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The trend of health has come to the dumpling industry. Will consumers buy into it this time? Recently, Yuanji Cloud Dumplings took advantage of the trend of health in the industry to promote new products, with keywords such as fillings and calories becoming selling points. Yuanji Cloud Dumplings has always been known for "freshly made and sold immediately", but it was recently questioned as being pre-made, which also had a certain impact on its positioning and health label. Now it seems to be trying to find another way. In the eyes of industry insiders, although the dumpling category has a long history, problems such as severe homogeneity and low industry brand awareness have restricted the development of the industry to a certain extent. Coupled with the fierce competition in the field, it is still unknown whether Yuanji Cloud Dumplings' new selling point can capture consumers.

The Olympics brings health trends

The Olympic Games are in full swing, and catering companies are also taking advantage of this to promote a healthy trend. Recently, Yuanji Yunjiao published an article to popularize health knowledge, saying that 60% of the meals provided by the Paris Games are vegetarian, with relatively little meat. It also used this to promote the konjac oatmeal dumplings series recently launched in collaboration with the light food brand Ye Ren Diary, saying that one oatmeal dumpling is equivalent to about 36 calories.

A reporter from Beijing Business Daily visited a store of Yuanji Yunjiao and found that the LED screen in a store had the words "Chinese light food dumplings are free to eat". The two new products in the window were highlighted. The konjac oatmeal broccoli dumplings were marked with "'Low-fat' new taste", and the konjac oatmeal chicken breast dumplings were marked with "'Refreshing' new taste". The introduction of both products said "1 piece ≈ 36kcal" and the price was 18.8 yuan/500g.

From the brand's initial focus on "freshly made and sold", the selling point of freshly made dumplings and wontons visible in the transparent kitchen, to today's light Chinese dumplings, Yuanji Yunjiao seems to have deepened its health label. At a time when contemporary consumers pay more attention to low calories and health, this move has also attracted many consumers to interact, and they have expressed their desire to try it, but some consumers have said that it is "not very filling."

Regarding the newly launched konjac and oatmeal dumplings series, a Beijing Business Daily reporter contacted Yuanji Yunjiao, whose relevant person in charge said that the brand has been launching new products based on existing products. On the one hand, Yuanji Yunjiao will launch new products based on the dietary preferences of different regions; on the other hand, the brand will also launch products to meet the needs of new consumer groups, such as the relatively low-fat konjac and oatmeal dumplings series. It is understood that Yuanji Yunjiao is a brand under Yuanji Food Group, and as of February this year, the group has been in operation for more than 12 years.

The signature selling point was once questioned

"Freshly made" and "fresh dumplings" are the two major labels that Yuanji Yunjiao has given to its brand, but the brand was once pushed to the forefront when it was exposed as a pre-prepared dish. In Yuanji Yunjiao's brand planning, although dumplings are its main business, the brand is also trying "side businesses" and looking for other growth curves.

In September 2023, an entry that "Yuan Ji Yun Jiao was exposed as a pre-prepared dish" brought doubts to the brand. According to Banzha Online, some netizens claimed that the dumpling skins and pork fillings used in Yuan Ji Yun Jiao stores were frozen products, and when the media visited the store, a staff member said, "The meat is thawed and delivered by the company. The meat has been seasoned and we just need to put the vegetables in it." In response, some consumers supported the brand, saying that store deliveries must be frozen, and some consumers said it was no wonder that the meat filling was not fresh. Now it seems that Yuan Ji Yun Jiao's move to launch Chinese low-calorie dumplings is undoubtedly an attempt to tell a healthy story again.

In fact, in addition to strengthening its own health label, Yuanji Yunjiao has been constantly trying to expand its business boundaries in recent years. In terms of store scenarios, in June this year, Yuanji Yunjiao opened the first black pork shop in the country, adopting the model of "fresh dumpling retail + black pork retail"; before that, Yuanji Yunjiao also opened "Yuanji Yunjiao's Guess" and "Dumplings and Wine", trying categories and formats such as dumpling hot pot, soup noodles, and taverns. Many consumers have posted photos on social platforms of Yuanji Yunjiao stores adding "Yuan Ka" windows to sell coffee products. In terms of products, not long ago, Yuanji Yunjiao also launched 3 raw noodle products in some stores in Guangzhou, Haikou, Xiamen and other cities, priced at 2 yuan per bag.

Regarding Yuanji Yunjiao’s different store types and future development plans, a Beijing Business Daily reporter sent an interview outline to the brand, but no response was received as of press time.

Lin Xianping, executive deputy secretary-general of the China Urban Expert Think Tank Committee, believes that the young consumer group's demand for health, convenience and deliciousness is gradually increasing, and Yuanji Yunjiao's move to strengthen its health label is a manifestation of keeping up with current consumer demand. From the perspective of the dumplings track, more and more brands are beginning to pay attention to the concept of health and have launched various low-calorie, low-fat products. Yuanji Yunjiao is also following the trend. In fact, brands try different businesses to enhance brand competitiveness, but they also face the problem of how to balance resource allocation between different businesses and maintain consistency in brand image between different formats. As for the pre-prepared food incident, it has had a certain impact on Yuanji Yunjiao. The brand still needs to improve product quality and gain more recognition and trust from consumers.

Differentiation determines brand development

With the superposition of multiple factors such as the faster pace of consumers' lives, diversified demands, and the pursuit of food health, the size of the dumpling market has increased, and brands are constantly working on refined operations. According to estimates by the Hongcan Industry Research Institute, the market size of dumplings in my country will be approximately 65 billion yuan in 2023. Hongcan big data shows that as of January 2024, the total number of operating dumpling stores in my country will exceed 100,000. Today, the dumpling category has entered the stage of refined operations, dumpling brands pay more attention to refined operations, and consumers are willing to pay for "freshly wrapped and cooked" fresh take-out dumplings. As dumpling brands continue to penetrate the community fresh food market, the dumpling track is expected to explode with more potential.

However, the dumpling market is relatively fragmented, with few national brands, and the industry's competitive landscape is not optimistic. According to Red Can Big Data, as of January 2024, 94% of dumpling brands have fewer than three stores, and brands with more than 50 stores account for 0.3%. At present, the overall scale of dumpling brands is not high, with some brands having more than 100 stores, and only a few brands have more than 1,000 stores.

Yuan Shuai, chief strategic development consultant of Xingxiang Studio, pointed out that the dumpling industry currently has problems such as serious homogeneity, low brand awareness, and low consumer brand loyalty. The dumpling market is highly fragmented, with a large number of small and micro brands competing fiercely. There are both traditional old brands that have consolidated their market position and emerging brands that have risen rapidly through innovative models. There is a lack of leading brands with significant market influence. In this context, the requirements for brand differentiation will be higher, prompting brands to improve product quality, service experience, and brand building.

Indeed, brands such as Xijiade Shrimp Dumplings and Uncle Xiong have accelerated competition in the freshly made dumplings market, and frozen dumpling brands also want to get a piece of the pie. For example, the frozen dumpling brand Si Nian was exposed to have launched a handmade fresh dumpling brand Xian Jiao Xian Chi in 2021. Yuanji Yunjiao is under great pressure.

Lin Xianping believes that the key to the future development of Yuanji Yunjiao lies in how to maintain its brand characteristics. First of all, Yuanji Yunjiao needs to continuously innovate its product types, flavors and packaging to meet the needs of different consumers. At the same time, the brand needs to strengthen brand publicity and promotion, enhance brand awareness and reputation, and enhance consumer loyalty to the brand. In addition, Yuanji Yunjiao can also further expand its market share by expanding its business scope and developing new retail channels.

Beijing Business Daily reporter Zhang Tianyuan/text and photo