Hamburger market analysis in China
Context of the market analysis
Fast food can be said to be the vanguard of China’s catering industry today, which has adapted to mass consumption and rapid response capability, and other characteristics. More and more consumers of all ages gradually become the main forces of the market.
As far as Hamburger is concerned, people all over the world know about Kentucky Fried chicken and McDonald’s in this industry. There is no doubt that hamburger has been monopolized by the two brands. But still tons of Burger brands survive or are emerging, hoping to have a fair share.
The sales revenue in fast-food industry in Chinese market has grown to more than 2000 billion which increased by 17% compared by the previous year and holds 15% in social consumer retail price. Western hamburger keeps taking a significant place in economic growth and its growth rate exceeds the whole catering industry by 27 percent.
- Hotdog VS hamburger
Like hamburger, hotdog is also popular in some western countries. They are convenient, simple but rich in nutrition, which makes them perfect substitutes. Researchers found that more than 90% Chinese citizens have heard about hotdogs but haven’t got a bite on it yet. Compared to the almost saturated market for hamburgers, hotdogs might be the next blockbuster in fast-food industry.
Story Hotdog Workshop, as a domestic brand, has opened more than 50 branches even since 2010. It is worth noticing that the average revenue is around 70000 per month, given the situation that few people would spend as much money as on traditional meals. Further, Subway, the third fast-food restaurant in the world, has 199 authorized shops in China and it’s expected to rise dramatically in near future. Apart from the nearly empty market share, diversification is another feature of hotdogs. By combining Chinese flavor into it, hotdogs include seafood, sweet and sour, sour and spicy style. Last of all, hotdogs are trying to define itself healthy and fried-staff free. Here follows the ratings of hotdogs.
2. Rice VS Hamburger
Fast food is not new for people, American-style burgers, fries, Japanese-style ramen, casual Western style tea restaurants, fast food has been deeply rooted in the minds of many people. However, rice kind of fast food has become popular in recent years, and research shows, in fast-food industry, Chinese fast-food market shares 85%, 60% of which is dominated by rice kind of fast food. In addition, thanks to the “fast-growth chicken” event for example, although the number of stores of KFC grew by 15.4%, but at the same time its sales declined by 3.8%. According to statistics, in 2012, yum’s market share is still the first, 6.5%, McDonald’s, 2.3%, Ting Hsin Group 1.5%, ajisen ramen, 0.4% Kung Fu 0.3%, while their market share could not compete and yum, but they still drive KFC’s passengers away.
More importantly, the fast food market share overall is falling, while Chinese-style fast food is on the rise.Some traditional Western fast food restaurants in order to cater to Chinese tastes, even started to localize their menus and create new recipes.
Further, it is also worth mentioning it’s not just fast-food brands but also catering which provides leisure and entertainment is getting the market share. Coffee, desserts, bread are all stealing customers away. Today’s consumers are faced with more choices and temptations, especially in first-tier cities, consumers, there are so many brands to choose from.
Dining consumer buying behavior refers to catering customers to purchase food needed as well as decision-making processes related to these activities. A research in 2012 investigated 76880 teenagers in 142 Chinese cities with western fast-food restaurants. The results showed 17980 participants visited them more than 3 times a week while the rest for twice on average. There are three factors mainly concerning burger field.
- Social factors. Customer behavior is affected by a series of factors such as the reference group and social status. That is exactly how the endorsement works. Led by the fantasy created by celebrities, potential customers tend to follow them.
- Cultural factors. For Chinese people, western fast-food restaurants have created a phenomenon that it is happy hours for family reunion or celebration time. Besides, when family eat out, with the implementation of the population policy, children’s influence in the household consumption increased and often decide what to eat. Obviously, kids love hamburger.
- Individual factors. Life style determines the eating habits. With the increased pressure of work and frequent separation of family, employees tend to settle for hamburgers to shorten the dining time. Besides, hamburger seems to taste delicious to them, which will undoubtedly increase the sales revenue.
Consumers ‘ purchase decision making is a complex process. Therefore, consideration should be given to the key factors above.