The leading brand of China's roast duck industry, the former king of roast duck - Quanjude, has now lost its former glory on the commercial battlefield. Sadly, the process of falling off the altar took only two steps. This article will delve into Quanjude's mistakes and reveal what exactly went wrong that led to the decline of this business legend.
introduction
Quanjude, the name once shone brightly in the Chinese restaurant industry, symbolizes the ultimate enjoyment of roast duck. However, in recent years, Quanjude's performance has declined and its market value has evaporated, which has aroused widespread concern and questions. Why did this former leading enterprise fail in its business journey? We will reveal the two-step mistake of Quanjude through in-depth analysis and explore its root causes.
Step 1: High-end pricing, civilians fall out of favor
Quanjude has always been proud of high-end roast duck, however, the high price has become the fuse of its loss. In today's diversified consumer trend, consumers expect to experience a more diverse variety of cuisines at the table, rather than being stereotyped into the traditional high-end roast duck. The high price of Quanjude made it gradually out of the consumption range of ordinary people, and the originally huge market began to shrink.
Step 2: Product quality lags behind, and market competition fails
Although Quanjude has been focusing on roast duck, its product quality has not been significantly improved for a long time. In today's increasingly fierce market competition, other brands have emerged through continuous innovation and quality improvement. Quanjude's conservatism has led to the gradual loss of market share and missed the opportunity to seize the change in consumer taste.
Performance Data: The Cold Reality of Financial Reporting
For an enterprise, performance data is a realistic portrayal that cannot be ignored. According to the financial report for the third quarter of 2018, Quanjude's revenue and net profit both declined, and the expected decline in net profit for the whole year is becoming more and more obvious. This is undoubtedly a cold reality, and it is also the market's direct response to Quanjude's two-step mistake.
The cost of mispricing
High-end pricing is one of the fundamental reasons for Quanjude's fall from grace. The traditional high-end image has put many ordinary consumers off. In today's society, people are looking for a variety of dining experiences, not just traditional high-end positioning. Quanjude clearly made a strategic mistake on this point, and the price of this mistake was a rapid decline in market share.
Not only that, but the high-end pricing also makes Quanjude's competitors who keep pace with the times have a huge gap. Other brands have appealed to a wider consumer base through flexible price positioning. Quanjude lost in this price war and lost its original market share.
The quality is lagging behind, and the competition is lost
The tradition of focusing on roast duck makes Quanjude a little lagging behind in terms of quality. Although it has always emphasized traditional craftsmanship, this tradition has become a constraint as consumers' tastes change and the pursuit of quality changes. Competitors have gradually gained more recognition in the market by introducing novel flavors and improving service quality.
The lag in product development and innovation has made Quanjude lose its leading edge in the market. This is not only a competition for taste, but also a journey of consumers in pursuit of quality and innovation. Quanjude lost in this competition, resulting in a shrinking market share.
Conclusion: Adjustments and challenges for the future
Quanjude has gone through two steps from the king of roast duck to the fall of the altar, which is an embarrassing business epic. However, the past does not equal the future. Quanjude still has the opportunity to regain the lost market share by adjusting its positioning and improving product quality. In this era of fierce competition, enterprises need to constantly reflect and adapt to changes in the market in order to maintain their vigorous vitality in the business arena.
In the future, Quanjude needs to carry out a comprehensive strategic adjustment. First, reposition prices to meet broader consumer demand and capture more market share. Secondly, strengthen product research and development and innovation, adapt to the current diversified consumption trend, and win the reputation and trust of consumers. Finally, improve the management model, improve the operational efficiency of the enterprise, reduce costs, and meet the challenges of the future with a more flexible and sensitive attitude.
Quanjude was once the king of roast duck in China, but that's just the glories of the past. Today, challenges await and opportunities for adjustment await. Quanjude, the future is still a long way, and I look forward to it being able to face difficulties and return to the top.