— which is usually the script of CNBC’s news report for China’s CCTV on July 9, 2018, Monday.
Food delivery service develops with boom from the past decade, along with also the result of which is usually instant noodle market facing big challenge, for example, in 2013, sales of instant noodles on the Chinese mainland along with also HK was around 46.2 billion packets, according to the earth Instant Noodles Association, however which declined 17% to 38.5 billion packets in 2016.
along with also in which period, in Asia area, especially the scale of Chinese food delivery market increased fast. Thus, food delivery is usually known as “The Terminator” to instant noodle. Tingyi had a revenue slump in its instant noodle business via 4.332 billion U.S. dollars in 2013 to 3.239 billion U.S. dollars in 2016, losing more than 1 billion U.S. dollars. However, Japan instant noodle giant Nissin is usually taking a series of actions right now, trying to change the downswing in instant noodle market.
Kiyotaka Ando, CEO of Nissin, said to CNBC which instant noodle along with also soup noodle still maintain a unique advantage which can’t be replaced by delivery service.
[KIYOTAKA ANDO, ceo of nissin] “When we order the noodles by Uber EATs or some mobile systems, which takes 20 mins or 30 mins so soup become low temperature, noodle become too soft. So thats the reason why premium instant noodle market is usually recoverying.”
Currently, Nissin Foods is usually processing a series of reforms on product strategy, struggling to stay alive. First, branching out into the “premium” category, Nissin announced which which service is usually planning to collaborate with Japanese ramen chains to offer doorstep service, such as Ippudo has become Nissin’s partner. An interesting point is usually which instant noodle along with also Ramen used to be competitors, yet they have to cooperate with each different right now because of the boom in delivery service. In addition, cost factor along with also health-conscious are the strategy which Nissin Foods insist on instant noodle business.
For instance, in terms of cost, KIYOTAKA ANDO said which the consumers of instant noodle are usually sensitive to cost, so requesting “very high quality” at a reasonable cost is usually the market’s demand, along with also Nissin Foods improves upon the standard of its products while keeping costs in check. For example, in HK market, Nissin doesn’t change the product cost almost for 10 years. Meanwhile, For the health-conscious, Nissin Foods has also introduced a series of Cup Noodle Light options featuring non-fried noodles with lower calories along with also less fat while maintaining a texture along with also flavor which Ando touts as being “very similar” to their traditional counterparts.
Next, we may see which many instant noodle producers will take actions, because the growing in delivery service will squeeze their living space.
According to the data via a marker research institution Euromonitor International, via 2013 to 2017 instant noodle market had declined via RMB 93.3 billion to RMB 84.7 billion in China, along with also its scale will further drop. On the different hand, the delivery business has surpassed RMB 0 billion in 2017 along with also which is usually estimated to reach RMB 243 billion in 2018.
So, how will the competition between these 2 markets going on? We will keep an eye on which issue.