Bakery Trends & Best Practice - Singapore

Overview Singapore 2011 population : 5.18 millions (a growth of 1.9% vs 2010) Younger generation decreasing while aging population are increasing

Trends Customized cake request from consumer increasing Cupcake craze heating up in Singapore Increased promotions to attract consumers spending. Increasing use of Promotional Deals Via “groupons” Increasing usage of internet for advertising and promotion purposes

Application Concepts More consumers are requesting for customized celebration cakes. - Cakes below are decorated using NDWT

Application Concepts Collaboration with biscuit manufacturer to launch new cake concept One of our customers, Polar Puffs tie-up with a biscuit manufacturer to produce healthier choice of cake for consumers ~ Berries Oat Krunch Cake. They also run a promotion of ~ Every purchase of the Berries Oat Krunch Cake, consumers will receive 1 box free of biscuit.

Application Concepts Local hawker operators produced pudding soya beancurd using RTW.

Application Concepts Cupcake shops are opening across town offering different versions of cupcakes. E.g. Twelve Cupcakes, Pique Nique, High Society, Marmalade Pantry

Promotion Concept One of the local chained pasta outlets, PastaMania, conduct “After 9pm Treats” where consumers can purchased any desserts and salads for only $2.90

Promotion Concept Delifrance conduct a promotion of “with every main course ordered during stipulated lunch and dinner dine-in hours, consumers are entitled to FREE soup of the day, drink of your choice and daily dessert.

Promotion Concept Consumers purchase coupon/voucher via internet at an attractive discounted price for regular priced products E.g. Consumers can purchase a groupon online to enjoy 50% off purchase of 1kg Durian Cake

Promotion Concepts Customers are using internet as tools for advertising and promotion to attract consumers spending. E.g. Bread Talk allows consumers to print out e-voucher from their website to enjoy 25% discount off from the retail price of a cake of the month promotion.

Retailing Concepts Smart Phone Apps One of the local bakeries, Bakerzin, designed a smart phone apps for consumers to place order for cakes using their mobile phones.

Bakery Trends & Best Practice - Malaysia

Population (In Million) Malaysia Population 4.5 4.6 4.7 4.3 4.4 68.1 67.7 67.3 66.9 29.2 28.7 28.2 27.7 27.2 Population 2006 2007 2008 2009 2010 2011 Population (In Million) 26.83 27.19 27.54 27.90 28.25 28.73 Source: Department of Statistics Malaysia (July 2011)

Executive Summary Operators are providing new variant of cakes The rise of street stalls/kiosks selling fruit juices/smoothies increasing in Malaysia. Operators introducing loyalty programs to attract consumers to revisit their outlets Booming trends of TW/HK style desserts/bubble tea shops rapidly increasing in shopping malls. Increased promotions value meals during certain hours to win consumer’s spending dollar. Increased usage of internet for advertisement and promotion to attract consumers E.g. Facebook, Twitter, Groupons, My Deals, Mobile SMS

Applications Our technical team has developed “Hokkaido Chiffon Cup Cake” filled with pastry cream made using PNW. We developed 3 flavors : Original flavored pastry cream Hazelnut with peanut butter cream Black sesame with hazelnut cream

Applications Our customers, like RT Pastry and Tong Kee are producing new variety of cakes for consumers. Yam swiss roll Wholemeal swiss roll Sesame Charcoal Mousse Bamboo Charcoal Chiffon Cake

Retailing Concepts The rise of street stalls / kiosks selling fruit juice/smoothies in Malaysia

Loyalty Programs Every RM 10 spent entitled to 1 apple point. Every 6 apple points entitled to redeem a 6 pcs box of donuts. The Loaf Bakery & Bistro conducted a Member’s Day Sale on all items

Retailing Concepts Taiwanese and Hong Kong dessert shops concept opening up in Malaysia. E.g. Snowflake, Tong Pak Fu

Retailing Concepts The bubble tea stores allow consumer to choose the preferred sugar and ice level.

Promotion Concepts Consumers get a FREE cup of Coffee or tea for any dine-in of a slice of cake from 3pm – 6pm Ladies consumers gets to enjoy 15% discount off their purchase on every Tuesday

Promotion Concepts Contest Every spending of RM 20 in “Secret Recipe” entitled to 1 contest entry to win concert tickets Every spending of RM 10 in “Chatime” entitled to 1 contest entry to win smart phones

Use of “Promotional” deals via internet Retailing Concepts Use of “Promotional” deals via internet Consumers purchase coupon/voucher via internet at an attractive discounted price for regular price items. E.g. Consumers can purchase a “deal” online to enjoy 38% off 1kg of celebration cake.

Use of internet tools for advertisement Retailing Concepts Use of internet tools for advertisement Customers using social media tools such as Facebook and Twitter to connect with consumers for promotions or announcement.

Bakery Trends & Best Practice - Vietnam

Summary of Trend Drivers Government are supporting local manufacturers via awareness campaign on newspaper to encourage consumers to support national goods. Increased usage of internet to promote online shopping in Vietnam – E.g. NhomMua and CungMua More bakery café chains are emerging Increasing display of continental cake within bakery display chiller. Consumers are increasingly dining out, particularly on weekend for families. Continued expansion of foreign franchise chained outlets. E.g. Bread Talk, Pizza Hut, Coffee Bean, TLJ, etc.

E Shoppers In 2011, internet websites offering different promotions emerging to attract consumers spending. E.g Duc Phat Bakery and Sweet Home Bakery offer 60% discount voucher for consumers if they purchased the voucher online.

Change of business model – Bakery Cafe Influence by culture change from western and neighboring Asian countries, more operators are combining the concept of bakeries and foodservice to provide value-added service for consumers. E.g. Consumers can enjoy a slice of cake with a cup of coffee.

Transferable application Increasing display of continental cake within bakery display chiller

Packaging Influence by entries of foreign franchise players, customers are shifting from traditional packaging of round shape to square shape packaging format.

Merchandising Customers are displaying decorated cake and continental cake in separate display chiller

Marketing: differentiation Givral, one of the KA who participated in Mooncake Consumption Program has recorded overwhelming results with the Snow Skin Mooncake. From 1st year of participation in 2009, they sold only 4000 pieces. This year, 2011, they have sold 18,000 pieces. They intend to pursue the Snow Skin Mooncake as a daily item on their display showcase from year 2012 onwards.