BESTORE crispy pancake production line.
Under the idea of building a modern industrial system, BESTORE, the main enterprise of the chain, has developed a "three-chain isomorphism" road of quality, diversification and digital intelligence.
This year, the war in the mass snack industry is still escalating wildly, with mergers, expansions, digging walls and other tricks emerging one after another, just like the Warring States Period.
The "Hai's incident" before "Double 11" also tore a "hole" in the fig leaf of "price control power": the "predatory pricing" with the top anchors as the core is extremely squeezing the first-chain interest chain, and the contradictions between all parties in the market are becoming more and more intense.
However, business rules have never been "low prices are king", and excessive "involution" will not necessarily win the market, and may even make competitors in the industry lose themselves in low cost performance.
As one of the practitioners in the leisure snack industry, Yang Yinfen, chairman and general manager of BESTORE, is also thinking: is the "involution" pattern really beneficial to consumers?The answer is no. He believes that in order for the industry to be profitable and enter a positive cycle, it needs to invest in R&D and equipment renewal, and simple low prices are actually unsustainable.
So, what is BESTORE's strategy?
Yang Yinfen gave the answer: close to consumers, optimize from the three links of industrial chain, first chain and value chain, so that upstream and downstream industries and consumer terminals can benefit.
Under the idea of the construction of a modern industrial system, BESTORE, the main enterprise of the chain, regards itself as the value hub of the entire industrial chain, outputs standards in each link of the link, and controls the quality from raw material procurement to rough and fine processing. At the same time, it uses digital intelligence means to gain insight into consumers, continuously enriches the product system, continues to promote the high-quality development of the snack industry, and creates a "three-chain isomorphism" road of quality, diversification and digital intelligence.
Let's wait and see whether BESTORE's strategy can stand the test of the market.
Use "quality" to seek resilient growth
To carry out "three-chain isomorphism", the first thing enterprises need to answer is, what is the core and supporting point of three-chain isomorphism?
In Yang Yinfen's heart, "quality" is the absolute "C position".
From the beginning of its establishment, BESTORE has been "stubborn" in quality. This is also the most important gene of BESTORE.
Taking this as a benchmark, BESTORE has laid out the entire first-class chain, not only established a high-quality first-class business system, but also established a series of product and raw material standards, defined high-quality snacks with high-quality standards, and improved the quality of the industrial chain, first-class chain and value chain.
Retrospectively, in 2020, BESTORE established the "* Chain High-quality Development Committee", which made it clear that when there is an internal product quality dispute, the quality department has a veto power, and the "three-chain isomorphism" empowered by quality construction is placed at an unprecedented height.
This year, BESTORE once again introduced the "think tank team", put the enterprise under the third-party "magnifying glass", and repeatedly established, examined, reviewed and reconstructed from the introduction, exit, empowerment and acceptance mechanism of BESTORE, setting off a "quality revolution" in the ** chain and industrial chain of BESTORE.
Today, there are 148 BESTORE merchants in the domestic TOP5 in the main product segmentation, and the average number of years of core merchants engaged in food processing is more than 20 years.
With a high-quality business system, there is a "gatekeeper" of high-quality snacks. The huge first-class business system is like a "safety production net", constantly reviewing and inspecting all steps of BESTORE snack production.
With the product development concept of "good raw materials create good taste", BESTORE leads the best merchants to go deep into the fields and go to the north and south of the river, constantly select high-quality production areas, and select good raw materials to ensure stable product quality through the establishment of exclusive planting and breeding bases. At present, BESTORE has signed 12 high-quality raw material bases across the country.
In April this year, in the core production area of cashew nut raw materials in Binh Phuoc Province, Vietnam, BESTORE drove the first merchant to build a modern first-class factory with a daily output of more than 100 tons. The factory has built a high-standard clean workshop in strict accordance with international standards, and has set up a standardized production process from raw material planting, harvesting, drying, shelling, processing, packaging, transportation and other links to ensure that consumers are provided with high-quality and fresher cashew products.
Nowadays, the "Quality Consortium" established by BESTORE has successfully driven the quality improvement of primary, secondary and tertiary industries, and built a complete link of "higher quality - more satisfied consumers - higher factory income - continuous upgrading of factory production - providing more high-quality products".
Diversified products enhance the consumer value chain
Compared with other industries, the snack industry is a special industry with raw materials as the core of competition, and the quality and richness of raw materials directly affect the ecological niche of snack enterprises in the value chain.
In the past, snacks only existed scattered in shopping malls, circulation markets, and community shops, and were not a very large industry. The first to extend snacks into a concrete track is BESTORE. Cheng Hong, dean of the Institute of Quality Development Strategy of Wuhan University, believes that the current China needs entrepreneurs to stimulate new consumption and produce diversified and high-quality products, which can better stimulate consumer demand and truly realize domestic demand to drive the economy.
When you open BESTORE's "World Menu", you can see pecans from the North American continent and cashew nuts from Vietnam, ......Across geographical barriers, BESTORE has brought good raw materials and good customs from 32 major production areas in the world to China, and has become the snack brand with the most complete product system, the widest geographical range and the most meticulous derivative processing in the industry.
As of the end of 2022, BESTORE has 17 categories such as meat snacks, seafood snacks, and roasted nuts, with 1,655 SKUs (minimum stock keeping units), and a rich product line to meet the needs of consumers of different ages, different scenarios, and different levels, including children's snack sub-brand "Xiaoshixian", incubation of fitness meal replacement snack brand "Kongduoka", diabetic snacks "Jie Tang Worry" and other brand sequences.
With the help of the reservoir of all categories, BESTORE is also constantly incubating one after another large single products and explosive products, making it the most prominent driving force for performance growth. In 2022, BESTORE will launch 600+ new SKUs on all channels, creating 17 popular products with sales of over 10 million yuan, represented by chia seed whole wheat toast, shredded pork jerky, crispy pork jerky, and dried yellow peaches with 0 added sucrose.
It can be seen that the path of BESTORE's value chain improvement is completely different from the current growth flywheel of mass selling snacks.
Through a rich product architecture, BESTORE provides innovative snack products for different consumer groups, creates new consumer value, effectively solves consumer pain points, and realizes the interaction between products and consumers, rather than simply filling existing and repetitive consumer needs.
Liu Ling, vice president of BESTORE ** chain, believes that behind the abundant products, it is by no means a simple commodity pile-up, but the need for more complex industrial chain system wisdom.
From the perspective of "three-chain construction", BESTORE takes "selecting the world's best raw materials" as the selection standard, which illustrates BESTORE's ability to allocate the world's best raw material resources, and confirms its strong and rich first-chain support system.
With diversified products as the starting point, BESTORE is also constantly extending the boundaries of the industrial chain.
BESTORE is well aware that a product represents an industrial chain, and an industrial chain can connect an industrial area. Through strong market observation, BESTORE exports its digital intelligence capabilities to the relevant entities of the primary and secondary industries along the link, which can promote the regional upgrading of the industries behind the products and achieve high-quality coordinated development, so as to continuously improve the construction of China's modern industrial system.
It is also in the context of the deep integration of various links that BESTORE has the strong strength to optimize the first chain, which can transform the accumulation of the first chain into resources for self-innovation. In the context of the current economic environment and changes in consumer demand, BESTORE dares to ask for benefits from lean management, "squeezes water" in the first chain, and finally adjusts the products to a more competitive level that meets consumer expectations.
BESTORE Logistics Smart Warehouse
Full-link digital intelligence improves efficiency
In the past two years, the plate of China's snack market has been expanding, but the channel reform is being fierce, and more and more mass-selling snack stores have conquered the city, which has become a problem that the industry has to face. So, will "low-end disruption" happen in the snack circle?
Yang Yinfen believes that low prices without profit support cannot be replicated and sustained, and when the capital bubble bursts, the industry will naturally enter a period of elimination.
Starting from consumer demand, taking digital intelligence as the engine, and comprehensively optimizing and innovating the first chain and industrial chain is the correct answer to the problem of this industry.
On the one hand, digital intelligence can optimize the redundant links on the first chain, and greatly improve the efficiency of all links of production, processing and logistics. On the other hand, digital intelligence can help enterprises gain insight into consumer needs and make the most market-value judgments.
Consumption now is not really downgraded, but stratified. Yang Yinfen believes that through the path of digital intelligence, enterprises can accurately discover the stratified consumers and provide corresponding accurate services.
To this end, in the second half of 2020, BESTORE established a new department - *Chain Digital Management Department.
This department tries to solve two key pain points: one is the business management system (SRM system);The second is the automatic ** system of the store. When these two issues are solved, management costs will be greatly reduced, resulting in optimized endpoints**.
At that time, the challenge encountered by BESTORE was that the procurement of different merchants was different, and how to allocate it. For example, the same white sugar, some ** merchant procurement cost 25 yuan catty, while the purchase cost of some ** merchants is 28 yuan catty.
Through the SRM system, the relevant team of BESTORE dismantles the process cost of each product, and realizes "comparable and analyzable" through the precipitation of cost data. At the end of bulk raw materials, the mode of "optimizing the source of procurement and supplying separately" has been realized to solve the fluctuation, and the system finds the most cost-effective supplier of bulk raw materials, and then supplies them to different suppliers.
At the same time, the digital and intelligent update of BESTORE stores is also being carried out simultaneously. By embedding data modeling in the store system, the company realizes that the store sales automatically place orders to the "general warehouse", and the store manager is no longer responsible for the reporting process. After half a year of trial operation, this model has become the standard configuration of all BESTORE stores, forming an "intelligent ** system" of the online platform.
Today, BESTORE not only has a well-balanced and highly integrated omni-channel sales network, but also has the ability to respond to consumer needs in a timely manner by using channel construction as the engine to establish multiple touchpoints for interaction with users.
A new generation of information technology such as artificial intelligence and big data is also providing a steady stream of support for the food industry to improve quality and efficiency. BESTORE has taken the lead in the field of "AI + food industry". In August this year, BESTORE became one of the more than 40 intelligent manufacturing benchmarking enterprises released by CCTV's large-scale documentary "Intelligent Manufacturing China" because of its smart logistics system.
It can be seen from the documentary**: the machine rocker arm that solves the global visual industry problem solves the automation of goods picking, and then cooperates with automatic guided vehicles, sorters, three-dimensional warehouses and other automation equipment, after the intelligent logistics system receives the order instruction, from sorting, packing, packaging, labeling to package out of the warehouse, sent into the cargo car, the whole process only takes 30 minutes, the fastest 12 hours The goods can reach the hands of consumers, and the daily shipment capacity has increased from the previous 80,000 orders to 200,000 orders......
For BESTORE, the digital and intelligent ** chain is not only an organization of production and logistics, but also a strategic choice for the future and advancing with the times.
Nowadays, the market is changing, and under the increasingly fierce competition pattern, all industries are facing the big problem of reducing costs and increasing efficiency and optimizing the best chain.
For the "low gross profit, high turnover, large-scale" mass snack model, homogeneous competition is a fatal injury. In the long run, the snack wholesale track will eventually move from rapid expansion to steady layout.
With the help of the "three-chain isomorphism" path of quality, diversification and digital intelligence, BESTORE has enough strength to go through the cycle, build competitive barriers through differentiated innovation, offset the "uncertainty risk" of the industry, and truly let consumers feel that BESTORE is "delicious and inexpensive".
Expert commentary
With "three-chain isomorphism", we will promote the virtuous cycle of supply and demand at a higher level
Xu Jian (Deputy Secretary-General of China Food Industry Association).
Consumption is the enduring endogenous driving force of economic growth. ** The Politburo meeting proposed to "give full play to the fundamental role of consumption in driving economic growth, expand consumption by increasing residents' income, drive effective supply through terminal demand, and organically combine the implementation of the strategy of expanding domestic demand with deepening the supply-side structural reform".
This points out a new development direction for end-demand-driven enterprises. In this regard, BESTORE, as a leading enterprise in leisure snacks, is carrying out beneficial explorations:
Guided by the improvement of product and service quality, the real-time changing terminal demand will be transmitted to the upstream and downstream enterprises of the first chain in a timely and accurate manner, increase the effective supply of high-quality new products and life services, and realize the "three-chain isomorphism" of the first chain, industrial chain and value chain while meeting the diverse needs of different groups, and then promote the virtuous cycle of supply and demand at a higher level.
Insufficient aggregate demand is a conspicuous contradiction facing the current economic operation. In the face of various uncertainties, consumers have more strict "scrutiny" processes for their own consumption needs than before, and people's consumption mentality has gradually changed and become more pragmatic and rational.
In such an environment, terminal demand-driven enterprises such as BESTORE should give full play to the advantages of directly facing the terminal, adapt to the changes in consumption concepts, optimize the supply quality of the first chain, make up for the shortcomings and forge the long board through key technological innovation, enhance the resilience of the industrial chain and the first chain, strive to improve the adaptability of supply and demand, and continue to stimulate the endogenous power of enterprise development.
Reporter Zheng Wei
Editor丨Liu Dingwen and Hu Xinyue