From a stock price perspective, Master Kong's weak performance has actually persisted for a long time. A significant decline in net profit has also occurred at Master Kong's old rival Uni-President. In March 2015, Uni-President China released its 2014 results, showing a net profit plunge of 68.8%, the largest drop in five years. What exactly is wrong with the once-thriving instant noodle industry? Master Kong's profit warning announcement attributed the financial setback to, among other reasons, the upgrade and price increase of instant noodle products, which led to a sales decline last year due to short-term channel观望 (wait-and-see). Master Kong subsequently implemented a series of measures to boost net profit, such as removing complimentary ham sausages from instant noodle packages, raising prices, and launching "Ai Xian Da Can" (Fresh Deluxe Meal) instant noodles priced above five yuan to cater to the "consumption upgrade" trend. Not only did these measures fail to improve performance, but profits continued to decline... Instant noodles have long been perceived by the public as unhealthy food. As public health awareness and consumption levels rise, instant noodles, once primarily targeted at low-income students and urban migrant workers, are becoming increasingly out of step with current consumption trends. Even if Master Kong launches premium products or uses more refined ingredients, it struggles to win over consumers. Many white-collar workers indicated that for the high-end products promoted in the market, such as Master Kong's "Ai Xian Da Can" and "Zhen Liao Duo," most respondents said they had "never tried" or even "never noticed" them, with their impressions still stuck on classic products like Laotan Sauerkraut Beef, Braised Beef, and "Come One Bucket" series. Other white-collar workers said, "I rarely eat instant noodles even once a month, and I basically skip the instant noodle aisle when shopping at the supermarket," and "I buy more frozen products and only occasionally eat instant noodles." Another reason is the impact of frozen foods. Frozen products, as the main substitute category for instant noodles, are experiencing significant growth, squeezing the market growth of instant noodles. Frozen low-temperature ready-to-eat products have advantages in taste and health. Currently, it's not just Master Kong; other foods have also become fellow sufferers with instant noodles. 1. Biscuits Consumer demand for biscuits is declining. For Chinese consumers, there are too many breakfast options, from porridge and steamed buns to bread and hamburgers. Not only snack foods, but even the fast-food industry is competing for this market. Sandwich biscuits represented by Oreo and Master Kong's 3+2 series are increasingly falling out of favor. 2. Pre-mixed Cocktails The parent company of RIO, China's largest pre-mixed cocktail brand, Baorun Group, lowered its annual performance forecast, cutting the expected net profit growth from 150%-200% to 60%-90%. A securities analyst who has long tracked pre-mixed cocktails and once championed this 10-billion-yuan market admitted, "Pre-mixed cocktails don't have much technical content; they mainly rely on advertising effects. But with heavy advertising, the marginal benefit of advertising is diminishing." He believes, "Everyone overestimated this market initially." This article was published in the June 2016 issue of Sales and Marketing magazine, Channel Edition. At the request of our distributor friends, the third B-end e-commerce inspection class of this public platform will visit three platforms from July 9-12: Wanshang Yizhan, Yunbao Shangmeng, and Weijie Chengpei. Distributor friends interested in transformation are welcome to join us for on-site inspections: Organization Format

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  4. One-on-one exchanges Participating distributor friends only need to pay a registration fee of 200 yuan. Time: July 9-12, 2016. Location: Changsha, Xiamen. Interested distributor friends can register by long-pressing the QR code below. When adding friends, please reply "Third Registration". Previous Inspection Enterprise Cases: Yishang Logistics Model Inspection (Second B-end E-commerce Inspection Group at Yishang Logistics) Caiba Model Inspection Jinhuobao Model Inspection Beiquan Model On-site Inspection Piduoduo Model On-site Inspection -END- The best FMCG distributor learning platform in China Dedicated to providing professional, practical, and actionable tutorials for enterprises 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 numbers below to get 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 Boost 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 Operations Strategy | 014 First Lesson for New Salespeople | 015 Internet, Brand | 016 Distributor B2B Transformation | [Long press QR code to follow]