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Do you still buy good shops?
As the first high-end snack brand, Liangpin Store has been expanding intensively, but now it has frequently announced price cuts due to unsatisfactory profits …
Why did the road of "expensive price" once work and now it doesn’t work?
I recommend you to read this article.Let’s see why good shops are getting harder and harder to do business.
There are a lot of things going on in the good shop recently.
First, on November 27th, Liangpin Store announced that it would implement the largest price reduction for the first time since the brand was established 17 years ago.The average price of 300 hot-selling products was reduced by 22%, with the highest drop of 45%.
Then, Zhao Yiming Snacks, a snack discount store, was openly torn and caught in a lawsuit.
There are indications that good shops that used to be proud of "high-end snacks",It seems that you have to put down your posture and make some changes to survive.
Founder Yang Yinfen mentioned in an open letter: "Good shops should reduce the cost and realize the price close to the people.Everyone thinks it is expensive, so it must be changed, and if it remains unchanged, it will die. "
In addition to the expensive price, DT Business Watch is more curious: What happened to the good shop? Why did the road of "expensive price" once work and now it doesn’t work?
Street snack shop, get e-commerce bonus.
In August 2006, Liangpin Store opened its first store opposite Wuhan Square.
Like most newly opened small shops on the street, the newly opened good shop has an area of only 30 square meters, with a total of four employees, and the promotion method is also very grounded-by Yang Hongchun, who just stepped down as chairman,Lead the shop assistants to invite pedestrians to try it for free at the door.
In that era when consumers mainly went to the small shops downstairs and supermarkets to buy snacks, the snack collection store form of good shops "bringing delicious snacks from all over the world to customers’ doorsteps" was a model innovation.
At that time, brands with similar models only came to Iraq, but the stores in Iraq were concentrated in Jiangsu, Zhejiang and Shanghai, while the good shops were in Wuhan.Both are offline channels, so there is no direct competition.
Under this new mode with freshness, good shops first gained popularity in Wuhan, and then set up shops intensively in Central China with Wuhan as the core.
However, the real leap of good shops depends on e-commerce.
In 2012, Liangpin Store established an e-commerce company. This year, it can be said that it is the first round of reshuffle between snack brands.
On the one hand, it is the smell of herbs that have been in the online channel for less than two years.In 2012, online sales have reached 140 million yuan.
On the other hand, Want Want, an old snack brand that mainly relies on traditional channels, broke through the highest point of HK$ 170 billion in 2013.Caught in three consecutive years of negative growth.
In 2012, the good shop that bet on e-commerce realized the soaring from a regional snack brand to a future snack industry giant by e-commerce.
In 2015, the online sales of good shops exceeded 820 million yuan.In 2016, Liangpin Shop won the title of No.1 in the category of Double Twelve Leisure Snacks. According to the prospectus of the good shop, during 2016-2019, in the company’s main business,The proportion of online income increased from 33.69% to 48.58%.
In the stage of taking off by e-commerce, the good shops opened up the shares that still mainly rely on offline channels.But at the same time, it also ushered in a new opponent-three squirrels who mainly attack the e-commerce platform.
In 2019, the revenue of good shops was 7.71 billion yuan.Revenues from Iraq and three squirrels were 4 billion yuan and 10.2 billion yuan respectively.
Good shops break through by "high-end"
From the perspective of revenue, before 2022, three squirrels always pressed one end of the good shop.
In the position of the second child, the good shop hopes to target a specific group of people.Differentiate in brand positioning.
Since 2015, good shops have been through cooperative variety shows, film and television dramas, etc.Marketing to specific groups of people.
From Where’s Dad Going 3 to Creation Camp 2019, and then to Brother with Thorns, and from Ode to Joy 2 to Mr. Love and the Silent Truth, etc., good shops are aimed at the main consumer groups of the brand.Young mother aged 18-40, exquisite white-collar worker.
Embarrassed, however, the above marketing methods can also be seen in three squirrels. For example, in Ode to Joy 2, a good shop was implanted, while in Ode to Joy 1, when the five beauties of Ode to Joy were trapped in the elevator, Andy played Qiu Yingying as "there are three squirrels I like to eat best".
Good shops need a new story, a new story that can be different from other brands.
In 2019, when three squirrels were listed with the title of "the first national snack", the good shop announced in January of the same year:Brands should be positioned as "high-end snacks".
In order to go to the "high-end", the good shop first replaced the LOGO of the cartoon with a simple text pattern.At the same time, hand in hand with fashion photographer Man Chen, made a "snack blockbuster".
In the site selection of stores, good shops intensively plunge stores into shopping centers.
According to the media interview with Chen Zhangwei, the head of Liangpin Shop Development Center in 2019: As of July 1, 2019, Liangpin Shop has more than 800 shopping malls.In the first half of 2019, 70% of the 200 new stores were located in shopping centers.
For consumers, the most obvious embodiment of high-end is,It may be more and more exquisite packaging and more and more expensive prices.
We compared the per capita consumption of major snack brands. Before the price reduction, the unit price of good shops reached 56.5 yuan, which was higher than brands such as Laiyifen and Three Squirrels, and ranked first among the above snack brands.
Take the "peeled fragrant melon seeds" sold well in good shops as an example. Before this price reduction, a bag of 120g was sold above 10 yuan.Qiaqia white melon seeds with similar products cost only 15.8 yuan for 500g.
"A bag of more than a dozen dollars, literally hundreds in buy buy, but there are not many things in a bag" may be the feeling of most people to a good shop.
This kind of "high-end", which is mainly embodied by high price, exquisite LOGO/ packaging and tall stores,At the beginning of the implementation, quite a few people did pay the bill.
According to Nielsen’s survey, as of October 2019, 47% of consumers in key first-and second-tier cities in China recognized that good shops had the characteristics of "high-end snacks".
Why do people buy?
One explanation is that,Under the "high-end" marketing, I really believe in the quality and brand power of good shops.
Another answer may be: if you feel "face-saving", you can give gifts.
In the little red book, there are many notes about receiving "good shops" as company benefits. Among the titles and comments, there are many: In which direction can you kowtow to meet such a boss and fairy company? …….
In 2022, Liangpin Store pointed out in the financial report that the operating income of group buying business increased by 53.49% year-on-year.Mainly depends on the sales scene of using the product as a "gift".
That is to say, in 2022, the revenue of good shops exceeded three squirrels and became a brother in the snack food industry.
After being a "first brother"
Good shops are not easy to sit back and relax.
It’s not easy to sit in the good shop of the snack throne.
As described above, for consumers, the "high-end" of good shops reflects,More focus on stores, packaging and advertising, rather than the product itself.
From the perspective of production chain, to be a "all-category" good shop is essentially the way of "brand+channel". In the business process, the good shop adopts OEM mode-that is, the company is responsible for exploring product categories, developing new products,The processing links are provided by certified suppliers.
In 2022, there were 1655 omni-channel SKUs in good shops, and 603 new products were launched in the whole year.However, the R&D expense rate of good shops has been below 0.6%.
The founder of "Daily Black Clever" once shared in an interview that there was a common situation of "sharing supply chain" among domestic snack brands adopting OEM mode. When the same foundry establishes cooperation with different brands, an explosive product will soon be copied by other manufacturers after it appears.In the end, the product fell into a homogeneous situation.
In other words, snacks in good shops are produced by foundries and then sold under brand names.It is not only difficult to achieve differentiation in product taste, but also difficult to guarantee quality.
Last year, a good shop was "hung" on the hot search because the moon cake products ate plastic paper. As of December 14th, 2023,In the case of black cat complaints, there were 2210 complaints about good shops.
Even worse,Selling such an expensive good shop has a low profit margin.
Compared with the major listed snack food companies in China, in 2022, the revenue of good shops was higher than that of qiaqia food.But the profit margin is almost a quarter of that of qiaqia.
"High-end" good shops can’t be sold.
Time comes to 2023,Life in a good shop is really hard.
Judging from the financial report, in Q1-Q3 of 2023, the total revenue of good shops was 5.999 billion yuan, a year-on-year decrease of 14%; The net profit attributable to the mother was 191 million yuan, a year-on-year decrease of 33%, of which the net profit attributable to the mother in Q3 was 02 million yuan, a year-on-year decrease of 98%.
In the past, the "snack brother" is now going to the test of life and death. What went wrong?
First, it is the stall of e-commerce. Since last year,The online channel revenue of good shops has already shown fatigue.
In 2022, the e-commerce channel revenue of Liangpin Shop was 4.698 billion yuan, down 3.3% year-on-year.By 2023, the stall of e-commerce continues.
The weakness of e-commerce is not just a problem encountered by good shops. The three squirrels who rely more on online channels also have a hard time: in the first half of this year,The revenue of three squirrels on Tmall and JD.COM e-commerce platforms decreased by 29.49% and 41.11% respectively.
On the one hand,The dividend period of the rapid development of e-commerce has passed, and it is inevitable that the growth rate of traffic will slow down.
On the other hand, with the development of the Internet, information is becoming more and more transparent, and more people know that high-end quality shops are actually "factory-branded goods". In that case, why not go directly to the "homologous factory"?
In the little red book,In the past 90 days, there have been more than 4,500 notes related to "Snacks Pingti", "Snacks Homology" and "Snacks Suppliers".
Good shops, three squirrels and herbs are all frequent customers who have been replaced in the "snack replacement".
And offline channels,Good shops have encountered more aggressive "mass-selling snack shops".
According to the data of Narrow-door Dining Eye, Zhao Yiming discount snacks, which started in 2019, opened 1,441 stores in 2023 alone.Almost three times that of a good shop.
It is also a snack collection store. Although the product quality of discount snack stores is controversial,But it is true that stores are wider and the prices are cheaper.
In previous interviews, Yang Yinfen thought that the discount snacks: "(with good shops) have different business models and different operating costs.Brand positioning is different, and industry ecology is different."
But,These "differences" do not seem to avoid the positive encounter between the two.In a recent interview, Yang Yinfen said frankly that the difficulty of good shops at present is related to "the discount snack shops in the industry are under siege online".
Write at the end:
On the surface, the reason for the decline of good shops is the failure of e-commerce channels.In essence, the price and quality are not equal.
In the past, people would pay for it because of "consumption upgrade", "brand story" and "celebrity endorsement". Now, the Internet has gradually eliminated the information gap, consumption has returned to rationality, and cheaper competitors have appeared.Fewer and fewer people are willing to pay for good shops.
In other words, on the snack track, a good story may really be better than a heartfelt sentence from consumers-delicious is not expensive.
(Title map/header map Source: @ 亵亵亵亵亵亵亵 official Weibo)
Text: Shi Youqi Data: Shi Youqi
Edited by Zhang Chenyang count: Zheng Shuya
Yunying: Su Hongrui Supervision system: Li Jingyu
Today’s interactive topic:
Do you think there is still a chance for a good shop to become popular?
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