Goubuli, a time-honoured steamed bun brand, seeks alternatives for growth. Photo: CFP

As Chinese traditional time-honored food brands face a rough time in the domestic market, seeking business expansion overseas has often been considered an alternative for growth. One brand that recently took that route is Goubuli, a 150-year-old company with its headquarters based in Tianjin and 30 stores across China. The wholly-owned subsidiary of Guobuli, Tianjin Senyongtai, captured media attention when it obtained the permanent right to use an Australian coffee brand, Gloria Jean's Coffees, in the China market via mergers and acquisitions, according to a China Business News' report.

Goubuli is renowned for selling steamed stuffed buns, but took a turn away from tradition when they made their move to cooperate with Gloria Jean's Coffees, which has 1,000 stores in 42 countries. Their plan is to open 20 coffee shops in China in 2015 and open 200 shops in the next five years. 

Many are doubting if this move will work out, given the odd pairing of products, and the company hasn't given a clear message to the question yet. President of Goubuli Zhang Yansen said in an interview with China Business News that they would consider selling steamed stuffed buns in the cafe, but the company later said steamed buns and coffee will not be served in the same store.

Zhang told Xinhua News Agency on January 8, that he wants to promote Chinese food in the overseas market. The booming coffee market in China is also a factor behind the move. A market survey said that in 2012, people in China consumed 70 billion yuan ($11.2 billion) worth of coffee. Zhang told Xinhua News Agency that the new deal will increase Gloria Jean's Coffees' outlets net worth in China to 150 billion yuan in the first five years.

Analysts said that Goubuli as a national catering enterprise is still relying on its old and renowned brand name instead of its products to attract customers from both home and abroad, according to the National Business Daily newspaper. The report, published on January 23, said the company's inadequate marketing, which is a characteristic shared by many State-owned brands, is the cause of its slow growth, especially for a company that expects to be listed.

Goubuli's trial for business expansion included a stock market launch in July 2014, which was later halted for unknown reasons, according to a China Business Journal report published in July 2014.

The Time Weekly newspaper said the value of Goubuli as a time-honored brand is 700 million yuan and its annual turnover is about 600 million, while other food brands such as Daniang Dumpling, which was established in the late 1990s, enjoyed an annual turnover of 2 billion yuan. Meanwhile, Qingfeng Steamed Buns, a brand founded in the 1940s, had opened 183 stores in China by the end of 2013. Analysts said this competition forced Goubuli to quicken its pace for market growth.

This is not the first time Goubuli has sought overseas business expansion. This food giant partnered with Singapore-based food manufacturer Tee Yih Jia in October 2013 to sell Goubuli products in more than 50 cities in the Asia Pacific market, according to the Shanghai Daily.