Introduction Colorful mini tangyuan, frozen cheesecakes, and Disney-themed zongzi... The frozen food industry is not short of new products. Whether in terms of taste, the color of the outer skin, or the fashionable packaging, companies are trying to capture consumer groups and make their products the darlings of the market. However, the increasing number of upper-middle-class consumers, the rise of the post-90s and post-00s generations, and changes in O2O consumption behavior have made the consumer environment different. High quality, healthy eating, personalization, fragmentation, and the pursuit of happiness and experience have become the new consumption labels of the 'food' era.

Main Text NEWS Hard-to-Please Users At the end of March, Wufangzhai reached a licensing cooperation with Walt Disney (China) Co., Ltd., launching new Disney and Marvel series zongzi for the Dragon Boat Festival season. "Disney represents innovation, creativity, trust, optimism, and high quality. Our consumer products are committed to extending Disney's innovative and engaging experiences to a wide range of consumer fields," said Wang Qin, Vice President of Disney's Consumer Products division in China, at the "2016 Wufangzhai New Product Launch." He stated that the licensing cooperation aims to convey Disney's magic to thousands of households through Wufangzhai's products. From the user's perspective, it is no longer just about spreading the deliciousness of zongzi; "Happiness makes deliciousness even more flavorful" has become the communication theme for Wufangzhai's new zongzi season. On New Year's Day 2016, Sanquan's Colorful Mini Tangyuan also attracted reposts from many key opinion leaders on Weibo and even made it to the trending list. The game-inspired Zuma-style box design, vegetable and fruit juice coloring, and seven-colored outer skins not only please consumers visually but also provide dietary fiber. By catering to young women's dietary demands for less sugar and less fat, and creating a "small and refined" image, Sanquan's Colorful Mini Tangyuan became a standout product in this year's Lantern Festival market. Meanwhile, Sinian's Bull Demon King series dumplings, inspired by Western steak, incorporate Western ingredients such as lime, basil, and rosemary into dumplings, clearly targeting consumers' quality demands. "China is undergoing a major consumption upgrade. By 2020, there will be 500 million middle-class consumers. Their demand for products may gradually shift from the simplest purchases to quality and taste," said Li Wei, Chairman of Zhengzhou Sinian Food Co., Ltd., in March 2016 during an interview on Henan TV's National Two Sessions studio. He added, "As a food company, products like dumplings and tangyuan should offer an experience in the future. The focus of supply-side reform is on the supply side, but the starting point must be on the demand side." Clearly, the power of the demand side has already formed. A "China Consumer Trends Report" jointly released by Ali Research and Boston Consulting Group states that the increase in upper-middle-class and affluent consumers, the rise of "new-era consumers," and the growth of online shopping—these three emerging forces are leading China's new consumer economy. However, the "taste" of consumer groups is not easy to grasp. Pursuing "happiness," promoting "high-end," entertainment marketing, cross-border collaborations, introducing baking concepts, advocating green health concepts, and giving products dessert attributes... In recent years, the frozen food industry has not lacked novelty, but consumer behavior has changed. Consumers with a voice are becoming increasingly picky, and the frequency of new product "iteration" is accelerating.

Are the Post-90s Driving This Upgrade? The food industry has bid farewell to the shortage economy, shifting from a seller's market to a buyer's market, and consumption upgrade has become an important trend—this is a consensus in the industry. Yan Chang, Executive Director of Qingliu Capital, wrote: 0 "The consumption upgrade industry is not simply about moving from buying cheap to buying expensive; consumer behavior will undergo structural changes: First, consumers are willing to pay for 'killing time,' and the growth space for 'pan-entertainment' consumption is huge; Second, consumers' brand choices tend toward 'self-identity'; Third, 'cultural consumption upgrade' leads this consumption upgrade, with strong consumption of subculture peripheral products." But Yan Chang believes that the core group driving this wave of consumption upgrade is the post-90s and post-00s generations. Wang Peng, CEO of Sinian Food, also mentioned in an interview that in 2015, Sinian Food continuously improved from R&D, production, to sales, increased research on consumer demand, tapped the potential of the post-80s and post-90s consumer groups, and aligned product design and marketing promotion with the communication methods of the internet era, interacting with consumers and inspiring them to generate word-of-mouth for the brand. So, what are the "consumption commonalities" of the post-90s and post-00s? Following stars and dramas? Two-dimensional culture, boys' love, national husbands, goddesses, internet celebrities? Baidu Marketing Research Institute's "Post-90s Consumer Generational Study" report shows that post-90s consumers' consumption focus includes games, anime, movies, and other entertainment industry products, accounting for 28.6%. At the consumption level, post-90s have new concepts and like to satisfy their needs through consumption; "everything can be played," "socialize everywhere," and "fragmented, lightweight, instant" are the new rules reshaped by post-90s. At the same time, compared with other generations, post-90s' "material conditions have been met, their diversified personal awareness has increased, and spiritual consumption content infused with innovation and technological elements stands out." Of course, in the segmentation process, products also need to embody the personality traits of the post-90s. Three attempts at entertainment marketing in a year, annual investment exceeding 50 million yuan, sponsoring the show "Dad, Where Are We Going?"; wrapping zongzi in pure natural cotton and linen bags, and giving them cartoon images and internet slang—whether it's Sanquan or Sinian, the innovative approach is clearly aimed at catering to the preferences and likes of young consumer groups. However, with fast-shifting interests and short-lived likes, the fickleness and uncertainty of the post-90s make it obvious that the life of each product cannot be sustained.

The Inclination of the Upper Middle Class At the same time, with the rise of the middle class, consumption levels are also becoming more pronounced. "China's economy is shifting from investment-led to consumption-led, and China's economic development has entered a new normal," is the view expressed by Fan Yijin, General Manager of Nielsen China. According to Nielsen research, the emerging middle class and their growing consumption demand are driving economic growth. Consumers in first-tier cities like Beijing, Shanghai, and Guangzhou have become an indispensable force in consumption growth; the popularity of online retail is also a major factor driving consumption growth in first-tier cities; in addition, urbanization and the "Belt and Road" initiative have stimulated consumption demand in rural areas. "This is a period of personalized consumption competition," said Dong Zhen, General Manager of Henan Furun Food Co., Ltd. "During this period, the profit margins for new products are still high, which is also conducive to consolidating brand image and maintaining corporate vitality." Dong Zhen believes: "Traditional products will eventually reach a relatively stable cost-performance state, that is, a 'critical state.' One step forward, and companies may see thin profits; one step back, and they may face losses. Therefore, to respond to new consumer demand, companies must seize opportunities, enrich product categories, and upgrade products." However, adhering to the "original dimensions" of products is also a corporate insistence. Zhou Lizhong, Assistant General Manager of Quzhou Fengzai Food Co., Ltd., said: "Although the consumption environment has changed, we still attach importance to the sensory aspects of frozen rice and flour products, and have requirements for the color, aroma, taste, and shape of products." "Concentration on brands," "upgrading to mid-to-high-end," "preference for genuine ingredients," and "internet plus popularity" seem to be the general views within the industry on consumption trends. But against the backdrop of the rise of the middle class and the individual needs of the post-90s, the success of any single product may be short-lived and immediate, not long-lasting. And chasing after consumer groups, companies' innovation cells will split faster.

Editor: Liu Shengrong This article is excerpted from the May issue of "Frozen Food" magazine, first published on the WeChat public platform of Frozen Food. -END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and applicable tutorials for companies and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]