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07

2022

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10

The Status of Chinese Food Enterprises Under the Influence of COVID-19

Source:

OIG+X

This year is the third year after the emergence of the COVID-19, from the early "national spread" to the present "regional outbreak". Chinese people's treatment of the epidemic has changed from the initial fear of viruses to the worry of work and life troubles. This concern extends to all aspects of life, and has even changed the consumption habits.

This year is the third year after the emergence of the COVID-19, from the early "national spread" to the present "regional outbreak". Chinese people's treatment of the epidemic has changed from the initial fear of viruses to the worry of work and life troubles. This concern extends to all aspects of life, and has even changed the consumption habits.

 

In fact, the food industry before the epidemic was already “a huge ship with large quantity, small fluctuation and strong stability. Although it was stable, there were still many areas to explore, which also gave small brands a lot of space and opportunities for survival and development.

 

However, the epidemic has now brought about several ups and downs to the industry at this stage. In the early year of 2020, it was the first wave of impact. The epidemic prevention and control throughout the country has kept people at home, and both catering chains and industrial production are almost at a standstill.

 

The regional outbreak cause short-term logistics block, imbalance between supply and demand, and temporary closure, which may not have a great impact on large food enterprises with perfect supply chains, but may be a devastating blow to some small factories and new consumer brands.

 

At the same time, the rapid rise of the e-commerce live streaming due to the epidemic situation is also good for the food industry. The sales boom in food online buying bring the industry a new promoting model.

 

Now many food enterprises are in a dilemma. The food has a quality guarantee period. Once cities are lockdown, products cannot be produced and sold after the warranty period. Therefore, the previous beneficent cycle has been broken, either orders are short of raw material inventory or products are not sold.