Domestic

Holiland looks to new strategies in online market

By Bao Chang (China Daily)
Updated: 2010-07-26 10:51

Today's hurried urban life and the convenience of the Internet are luring more customers to online businesses, including bakeries, in China.

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Luo and his team have joined the trend. All swan cakes are only accessible to online shoppers. The savings will be used to improve the product. It will come with a steel knife and fork rather than less environmentally-friendly plastic used previously.

Other bakery shops have also found that doing business online is less time-consuming and more economical. E-beecake, 21 cake and Waffleboy are among those becoming more popular with young people.

"Just like other industries, the bakery industry is also at a stage of change, reshuffling and upgrading, since ways of making money in the past are not as effective as before," said Chi Xiangdong, deputy chairman of the Bakery Industrial Association under the All-China Federation of Industry and Commerce.

Other traditional chains are also challenging Holiland's market position. Beijing-based Weiduomei is diversifying its business by opening three cafes and two Western-style restaurants. Bread Talk is focusing on gaining a foothold in high-end shopping malls and office buildings, reinforcing its niche image. Luo said: "Competition is good for the development of the cake market, which still has great potential."

Holiland is also expanding its portfolio of delicacies to include mooncakes and sweet dumplings. This autumn, the company will introduce a greater variety of mooncakes to attract more high-end customers. Holiland sold as much as 200 million yuan of mooncakes every year in China. According to Xie Li, general manager of Holiland, regular cakes, mooncakes and sweet dumpling are Holiland's best sellers, accounting for 60, 20 and 10 percent of the company's revenues respectively.

Zhao Liang of Cakeok.cn, a professional website for China's bakery sector, said the country's bakery market has grown 20 percent year-on-year over the past decade.