Chinese company Songxianxian has seen huge success with its plant-based condiments, reaching annual sales of almost $68.5 million in 2023. But the brand’s remarkable growth may be attributable to a surprising strategy — not marketing its products as plant-based.
Songxianxian was founded by serial entrepreneur Zihan Yi, who had previously launched a plant-based restaurant and food brand. Both ventures ultimately struggled to grow, largely due to the relatively small size of China’s plant-based market.
However, one product from the plant-based brand stood out — an alternative to chicken essence, an important ingredient in Chinese cuisine. The umami powder took seven years of R&D to develop and is made from mushrooms, vegetables, and fruit powders, with no MSG or other additives.
Upscale condiment brand
The powder was initially marketed at vegetarians, and saw an impressive monthly repurchase rate of 20% on online marketplace Tmall. This gave Yi the idea of establishing Songxianxian as an upscale condiment brand for health-conscious consumers. She soon expanded the range to include soy sauce, balsamic vinaigrette, plant-based oyster sauce, ketchup, and more.
Songxianxian products are now available at over 100,000 retail outlets, including Walmart and Freshippo. The brand also has tens of millions of followers on Chinese social media platforms. By appealing to a more mainstream market, Songxianxian has successfully entered China’s relatively crowded condiment market, despite being priced significantly higher than the market average.
The company’s growth illustrates an important point — few Chinese consumers are vegetarian or vegan, but many are prepared to pay for plant-based products if they are marketed as high-quality and healthy. This echoes the results of an American study published earlier this year, which found that participants were more likely to choose meat-free products labeled “healthy” or “sustainable” than those labeled “vegan” or “plant-based”.
Songxianxian has found particular success by tailoring its condiments to specific target groups; for example, the brand offers weight-loss solutions, low-salt products, and sugar-free options for diabetics.
Boosting growth via live streaming
Songxianxian uses e-commerce live streaming to boost sales, though initial attempts were not successful; some influencers failed to deliver on sales targets or demanded heavy discounts that ate into profits. After narrowly avoiding bankruptcy, the company began working with smaller influencers on Douyin, and eventually ranked first on the platform’s monthly seasoning sales chart.
After that, Songxianxian never exited the top five, exceeding $15.41 million in sales on Douyin alone last year. From there, the company was able to gain traction on other platforms and secure listings with offline distributors.
Songxianxian is now expanding into Asian grocery stores elsewhere in the world, including North America and Europe. The company plans to participate in international food expos, and Yi is also diversifying into other categories such as healthier noodles and plant-based milk through new sub-brands.
“I constantly approach new difficulties with the mindset of a learner, which speeds up my assimilation of new knowledge and enhances my general skillset,” Yi told Dao Foods in an interview. “While it’s never easy, stepping outside of your comfort zone is necessary for business development.”
