Instant Noodles Has a Bright Prospect in Chinese Market, Master Kong Promotes an Industry Recovery

SHANGHAI, July 20, 2017 /PRNewswire/ -- Changes to an increase in consumption has affected the industry of Fast Moving Consumer Goods.The Giant of instant noodles industry, Master Kong, is prospectively giving the industry new space for growth. After a four-year continuous sales decline in the instant noodles industry, Master Kong leads the rebound of the whole industry.

According to the monitoring data of Kantar Worldpanel, The Chinese market of instant noodles in 2016 has an increase of 0.9% in the industry, which is positive for the first time in recent years.

The annual report of Master Kong in 2016 shows its net profit of the second half in 2016 is 120 million CNY, a 1413% growth year to year. In the first quarter of 2017, its sales volume has a 44.5% market share and its sales revenue has a 51.2% market share. During the Tmall 618 campaign in 2017, its sales revenue online has a 964% growth year to year, which proves that the new sales channel is highly effective. It is obvious that the Chinese instant noodles industry is roaring back. So is the industry of FMCG.

Testing the field of Asset-light & Changing the mode of industrial production

With the increasingly complicated channel management and the fierce competition among identical products in the FMCG industry, the redundant industrial chain which is undoubtedly the ordeal for the huge firms who have many business, restricts the process of enterprises transformation.

This June Master Kong sold its five factories involving tea-based drinks, fruit drinks, sodas and bottled water, whilst also stopping selling the above products as well. Meanwhile, Master Kong repurchased the shares of Tingyi-Asahi Beverages Holding Co.. The reason why Master Kong made these changes is that it is aiming at the research and development of products by removing non-core assets.

It is of benefit to the enterprise restructuring that Master Kong integrates and optimizes its assets and tentatively reforms the manufacturing mode of the instant noodles industry, which would enable the enterprise to make a more timely response and adjustment during the next iterative upgrade of consumption.

Improving Instant Noodles' Quality Based on Food Safety

A long period of time ago, instant noodles were mistakenly considered as Junk Food mainly because of being cooked in oil, a preservative, with high calories included and containing little nutrition. All these factors affected the sales and consequently the whole industry.

With an increasing varieties of food, rigidities will definitely shake the subsistence foundations of instant noodles industry. Hence, changing customers' negative stereotypes about the nutrition and security of instant noodles relates directly to the prospect of this industry.

For three years, Master Kong never stops investing in enhanced technology of products development. It carried out a research about the initiative guarantee system of vegetable source safety with Tianjin University of Science&Technology. This project plays an instructive role in moving the suppliers' producing areas, selecting the agricultural lands and controlling the safety quality of agricultural products at the source by the means of surveying the contaminated distribution of main domestic vegetable origins.

This seems straightforward - Master Kong values the food safety inspection, as it is reported that Master Kong has conducted over 3.5 million quality tests for more than 1.5 thousand indexes per year, including the pesticide residues, heavy metal, food additives, microorganism and transgenic food.

Differentiated marketing for high end products stands in the breach

The rapid rise of the instant noodles industry benefits from the population in the phase of China's economic development. The convenience and low price of products are such competitive advantages. However, the recent consumption upgrade challenges the instant noodles enterprises and makes them consider about determining brand strategy in a severe homogenization of competition. It requests the enterprises to make appropriate systematic adjustment in terms of their product combinations and marketing tactics.

For now, the instant noodles enterprises like Master Kong, Uni-president, Jinmailang and Baixiang all focus on the mid-to-high end product mix. Master Kong endeavors to rebuild new consumer scenarios and enrich the brand association. It develops sports marketing by aligning with Olympic Games in Rio and Marathon, for instance.

Master Kong entered the market in 1992. The flavor Stewed Beef stood out of 100 formulas, playing an important role in Chinese market of instant noodles. From optimizing the industrial chain to incorporating assets, Master Kong gets ready for next 25 years.

SOURCE Master Kong