Summary of Key Points
Juewei, once a dominant player in the spicy food industry, is now facing a situation of neglect by consumers. The company once thrived on its high-priced but less cost-effective products, such as the “duck necks,” but has since lost consumer favor due to factors such as high prices, fierce competition, outdated products, poor management, and a failure to keep up with consumer trends, leading to its decline from a leading position in the industry.
Detailed Analysis
1. The Failure of the “Duck Neck Strategy”: High Prices Drive Consumers Away
The “duck neck strategy” referred to the surprise of high prices at checkout, which used to be tolerable for occasional purchases. However, consumers have become more rational and value their money, preferring products that offer good value for money. Juewei’s prices have been rising over the years; for example, the price of half a pound of duck necks has increased from 30 yuan to over 40 yuan, with a reduced portion size. With more local spicy food shops and emerging brands offering better value for the same amount of money, consumers naturally opt for other options. After all, no one wants to waste money on ordinary duck necks.
2. Intense Competition from Competitors, Eradication of Juewei’s Advantages
The spicy food market is highly competitive. Companies like Zhou Heiya have introduced fresh packaging to maintain product quality, while Ziyuan Baiwei Chicken has gained market share with its unique dishes. Wang Xiaolu’s tiger skin and phoenix claw dishes have become internet sensations. Even local shops in residential areas offer competitive products. Juewei, however, remains stuck with its traditional offerings of duck necks, duck wings, and duck frames, with little innovation in flavors (such as the slow introduction of coconut chili and lemon flavors) and outdated packaging. With more choices available, Juewei’s uniqueness has faded.
3. Outdated Products and Quality Issues
Juewei’s products have remained largely unchanged for years, leading to consumer fatigue. Additionally, there have been issues with food safety, such as the use of unsold or substandard ingredients and poor processing practices, which has damaged the brand’s reputation. Safety is a top concern for consumers when choosing food.
4. Poor Management Due to a Large Number of Franchisees
With tens of thousands of franchisees nationwide, Juewei’s rapid expansion has resulted in poor management. Some franchisees cut corners to save costs (using cheaper ingredients, providing poor service, and maintaining dirty premises), and some even raise prices without authorization. The inconsistent experience at different Juewei stores has eroded consumer trust in the brand.
5. Failure to Adapt to New Consumer Trends
Young consumers today prioritize health, convenience, and freshness when purchasing spicy food. They expect fast delivery and low-fat, low-salt products with attractive packaging. Juewei has failed to make a strong presence in online channels (slow delivery, limited promotions on e-commerce platforms) and has not launched products that align with these trends. As a result, young consumers prefer brands that better understand their needs, such as those that specialize in freshly prepared spicy food or have stylish packaging.
In One Sentence
Juewei’s decline is a result of its failure to adapt to changing consumer preferences. The company failed to shift from a focus on price increases to a focus on providing value, innovation, and safety, ultimately leading to its loss of market traction. This serves as a reminder to all traditional brands: if they do not keep up with user demands, even the largest giants can fall from their pedestal.