The prepared food industry is growing rapidly, and companies from all walks of life, such as Qudian, are eager to seize this opportunity.
Fintech company Qudian (Chinese: 趣店, QD: NYSE) entered the prepared food industry through its subsidiary. On July 17, the company’s CEO, Luo Min, broadcast live on TikTok. A total of 95 million people joined the channel and over 9.5 million ready meals were sold in a single day.
Qudian, founded in 2014, is a financial technology services company listed on the New York Stock Exchange. According to Qudian’s 2022 first quarter earnings report, total revenue was CNY 202 million, down 60.9% from the same period last year. Net loss attributable to Qudian shareholders was CNY 142.8 million, down 129.84% year-on-year. Luo Min responded by saying that “Going forward, Qudian will maintain a cautious business strategy in the cash business and focus on promoting the convenience food business.
This time, the company is reentering the food industry by launching “delicious, fresh, healthy” short ready meals. Luo Min believes that the convenience food market is huge, entrepreneurship is a long-term process, and the right product is the focus. The size of the ready meals market in China already exceeds CNY 200 billion in 2022. The market is expected to maintain a high growth rate in the future and will reach a size of CNY 400 billion by 2026, according to Sealand Securities.
Currently, Qudian has 14 dishes on the shelves. It is reported that the company plans to add hundreds of dishes soon, with a price half that of mid-range restaurants, such as yesterday’s best-selling dish, “marinated fish at 19.9 CNY”. The company’s competitors are Sanquan Food (Chinese: 三全食品), Anjoy Food (Chinese: 安井食品) and Haodelai (Chinese: 好得睐).