China’s affluent demanding better food & services
As salary levels climb in China, younger mainland Chinese with more disposable incomes are demanding better food and services. This has given rise to young entrepreneurs setting up innovative companies to provide premium services in the capital Beijing. One such company is Jinshisong Delivery Service, which is no ordinary take-out service. The premium service comes with a delivery man, placemats, cutlery and gourmet fare – such as Peking Duck, double-boiled herbal soup and fresh sashimi – all at a click of a mouse.
Jinshisong’s founders are young entrepreneurs under the age of 30 who started the business after one too many bad experiences with poor take-out services in Beijing. John Sun, Jinshisong Delivery Service founder, said: “Many of those food deliverymen, when they enter my house, they stink. And I just lose my appetite.” So in May this year, Jinshisong was formed, providing deliveries for some 60 middle- to high-end restaurants in Beijing. Despite charging a premium for delivery, the company said response has been good, with average orders of about 50 per day and an average bill of about 200 renminbi or slightly over US$30. With so many people concerned about food quality, especially in light of food safety and hygiene issues in China, they don’t mind spending more to make sure their food is safe for consumption. The company expects demand for its service to grow, with locals making up 80 percent of market share as affluence levels climb in China.
Ms Wang said: “The mainland Chinese make up a huge market and they have a high capacity to spend, especially at high-end restaurants. Even in Western outlets, the Chinese make up a bigger proportion than foreigners.”
From food to groceries to wine, there are more than 150 take-out providers in Beijing, with some run by the outlets themselves. With the weather turning colder and more people preferring to have their meals indoors, the number of delivery orders is expected to go up. Restaurants say delivery orders usually double to about 20 a day during the winter season and they make up about 20 percent of total sales. That is good news for Jinshisong Delivery Service which plans to expand to other Chinese cities like Shanghai next year.