Bakery Industry Analysis
An Analysis of Yuxi Bakery Industry
Professor, Ed Bukszar, Ph.D.
Yee Chen
September 27, 2010
Introduction
The Chinese bakery industry, being in the growth period of its life cycle, has been developing at a high speed these years. There are more and more foreign chain brands such as Breadtalk and 21cake, coming into the Chinese bakery market; and at the same time, many Chinese local brands such as Holiland, Daoxiangcun, and Jiahua, are accelerating to enlarge their scale. Furthermore, innumerous small-scale cake shops have flourish, which is a strong force that cannot be ignored, occupying a large proportion of market.
The economy of different parts of China is developing at a different pace, as well as the bakery industry. Even the dominant bakery brands vary from one part to another. There are very few bakery brands that could get a country-wide scale. Except several metropolises such as the Beijing, Shanghai, bakery industry in most cities are in their early stage of the development.
I focus on the bakery industry in small and medium-sized cities, because they are a considerable part of the Chinese bakery industry, but still own huge potential undeveloped market. I will take a specific city, Yuxi, as an example, for its condition, can represent most Chinese small and medium-sized cities; what’s more, is that it is a market more familiar to me.
Yuxi is a small city lying in the middle of Yunnan Province, which is southwest of China. It has a land span of 15,285 km2 and a population of 2.1 million. Economy there is rapidly developing. Government (2009)[i] reported that Yuxi GDP was 23.9 billion USD, with per-capita GDP 3958 USD in 2008. The tertiary sector accounted for 27.8% of the GDP, increasing by 0.7% compared with the year before. Yuxi has been honored as one of the “Ten Livable, Ecological and Leisure Cities” in China, and “National
Professor, Ed Bukszar, Ph.D.
Yee Chen
September 27, 2010
Introduction
The Chinese bakery industry, being in the growth period of its life cycle, has been developing at a high speed these years. There are more and more foreign chain brands such as Breadtalk and 21cake, coming into the Chinese bakery market; and at the same time, many Chinese local brands such as Holiland, Daoxiangcun, and Jiahua, are accelerating to enlarge their scale. Furthermore, innumerous small-scale cake shops have flourish, which is a strong force that cannot be ignored, occupying a large proportion of market.
The economy of different parts of China is developing at a different pace, as well as the bakery industry. Even the dominant bakery brands vary from one part to another. There are very few bakery brands that could get a country-wide scale. Except several metropolises such as the Beijing, Shanghai, bakery industry in most cities are in their early stage of the development.
I focus on the bakery industry in small and medium-sized cities, because they are a considerable part of the Chinese bakery industry, but still own huge potential undeveloped market. I will take a specific city, Yuxi, as an example, for its condition, can represent most Chinese small and medium-sized cities; what’s more, is that it is a market more familiar to me.
Yuxi is a small city lying in the middle of Yunnan Province, which is southwest of China. It has a land span of 15,285 km2 and a population of 2.1 million. Economy there is rapidly developing. Government (2009)[i] reported that Yuxi GDP was 23.9 billion USD, with per-capita GDP 3958 USD in 2008. The tertiary sector accounted for 27.8% of the GDP, increasing by 0.7% compared with the year before. Yuxi has been honored as one of the “Ten Livable, Ecological and Leisure Cities” in China, and “National