CHACHA FOOD CO.,LTD(SZ:002557) Tai Mei Ti A P P·2025-10-20 06:18Core Insights - The article discusses the rising trend of Chinese snack brands expanding into international markets, driven by intense domestic competition and the need for growth opportunities [2][3]. Group 1: Market Trends - Chinese snacks have become popular not only among overseas Chinese but also among local young consumers in foreign markets [1]. - Social media influencers are showcasing Chinese snacks like spicy strips and sunflower seeds, indicating a growing acceptance and demand in regions like Southeast Asia [2]. - Domestic brands are facing challenges due to increased competition from low-cost retailers, prompting them to seek growth abroad [2]. Group 2: Financial Performance - In the first half of the year, Qiaqia Foods reported a 6.4% decline in domestic revenue, while overseas revenue grew by 13.18% [2]. - Weidong's overseas revenue surged by 54.4%, significantly outpacing its domestic growth of around 20% [2]. - Yanjinpuzi's overseas business saw an astonishing growth of 67,800% due to a low base effect [2]. Group 3: Historical Context - The trend of Chinese snacks going international began in the early 2000s, with Qiaqia Foods being one of the pioneers [4]. - Initial international efforts were primarily focused on Chinese communities abroad, limiting brand reach [4]. - A shift occurred in 2015 when Qiaqia began to focus on brand storytelling and international trademark registration [4]. Group 4: Market Strategies - Qiaqia emphasizes offline channels, targeting high-traffic convenience stores like 7-Eleven in Thailand, which holds a 70% market share in the local convenience store sector [6]. - Three squirrels adopted an online strategy, launching flagship stores on platforms like Lazada and Amazon, and utilizing social media for brand promotion [7]. - Post-2018, brands have shown increased initiative and sophistication in their international strategies, reflecting a better alignment with market positioning [7]. Group 5: Competitive Landscape - Despite the growth, Chinese snack brands still face significant competition from established Western and Japanese brands in international markets [8]. - Unique Chinese snacks like spicy strips and quail eggs are being positioned as niche products to carve out market space [8][9]. Group 6: Localization and Compliance - Successful international brands like Weidong have adapted their products to local tastes, such as offering milder flavors in Italy and incorporating local ingredients in Southeast Asia [10]. - Compliance with local food regulations is critical, as different countries have varying standards that can impact product viability [11][12]. - The need for halal certification in Indonesia and strict labeling requirements in Western markets highlight the complexities of international expansion [12]. Group 7: Long-term Strategies - Companies are moving from merely exporting products to establishing local production facilities, which helps reduce logistics costs and respond to local demand [14][15]. - Qiaqia has invested significantly in overseas production, with its first factory in Thailand contributing to a notable increase in overseas revenue [15]. - The long-term goal is to integrate into global supply chains, enhancing brand recognition and acceptance similar to established brands like Oreo [15].