Casually entering a popular bread shop with long queues, the prices are ridiculously high. The delicately designed pastries, toasts, and European-style bread in the display window are all priced in double digits, almost equating to the price of a lunch for workers.

How did bread become so expensive? Can common people still afford bread?

When it comes to bread, most people’s breakfast memories can’t do without it. In childhood, a three-yuan pork floss bun or a four-yuan caterpillar bread with a cup of hot milk could satisfy a meal.

Later on, supermarkets started selling sliced white bread for seven or eight yuan per bag, which could be eaten directly, spread with jam or butter, or used to make sandwiches. Although the variety of bread was not rich, it was affordable.

Now, bread shops have been popping up one after another, always dazzling customers who come to buy bread.

For example, there is Japanese-style bread with various styles and soft textures, low-calorie and chewy American bagels, and European-style bread claiming to be “healthy and slimming”… While cultivating more and more “bread lovers,” the prices of bread have been soaring.

We have collected the prices of bread from popular bread shops in different cities on Dianping, and the results show that the prices of most bread are concentrated above 10 yuan. Even in fourth and fifth-tier cities, less than one-fourth of the bread is priced below 10 yuan. First-tier cities are even more exaggerated, with nearly 40% of the bread priced above 20 yuan.

If you live in Shanghai, which is jokingly referred to as having an “independent exchange rate,” you may have a deeper experience of the exorbitant prices of bread.

Every year, the food self-media “Penguin Guide” releases the annual Shanghai bread ranking. The most expensive bread on the list, which was priced at 38 yuan for a truffle croissant two years ago, has now been replaced by a 68-yuan cinnamon pumpkin bread.

Such bread prices have long exceeded the expectations of most people. In October this year, a poll on Weibo titled “How much money can you accept for bread” attracted 344,000 netizens to participate, of which 240,000 chose “below 10 yuan” and 79,000 chose “10 to 20 yuan.”

Thinking of picking some cheap and delicious bread, but ending up with a bill of sixty or seventy yuan, scares people who don’t know whether to pay reluctantly or put it back with a thick-skinned face. The worst part is when you bite the bullet and pay, only to find that the taste is not that great, making you exclaim, “What a disappointment.”

We have collected notes on Xiaohongshu related to “expensive bread,” and the most common complaint is that the price does not match the taste. Clearly spending a lot of money, but being discouraged by strange flavors or finding them average in taste.

Some breads are so small that they are the size of a palm, and one bite is gone. They are not even enough for breakfast, let alone a snack.

Even more outrageous are some popular bread shops where it takes three rounds of queuing, with half an hour each time, from entering, choosing the products, and waiting to pay before you can finally eat their bread.

There are also marketing tactics like hunger marketing and limited supply, which have given rise to many scalpers who double the price of bread. People can’t help but ask, “Does eating this make you live forever?”

In fact, the trend of intensified competition has already reached the bread industry in the past few years. Nowadays, bread looks more like exquisite desserts, piled up with trendy elements from the inside to the outside.

Croissants are sliced in the middle and filled with cream, taro paste, and various popular ingredients, decorated with colorful fruits, and then coated with a layer of chocolate or cinnamon powder, making them visually appealing with plenty of fillings.

Although the soft cream and fruits have overwhelmed the layers and aroma of the croissant, making it sticky and sweet, as long as the visual impact is strong enough, the price can easily surpass that of plain croissants.

Among the popular products in the bread shops we surveyed, nearly 40% of them have two or more fillings. The most common fillings are cheese, dairy products, followed by vegetables and fruits such as red beans, taro paste, and strawberries.

Not only with ordinary fillings, but bread shops also come up with various fancy fillings, taking it to another level. For example, you may find matcha-flavored cream, salted egg yolk custard, or even truffle-infused fillings in some high-end bread shops. These unique and luxurious fillings further contribute to the high prices of bread.

Moreover, the rising cost of ingredients and production processes also contributes to the increased prices of bread. High-quality ingredients and meticulous craftsmanship are often emphasized by these bread shops, justifying the higher prices. The use of premium ingredients, such as imported flours, speciality oils, and organic fruits, adds to the overall cost.

Additionally, the expansion of the bread industry has led to increased competition among bread shops. To differentiate themselves and attract customers, these shops focus on creating unique and innovative bread products. This requires investment in research and development, as well as skilled pastry chefs, which further adds to the cost.

While the rise in bread prices may make it unaffordable for some people, it’s important to note that there are still affordable options available. Supermarkets and local bakeries often offer more reasonably priced bread compared to high-end speciality shops. Alternatively, you can also consider baking bread at home, which allows you to control the ingredients and customize it according to your preferences.

Ultimately, the high prices of bread can be attributed to a combination of factors, including the trend of creating more elaborate and gourmet-style bread, the use of premium ingredients, increased competition, and the rising cost of production. Nevertheless, there are still options available for those looking for more affordable bread choices.

Like a Japanese bakery, they will directly place the Nissin Camellia Pollen in the most prominent position in the store, implying their extraordinary background. French Earl flour and Isigny butter have also become standard ingredients for making croissants.

And all of these will eventually be transferred to the price of the bread, paid by the consumers. Especially this year, the prices of flour and sugar have all increased. Due to the impact of rainfall, the price of wheat has skyrocketed, leading to a collective price increase in flour. The price of sugar has reached a new high in nearly 13 years globally in September.

According to our sampling statistics of bakeries, nearly half of the bakeries claim to bake and sell freshly, showing you the scene of the freshly baked bread being brought out by the masters.

The freshly baked part is true, but not necessarily all kneaded by the masters themselves. Only 27.5% of bakeries advertise handmade bread. Sometimes, the warm bread you see may just be factory-made pre-made dough taken out of the refrigerator by the masters.

And do these labels really make the bread taste better? The answer is not necessarily.

Bread is a very demanding skill. Even if expensive ingredients are used, as long as the dough is not properly fermented, the seasoning is wrong, and the temperature of the oven is not accurately controlled, the resulting bread is probably a “car accident scene”.

When consumers taste it, they will only say, “Is it worth such a high price?”

The premium on bread is becoming more serious, but more and more people are falling for it, which has alerted many young people who are tired of working for others to see the business opportunities.

A small shop filled with the aroma of freshly baked bread seems to be another choice for young people to realize their dreams, apart from coffee shops. On Xiaohongshu you can often come across posts about “opening a bread shop alone and earning 20,000 yuan a month.”

But is a bread shop as profitable as imagined? Let’s do some calculations.

To enter the bread-baking market now, either join a chain brand or open an independent bread shop.

The advantages of joining a chain are obvious mature product systems and supply chains, built-in brand effects and natural traffic, which can save a lot of marketing costs.

Taking joining a certain handmade toast brand as an example, the franchise fee, including technical training and bakery equipment, costs 550,000 yuan, and the store decoration cost for a 60-100 square meter shop is 150,000-200,000 yuan. In addition to rent, operation management, etc., at least 800,000-900,000 yuan is required to prepare for the first year of joining.

Everbright Securities once compared a chain bread shop with other single-store models of chain leisure food and light dining. The bread shop not only has the highest initial capital but also the lowest profit margin and a long payback period.

The reason for this is that the labor and rent costs of bread shops are too high.

Making bread relies on professional bakers, and there is no way to save on labor costs. At the same time, many bread shops adopt a “front-of-house, back-of-house” design, which requires a large store area. If located in the core areas of the city, a considerable amount of rent must be spent.

So what if you only pursue self-sufficiency and open a small and beautiful independent community bread shop? The fact is that independent bread shops face more difficulties and challenges during their journey compared to chain stores.

The first problem to be faced is unsold products and waste. Bread has a short shelf life, so if it doesn’t sell, it can only be sold at a low price or discarded directly, and the cost of this has to be borne by the owner.

Secondly, the “lifespan” of popular products is too short, and independent bread shops have weak innovation capabilities, making it difficult to catch up with the research and development speed of chain brands. Who remembers the once popular “Dirty Bread” (chocolate-covered bread) that was everywhere?

And when faced with a dazzling array of bread shops, who would be content with following just one brand?

According to iResearch, only 11.5% of consumers purchase bread from only one brand, while the vast majority of consumers prefer to try various brands.

Considering all these factors, opening a bread shop is a luxury to expect to make money, and it is fortunate to be able to struggle and sustain the business. After all, the average lifespan of bread shops in China in 2021 was only 18.9 months, and even surviving for two years without closing down can be considered a “small achievement.”

According to data, in the first quarter of 2023, the opening-to-closing ratio of baking and dessert shops in Shanghai was 0.77, which means that while 77 new stores opened, 100 stores closed.

The few that can survive are the trendy bread shops that keep raising prices. For common workers who just want to have a decent meal, even though there are more and more food choices available now, they all seem to gradually become unaffordable.

The post With a Monthly Salary of 20,000 Yuan, I can’t “Afford” Bread. first appeared on China Academy.

However, now the aristocrat has become a street vendor’s commodity. Not only has the price plummeted to ten yuan per kilogram, but consumer reviews have also declined. Some internet users have even given it a new nickname, “Dark Muscat,” because they find it unappetizing.

How did the Shine Muscat fall to this point? Are the affordable Shine Muscat grapes really not tasty?

The “Hermès of the grape,” two kilograms for ten yuan

If you ask someone who has eaten Shine Muscat grapes this year whether they are delicious or not, you may receive completely different answers. Some people think they are still as delicious as before, with a refreshing and sweet taste, while others feel they have been disappointed and the likelihood of disappointment is much higher than in previous years.

Although they still have a large size and are plump, many people criticize this year’s grapes for their particularly thick skins. The flesh can taste either excessively sweet, like drinking highly concentrated sugar water, making one’s throat feel blocked after eating a couple of them, or they have a sour and astringent taste. Moreover, the fragrance of roses is completely absent, making them no different from ordinary grapes.

However, everyone agrees on one thing: Shine Muscat grapes have indeed become much more affordable.

Now, it is very common to find Shine Muscat priced at 10 to 20 yuan per kilogram in fruit shops and supermarkets. You can even buy two to three kilograms for ten yuan at some roadside stalls, allowing people to enjoy them without any financial pressure, easily consuming a kilogram in a day.

You should know that Shine Muscat used to be priced as high as 50 yuan per grape. During festivals, receiving a bunch of Shine Muscat would be a huge surprise, and one would have to savor each grape. Taking a bite, the thin skin, thick flesh, abundant juice, and the delightful combination of sweetness and the fragrance of roses would make one feel like they were chilling in a rose paradise under the sunlight.

Shine Muscat didn’t suddenly become so affordable.

According to the price data disclosed by Beijing Xinfadi Agricultural Products Market, in the past three years, except for the first and second quarters of 2021, the average price of Shine Muscat in other seasons has been lower than the previous year.

In the second quarter of 2022, the average price of Shine Muscat reached as high as 33 yuan per kilogram, with the highest price soaring to 55 yuan per kilogram. However, this year, the highest price could only reach 43 yuan per kilogram, and the average price in the second quarter dropped to 28 yuan per kilogram.

Especially this year in October, the highest price was 16 yuan per kilogram, with an average price of 10.7 yuan per kilogram.

The reason why Shine Muscat has been highly noticeable in the past two to three months is twofold. First, their prices experience seasonal fluctuations. Starting in August, the market supply of Shine Muscat steadily increased, reaching its peak for the whole year, and as a result, the price continuously dropped, entering a low point.

Second, Shine Muscat grapes have become increasingly common in fruit shops. They are prominently displayed on the shelves, with a bright green color, making it easier for people to notice the significant price reduction.

Why has the price of Shine Muscat dropped so significantly in recent years?

The direct cause of the price drop is a substantial increase in production volume.

Shine Muscat grapes were introduced to China in 2006 when Professor Tao Jianmin from Nanjing Agricultural University brought them into the country through the “Introduction of International Advanced Agricultural Science and Accommodation Plan.”

In the following decade, although cultivation was introduced in various regions, the cultivation techniques were not up to par, and Shine Muscat failed to enter the public eye. In 2016, the domestic cultivation techniques for Shine Muscat finally matured, and domestically produced Shine Muscat reached their price peak, embarking on a path of rapid expansion.

For example, in Hunan’s largest Shine Muscat cultivation base in Li County, the planting area of Shine Muscat in 2021 was nearly 18 times that of 2016. The proportion of Shine Muscat in the total grape planting area in the county skyrocketed from 8.3% to 71.8%.

It’s not just Hunan. Due to the strong adaptability of Shine Muscat, they are now being planted all over the country.

According to the “2022 China Shine Muscat and Grape Industry Data Analysis Report” released by Yunguo, the planting area of Shine Muscat nationwide was 100,100 acres in 2016, which increased to 312,100 acres in 2021, showing a staggering growth rate of 211.79% over five years.

Many experts believe that the above data is still too conservative. Wang Haibo, an expert from the Fruit Tree Research Institute of the Chinese Academy of Sciences, once stated that according to incomplete statistics from the institute, the planting area of Shine Muscat reached 800,000 acres nationwide in 2020, and it is expected to exceed 1 million acres by 2022.

Grapes, which were originally best consumed from August to October, now have almost uninterrupted supply throughout the year.

From March to the end of April each year, the Shine Muscat grapes from the Yunnan River Valley are the first to hit the market. The unique geographical advantages of the Yunnan region allow plants to grow and develop with sufficient temperature and sunlight even in winter. By the end of May and early June, the Shine Muscat in Yunnan will be gradually harvested.

Starting from June, Shine Muscat grapes in the Guangdong and Guangxi regions begin to ripen and enter the market. After August, from south to north, regions such as Hunan, Sichuan, Chongqing, Jiangsu, Zhejiang, Shanghai, Henan, and Hebei will successively complete the harvest, ensuring a continuous supply of Shine Muscat until early November.

Due to the suitable climate in Yunnan and Guangxi, the “two harvests in one year” technique allows the second-season Shine Muscat to mature after New Year’s Day and before the Spring Festival.

Mass production and uninterrupted supply throughout the year have eventually made Shine Muscat readily available to consumers.

However, with mass production came a problem: Why does Shine Muscat seem less tasty now?

Currently, there is no unified quality standard for Shine Muscat in China. Different fruit merchants adjust their standards based on market demand and supply, resulting in a wide range of quality on the market. It is difficult to determine the tastiness of Shine Muscat solely based on its appearance.

To achieve first-class fruit quality, it is not an easy task. It requires meeting both the environmental and technological planting standards.

Rich organic matter and trace elements in the planting soil ensure the taste and fragrance of the grapes. Many fruit farmers use inorganic fertilizers such as phosphorus and potassium to save costs, which compromises the taste of Shine Muscat.

Controlling the production volume of Shine Muscat is also an important factor that affects the flavor. If excessive production is pursued to save costs and achieve larger fruit clusters, the resulting fruits lose their sweetness and the fragrant rose flavor.

Therefore, although Shine Muscat can be grown in many places, the differences in planting environments and the challenging cultivation requirements result in significant variations in quality among different regions.

As for why some consumers find Shine Muscat to be not sweet or even sour, in addition to the reasons mentioned above, it may also be because they bought immature fruits. To seize the market, many fruit farmers harvest the grapes prematurely. However, at this stage, the grapes are not fully ripe, lack sufficient sugar content, and have a bland flavor, and poor taste. On the other hand, if Shine Muscat grapes are not harvested in time after reaching maturity, as the hanging period lengthens, the sweetness of the fruits gradually increases, and when purchased, they may taste excessively sweet and cloying.

The decline of Shine Muscat brings both joy and concern to different people. Some are happy because the price has finally dropped, allowing ordinary people to enjoy this previously high-end fruit. However, the concern is that the taste of the cheaper version of Shine Muscat has been compromised.

The post Shine Muscat：”Hermès of the grape” is readily available to Chinese consumers. first appeared on China Academy.

Nowadays, it only takes two and a half hours from Chaoyang Station to Shenyang North Station by taking a high-speed train. landing in the “Paris of the East” is becoming a weekend getaway for the middle class in Beijing.

Shenyang is a substitute for going abroad that is close at hand. You can take Instagram-worthy photos on Xita Street that are no different from the streets of South Korea.

Xita Street

You can also pretend to be in Paris at a catholic church square. It is just around the corner.

Catholic Church Square

The money spent in Shenyang doesn’t feel like Chinese currency. What would be leftover from a meal in Beijing can cover a satisfying feast in Shenyang. Chicken skewers that cost eight yuan each are guaranteed to give you two skewers for fifteen yuan. This is an unspoken agreement among the aunties (the local merchants are so friendly like your aunt) in Shenyang.

Compared to the food desert in Beijing, going to Shenyang feels like going back home. “After soaking in the hot springs and lying on the bed, the chicken skewers, noodles, and all the gourmet foods in your stomach are quietly digesting. That feeling of happiness can only be experienced when you return home.”

Pretending to be in Seoul and Paris

Before the Beijing-Harbin high-speed railway was opened, the Dongbei (Northeast China) tourism industry was like a mysterious legend. Now, the weekends in Shenyang have been occupied by the middle class in Beijing. “Even in the bathhouse, you can hear the young couple next to you talking about housing prices in Chaoyang District.”

Standing in front of European-style buildings, with the Catholic Church that resembles Hogwarts Castle behind you, driving a vintage car gives you the aura of being abroad. Now, who can distinguish between New York and Shenyang?

“In one day of roaming in Shenyang, you can pretend that you have been to several countries and not spend much money. In the morning, you can take European-style photos at the Catholic Church. In the afternoon, you can capture the Korean atmosphere on Xita Street. A hearty meal at Xita Street costs just over one hundred yuan, but in Beijing, two people would have to spend over three hundred yuan.”

It’s not that you can’t afford to go abroad, it’s that Shenyang offers better value for money. The joke about the prices in Northeast China can be traced back to a popular post by Xiaohongshu. “Is ten thousand yuan enough for a half-month trip to Shenyang for two people?” Some people comment: ‘Are you going to buy Shenyang City?’.  ‘Are you  spending in Japanese yen?’ The conclusion is that prices in Dongbei are surprisingly low: you can have a satisfying meal in Shenyang for just over twenty yuan, while in a certain chain coffee shop in Beijing, a bagel alone can cost 28 yuan.

Someone said that coming to Shenyang makes you feel its previous grandeur. “I thought the chicken cutlets I bought for 9.9 yuan were small, but it turned out to be a whole plate. Young people who are used to the living cost in Beijing feel at ease when they come to Shenyang.”

It’s not just about the cheap prices. Many people come to Shenyang to learn about fashion. “Shenyang’s Zhongjie Street hides many trendy shops selling Korean goods. Most of the clothes here are Korean-style, and a small leather jacket costs only two digits, buying clothes here is like wholesale.”

Most people’s online impression of Northeast China is that it is a desolate industrial base. However, few people know that luxury consumption in Shenyang has always been among the top five in the country. “The K11 (a high-end shopping mall brand) that you can’t find in Beijing is actually here in Shenyang. There are long queues for Chanel and LV. The salesgirls here can show you the goods that you can’t get in Sanlitun (a famous shopping place in Beijing).”

In addition to fashion, even the aesthetic here is more inclusive. “Shenyang is like the Florida of China, the locals are tall and sturdy, and they have a kind of innocence that hasn’t been tainted by the world. In other places, you might have body image anxieties, but here in Dongbei, the uncles and aunties will only say that you look a really blessed, little chubby.”

Shenyang’s public bathhouses are a pilgrimage site for white-collar workers in Chaoyang District

In Shenyang, you can encounter the lifestyles of many different cities. The coffee shops and firmiana simplex on Wujing Road have a touch of Shanghai. Xita Street has become a substitute for Seoul. However, it is only when you visit the bathhouse that you truly experience the essence of a vacation in Shenyang.

The large bathhouse, resembling a palace with a height of four to five floors, is collectively known as “zao tang zi” by the people of Shenyang. They say, “When you drive around Shenyang, you should look for the most magnificent one. If it’s not the Shenyang Imperial Palace, then it must be a bathhouse.”

A bathhouse in Shenyang

Amy, a post-90s white-collar worker from Chaoyang, is a loyal fan of hot springs. She didn’t know until she came to Shenyang that a bathhouse could be as big as a shopping mall, and the ticket price, including a buffet, is only 128 yuan.

Here is not the Maldives but Shenyang

What shocked Amy even more was that in Beijing, most hot spring facilities offer 6-hour and 12-hour options, but in Shenyang, staying for 24 hours is the standard. “Compared to the limited fruit and beverage self-service options, Shenyang hot springs generally include meals. They don’t bother with those trivial things and directly arrange a seafood feast.”

Instead of visiting tourist attractions in Shenyang, Amy spent two days alternating between two bathhouses. “One of them claims to be a Japanese-style bathhouse in Northeast China. A two-meter-long ivory sculpture has been added to the Japanese dry garden of the entrance. It’s the first time I’ve seen a Japanese-style simplicity adorned with mink and gold.”

“It’s only in Shenyang’s bathhouses that I discovered they provide waterproof phone cases. For the people of Shenyang, taking a bath feels like entering a vacuum universe, detached from everyday life. In the outdoor pools, many middle-aged men come here just to soak and play with their phones.”

Experience the family love in Shenyang

Some say that Shenyang is like your aunt who cooks delicious food. As soon as you get home, she quickly arranges a big table of dishes for you. It’s not the same kind of love as that from biological parents, but the desire to spoil you is genuine.

Pao Pao, who just returned from a vacation in Shenyang this week, went there to experience the warmth of the people in Northeast China. “As soon as I met the aunt at the bathhouse, she started calling me ‘darling’ right away. In big cities, people try to get close to you for the sake of consumption, but Dongbei people are naturally familiar and affectionate.”

Sometimes, Shenyang’s aunt can comfort you more than your own family. Pao Pao, who gained 20 kilograms due to work pressure this year, always faces the disappointed eyes of their parents when they return home. “They don’t directly say they find me fat, but every time there’s meat on the table, they always put it farther away from me without saying anything.”

To lose weight, Pao Pao usually eats only until 70% full, but in Shenyang, she experienced what it’s like to be stuffed. “When the Dongbei aunt sees that you order fewer dishes, she will happily increase the portion for you. Dongbei cuisine, which already has large portions, is sometimes served in such excess that it overflows, and the aunt will remind you if it’s not enough.”

“The stir-fry restaurant for takeout, where 1 yuan of rice can fill a container nearly one finger deep, even two people couldn’t finish one bowl of rice.”

Pao Pao, who usually eats at bistros or light food places in Beijing, felt a sincere dedication to cooking in Shenyang. “Once you’ve tasted Shenyang cuisine, you’ll have a contrast when eating a salad in Beijing that costs 70 yuan for three shrimp. Because you know what it means to have genuine food, you can no longer tolerate the programmed taste of light food and pre-packaged meals.”

A nice dinner cost less than 30 yuan PP

In Northeast China, locals have an unspoken understanding of “Is this delicious?” Asking this question directly is equivalent to grabbing something. But if you are an outsider, it’s different. When you unintentionally ask such a question, Dongbei people automatically understand that you must be starving and will insist on giving you whatever they have in their hands.

A single sentence from an outsider can make locals in Northeast China randomly bestow gifts upon them. One afternoon, when Pao Pao went to the market in Shenyang and asked a vendor for just one scallion, an old man next to them directly took out two from the bundle he had just bought. He handed them to Pao Pao, saying, “Here, take it and eat. It is free.”

Pao Pao said that Beijing’s Chaoyang High-speed Railway Station does not have a direct train. There are always traffic jams, if you drive to Shenyang. Thus, the pilgrimage to Shenyang is currently limited to people living in Chaoyang District.

Some people who live in Haidian District and are fascinated by Shenyang complained, “I wanted to go for a walk in Shenyang, but after checking the Chaoyang Station from my home, the distance is equal to going to Tianjin and back”

But for people in Chaoyang District, the inconvenience of residents from other districts just becomes a reason why they have to go.

“The traffic barrier blocks other districts from travelling to the Northeast, but it also attracts people in Chaoyang. See! My home is only half an hour away from Chaoyang Station by taxi, the Northeast is calling me.”

The post Shenyang City: A Pilgrimage Site for Beijing White-Collar Workers on Weekends first appeared on China Academy.

Black Friday is an annual event for cross-border merchants in China, and its significance is comparable to the domestic “Double 11” shopping festival. “This year’s inventory for Black Friday is five times that of last year,” said Liu Wenhai, a hat merchant from Zhejiang. He participated in the Black Friday promotion on Pinduoduo for the second time. “September sales have quadrupled compared to last year, so our fivefold inventory for Black Friday is quite conservative.” Liu Wenhai is not the only one busy during this time. Many foreign trade factories and merchants have already prepared sufficient goods, waiting to achieve their annual key performance indicators.

In September of last year, Pinduoduo launched the “2022 Duoduo Going Abroad Support Plan”, creating a new model for cross-border e-commerce. It attracted numerous domestic regional industry clusters with high concentration, strong specialization, and distinctive features to sell their daily consumer products manufactured in China overseas. Through this new model, Temu reduces the barriers for small and medium-sized enterprises in foreign trade, expands their order channels, and helps cultivate brands. “In March this year, our monthly sales were only 40,000 yuan, but in November, it reached 1.7 million yuan,” revealed a seller who joined Temu last year.

How does Temu help small and medium-sized merchants find new business opportunities and achieve low barriers and high returns?

Old factories, new opportunities

“The unsold smoothie cups were all sold out within two weeks on Temu,” said Wang Bowen, the general manager of Zhejiang Shcups. Wang Bowen, a post-95s entrepreneur, is a second-generation factory owner. In 2000, his elders started the business of manufacturing insulated cups on an OEM basis.

Last summer, the sales of the company’s smoothie cups fell short of expectations, resulting in over 500 unsold cups. In March of this year, Wang Bowen came across Temu and decided to list the smoothie cups by taking photos. Surprisingly, the unsold inventory was quickly sold out within two weeks. “I didn’t expect off-season products to sell so well,” Wang Bowen exclaimed, and he replenished the Temu warehouse with another batch of smoothie cups.

According to data from the General Administration of Customs, China’s cross-border e-commerce imports and exports reached 1.1 trillion yuan in the first six months of this year, a year-on-year increase of 16%. In 2022, cross-border e-commerce goods will account for 5% of the overall foreign trade, compared to less than 1% five years ago. Cross-border e-commerce in China is booming, and a group of well-educated young people are taking over traditional factories, with an accelerated awakening of brand awareness. Jinhua City where Wang Bowen’s factory is located in produces over 80% of the world’s insulated cups.

With the iterative upgrade of digital information technology and the continuous improvement of cross-border logistics systems, the cross-border e-commerce industry is experiencing a reshuffle. The rise of emerging cross-border platforms has given people like Wang Bowen more opportunities and influence. In the past, traditional OEM factories were sandwiched between brand owners and sales channels. They were dominated by traditional cross-border platforms and offline foreign trade channels, with limited room for premium pricing. “Temu has a gross profit margin that is at least 5% higher than traditional foreign trade orders,” said Wang Bowen. Selling the same products, Temu operates between wholesale and retail, eliminating all intermediaries, and allowing OEM factories to obtain sufficient profits.

This year, Wang Bowen participated in the “Black Friday” on the Temu for the first time. He prepared 2-3 times the usual quantity of insulated cups and sent them to the Temu warehouse. “We are now in the preheating phase, and we can clearly see an increase in sales compared to last month,” he said.

Relying on the Temu, Wang Bowen’s insulated cup factory achieved a rapid transformation from 0 to 1 and from B2B to B2C in just six months. Currently, the Temu is helping more and more foreign trade factories and merchants go global and sell to the world, adding new impetus to the development of China’s foreign trade.

Doing complex business in a simple way

It is not easy to sell products overseas, as experienced by Liu Wenhai, a hat merchant from Zhejiang. As a second-generation factory owner, his family-owned factory primarily produces winter cotton hats. Unlike his parents’ traditional foreign trade business, he chose cross-border retail. Previously, Liu Wenhai had tried platforms like AliExpress and Wish, and then became one of the early users of Temu. “Temu is very convenient and user-friendly for merchants,” he said. The platform helps solve many pain points for merchants, such as language barriers, high logistics costs, and slow feedback. For example, on other platforms, merchants need to prepare foreign language copies themselves. “I have to find different translations for different countries when selling, which incurs high costs and complicated processes,” mentioned Liu Wenhai.

Shipping also poses challenges. “Shipping goods overseas requires merchants to choose logistics providers, and each country has different dedicated lines with varying logistics costs. It requires a lot of calculations and effort,” recalled Liu Wenhai. The transportation time of logistics is difficult to control. “In traditional cross-border e-commerce platforms, if a customer orders a winter hat, it may not arrive until spring.”

In the new era of digital foreign trade, Temu provides one-stop services, making it easy to go global. In simple terms, the platform offers services such as website traffic, cross-border logistics, legal support, and intellectual property protection, while factories only need to focus on quality and production. “When writing copies, we can directly write in Chinese on Pinduoduo Cross-Border, and the platform will translate it into different languages,” said Liu Wenhai.

Under the fully managed model, the logistics transportation chain operates in three stages. The first leg involves merchants sending goods to Temu’s domestic warehouse. The platform takes care of shipping the goods from the domestic warehouse to overseas transit hubs through logistics service providers. Finally, the last-mile delivery to overseas customers is completed by third-party logistics partners. Throughout the process, merchants no longer bear the risks during transportation and the pressure of final delivery. Liu Wenhai’s American customer received the hats just two days after placing the order, and he praised the logistics speed as “very good.”

Temu, through its flexible supply model of small quantities, multiple times, and fast feedback, identifies and collects consumer demands from different countries’ markets. As a result, it can provide long-term and stable orders for manufacturing companies. Platform mechanisms such as zero commissions, domestic consolidation, and real-time settlement help reduce the costs of companies going global. “The profit margin can reach 40%-50%, earning more than traditional foreign trade,” happily expressed Liu Wenhai.

This new form of foreign trade simplifies the process of going global, reduces the barriers to entry, expands order channels, and supports brand cultivation. Therefore, more small and medium-sized foreign trade enterprises can easily embrace the international market. Temu has expanded to over a hundred manufacturing industrial belts in Guangdong, Zhejiang, Shandong, Anhui, and other regions, facilitating the entry of high-quality manufactured products into more than 40 countries and regions, including North America, Australia, Europe, and Asia.

Comprehensive Assistance for Enterprise Growth

This year’s “Black Friday,” Chaozhou Sunnycz Ceramic Factory focused on C-end customers. The factory primarily sells ceramics, cups, decorative vases, and other goods, with a previous emphasis on B-end cross-border wholesale business. General Manager He Jiayang believes that by entering Temu and targeting C-end customers, in addition to increasing revenue, they can also benefit their B-end business.

“Traditional cross-border e-commerce platforms like Amazon and Walmart have stable customer bases, and their products are more conservative in design. Merchants are less inclined to try new and innovative approaches,” said He Jiayang. However, on Temu, merchants can engage in retail business and directly face consumers. Through Temu, He Jiayang gained insights into niche markets behind different brands, designed unique selling point products to supply the B-end, and provided new ideas for customized products for B-end customers.

Logistics is a crucial factor that affects the cross-border consumer experience and determines the profitability of merchants. Prior to the “Black Friday” promotion, Temu collaborated with world-renowned shipping companies such as Matson, Maersk, COSCO Shipping, and Evergreen Marine to establish efficient sea freight channels, helping more small and medium-sized foreign trade enterprises embrace the international market at a low cost.

Taking Matson as an example, it has a dedicated terminal at the Port of Long Beach in the United States, as well as two off-dock yards and a fast container pickup model without appointments. It has created a “highway on the sea” for cross-border sellers between China and the United States. Through Matson’s sea freight channel, goods can be transported from Shanghai to Long Beach in the United States in as little as 11 days, which is half the time of traditional sea freight.

“The opening of sea freight channels is a significant advantage for Temu,” said Bai Ming, Deputy Director of the International Market Research Institute at the Ministry of Commerce. He believes that increasing sea freight not only greatly reduces cross-border logistics costs but also expands the range of goods. Large items that were previously inconvenient to air transport can now smoothly reach overseas markets, while reducing the risk of over-reliance on a single logistics channel. In other words, sea freight is beneficial for the circulation of large items such as furniture, machinery, and building materials, laying the foundation for merchants to develop comprehensive multi-category trading and increase sales profits. Chinese manufacturing can reach more countries and regions and help merchants find business growth.

“Black Friday” promotion is not only a shopping frenzy for overseas consumers but also a hopeful opportunity for cross-border sellers affected by industry reshuffling, upgrading of the industrial chain, and rising costs. Temu takes multiple measures to assist foreign trade factories and merchants in selling worldwide, enabling Chinese manufacturing to be loved and recognized by global consumers. It injects vitality into the global consumer market.

The post Black Friday Becomes a Carnival for Chinese Cross-border Merchants first appeared on China Academy.

Let the world know and fall in love with Sichuan cuisine

As one of China’s eight major regional cuisines, Sichuan cuisine, with its scale and influence, leads the world. Through thousands of years of evolution, it has always adhered to the development philosophy of “inheritance without being conservative, innovation without forgetting its roots.” It gradually forms the classic characteristics of “clear and fresh, rich and mellow, numbing and spicy, aromatic and flavorful” dishes.

The World Sichuan Cuisine Conference, founded in 2018, aims to explore Sichuan cuisine and its culinary culture, gather global industry resources, tell the story of Sichuan cuisine, showcase the image of the Sichuan region, and promote innovative development in Chinese culinary culture. After six years of development, the World Sichuan Cuisine Conference has become a new platform for global Sichuan cuisine cultural communication and cooperation.

The 6th World Sichuan Cuisine Conference in 2023 consisted of four main sections: conferences, exhibitions, competitions, and tastings, covering various aspects of Sichuan cuisine, including its history, culture, and culinary techniques, showcasing the extensive and profound Sichuan cuisine.

One of the essences of Sichuan cuisine lies in its pursuit of novelty and evolution. While preserving the soul of Sichuan flavors, it incorporates the strengths of many different schools, capturing a myriad of tastes. Behind the preservation of this trait in Sichuan cuisine is the contribution of every Sichuan chef. Therefore, this edition of the Sichuan Cuisine Conference pays special attention to the comprehensive growth of Sichuan chefs. Under the platform of the “World Sichuan Cuisine Conference,” various competitions are created to encourage innovation among Sichuan chefs.

During the competitions, skilled Sichuan chefs blend traditional techniques with innovative elements, providing not only visual, olfactory, and gustatory delights but also showcasing the latest trends and high levels of culinary artistry in Sichuan cuisine.

Sichuan cuisine has become the largest regional cuisine in China

At the opening ceremony of the 6th Sichuan Cuisine Conference, the World Federation of Chinese Catering Industry, Unilever Food Planning, and Sichuan Tourism College jointly released the Research Report on the High-Quality Development of Sichuan Cuisine Industry (2023).

According to the report, as per the statistics from Unilever Food Planning’s Big Data Research Center, by the first half of 2023, the number of Sichuan cuisine restaurants has exceeded 320,000, surpassing the number of Cantonese cuisines, Jiangsu-Zhejiang cuisine, and other culinary styles. Sichuan cuisine has become the largest culinary style in the country. Chengdu-Chongqing area is the stronghold of Sichuan cuisine, and the number of Sichuan cuisine restaurants in cities like Shanghai, Beijing, and Shenzhen has been increasing year by year.

In addition, the Sichuan cuisine industry has achieved significant results in cultural heritage and innovation. In June 2021, Sichuan cuisine culinary skills were included in the fifth batch of the National Intangible Cultural Heritage representative project list, marking a new chapter in the cultural inheritance of Sichuan cuisine. Currently, Sichuan has a total of 47 “China Time-Honored Brands”, including 44 in the catering industry, accounting for 93.6%, and 125 “Sichuan Time-Honored Brands”, including 107 in the catering industry, accounting for 85.6%.

The report also points out that according to the statistics from Unilever Food Planning’s Big Data Research Center, consumers born in the 1990s and 1995s have become the main consumer force. The proportion of their daily dining consumption continuously increases reaching nearly 70%. In China, innovative fusion dishes combining Chinese and Western elements are highly favored by young consumers, with sales growth exceeding 50%. Spiciness has become the favorite taste for consumers born in the 1980s, and flavors like numbingly spicy, fragrant spicy, and Sichuan peppercorn have become the most beloved flavor profiles of Sichuan cuisine. It provides flavor guidance for the development of innovative Sichuan cuisine dishes.

International and Domestic Celebrities Contributing to the High-quality Development of Sichuan Cuisine Industry

“Sichuan cuisine does not refer to the dishes from Sichuan, nor the dishes that influence Sichuan, and it is not limited to what Sichuan people eat.” During the event, Li Houqiang, Vice Director of the decision-making Advisory Committee of the Sichuan Provincial Party Committee and provincial government, professor at the Sichuan Academy of Social Sciences, and doctoral supervisor, explained in his speech that Sichuan cuisine refers to the cuisine originated in the Sichuan Basin. The Sichuan Basin is its birthplace and native land, but it does not mean that it is solely produced and sold in Sichuan.

At the end of the event, founders and chairpersons of major catering enterprises from home and abroad joined the culinary masterclass. They summarized their experiences based on their own company and discussed the future trends of the Sichuan cuisine industry.

“The essence of Sichuan cuisine lies in seasoning.” Huang Weizhong, Regional Sales Director of Unilever, expressed his hope to leverage their ability to understand industry trends and customer demands. They aim to help the Sichuan cuisine industry establish a sustainable development ecosystem and consolidate its market position.

Regarding the prominent problem of homogeneity in Sichuan cuisine restaurants, Xu Fan, founder of Xujiacai, believes that Sichuan cuisine is a vast culinary system. To run a Sichuan cuisine restaurant successfully, one must first master the flavor profile. While learning and drawing inspiration, one must avoid plagiarism and strive for differentiation to maintain the core competitiveness of their own restaurant.

When discussing how overseas Sichuan cuisine restaurants can thrive in the long term, Hu Xiaojun, Chairman of Lao Sze Chuan Restaurant Group in the United States, shared his experience. He pointed out that the primary customers of overseas Chinese restaurants are foreigners, and they tend to be more conservative in their food choices. Therefore, he believes that the basic requirements for opening a restaurant overseas are: stability with innovation in dishes and thoughtfulness with enthusiasm in service. By achieving these two points, Sichuan cuisine restaurants can have better development overseas.

Guang’an has inherited the essence of Ba-Shu cuisines, forming its own unique style of Sichuan cuisine after centuries of inheritance and innovation. This conference held in Guang’an is not only an important opportunity for the development of the Sichuan cuisine industry in Guang’an City but also a significant platform for promoting international exchanges and inheritance of Chinese culinary culture.

The post Why does Sichuan Cuisine never fail to attract U.S. people? first appeared on China Academy.