Local edible oil companies, small varieties are your place and force

In the case of consumption upgrades, many companies want to share a share in the edible oil market. However, the big brands represented by Jinlongyu have already obtained the first-mover advantage in large-scale oils. It is very difficult for latecomers to seek market position. How to do? Breakthrough from the high-end, smaller varieties of oil market opportunities!

Small oils do not have a strictly uniform definition, and small and large oils are relative. In the daily life of the Chinese people, soybean oil, peanut oil, blend oil, and rapeseed oil are consumed by a large number of people and have a large sales volume. Their share in the entire edible oil market is absolutely dominant. We call it a large variety of oil.

Small oil refers to oils that are not currently sold in large quantities other than large oils, such as camellia oil, corn oil, rice bran oil, sunflower oil, olive oil, flaxseed oil, grape seed oil, and hemp oil. Peach oil and so on. Some of these oils have never been used by consumers. Some oils have been limited to trial use and have not formed habits. Some of the oil products are only grown in some areas due to oil crops, and their use population is very regional. For example, flaxseed oil is a traditional market in the northwest, and the production and sales of camellia oil are mainly distributed in Hunan, Jiangxi, Guangxi, Fujian and Guangdong. And other southern provinces. Some of the oils, because of their high prices, have a small amount of use, but they are used only for decorative purposes, such as olive oil.

Smaller oil market opportunities

Why do you say that the opportunity for small oils to leave for Chinese companies is even greater?

One is that the big brands represented by Jinlongyu have achieved first-mover advantage on large-scale oils, and those who want to seek market position are very difficult.

As is known to all, Kerry Oil and Grain represented multinational corporations. In the late 1980s, they took the lead in educating and opening up the small packaged edible oil market in China. They once occupied more than half of China’s edible oil market with brands such as Arowana, Orchid Flower, Xiang Manyuan and Koufu. Form a strong first-mover advantage. Afterwards, after full competition, COFCO's Fook Lam Mun and Lu Hua, which focuses on peanut oil, gradually became stronger and stronger. At present, it has formed a three-footed situation of Jinlongyu, Fulinmen and Luhua. These three brands are naturally entrenched in the largest-selling soybean oil, peanut oil, blended oil and rapeseed oil markets. As with any other market, they have formed a regular pattern of big brands and big markets. .

It is precisely because the large variety market is the main strategic battlefield for big brands. Although the big brands are involved in the above-mentioned small-scale oil markets, they basically do their jobs. They don’t have or cannot concentrate on their input, and in particular, they have no exclusive representation for small varieties. Brand. From the consumer's perception of the brand, the knowledge of category experts has not been established. Therefore, local companies and brands have the opportunity to seek their own territory in the small variety oil market. For example, mention of corn oil, many people know that the West King and longevity flowers, mentioning camellia oil, may be able to think of Kim Ho.

Second, as consumption upgrades, the market for large oils is squeezed and replaced by small oils, and small oils grow faster.

Increased incomes, consumption escalation, and frequent food insecurity events have changed the needs of consumers from eating and eating to eating well, eating patterns, enjoying food and eating healthily. Entering the consumer's field of vision and being gradually selected to form a consumption habit, the large-variety oil market began to be replaced and dismissed.

China's per capita annual consumption of 18 kilograms of edible oil, and the world average of 20 kilograms, the United States up to 37 kilograms, Brazil also reached 27 kilograms. While the demand for edible oil will increase in China, the growth rate of small oil is even higher. In recent years, the average annual growth rate of small oil such as olive oil, tea oil, corn oil, and rice bran oil has exceeded 30%.

Small varieties of oil to break through from the high end

In the face of fierce market competition, how can small oil companies find their place in the edible oil market and where do they contribute? The answer is to do high-end.

First, in the category where consumer acceptance is not high, it is easy to succeed from high to low and it is also a law.

Market competition is first and foremost a cognition of consumers, and it is the most difficult to change consumers’ original knowledge. It is wishful thinking to use a small variety of oil that has no habit of consumption to allow consumers to use it as daily oil in one step. How to do? From the high to the low, starting from the consumers who pursue high quality, enjoyment and healthy life, they are the pioneers of consumption, opinion leaders, and the pioneers and mavericks in the market. High-end, fresh and healthy products have a special attraction for consumers who are not bad. This part of high-end consumers is the first door to open a small variety of oil market.

If it comes to the mass market, its products will replace and compete with soybean oil, peanut oil and blend oil. The opponent will become a big crocodile such as Golden Dragon Fish. SMEs will not support raw materials, production and marketing.

Second, small oils have more health functions than large oils. Selling different functions and health to large oils is the reason for its high-end price positioning support. It is to knock consumers away from no recognition to awareness. The good tools of the door, with a strong utilitarian temptation.

China has abundant raw materials for the production of high-end edible oils, such as safflower seeds in Xinjiang, hemp in Guangxi, flax seeds in northwest, walnuts in many places, and coconuts in Hainan, all of which are excellent quality oil resources. Like safflower seed oil is known to have the highest fatty acids in edible oil; Camellia seed oil is known as "Oriental olive oil"; linseed oil is also known as month oil, smart oil, rich in essential foods and other foods are scarce The unsaturated fatty acids of alpha-linolenic acid are very good for promoting the development of young children's brain and lowering blood lipids and cholesterol in middle-aged and elderly people. Walnut oil is recognized as the most high-grade edible oil in the world; Bama kenaf oil is the only substance in nature that can be dissolved in water. Oil, containing a large number of anti-aging vitamin E, selenium, zinc, manganese, barium, known as "longevity oil." The potential for the high-end development of indigenous small-scale oils is no less than that of olive oil. In this regard, local edible oil entrepreneurs must have sober understanding and sufficient self-confidence.

Third, to do high-end is not the purpose of the means, to do from the high end, expand the category of living space.

For products whose production can be made large but are not currently sold, it is not the purpose to do high-end products. To do high-end is to open the cognitive gap and market gap. In the actual marketing, we must pay attention to strategy, to "different", "low-handed": brand image, price positioning, sales remarks to do "high", to induce consumption, application scenarios, application methods to be "low" That is, lifted high and quietly dropped. This is the secret. Do not stray into misunderstandings that only a few people consume and consume in a few cases. A linseed oil promoter promoted the use of linseed oil, which led the consumer market to health care products and narrowed down. We sell health, but we cannot make healthily, and we should do public health edible oil.

The size of the market is not entirely inborn, and many categories are driven by corporate marketing, and the popularity of high-end categories has gradually become popular daily consumer goods, from Mercedes-Benz cars to milk, ejiao to ice cream, watermelons from winter to cherry This is true for mangoes (dedicated to Mao Zedong), nuts, seafood, and new varieties of vegetables imported from abroad.