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].

Core Viewpoint - The article discusses the evolution of the new Chinese baking industry over the past decade, highlighting the challenges in creating new "blockbuster" products like the "Meat Floss Little Cake" that once captivated the market. It emphasizes the need for a shift from short-lived trends to sustainable, long-term products that resonate with consumers' memories and experiences [5][38]. Group 1: Historical Context and Market Dynamics - The "Meat Floss Little Cake," developed by Bao Caisheng in 2004, became a nationwide sensation in 2014, marking a significant moment in the Chinese baking industry [3][4]. - This product represented a fusion of Chinese and Western flavors, breaking traditional boundaries and creating a new taste experience that appealed to consumers [6][11]. - The rapid expansion of bakery stores and the maturation of supply chain logistics in 2015 facilitated the widespread distribution of the "Meat Floss Little Cake," which was easy to standardize and replicate [8][9]. Group 2: Evolution of Product Categories - The new Chinese baking industry has undergone a transformation from "blockbuster" products to "evergreen" and "daily" products over the past decade [14]. - The "blockbuster phase" (2016-2018) was characterized by products that gained popularity through novelty and rapid social media sharing, such as salted egg yolk pastries and mochi [15]. - The "evergreen phase" saw products like egg yolk pastries become stable choices for consumers, focusing on long-term repeat purchases rather than short-term spikes in sales [17][20]. - The "daily phase" post-2020 integrated new Chinese baked goods into everyday consumer life, making them standard offerings in bakeries [22][23]. Group 3: Challenges and Market Saturation - The article notes that the market for new Chinese baked goods has become saturated, with the emergence of numerous similar products leading to intense competition and reduced profit margins [31][32]. - The rise of short video platforms has changed consumer behavior, making it difficult for any single product to achieve the same level of widespread attention as the "Meat Floss Little Cake" did in its heyday [26][29]. - Consumers are experiencing "taste fatigue," as the novelty of new flavors diminishes, leading to higher expectations for unique and memorable taste experiences [35][37]. Group 4: Future Directions - The industry must transition from a focus on one-time blockbusters to creating products that foster long-term consumer loyalty and repeat purchases [38]. - Emphasizing "scene economy" will be crucial, integrating baked goods into everyday life scenarios such as breakfast and celebrations to build consumer attachment [39]. - Establishing a "taste memory" rather than relying solely on trendy symbols will be essential for creating enduring products that resonate with consumers [42]. - A shift from "single product logic" to a "systematic logic" that combines product matrices and brand value is necessary for sustainable growth [44]. - Brands must develop self-sustaining cycles that focus on community engagement and long-term reputation rather than short-term viral marketing [45].