Core Viewpoint - The article discusses the decline of the popular Chinese pastry brand, MoMo Dim Sum, which has retreated from its national expansion back to its home base in Changsha, highlighting the challenges faced by the new-style bakery industry in China due to market saturation and changing consumer preferences [3][6][18]. Group 1: Company Overview - MoMo Dim Sum was once a leading brand in the new-style bakery sector, achieving a valuation of 2 billion yuan with over 20 stores in 2021 [6][11]. - The brand's rapid expansion was fueled by significant capital investment, including multiple rounds of financing totaling several hundred million yuan [10][20]. - As of now, MoMo Dim Sum has only 29 stores remaining, with 28 located in Changsha, indicating a drastic reduction in its operational footprint [6][19]. Group 2: Market Dynamics - The new-style bakery industry experienced a capital boom from 2020 to 2022, with an average annual growth rate exceeding 12%, but this has sharply declined, with financing dropping by 90% in 2023 [20][22]. - The closure rate in the bakery sector reached 28% in 2023, significantly higher than the average for the restaurant industry, reflecting the challenges faced by many brands [20][22]. - The shift in capital investment focus has moved from high-growth stories to brands with stable cash flow and solid supply chains, leading to the downfall of several once-prominent brands [22][25]. Group 3: Consumer Behavior - Consumer sentiment has shifted, with many former fans of MoMo Dim Sum expressing disappointment in the product quality, indicating a decline in brand loyalty [16][29]. - The initial appeal of the brand was driven by marketing and social media presence, but as consumers became more discerning, the lack of product differentiation became apparent [28][29]. - The reliance on marketing strategies over product innovation has led to a backlash, as consumers now prioritize quality and value over brand hype [26][29].