Recently, snack food manufacturer Oishi submitted its nature made iron gluconateprospectus to the Hong Kong Stock Exchange, finally making its decision to go public after 26 years of trials and tribulations operating in China’s snack food market.The brand name Oishi comes from Philippine enterprise Liwayway Marketing. Oishi used the name for its puffed snack series Prawn Crackers and Shrimp Flakes during the brand&39;s debut in China in 1993.According to a report by Frost & Sullivan, Oishi was the largest producer (by retail value) of crispy snack foods (excluding potato chips and rice crackers) in China for three consecutive years from 2016 to 2018. According to the prospectus, the company is selling 72 kinds of crispy snack food, 43 types of candy products, and 22 types of beverage products in China[1].However, a downturn in sales in recent years has been causing alarm and grounds for excavation into the factors contributing to the company&39;s regression.Reliable data shows that from 2016 to the H1 of 2019, Oishi&39;s revenue from China, its core market, has been dropping steadily on an annual basis. In 2016 71.3% of the company&how many 210mg ferrous fumarate39;s revenue was made in China. In 2017, the figure dropped to 68.7%, followed by 67.6% in 2018, and its downward spiral continued in 2019, where H1 statistics show a dismal 66.3% of revenue made in China[2].According to the prospectus, Oishi&39;s earnings in China fell by 2.2% between 2016 and 2018.So, have Chinese people suddenly sworn off snacking? On the contrary, China&39;s snack market has never been better. According to data, the retail sales of China&39;s snack food market increased from $89.9 billion in 2014 to $118.2 billion last year and is expected to reach $171.7 billion by 2023. Oishi’s flagging fortuferrous fumarate suspensionneferrous sulfate monohydrates are likely attributable to a failure to address evolving retail and marketinemc ferrous fumarateg channels compounded by a lack of innovation during product development.
The Fall of a Chinese Snack Giant: Oishi Fails to Innovate and Adapt
