China’s Bakery Sector Doomed: Leading Stock to Delist, Bread Over $2 Unsold

[@englishguy215]

Living in China I have seen some characteristics which helps to destroy some of these companies. Too many companies do very similar products, no-one seems to complete a detailed well thought out business plan, when a certain type of product like bakeries gets popular the market gets flooded with companies in this sector. I sometimes think a business plan in China is simply "oh look there is a new shop with customers, they must be making money, if we open a store like this across the street we will make money too". I have spoken to university graduates who want to open a business they seem to have no concept of business plans, budget and cashflow forecasts or anything else I would expect to see in a start-up. As an accountant who has run my own accountancy practice for the last thirty years including helping clients to put business plans together I find this a very peculiar way to operate a business.

[@LivingWithGout]

They were raised to be ultra competitive.

[@jmshwood2801]

​@@LivingWithGoutYes, you're right! Just watch on how they compete on having a luxurious lifestyle.

[@kamaldin5913]

They are not pioneer but just imitate what other people do

[@DK-gj5sp]

You can't even find China on the world map.

[@markfreeman4727]

they are not raised to be critical thinkers, just obedient and hardworking they will work themselves to death but they cannot come up with creative solutions in most scenarios (unless its a scam or a tofu-dreg product)

[@JoeBlow-fp5ng]

Simple overcapacity in an economic downturn. The Chinese people are so entrepreneurial. Too bad the CCP will squash the people's hopes of prosperity to remain in power every time.

[@Daniellesfoot]

It's not their fault tbh. Anybody who lived through the gold mine 80s-90s china economy was would be like that. Most of these people's parents got their first pot of gold without even doing much.

[@MeiinUK]

From this video. I learnt an awful lot. The chinese market itself, is way way WAY too volatile !... Cos any mere small issues can be blown into a big one. And in truth, by the time that they grew, what that guy should've done is to sell it, into the market.. and let the market take it apart... and then restructures etc etc etc. Cos this lockdown like this.. is affected by the wheat prices outside of the country as well... So even if they sell on now.. they could ? So... just move the people into other companies ! It is that simple. So.... and you still work inside the sectors anyway, right? so... This kind of "competition" is crazy. Just jump ship. It's so telling how employees see themselves.. actually... so... Very very weird. Whereas here in the UK, everybody would just jump ship. Unless they pay a decent wage. Whereas from this, stores would never bat down and would compete til you squeeze the last bit of money instead.. lol... This is so... I dunno what it is doing. lol...

[@Bf26fge]

Overcapacity and undercapacity due to chronic capital misallocation does not resolve until capital misallocation resolves, which it cannot. Philosophically they are mercantilists on steroids with chronic easy money for favored market sectors and a 50 percent savings rate with every Tom dick and Harry opening a small business in saturated markets. Old habits die hard. A Minsky Moment is inevitable someday, or a stealth Minsky with chronic severe inflation if they are lucky

[@icemann4699]

A true entrepreneurial person would carefully evaluate the market, your competitions, the overall economy, the risks, your resources, what makes your business special, future uncertainties, so on. You dont just jump in because you see others are doing it, especially when there are already 5 such businesses around the block. Sure, even a carefully planned business can still fail and that is common too. Mainland Chinese on the whole are not any more entrepreneurial than most other people. There are many more of them though. One thing very common though is Chinese love money and money is their God. Anyway to make money pretty much goes and operating a business is a common choice. Entrepreneurship depends on several factors and a country with a healthy entrepreneurial spirit and conditions would prospered. In China, there will be some who become very weathy, but unfortunately China (unless changed) on the whole will remain poor due to the unrestrained greed, prevalence lack of common ethics, lack of innovation, lack of emphasis on quality and reputation. It can be argued that Japanese have better entrepreneurship than mainland Chinese, though Japanese are not usually given such credit.

[@junkscience6397]

I mean, even in the US, almost half of all small businesses go bankrupt. It's pretty normal. Welcome to Capitalism 101, where Risk isn't always Rewarded.

[@ISCFworld]

theres basically zero barkerys left in australia rent is a killer an all done by mass production factorys now.

[@gavinlew8273]

Are you kidding? 0 bakeries??@! But I heard people are queuing at Lune's.

[@DK-gj5sp]

You are a clown. He means insignificant ​@@gavinlew8273

[@pmcpegasus]

Im in Australia atm and get bread from the local bakery store ran by Koreans, nice try leek 😂😂😂

[@waynehewett4017]

In Australia just to rent any shop costs between 2000 and 18,000 dollars rent PER WEEK That the rent only... All other costs such as menities, wages , shop fittings , insurance and stock A 3 to 5 year legally binding contract

[@jonathonstafford1341]

Had 2 bakery’s we were busy but rent just killed us this was just before covid that would of closed us down anyway

[@victorsong8416]

Chinese entrepreneur culture is not "creating new and/or unique", or filling an obvious hole in service or product. They don't have an eye for that. It's a "me too" + unbridled greed, mentality, environment. "Market research" is an incomprehensible concept/process. They see Chi - who is an extremely RARE original thinker - opened a unique bakery and it is wildly successful. So they say: "me too", and will open a bakery, COPY the products, so "I can make lotsa money also, like Chi". (ENVY is a HUGE Chinese cultural factor also, by the way). Then comes and opens another "me too", then another. Soon there are half a dozen of the same establishments, same products in the same area. Since the clientele is a given number, who has the money and taste for such things, that number will be split into smaller and smaller number segments as more of the same places open with identical products. In the end, they ALL go bankrupt.

[@gorilladisco9108]

If anything, IBM-PC was a "me too" product after the success of Apple computer. The haphazardly designed PC was a tell that IBM wanted something, everything, to get into the market a.s.a.p. Others, like Commodore, ZX Spectrum, etc. also a "me too" that fail to survive. The Silicon Valley is chock full with "me too" companies. It's what creates competition, and in the process, it accelerates technological development. Envy is okay, as long as it's used to push your effort to better yourself. It's detrimental if it's used as an excuse to create problems.

[@Someone-kg8qf]

My Japanese boss, back in the late 90s, was astonished that a American white girl could make pizza filling style bao. I felt kind of bad because it was winter and I didn't want to go in the cold. I made us lunch daily. I had flour and tinned tomato and cheese. We had them with egg fried fried rice and miso soup. She loved them so much lol I made pizza bao in the late 90s before it was popular! Yum!

[@Someone-kg8qf]

It was probably 10 below, so cold. And I was scraping my fridge and cupboards.

[@Someone-kg8qf]

She was surviving off of instant noodles and was elderly. She needed real food. It broke my heart seeing her eat eat instant noodles for breakfast.

[@Someone-kg8qf]

I ate oats cooked with raisins and cinnamon and milk tea. Dinner was rice and tofu or egg and vegetables toppings.

[@Someone-kg8qf]

I'm back to eating a similar diet.

[@Someone-kg8qf]

I need a solid lunch.

[@cezaryriarte8202]

And your leader want to go to war ?

[@DK-gj5sp]

That's America. Get lost

[@DK-gj5sp]

Sewer rat, America has destroyed this world in the last 90 years

[@Baebon6259]

@@DK-gj5sp fake propaganda

[@Cycymore14]

​@@DK-gj5spnever heard US bakery are closing lol

[@CanMav]

Wulitang had terrible tasting products. They were full of sugar and had no flavour.

[@vmbay2212]

😮

[@hailun8524]

Right, most bakeries there don't use real butter or creme, just oil in their pastries or use subpar ingredients overall.

[@devoy6898]

Dangerous Chinese Food You Should Eat at Risk of Your Life

[@fifigaia8451]

Basically that is what race to the bottom pricing will do. Eventually, they will cut corner by using cheap hazardous materials to make the food at low cost.

[@nickmalone3143]

Even pre-made foods are made of cardboard and gutter oil

[@ChickenMcThiccken]

@@fifigaia8451 then they go out of business. so when does "collective bird mind" , get through to the other business owners not to use shit and cut corners?

[@astralclub5964]

Emperor Xi and China forgot that the US, Europe, Japan, and Taiwan buttered their bread!

[@DK-gj5sp]

Ok fatburger and they are all China haters

[@eikooowiesnowyowlchannels1921]

Winnie shut down the bakery

[@TheDaysOfGlory]

Prolly ran out of honey.

[@eikooowiesnowyowlchannels1921]

​@@TheDaysOfGlory😂😂😂😂😂😂😂😂

[@DK-gj5sp]

They have millions of other bakeries.

[@Baebon6259]

@@DK-gj5sp fake propaganda

[@glicerioacosta957]

@@DK-gj5sp⬅️CCP troll.

[@Confessor555]

I don't understand why all these Chinese people keep working for months without getting paid, and end up owed months of wages, which is never settled! How do they live? This wouldn't happen to me. Payday rolls around and I don't get my money, I won't do any further work. No way I'm working for promises.

[@wowswc]

I think its because they see how hard it is to find another job. Plus theres a slim chance of getting paid later.

[@paulgap7012]

They took loan after loan after loan

[@vmbay2212]

@@paulgap7012 What happens when you can’t take out any more loans?

[@DK-gj5sp]

They love their country and it's a culture thing, people have savings but in America people even hate their parents. Incohesive and me society

[@DK-gj5sp]

​@@vmbay2212fake propaganda

[@ducknorris233]

“Deputy Secretary of State General of the China National Bakery Association” grandiose much?

[@MasticinaAkicta]

Ah chinese titles for people and organisations. They LOVE to use MANY words. Where other countries use 3 or maybe 4 words. China needs to the title to be pompous and big. How else can you make the person working for it, mere a cog in a machine, feel well about it?

[@ruffgook]

9:10, the pronunciation on "tous les jours" is just golden

[@yujia5309]

😂😂😂😂😂

[@areacodewest213]

lol… you are SO right: priceless. Definitely, not AI. I think the world might pronounce it that way. Hey, at least someone still uses human beings to do some things.

[@Kevin-qj7fp]

from my perspective or veiw on why china has this problem is when a buissness is doing well and making alot of profit other people steal the idea and ride the wagon of profit and the origianl store goes out of buissness because of competition in america we like to patent and then build off the buissness for as long as possible and every person cant steal the idea but they can be a stake holder by working for the company and earning a stake in its earnings from the profit if it benifits the company

[@qn5947]

Very in-depth analysis of this sector. Good job

[@daveg-Vancouver_Island]

Why do these ppl keep working for months without pay? I’d work half a month cause where I live they can pay either twice a month or every 2 weeks, might be different if your a sub contractor or something but still! And it always seems like the Chinese business model is saturate the market, instead of just slowly building the business as needed!

[@lorla151]

They don't have an unemployment program. Most will stay at a job and take out loans to cover expenses hoping the back wages will be paid.

[@DK-gj5sp]

They are cohesive society and Americans even hate their parents

[@Baebon6259]

@@DK-gj5sp fake propaganda

[@scottdougherty4251]

they can't get jobs anywhere else

[@philjamieross107]

well perhaps the prices are high with taxes and people have no money

[@robinburn4974]

Isn't communism wonderful

[@JC-dg6vo]

It is the same in the US, the difference is that we don't IPO everything.

[@DK-gj5sp]

It's even worse

[@spacegamer85]

It depends where you look every day another unicorn IPO is offered to the unsuspecting.

[@stischer47]

Remember in the story of Pandora's box, the box contained all the evils in the world, and one of those was Hope. Continuing to work without getting paid hoping you will get paid later shows the evil of hope.

[@arturovaldes546]

Hope is good. It's one of the three theological virtues. Faith , Hope , & Charity. ❤❤❤

[@Sojoboscribe]

Exactly! While hope can theoretically get you through tough times, it can also leave you stuck in a bad situation, digging yourself in deeper and deeper, long after logic would tell you to cut your losses and run. IRRATIONAL hope is a very dangerous thing, much like blind faith.

[@seandoherty4236]

What possessed so many Chinese business people to either launch or go through massive expansions during the 2020-2023 period? The global economy was in turmoil, yet someone was willing to lend out money for retail shops?

[@spacegamer85]

It was the same people who's goal by 2030 is you will own nothing and be happy btw they also want you to eat bugs as that is all that will be produced while they eat steak and fly around the world in private jets.

[@尼古拉斯-Nicholas]

Not shocked anymore now ,,

[@DK-gj5sp]

1000s businesses close every month in America

[@Harley_Mitchelly]

@@DK-gj5sp Hello little pink. Did Xi give you your extra rice grain for the month?

[@wowswc]

Probably healthier to avoid baked goods that are basically all carbs and often stuffed with sugar.

[@DK-gj5sp]

Right. Chinese try to eat healthy. America has either sugary or salty food. That's it

[@TheOLsnaps]

Bread these days in both countries are also filled with chemicals such as preservatives, emulsifiers, enzymes, and dough conditioners to improve texture.

[@PanzerErwin]

and seed oil cause inflammation too plus that place have a rather bad record of using low quality oil

[@Baebon6259]

@@DK-gj5sp fake propaganda

[@lance8080]

Back to rice farming 🇨🇳🇨🇳🇨🇳

[@midimusicforever]

People can't even afford to eat?

[@DK-gj5sp]

Lies and more lies. That's north America. 1 in 5 hungry

[@Baebon6259]

@@DK-gj5sp fake propaganda

[@pencarirupiah2858]

Come to Indonesia, cake and passtery shop is highly sought after, especially daifuku mochi sold at $0.3 while in mall they sold it $1

[@WilliamD.Gutierrez]

From $37K to $65K that's the minimum range of profit return every month I think it's not a bad one for me, now I have enough to pay bills and take care of my family.

[@ElvisSandra]

How please

[@WilliamD.Gutierrez]

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[@FloresMadlyn]

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[@TiffanyDerek]

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[@StacyRobertP]

Since meeting expert Caroline Anthony, I now agree that with an expert managing your portfolio, the rate of profits are higher, with less risk

[@lukang72]

Very sad. Times are hard

[@thelegion_within]

jeez, at this rate the rice paddies will go out of business next

[@richardx4456]

What should bakery do to survive in this economy?

[@stoundingresults]

Sell in bulk at low price, quantity over small profit each sale

[@gavinlew8273]

Sell Ice Cream :D

[@tonythai5991]

go vegan,

[@MasticinaAkicta]

But remember GDP 5%++++ Yup If even bread and other food supplies means bad business!

[@srj607able]

Tous le jours and Paris baguette are still in china…. Please understand how to say it

[@Evermoregreen23451]

Luxury food items are one of the first casualties of any economic downturn. Watch other fast food outlets they tend to plunge out of sympathy

[@kakarott5243]

Really, how can one maintain the overall profit margin in their business while the government allow more than five competitors of the same business open in one area together? Where is the official personnels that’s should be overlook into the system to stabilize the flow of operation? They ought to busy themselves with various form of taxation, fines and penalties to be place on people but they don’t have time to check on the abnormally state of the particular area that might need of assistance, the officials ought to remember that small businesses are the pillars of your country economy.

[@BestBuysReviewed]

go back to basic food

[@DK-gj5sp]

Worry about your next meal

[@Baebon6259]

@@DK-gj5sp fake propaganda

[@Zigurath100]

When talking about yuan, can you provide another cirrency for comparrisson? $ euro or yen?

[@thelegion_within]

11:04 - "tiger attitude chartered pastry bank" sounds like a completely fictional thing. translation error?

[@mightT1]

no bread the pockets... then literally no bread. at least owner didn't go way of prepackaged food 8n China and make prepackaged bakery... imagine the carcinogens.

[@SillySausage-mq3so]

China is just going though a restructure, might take 10 or 20 years before everything settles to needed levels.

[@kakarott5243]

Additional with Cantonese favorite phrase "三分鐘熱度" and "貪新鮮".

[@TheDaysOfGlory]

Too bad for them. I pop off $5 easy for BreadTalk, Acacia bread, Red Ribbon, Goldilocks… It’s more fun in the Philippines! ccp OUT OF WPS !!

[@tek_soup]

Who is the Competition, but your own people. people are broke, and buying the non healthy cheaper foods.

[@markmk44]

Bread is not a Chinese staple food

[@SomeDayDreamer]

the bakeries in China are ok you can dare eat. Well most times.

[@scourdx]

Marxism seems to leave a mess wherever it goes. Why do folks just look away when they see injustice? A lot of people prefer the easy route and shy away from standing up against the oppression they face. When money becomes your main focus, you tend to stay silent. But now that the cash flow has dried up, what do you have left?

[@scorpioseason3868]

Fake ingredients!!!!!!!

[@MeiinUK]

Wow... I have never heard of Christines' before... 1000 stores ??.... Oh wow..... Since 1993 as well ?.... So surprising.

[@shyamdevadas6099]

Heartbreaking to see this. I lived in China and the bakeries were everywhere. Almost all of them were little mom and pop operations. The people worked very hard and were very proud of their businesses. I hope that this industry can bounce back. These bakeries are a real gem.

[@CCPVirus-19]

their food is disgusting.

[@gavinlew8273]

Problem is no-one wants to pay $3 or more for a piece of bread. But people are willing to splurge millions for a house. LOL..

[@shyamdevadas6099]

@@gavinlew8273 Yeah...I'd like to say the housing thing was just a Chinese phenomenon, but it wasn't. However, the CCP did play a big role in creating the problem. I haven't been to China in 10 years. When I lived there, all of the prices seemed cheap. I could buy a whole roasted duck for 10 RMB. (About $3.16 USD back then.) I'm guessing its at least 50% more now. And, in a society where $26,000 USD puts you into the middle class, $3 for a loaf of bread is a lot! Even here in the U.S., you can buy a loaf of bread for less than $2 and we earn a whole lot more. I really hope they can turn things around.

[@LivingWithGout]

Cheap debts

[@GallAnonim-jx2cz]

There are no bakeries in China lol😂 everything is cheap factory made full of sugar.

[@michaelhband]

👍👍👍

[@u2ber888]

Fake?

[@zevil89]

Its like they didnt read any book on economics. Consumption based business can only survive when being supported by output related businesses that has foreign direct investments or export sales. If everyone is opening shops and no one is opening factories or export facilities, of course it will collapse. Something similar is happening in Korea although its not being reported.

[@pilzj3263]

Western style bakery r still doing good in 1st and 2nd tier China cities, on condition it has to look and taste good. Shop designs have to be modern. Price is immaterial.

[@kavitaredkar1818]

😢

[@kennethkong5484]

They have no homeless to give to

[@gorilladisco9108]

If you have to pinch pennies, a $2 bread is extravagance when you can bake one yourself for 50 cents.

[@FunboyMacphallush]

Still better than going to Panera where $20 or more gets you a bowl shaped stale bread filled with brown water and a little piece of meat.

[@vmbay2212]

Spending money you don’t have is nuts and The CCP Govt. expecting you to spend money, you don’t have is insane.

[@spyrit35]

Funny how having much less cheap grain from Ukraine on the market coincides with this... hmmm

[@potatocrispychip]

This will eventually go in a chain reaction because if bakeries and small businesses close, supermarkets will go next

[@amadeusamwater]

Maybe the bakeries would do better if they put them in the groceries like we do here.

[@TheNiggyStardust]

Where does Hong Kong stand?

[@tazanteflight8670]

Maybe the problem is a bread maker being on the stock exchange.....

[@SeikoSKO]

I'm number 4 to comment

[@blo0dyc0rpse]

Make and video about beer and alcohol industry plz

[@shundi4264]

Same propaganda. Collapse tomorrow. Meltdown next week. Disintegated by next month. Here you go.

[@texasnationalists9727]

Oh well, it's not bread anyway lol.

[@ThailandTerry2024]

👉🏻 🏆 👈🏻

[@meowmeow1733]

Launder money through bakeries 🙂

[@wannabefarmer813]

Ccp seems to be extremely stupid but think they are extremely clever .

[@ManMountainMetals]

They should sell coffee ☕️ 😋

[@aaroncapricorn5867]

69th comment

[@AzzaZazza-y9h]

1st

[@stoundingresults]

You won a trip to china, all the gutter oil restaurant buffets you want😂

[@joshuaanhao4699]

Karma you are so greedy!!!!