During the holidays, have you bought some snacks to eat?!
The good news is that the "snack assassins" who used to come out to stab you from time to time have been doing so latelyBig price cuts
That's right, that's what I saidBESTORE
A few days ago, there was news that BESTORE had opened the second round of price cuts.
As early as the end of November, BESTORE announced that it would be implementedFor the first time in 17 years, the largest price cutThe average price of 300 products was reduced by 22%, and the maximum price was reduced by 45%.
And this time is another wave of price reductions initiated by BESTORE, from the first wave of 300 snacks price reduction, select nuts, baking, meat, vegetarian and other core categories of large itemsThe price reduction is about 30%-47%.
BESTORE, which used to sell so expensively, suddenly dropped its price unprecedentedly, and the happiest people are, of course, consumers.
But for BESTORE, it is not necessarily a good thing.
A very simple truth:
If the product is not sold, why should the company reduce the price?
Just like when the property market is hot, it is good for developers not to raise prices.
At present, the same is true of BESTORE.
As we all know, BESTORE has always been the main focus beforeHigh-end snacks
In August this year, BESTORE also sold duck tongue ** as high as 2644 yuan catty, which was complained by netizens"Snack Assassin".
But only three months later, BESTORE's business strategy came to a 180-degree reversal. The company suddenly announced that it was coming back**Accessible to the peopleroutes.
Since then, it has been openedFor the first time in 17 years, the largest price cut。Moreover, the price reduction is not small, and some large single items are 30%-47% down, which is equivalent to fighting5-7% off
To be honest, when she saw the news, Sister Mao's first reaction was:
The gross profit margin of BESTORE must be very high, otherwise how can it withstand this kind of reduction?!
But after checking the financial reports of BESTORE over the years, the results surprised Sister Mao.
Yes, although it is so expensive, the gross profit margin of BESTORE is not high.
In the past 8 years, the highest value is also, and it has been in the past four yearsHereinafter.
The net profit margin is basically maintained between 3-4 points, and even less than 1 point at the lowest time, which is worse than real estate.
Therefore, the big price reduction of BESTORE is even more worrying:
This price reduction method, isn't it going to make money?!The situation has been so severe that you are going to sell goods at a loss?!
This concern is not unfounded.
Previously, at the end of November, Yang Yinfen, chairman of BESTORE, issued an open letter. The letter was frank
What is before us is not only the question of how difficult it is to live, but also the question of whether we can survive.
Behind the big price cut, BESTORE is not doing well.
As early as 2022, BESTORE's revenue growth has slowed down significantly, and it will enter a negative growth stage in 2023.
In the first three quarters of this year, BESTORE's revenue fell by nearly one and a half percent, and the net profit attributable to the parent company fell by more than three percent.
In the third quarter, BESTORE's revenue fell by less than 5 points, but the net profit attributable to the parent company almost fell to slag.
This may be a sign ofBESTORE has been "exchanging price for volume" for a long time, but the revenue growth effect brought by it is not obvious, but the profit has been seriously eroded.
In addition, in the third quarter, BESTORE subsidiaries opened 45 stores, of which 92 and -47 were directly operated and franchised respectively, and the total number of offline stores reached 3,344.
The decrease in franchise stores also confirms the performance dilemma of BESTORE to a certain extent.
Therefore,The big price cut may be the ultimate killer that BESTORE has to sacrifice in order to save the decline in sales.
Just like some netizens said:
If you don't reduce the price, it's all expired.
It's just that it remains to be seen whether the big price reduction will be useful or not.
And, in this way, the profit performance of BESTORE will also be discounted.
At the same time, there is another key question:
Will the opponents follow up?!
Judging from the profit performance alone, BESTORE, which previously focused on high-end, undoubtedly has more space and advantages in price reduction.
And the net profit has fallen into negative numbers last yearHerb flavor, has previously stated that there is no plan to reduce prices for the time being.
But there are also the three squirrels and Laiyifen who are also under pressure.
At the end of the day, the growth space of the snack industry has also peaked. In an era of economic downturn, in the face of more rational and restrained consumers, how to seize the "low price mentality" of users has become a compulsory course for all enterprises.
100 help plan
Snack assassins" can only bow to reality.
What do you think of BESTORE's price reduction?