Chen Changyin Mahua Expands Global Sales Through Digitalization

Chen Changyin Mahua, a 119-year-old Chongqing time-honored brand, has achieved annual sales equivalent to circling the Earth twice through strategic transformation, digital empowerment, and product innovation. Its success lies in adhering to quality, embracing change, leveraging digital technologies, and building a strong brand culture. This provides valuable lessons for other time-honored enterprises seeking to adapt and thrive in the modern market.
Chen Changyin Mahua Expands Global Sales Through Digitalization

What enables a century-old Chongqing twist pastry shop to thrive in today's competitive market, achieving annual sales that could circle the Earth twice? The story of Chen Changyin Twist Pastry represents not just a family business's legacy, but a compelling case study of how traditional industries can embrace digital transformation to achieve high-quality development.

I. Century-Long Heritage: The Cultural DNA of Chen Changyin Twist Pastry

The brand traces its origins to 1907 when founder Chen Jinghong dedicated himself to perfecting twist pastry techniques in Chongqing. Through generations of refinement, particularly under Chen Changyin who in 1971 systematized eighteen meticulous processes—including kneading, pounding, twisting, resting, rolling, cutting, rubbing, twisting, and frying—the pastry developed its signature characteristics: "less greasy yet crispy, fragrant and crumbly."

During the 1970s, the business operated through street vending with shoulder poles, earning widespread acclaim. In 2000, Chen Changyin reopened his shop in Ciqikou, where queues became a daily phenomenon, cementing the brand's status as a Chongqing specialty. This historical foundation provided both cultural depth and strong brand equity for future development.

II. Strategic Transformation: From Cottage Industry to Modern Enterprise

Facing intensifying market competition and product homogenization, fifth-generation successor Chen Jianbing recognized the limitations of their traditional "front shop, back workshop" model. In 2007, he partnered with Yang Xuewu, a university classmate and seasoned multinational executive, to establish Chongqing Ciqikou Chen Twist Pastry Food Co., Ltd.—the first joint-stock company in Chongqing's twist pastry industry—appointing Yang as CEO.

This marked the transition from family operation to modern corporate management through three systemic reforms:

  • Standardized Production: Consolidated scattered workshops into unified production bases with standardized processes, later expanding to three major facilities with automated equipment.
  • Professional Management: Implemented structured compensation, performance, and financial systems, replacing familial management with professional teams.
  • Omnichannel Strategy: Capitalized on consumption upgrades, Chongqing's tourism boom, and twist pastries' evolution into regional snacks by building integrated offline/online sales channels.

III. Digital Transformation: Breaking Down Data Silos

As operations scaled, legacy IT systems revealed critical limitations—disconnected data streams created operational inefficiencies:

  • Manual monthly data consolidation caused delays and errors, especially during livestream sales spikes
  • Opaque inventory required phone-checking between locations
  • Imprecise cost allocation by batch/flavor
  • No quality traceability mechanisms

In September 2024, partnering with Kingdee, the company implemented an omnichannel order management system using Kingdee Cloud·Star platform, achieving real-time data integration across production, sales, and administration. Key outcomes included:

  • 80% faster order processing via mobile workflows
  • Automated inventory alerts triggering procurement adjustments
  • Batch-level cost tracking enabling precise expense control
  • Full production traceability from flour suppliers to processing parameters
  • Predictive risk modeling through data analytics
  • 83% faster financial reporting (5 hours → 1 hour)

IV. Product Innovation: Honoring Tradition While Embracing Change

Alongside digital upgrades, the brand maintained cultural authenticity through:

  • Product Evolution: Introduced thumb-sized twists in 43 varieties including Sichuan-inspired "Chili Twist," with vibrant, youth-oriented packaging
  • Heritage Preservation: Maintained core handmade techniques while digitizing 18 traditional steps into 200+ quantifiable parameters, achieving 99%+ quality consistency
  • Cultural Engagement: Established an onsite museum with historical exhibits and annual "August 8 Twist Festival" featuring industry white papers

V. Key Takeaways for Heritage Brands

Chen Changyin's success offers valuable lessons:

  • Quality craftsmanship remains non-negotiable
  • Structural reforms enable scalability
  • Digital integration unlocks operational excellence
  • Product innovation must balance tradition and modernity
  • Cultural storytelling strengthens brand equity

This case demonstrates how heritage brands can achieve sustainable growth by honoring their roots while boldly embracing technological and managerial innovation—a model for traditional food industries navigating modern markets.