Snack offline supermarkets have a situation where chain stores and independent stores are juxtaposed, how can the instant retail O2O channel achieve a 10% increase in sales?What is the difference between the hotly discussed membership store and the mass merchandiser store?The consumption potential of the sinking market is huge, and how should snack brands grasp the growth?
Nielsen IQIn the series of "Seeing the Small, Leading the Growth of Consumption", ** responds to the above questions,Drain goldCombined with Nielsen IQ sharing, the changes and opportunities of snack channels were sorted out.
In snack sales, the weight of offline supermarket sales is as high as 81%, but the recent growth has been weak, down 25%。In 2022, compared with the same period in 2020, the number of hypermarkets showed a double-digit decline (102%), with a slight decrease in the number of grocery stores (0.).1%）。
In contrast, convenience stores (211%) and small supermarkets (20%) grew extremely fast, followed by large supermarkets (14.).4%）。This stems from the trend of near-field demand and emotional consumption, and people pay more attention to the emotional healing effect when buying products in the consumption scene. The strong demand has given birth to a series of independent stores, upgrading in-store equipment, improving product richness, and retaining consumers with a strong experience, with a growth rate of 69%。
Compared with e-commerce platforms, instant retail O2O sales growth was the highest, with an increase of 10%, which was three times that of online e-commerce platforms. Although the sales weight of the instant retail O2O pure platform is only 3%, far lower than the 16% of the online e-commerce platform, it has become a new incremental channel.
And through the empowerment of O2O channels, the digital transformation of modern chain stores has been accelerated, and the growth rate of the number of stores opened is as high as 166%。This stems from the fact that instant retail attaches more importance to efficiency and scale, and the digitalization of chain stores can amplify its own first-chain scale advantage through the high efficiency of centralized management.
This is even more evident in the snack industry: the importance of the modern chain channel of snacks (34%) is 4% higher than that of general FMCG (30%), and the growth rate of the snack to independent channel this year is 76%, which is also higher than the 5 of general FMCG5%。
Due to its broad vision and strong vision, modern chain stores have become the main position of high-end snack product layout, new product cultivation track and large-scale packaging products. Compared with modern channels, the snack ** index is as high as 112%, and the proportion of new products is 13 times;The number of chocolates entering the store is 14 times, large packaging specifications accounted for 11 times, new products accounted for 13 times;
Independent stores are the traditional channel of the high-end version, with the advantage of near-field, carrying the needs of low-end product upgrading and core large single product sinking, which is manifested in the relatively high price of large single products and products mainly covering the brand with small and medium-sized package specifications in the product. Compared with the traditional channel, the number of biscuits entering the store is 25 times, small and medium-sized bag specifications accounted for 71%, and the top 1% single product share was 52%. In terms of ** index, chewing gum is 103%, which is 8% higher than that of traditional pathwaysSnack is 101%, which is 10% higher than the traditional pathway.
Offline business reshuffle and remodeling.
In the membership store system, the high customer unit price screens the high-quality customer group, the renewal of the member's card strengthens the high stickiness, and the core users are the "leisurely" high-line middle-class users. Nielsen IQ found that 57% of them will spend more on education and fresh produce (dairy, meat) in the next 12 months.
In 2023, Sam's has added 6 more stores among the membership store brands, and the renewal rate can reach more than 75%. METRO Plus upgraded 80 stores, and Hema X Club began to expand to second-tier cities. The average store area of these membership stores will be 12,000 square meters, the annual membership card fee is about 200 yuan or more, and the customer unit price is 200-1,000 yuan.
In the process of development, in the acceleration of new and old players competing on the same stage, membership stores often take the following topics"Productism".Break through, use fresh products to pull high frequency, use large bags, multi-package categories to increase customer unit prices, products are often selected globally and superimposed on their own products, on the basis of a strong ** chain, plant grass on the content platform to create a high-quality life experience, and occupy the consumer mind with Internet celebrity single products.
The new vertical format of snack mass merchandising can reduce the channel and collect money quickly through the franchise model, which can achieve high penetration and high turnover, focusing on the "budget-conscious" low-tier users. This type of user** is more sensitive, but has leisure and money. Nielsen IQ found that "budget-conscious" shoppers will more frequently go to stores with discounts, lower prices, and more affordable purchases over the next 12 months.
Among the mass store brands in 2023, Snack is very busy expanding 1,000 stores, Snack Youming will increase by 2,000 stores, Zhao Yiming will increase by 100 stores per month, and Snack Preferred will increase by 50 stores per month. The average area of these shops can reach 100 square meters, and the unit price is 35 yuan.
The situation of regional segmentation of mass merchandisers is obvious, and they often break through with "first-class doctrine", implant low-price minds with big-name "hard currency", thicken profits with small-brand white-label products, use bulk and small package specifications to meet strong rigid needs, and improve cost-effectiveness with rich categories.
Snack mass store features.
The consumption potential of the sinking market is mainly based on three factors: population, income and policy.
First,In the excavation of consumption potential,Brands have long focused on high-tier cities, and nearly seventy percent of the population in lower-tier markets have not yet fully tapped their consumption potential, while the marketing content of the mobile Internet provides a lot of quality life imagination for low-tier market people. In recent years, the population of high-efficiency cities has returned, and the consumption habits of high-tier cities are waiting for the brand to be activated.
Second,On the assessment of spending power,On the one hand, the income level of rural areas is steadily increasing, and on the other hand, the rural cultural tourism economy and the regional mobility boom of digital nomad groups have further seen the consumption space in the sinking market.
Third,On the support of policy dividends,On the one hand, the construction of county-level commercial system is continuing to promote rural consumption, and on the other hand, consumption upgrading is accelerating the transformation of traditional outlets such as mom-and-pop shops, and the opportunity for channel construction is coming.
On this basis, snacks have sunk into a growth engine, but the growth points of different formats are different:The traditional format of the snack category is sinking, and the advantages in the third and fourth tier cities are obvious, such as the compound growth rate of the township area in the fourth tier cities can be as high as 73%。Membership stores that focus on "productism" will give priority to second- and third-tier cities that focus on quality lifeSnack mass stores that focus on "**ism" are expanding to third- and fourth-tier cities with strong demand. It can be seen that brands in different formats are relying on their own advantages to selectively sink, open up the sinking market, and obtain sales growth points.
Differences in the sinking of different business formats.
Compared with general FMCG, the growth rate of snack chain stores and independent stores is higher, and mass merchandisers have become a vertical format, with strong ** chain, chasing experience, and high cost performance, which have become the scoring factors of snack stores. As a result, the preference of the crowd in the different modes of "*ism" mass merchandisers and "productism" membership stores has become the primary consideration of brands when distributing goods, and has also become a key element for retail stores to learn the brand model.
When the compound growth rate of traditional formats in third- and fourth-tier cities and towns grows rapidly, membership stores and snack stores have also come out of a completely different sinking scheme. It can be seen that the market is often hot and cold, and the tuyere is often hidden in the hot and cold changes. LION will continue to release cutting-edge insights in the consumer industry, and join hands with more brands to see changes and meet the wind.