撰写Original jingguantai studio jingguantai
Jingguantai (ID:JINGGUANTAICN) original
Wen Yi Xie Yuanyuan
Editor Cao Huimin
Leisure snacks head brand good shop, three squirrels can not sell.
Q3 financial report in 2023 showed that the revenue of good shops in the first three quarters was 5.999 billion yuan, down 14.33% year-on-year; The net profit was 191 million yuan, down 33.43% year-on-year. The revenue of three squirrels in the first three quarters of 2023 was 4.582 billion yuan, down 14.07% from 5.333 billion yuan in the same period of 2022. This is the third consecutive year that the revenue of three squirrels has declined since the third quarterly report in 2021.
The fundamental reason why consumers don’t buy it is that the two brands that take the high-end route are priced too high. In August 2023, the good shop was called "Snack Assassin" by netizens because the price of duck tongue sold was as high as 264.4 yuan/kg.
On the other hand, discount snack shops catering to consumers are busy with snacks, and snacks are booming.
These stores bring together snacks of various brands, whether it is well-known brands such as Coca-Cola and Shuanghui, or unheard-of white-label snacks, which can be found in these stores. In addition to the variety of goods, the price of discount snacks is also very attractive. Compared with convenience stores, supermarkets and other channels, these stores directly connect with manufacturers and can get goods at a lower cost, thus selling at a lower price.
According to the research report of Guanyanxia, in a busy snack shop, the price of a bottle of 500ml Coca-Cola is only 2.3-2.4 yuan, which is usually 20-30% cheaper than the supermarket.
With high cost performance, rich categories and people-friendly shopping experience, discount snack shops have successfully attracted a large number of consumers. The market share of the traditional snack brand Liangpin Shop and Three Squirrels has been eroded. In order to change the status quo, major brands have reduced their bodies and started to cut prices one after another. At the same time, they have made efforts in offline channels to compete head-on with discount snacks such as busy snacks and loud snacks.
Discounted snacks have risen rapidly.
The discount snack shop represented by busy snacks and loud snacks is becoming a treasure place for consumers to buy snacks.
There are many kinds of goods in these stores, not only Mengniu, Want Want and Delicious, but also all kinds of white snacks. More importantly, the price is more affordable. The price of 312 grams of Weilong gluten is 7.9 yuan, and the sales price in the supermarket reaches 16.8 yuan; The price of 95g of Fun Duo Duo is 5.2 yuan, and the selling price of the supermarket is 6.7 yuan.
Moreover, each brand’s shops have a high degree of recognition. Signboards with eye-catching colors, warm yellow lights and neatly arranged display racks have created a "punch-in" atmosphere for young people.
With these advantages, some discount snack brands successfully attract consumers to their own stores, and form an impact on traditional leisure snack brands by online and offline omni-channel containment.
Take the busy snacks as an example. In 2022, the busy sales of snacks were about 6.4 billion yuan, exceeding the 2.894 billion yuan of Yanjin Puzi and the 4.382 billion yuan of coming to Iraq, and approaching the 7.293 billion yuan of three squirrels.
In the first half of 2023, the revenue of good shops declined for the first time since listing in 2020, and the reason behind it was the decline in online income. Three squirrels also mentioned the decrease in e-commerce revenue in the financial report.
This is not only a problem faced by the two head brands. Dongxing Securities’ recent research report shows that during the "Double Eleven" period last year, the sales of leisure snacks reached 12.1 billion yuan, down 10.4% year-on-year.
For the reasons behind it, Dongxing Securities analyzed that it was mainly due to the channel changes experienced by snack foods in recent years, and the snack mass-market stores with high cost performance rose rapidly in the environment of rational consumption, which had a certain impact on the traditional e-commerce channels.
Like online, traditional leisure snack brands also encounter the problem of being unable to sell offline.
Although the three squirrels and good shops have long seized the offline market by opening stores and entering supermarkets, it is still difficult to compete with discount snack shops.
Take the three squirrels as an example. After opening the first store in 2016, the three squirrels continued to expand the number of stores for a period of time, and put forward the "Wanjia Store Plan" in 2019, but it soon shrank. In 2021, three squirrels closed a large number of stores, and in April 2022, they announced the strategy of suspending store expansion.
Source/vision china
There are uncontrollable environmental factors behind this, but more reasons are the rise of discount snacks. In 2021, when three squirrels closed their stores in large numbers, the number of discount snack shops increased significantly.
Founder Securities Research Report shows that about 250 discount snack shops will be opened nationwide in 2021, and the number will be nearly 8,000 in 2022. According to Ai Media Consulting, as of October 2023, the number of snack collection stores in China has exceeded 22,000. After the head brand Zhao Yiming Snacks and Snacks are busy merging, the total number of stores in China has now exceeded 7,000.
The discount snack shop has a huge passenger flow.
According to financial data, Zhao Yiming Food’s revenue in 2022 was 1.215 billion yuan and its net profit was 38.44 million yuan. By 2023, in just half a year, the company’s revenue will exceed the whole year of 2022 by twice the volume. From January to June, 2023, Zhao Yiming’s food revenue reached 2.786 billion yuan and its net profit was 76.31 million yuan. Snacks are busy and also have a bright revenue growth rate.
Nowadays, the expansion of discount snacks is still advancing.
After winning many provinces in Central China, South China, East China and Southwest China, snacks were very busy and began to expand in other regions. Recently, the Snacks Busy Group revealed that it plans to invest more than 1 billion yuan in the next six months for national market development, focusing on the northern region.
In order to prevent it from being further eroded, leisure snack brands such as Liangpin Shop, Baicaowei and Three Squirrels launched a defense war and began to cut prices on a large scale.
High-end snacks put down their bodies
Influenced by the change of consumption concept and discount snack shops, traditional snack brands have to sell at reduced prices, especially the three giants of leisure snacks who took the high-end route before.
According to Dongxing Securities Research Report, the average prices of the products of three squirrels, Baicaowei and Liangpin shops dropped by 7.6%, 16.1% and 0.5% respectively in Tmall, 15.7%, 23.8% and 11.3% respectively in JD.COM, and the average prices of the three head brands in Tmall and JD.COM dropped by more than 10% respectively.
The waste heat of the Double Eleven has not completely dissipated, and the good shop announced the largest price reduction in 17 years. 300 products with high repurchase rate, such as macadamia nuts, pork breast and spicy strips, became the main targets of price reduction, with an average decrease of 22% and the highest decrease of 45%. Three squirrels followed closely, suggesting that the company is implementing the strategy of "high-end cost performance".
Source/vision china
Supporting this wave of price cuts is the supply chain behind the Big Three. In order to give a more competitive price, three squirrels, herbs and good shops all mentioned squeezing out the "moisture" in the supply chain.
Major brands are reducing costs and increasing efficiency through direct mining of raw materials, upgrading production equipment, upgrading product production technology and delineating gross profit red lines, and even turning their attention to self-built factories.
In 2022, three squirrels, originally based on OEM production mode, opened factories and put them into production that year. Previously, the good shop also said that in the future, 5-8 deep-rooted SPU varieties will be selected from 1,600 SKUs (inventory units) and 120 SPU (standardized product units) to share shares or build their own factories to lay out the industrial chain.
After a set of combination boxing, the prices of the products of the good shop and the three squirrels have declined. According to the information provided by three squirrels, the price of macadamia fruit in 2023 is 30% lower than that in 2022, and the sales price is more than 20 yuan a catty.
These price-cutting products not only appeared in e-commerce channels, but also were placed in offline stores, and even appeared in online stores first. According to market reports, the main sales channel of products announced by good shops is stores, with the adjustment range of 10%-47%. Like discount snacks, good shops hope to attract consumers with low prices.
This is related to the offline market size. According to the statistics of China Commercial Industry Research Institute, in 2022, the market space of generalized leisure snacks in China exceeded 1.5 trillion yuan, with a compound growth rate of over 10% in recent five years. Among them, offline channels accounted for 85.9%.
There are also three squirrels who also pay attention to offline channels. Although the three squirrels also have their own offline stores, the flow of discount snack shops is booming. Yanjin Puzi, Jinzai Food, Gan Yuan Food and other brands have achieved revenue growth after cooperating with snack shops such as Busy Snacks. In the recent performance meeting, all three companies emphasized the contribution of snack discount format to profit growth.
The three squirrels who put forward the "all-category+all-channel" business strategy also tried to eat this wave of dividends.
Three squirrels told Jingguantai that in mid-January, 2024, three squirrels and four kinds of nuts (macadamia nuts, pecan nuts, pistachios and almonds) entered all the stores in Zhao Yiming, and later they will cooperate with other snack shops, and gradually expand the categories, and may even launch products exclusively for channels.
But cooperation is not the end. Three squirrels, like good shops, began to dig offline bonuses themselves. Offline, traditional snack brands and discount snacks have begun to compete with each other.
Offline PK, the war of attrition is on.
Consumers are increasingly going offline, and major leisure snack brands have to migrate. Previously, Yang Yinfen, deputy director of Liangpin Store, said that the snack industry could not be rolled up online, and the offline company was ready.
In order to compete for the market with brands such as snacks, snacks and busy snacks, the good shop and three squirrels adopted a new style of offline shop. The former joined the army of discount snacks and launched the cheap sub-brand "Snacks Hard Home", while the latter opened its own brand community snack shop.
At present, the brands of the three squirrel community snack shops are 70% self-owned brands and 30% imported brands, while the stubborn snack shops mainly sell third-party goods.
Like brands such as Busy Snacks and Zhao Yiming Snacks, low prices are also regarded as a sharp weapon to tap the offline market.
Three squirrels told the mirror that in the community snack shop, the price of macadamia fruit is 29.5 yuan a catty, and the price of members is 27.8 yuan a catty, while the price of other stores is 58 yuan. The price of air-dried duck neck is one catty in 4.9 yuan, and the snack shops are 5.9 yuan or 6.5 yuan. The supermarket price is higher, and the price is one catty in 9.9 yuan.
Snack stubborn family is a chain snack shop brand specially launched by a good shop to expand the sinking market. The slogan is "Cheap is cost-effective".
By October, 2023, there were more than 300 stores in Hubei Province. Three Squirrels’ own brand community snack shops currently have more than 180 stores nationwide, covering Anhui, Jiangsu, Zhejiang and other provinces, and will increase the number of stores by joining in the future.
However, under the homogeneous competition, it is difficult to predict how much effect low-price competition can bring. Good shops once said that the competition barrier of snack collection shops is not high, and it is a resource consumption war. Therefore, the company is also thinking about the new changes that can be made in the business model after opening 1000 stores in the future.
In order to achieve differentiated competition, the three squirrels have been emphasizing quality. At the same time, we customize products for community stores, trying to create a number of differentiated large single products to precipitate the superior pallets of community stores, and distinguish them from other channel pallets to avoid unnecessary price competition.
In June, 2023, three squirrels opened the first community snack shop. According to the report of Tiger Sniff in January this year, snack mass-market stores on the market generally provide more than 1,000 SKUs, while the SKUs of three squirrel community snack shops exceed 1,500, while the number of SKUs in stores with busy snacks is as high as 1,600.
At that time, Zhang Liaoyuan, the founder of the company, also told the media that at this stage, the richness and cohesion of the three squirrels were not enough. However, recently, three squirrels told the mirror that through some measures, the current SKU of the store is close to 2000.
Good shops also have a series of actions in store construction. In July, 2023, Liangpin Store opened a snack kingdom store with an area of 1,200 square meters, which not only paid attention to product differentiation, but also paid great attention to consumer experience, and created the concept of "snack drift".
"Snacks are very busy" and they are not sitting still. A few months later, the "Super Snacks are Busy" with an area of over 1,300 square meters was opened. The first floor is a snack shopping area, and the second floor is a snack-themed leisure and entertainment area, which fully caters to the diverse needs of contemporary young consumers for "consumption+socialization".
According to the "Retail Circle" report, snacks are busy with many well-known brands such as Mengniu, Want Want, Jiashili, Haochidian, etc., and dozens of PLUS snacks are customized for sale in stores, and the snack packaging is also customized.
The offline snack shop has developed from the previous roll price to the roll experience. In the end, who can get more dividends needs consumers to give an answer with actions.
References:
"Tik Tok accidentally" saved "three squirrels", source: Tiger Sniff.
* The title map comes from vision china.
* Disclaimer: In any case, the information or opinions expressed in this article do not constitute investment advice to anyone.
Where do you often go to buy snacks?
Original title: "Snacks are busy, we" hunt "good shops"
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