Core Viewpoint - He Xian Group has opened its first lotus root powder dessert shop "Ou Xiao Man," marking its expansion from a supplier to a direct retailer in the food industry, raising questions about the impact on the restaurant sector [1][6]. Company Overview - He Xian Group specializes in the processing of lotus root and has been providing comprehensive solutions to various restaurants, exporting products to Japan, the US, Europe, Southeast Asia, and major cities in China [1]. - Founded in 1993, He Xian Group has developed a complete industrial chain for lotus root, including planting, production, processing, and sales, with nearly 30 food production lines and extensive cultivation bases [6][8]. Product Offering - The "Ou Xiao Man" store features a menu focused on lotus root powder desserts, including fresh lotus root drinks, lotus root powder soup, and various fried snacks, emphasizing local ingredients from Baoying [3][5]. - The pricing strategy is competitive, with most items priced between 8 to 16 yuan, making it more affordable compared to local competitors [5]. Market Context - The lotus root industry in Yangzhou is competitive, with several existing restaurants offering lotus root-based products, indicating a growing market for such offerings [6]. - The trend of upstream companies entering the downstream restaurant sector is becoming common as they seek new growth avenues amid increasing competition in the restaurant industry [8][9]. Competitive Landscape - The dessert market is seeing increased participation from various brands, including tea brands that have launched dessert lines, indicating a crowded and competitive environment [11][15]. - While the lotus root powder dessert may find a niche in the Yangzhou area, expanding its market presence nationally could pose challenges due to differing consumer habits in other regions [16].