Status Quo and Development of China's Leisure Food Chain Industry

I. Summary In recent years, China's chain industry has developed rapidly in the past few years. Catering, clothing, and emerging services have all achieved considerable development through chain operations. China's traditional snack food industry has also found its new industry development direction through chain operations. It is expected that the chain operation will become one of the major business models of the snack food industry.

Second, the development of leisure food industry Snack food has a long history in China and a large consumer groups, leisure food has been deeply loved by consumers. As people's disposable income increases, people's ability and ideas for the consumption of snack foods have changed dramatically.

Statistics from the Statistical Communique on National Economic and Social Development in 2005 published by the National Bureau of Statistics show that rural household food consumption expenditure is about 1,481 yuan, and urban household food expenditure is about 3,851 yuan. As of the end of 2010, the annual rural household food consumption expenditure was about 2,433 yuan, and urban household household food expenditure was about 6,822 yuan, which was an increase of approximately 64% and 77%, respectively, compared with 2005. With the dramatic increase in household food consumption expenditures and the strengthening of people’s spending power, the demand for China’s snack food market continues to increase, and the market scale rapidly expands.

In addition, with the improvement of people’s living standards, people’s consumption concepts have also undergone great changes. Snack foods have changed from “snacks” in people’s traditional concepts to a kind of fashion consumption, which is a symbol of lifestyle. The demand for the snack food industry has been further increased and the quality and price of snack foods have continued to rise, accelerating the pace of market expansion.

According to the statistics, the market demand for the snack food industry has increased at a faster pace than the economic growth during the same period. In 2005, the sales value of the major leisure food industry in China was 22.8 billion yuan. In 2011, the sales value reached 96 billion yuan. The annual increase was more than 18%. 3. The chain operation mode is a form of business organization and management system. Refers to a number of companies that operate similar goods or services, form a consortium in certain forms, conduct specialized division of labor under overall planning, and implement centralized management on the basis of division of labor, and combine independent business operations into an overall scale of operations. In order to achieve economies of scale, it is a business model.

The chain management model implements centralized management. Large-scale operation not only guarantees the quality of products and services, but also has lower operating costs and more favorable prices. Moreover, it is also possible to purchase and sell different grades of products including industrial high-end products and imported products through scale advantages, which traditional convenience stores cannot do, and satisfy people's pursuit of different levels of consumer tastes. In addition, the chain of monopolies in chain operations not only provides people with high-quality products and thoughtful services, but also enjoys a culture beyond consumption. For operators, chain management has a mature operating model and a successful profit management method. Chain management is not only an operating method for operators to improve efficiency and reduce costs, but more importantly, it can help managers break through the management bottleneck in development. For enterprises, the essence of the business model of chain management is the effective methods and ways for companies to use intangible assets for capital operations and realize low-risk capital expansion and scale operations. Chain operation is a good platform for consumers, operators and enterprises.

Chain business model has been in rapid development since entering the market. With the development of society, the chain business model has been subdivided into comprehensive chain operations and chain monopolies. Among them, chain monopoly operations have been growing rapidly in recent years due to their suitability for the current market demand.

In recent years, with the rapid development of China's economy, the people’s living standards have been continuously improved. Consumers not only need to consume satisfied products but also hope to enjoy high-quality, personalized services. The traditional department stores, supermarkets, and convenience food stores have extensive services. It is no longer able to meet people's demand for high-grade consumption, but comprehensive chain companies such as Carrefour and Wal-Mart can meet the needs of the general public but cannot satisfy people's pursuit of high-level life. Therefore, professionalism provides comprehensive and thoughtful services. The operation of the franchise chain with the theme of fine services and emphasizing functional features began to appear and quickly expanded. Such as cosmetics, clothing, electronic products, automobiles, sporting goods, stationery, snack foods, restaurants and so on. Among them, the leisure food chain industry has developed rapidly and its development speed has exceeded the average level of the chain industry.

Fourth, the chain business model to promote the development of leisure food industry The leisure food industry used convenience stores and supermarkets as the main terminal sales channels. In this way, the branding and standardization of snack food companies are more difficult to control effectively, and the companies in the industry are usually smaller in scale and have weaker channel management and service awareness. With the rapid expansion of the market size and people’s pursuit of high-quality life, the retail food retail industry needs to be adjusted. The traditional supermarket retail and leisure food convenience store retail sales methods have failed to meet the rapidly increasing market consumption requirements. Therefore, chain operations are in the leisure food industry. There is much to be achieved in the development of the industry.

First of all, from 2005 to 2011, the growth rate of the snack food market has grown at a high rate of nearly 20% per year. In just six years, the market has expanded several times. At the same time, in recent years, due to continuous food safety incidents such as melamine, people are increasingly concerned about food hygiene, and many convenience food stores have been closed by consumers. In the snack food industry, there is a huge market demand but no sales platform.

Secondly, with the improvement of living standards, people are increasingly demanding that high-end snack foods contain imported snack foods. Large-scale supermarket chains such as RT-Mart, Wal-Mart and others can meet some of the requirements, but due to the limited number of large-scale supermarkets, they cannot meet the market demand. Convenience supermarkets basically do not sell high-end snack foods. Undoubtedly, with the development of society, the consumption of high-end snack foods will gradually increase.

Finally, as economic capabilities continue to increase, people are more likely to spend time on high-level, professional, personalized services and even expect to enjoy a culture beyond consumption.

The retail food retail industry needs a platform that can quickly fill market gaps and satisfy people’s pursuits. The retail chain of snack foods quietly entered people's lives and quickly developed. Casual food chain stores specialize in snack food franchise: In purchasing, establish long-term and stable cooperative relationships with famous casual food brand manufacturers, and implement strong and strong alliances, which not only ensures product quality, but also enriches their products. More comprehensive; in terms of management, the franchised chain franchise model adopts scale, standardization, and intensive management in the same way as other chain management models. Its management is not only efficient, but also cost is lower. In sales, its services are more professional and comprehensive. In detail, casual food chain stores sell not only casual foods themselves, but also allow consumers to appreciate the leisure culture brought about by their professional snack food knowledge. In addition, the franchised franchise business model is a mature operating model and can be quickly replicated. Chain stores not only have the flexibility and convenience of convenience stores, but also have the scale of large-scale supermarkets, and the services are more thoughtful and detailed. The snack food franchise chain can not only satisfy the rapidly growing market demand, but also satisfy the people's pursuit of high quality of life. It also allows consumers to experience the unique leisure culture brought about by the chain operation of leisure food and is well received by the market.

In addition, according to surveys and statistics, in recent years, in the retail food retail industry, the scale of the chain retail model market has been increasing in the overall market size. In 2011, the scale of retail sales in the retail food industry has reached the market scale. It accounts for 15.63%.

It is expected that by the end of the twelfth five-year period, chain operations will account for more than 22% of the entire industry, and chain operations will provide strong support for the development of the leisure food industry.