ring that is
sponsored by Glam Ever.
Breadtalk
The price list of cakes from Breadtalk
The 10 types of bread from Breadtalk
CakesThe official website
of Breadtalk
Paris Baguette
Ordering Breadtalk’s
cakes online
Breadtalk’s logo
Official
website
The franchise fees of Breadtalk

ALL RIGHTS RESERVED
Business cases – Mcake
Digital activity
Mcake’s official website mostly
shows its main products (cakes,
pastries and cookies), discount
activities and important events.

Mcake is focusing on well-
designed French cakes and
pastries. Except for offline brand
stores and e-commerce platforms,
consumers also can directly
purchase/order cakes from the
brand’s website.

The brand’s French-style goods
have colourful appearance and
localized tastes (such as less
sweet), which attract many
Chinese consumers.
http://www.mcake.com/shop/110/index.html
Platform Presence
Official
account
traffic)
Mcake.com Yes Yes 56,506 visits per month
Taobao/Tmall Yes Yes 2,081 sold items in April 2019
JD.com Yes No More than 10,000 comments
Pinduoduo No No The brand isn’t selling on Pinduoduo

ALL RIGHTS RESERVED
Business cases – Mcake
On Dianping.com (a review web,
where Chinese locals rate local
businesses and share their reviews),
positive feedback consists of nice
tastes, good quality, wonderful
designs and friendly services.
Negative feedback focuses on high
price.

On social media platforms, Mcake
usually releases info about its new
arrivals and promotion activities,
such as free gifts, lucky draw,
limited-edition cakes, etc.
The brand also promotes its goods
in Chinese movies and TV series by
providing custom cakes to their
opening ceremonies.
May 2019
Weibo Yes 89,176 12
35
Mcake promotes its new ice-cream
cakes by randomly awarding gifts
with a total value of 800RMB to 5
followers who made comments and
shared this post with others.
Nice taste
Very good
pastries
Friendly
services
Refined food
Very nice soft
drinks
High value for
money
Wonderful
appearance
High price

ALL RIGHTS RESERVED
Comparing online interest for leading brands
 On Baidu index, 21cake showed the highest search frequency and Breadtalk had the lowest search index during
the past 90 days.
 On WeChat index, Breadtalk showed a significant high search frequency in April 2019 because the brand
launched some new arrivals in China.
36
The search brands are
Paris Baguette
Breadtalk
Mcake
85°C
21 Cake
The search brands are
Mcake
Paris Baguette
Breadtalk
85°C

ALL RIGHTS RESERVED
Brand advertising case study
 The chef is around by children who are snatching the bread.
 All of the children snatch the bread successfully and enjoy their time having the bread with lots of joyful laughter.
 Detailed shootings on bread which is portable, convenient, fluffy and tasty.
 Demonstrate bread's whole package and company logo.
37
Only for the audience
in China
https://tv.sohu.com/v/dXMvNTc0Nzk3Mi80NDQ
5MTk2LnNodG1s.html
Firstly, the video well utilizes the child's position to show the product's safety. Secondly, eating with joyful laughter implies the
audience that the brand’s products are tasty.
And then, detailed shootings on the product will increase the audience's interests and stimulate their purchasing desire.
Finally, the advertising invites a celebrity, which is a good way to increase the company's value and improve its influence.

ALL RIGHTS RESERVED
Brand naming – case studies
The Chinese names of baked goods brands can make consumers directly associate with baked goods and they
generally contain two meanings:
• The baked goods are French-style products or directly from France.
• Their baked goods are delicious enough to attract local consumers.
38
巴黎贝甜
(Paris Baguette)
• “巴黎” is the Chinese translation of Paris, “贝” implies scalloped designs on baked goods and “甜”
means “sweet”.
• The Chinese name shows the brand provides French baked goods and most of its products are sweet.
面包新语
(Breadtalk)
• “面包” is the Chinese name of “bread”, “新” means “new” and “语” means “words/language”.
• The Chinese name implies the brand is focusing on bread and developing more new baked goods,
designs and favors.
拿破仑系列
(Napoleon series, Mcake)
• “拿破仑” is the Chinese translation of Napoleon and “系列” means “series”.
• The Chinese name highlights the product series are French baked goods and implies they will
conquer consumers with their wonderful flavors.

ALL RIGHTS RESERVED
Distribution and promotion in China
 International baking brands are used to taking offline shops as their distribution channels in China, such as bakery
shops/coffee shops and supermarket.
 E-commerce platforms, such as Taobao/Tmall, have been the most important channels for Chinese brands since
they are effective ways of promoting new arrivals and increase sales.
40
Baked goods
suppliers
Online
E-commerce platforms operated by baking
brands
The third party e-commerce platforms
(such as Tmall/Taobao and JD)
Offline
Bakery shops / coffee shops
(such as 85°C and Starbucks)
Supermarket and convenient stores
Imported food stores
Specialized snacks stores

ALL RIGHTS RESERVED
Online retail coverage in China
 The number of selling baking brands on JD is far more than Tmall/Taobao, mainly due to the higher
requirements and deposit from Tmall for those brands want to enter the platform.
 Most Chinese brands have built official stores on those e-commerce platforms (such as Taobao/Tmall and
JD), which increased their sales in the market.
41
Market
segments
Number of
brands selling on
Tmall/Taobao
Number of
brands selling
on JD
Bread 199 590
Cake 152 603
Cookies 194 652
Pies 189 108
Pastries 159 640
Baked goods
Baked goods
Main
brands
Main
brands
Way of ranking: general, popularity, new arrivals, sales and price
Way of ranking: general, sales, number of comments,
new arrivals and price

ALL RIGHTS RESERVED
Offline retail: Coverage in Shanghai
Stores
Number of
stores in
Shanghai
Bakery shops 927
Pastry shops 750
Starbucks 741
Imported
food stores
536
Baidu Map: 806 results Dianping: 741 results
42
Baked goods are mainly sold in the supermarket, bakery shops, pastry shops, part of coffee shops,
convenience stores (such as Family Mart), imported food stores, etc. We use them as examples of distribution
channels for baked goods in Shanghai.
Bakeries
Starbucks

ALL RIGHTS RESERVED
On-the-shelf: representation of the category in stores
43
Source: pictures from stores in Shanghai
 In China, young consumers (post-80s and 90s) usually buy baked goods from bakery shops, coffee shops and
convenient stores. Old generations are used to purchasing baked goods from the supermarket and hypermarket.
 In those stores, different types of baked goods are separately placed on shelves.
 Many brands are using smaller packages to make baked goods be easily carried and they are trying to have more
different favors to increase sales.

ALL RIGHTS RESERVED
Online sales: volume assessment
Source: taosj.com
Western pastries and Chinese pastries had similar sales in
April 2019 (western pastries were slightly higher). It
showed more Chinese people accepted foreign pastries.
On Taobao/Tmall, biscuits showed significantly high sales
in April 2019, since biscuits are the most common snacks
among Chinese people.
44
1.18
3.61
15.65
Cakes Bread Biscuits
Sold items of baked goods on Taobao/Tmall
(million –April 2019)
15.98 15.92
Western pastries Chinese pastries
Sold items of baked goods on Taobao/Tmall
(million–April 2019)
 The Chinese pastry is made from rice, or different types of flour, with fruit, sweet bean paste or sesame-based
fillings.
 The Western pastries often incorporate more cream-like fillings.
 Some western-influenced Chinese pastries are essentially identical to their western counterparts, whereas others
differ subtly (for example, by being less sweet).

ALL RIGHTS RESERVED
Promotion channels to leverage
for international brands in China
Dedicated Websites/Apps
 Gmx91.com (桂美轩) /
Gmx91.com app
 Hongbei.21food.cn (烘焙食品网) /
Hongbei.21food.cn app
 Gaodian.com (中国糕点网) /
Gaodian.com app
Specialized Magazines
 Café & Gateaux (亚洲咖啡西点)
 Modern Bake (现代烘焙)
 Baking in China (中华烘焙)
 Hongbei Jingxuan (烘焙精选)
Gmx91.com (桂美轩)
is a specialized
bakeries website, it
mainly provides
different types of
baked goods, such
as pastries, cakes
and cookies.
Café & Gateaux (亚洲
咖啡西点) is a popular
magazine focusing
on coffee and
western pastries. It
shows different kinds
of pastries and from
western countries
and their culture
background.
45

ALL RIGHTS RESERVED
KOLs related to baked goods-Weibo
 For international brands, KOLs are a huge part of modern Chinese bakeries promotion, and baked goods
consumers are influenced by KOL’s shared opinions and experiences.
 China’s KOLs, who usually post content about baked goods on Weibo, mainly consist of food/ dessert KOLs,
health KOLs and tourism KOLs.
 This is a well-known food KOL’s Weibo account. The
KOL mainly posts info about different countries’ food on
Weibo and baked goods are important parts of his posts.
 This is a well-known dessert designer and food KOL’s Weibo
account. He usually posts info about dessert and snacks on
Weibo and baked goods are one of main parts in his posts.
1,749,742followers 230,178 followers
46
Source: Sina Weibo

ALL RIGHTS RESERVED
Trends
Young consumers (post-90s and 80s) are the main force of baked goods consumption. In order to adapt
their tastes, International brands are developing baked goods with more different flavors. They also work
with Chinese celebrities and TV series to promote brand popularity among young people.
Except for tier-1 and tier-2 cities, China’s lower-tier cities also have great market potential for baked
goods. Thus, many baked goods brands are trying to build more bakery shops in those places and
launch marketing campaigns.
Due to the fast developing baked goods market, more and more large foreign brands are trying to access
the country. They have better quality, designs and reputation, which is a big challenge for domestic
brands. In order to have more market shares, both of them will take considerable efforts to attract
consumers.
I.
II.
III.
Young consumers
Lower-tier cities
More competitive market
48

The baked goods market in china by Daxue consulting

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to The baked goods market in china by Daxue consulting

Similar to The baked goods market in china by Daxue consulting (20)

More from Daxue Consulting

More from Daxue Consulting (20)

Recently uploaded

Recently uploaded (20)

The baked goods market in china by Daxue consulting