Under the double attack of KFC and McDonald's, Dicos repeatedly hit a wall. Later, foreign fast food such as Burger King and Subway joined the fray, and Dicos was unable to fight back, so he decided to avoid the sharp edge and take a differentiated route, focusing on third-and fourth-tier cities. Details

Dingxin International Group's consideration of listing its catering business in mainland China is easily reminiscent of YUMC.US. Yum! Brands will split its China business unit and operate independently, and will list Yum! Brands China on the NYSE. Yum! China owns the exclusive operation and authorized operation rights of KFC, Pizza Hut and Taco Bell in China market, and also owns the chain restaurants of Oriental White and Little Sheep.

Dicos generally chooses cities with a non-agricultural population of more than 1.5 million, which basically includes all prefecture-level cities and some medium-sized counties. Dicos adopted the mode of joining to achieve rapid brand expansion at lower cost, but it still passed strict quality control and made it become? County top flow? .

Today, Dicos has an unshakable position in the third, fourth and fifth tier cities. The first bite of foreign fast food eaten by many young people in the county came from Dicos. Reporters from Red Star Capital Bureau have been to many counties on business trips, and when they can't find McDonald's or KFC, they can often find Dicos easily.

However, even in the vast counties, Dicos still faces many competitors, that is, all kinds of exotic foreign fast food brands, especially Wallace, a local fast food brand that has developed rapidly in recent years. This fast food brand is based on? High imitation? KFC is famous for its fast food industry? King of shanzhai? It expanded at a lower price and more stores, followed KFC in all aspects, copied the menu, but put itself? Copy? Became a successful brand. Today, the number of Wallace's stores has reached an astonishing 12,111, almost equivalent to the sum of the number of McDonald's, KFC and Dicos stores.

besides, what else is there in the sinking market? Ordered a fried chicken? And? Ordered a fried chicken The number of their stores is around 5,111 respectively. If local fast food brands such as Baker's Hamburg and Paile's Hamburg are added, the sinking market increment of Dicos will be almost seized. Now that Dicos is listed, if it can raise $811 million, it may help it to increase the pace of differentiated competition in the China market.

Zhu Danpeng, a food industry analyst, believes that Dicos' market, brand, channel and consumer positioning are very accurate. Instead of competing with KFC and McDonald's in the first-and second-tier markets, it avoids its sharp edge and focuses on the third-and fourth-tier cities. This sinking strategy is accurate and effective. In the future, with the urbanization and the balanced development of China's economy, the third, fourth and fifth tier cities still have great market space and consumption growth potential.