Core Summary
Kumukumeng’s decline from a “queue king” to a “store closure king” over six years reflects the inherent fragility of the internet celebrity (internet influencer) business model. The brand initially gained momentum through attractive visuals, social media engagement, and clever marketing strategies, but lacked core competitiveness. Combined with soaring costs, intensified market competition, and shifting consumer preferences towards more practical products, it was unable to sustain its growth and ultimately faced widespread closures. This situation also highlights the transition in the bakery industry from being driven by traffic (online popularity) to focusing on quality and differentiation.
I. How It Became Popular
Kumukumeng’s success as a “queue king” was largely due to leveraging three key internet celebrity tactics:
- Visual Appeal: The brand launched products like the “Dazangbao” (dirty bun) and “Baojiang Liuxin Bread” that were visually appealing and easy to photograph. With their bright colors and eye-catching designs, young consumers were willing to pay for them just to share on social media.
- Social Media Engagement: The stores were decorated in styles that suited Instagram or industrial aesthetics, making them perfect for photos. They also hired people to create long queues to create an air of popularity, attracting passersby to join in the craze.
- Influencer Collaboration: The brand partnered with TikTok and REDnote influencers to promote their products, turning the act of queuing for bread into a trend. This strategy helped Kumukumeng gain wider recognition quickly.
In short, its success was more about its “social appeal” than the quality of the bread itself.
II. The Roots of Its Failure
The fundamental issue with internet celebrity-driven businesses is their reliance on temporary popularity:
- Short Lifespan of Trends: Consumers’ interest in such products usually lasts only 1-2 years. After the initial excitement for the “Dazangbao” faded, Kumukumeng failed to introduce new, compelling products, leading to a loss of customers.
- Fierce Competition: Many competitors quickly copied its offerings, often at lower prices. For example, if a nearby store sold the Dazangbao for 12 yuan, Kumukumeng’s 15-yuan price became unattractive.
- Quality Control Issues: The rapid expansion of stores led to inconsistent product quality. Poor management resulted in burnt or subpar bread, causing loyal customers to switch to other brands.
Its success was like a gust of wind that quickly passed.
III. High Costs Straining Profits
The bakery industry already has high operational costs, and Kumukumeng’s location choices and expansion strategies exacerbated these problems:
- High Rent Expenses: Most of its stores were located in shopping malls or city centers, with monthly rents amounting to 30%-40% of its revenue.
- Labor Costs: Breadmakers require specialized skills, and salaries are relatively high (minimum 5,000 yuan per month). Additionally, employee costs accounted for another 20% of expenses.
- Rising Material Prices: The prices of flour, butter, and cream have increased significantly in recent years. Kumukumeng couldn’t afford to pass on these cost increases to customers, resulting in thin profits.
For example, if a bread sells for 15 yuan, the cost might be around 10 yuan, leaving little profit after covering rent and labor expenses—sometimes even resulting in losses.
IV. Changing Market Trends
The bakery market has shifted, and Kumukumeng failed to adapt:
- Shift in Consumer Preferences: Young consumers now prioritize healthier, fresher bread with better value for money, rather than just appealing visuals.
- Emergence of Local Stores: Convenient neighborhood bakeries have become more popular, offering fresh bread for breakfast without the need to queue at malls.
- Rejuvenation of Established Brands: Established brands like Haolilai and Paris Beitian have introduced new products (such as collaborative cakes or healthy options) and gained a significant share of the market.
- New Competitors: New internet celebrity-backed brands like Momo Dianxinju and Hutouju have entered the market, further challenging Kumukumeng’s position.
In summary, Kumukumeng’s story illustrates that businesses built on temporary popularity without strong product quality and cost control are destined to be short-lived. In the bakery industry, what truly matters is “taste, health, and affordability,” not just visual appeal or the ability to attract attention through social media.