Recently, two things have aroused widespread discussion in the industry: one is that the market value of Pinduoduo exceeds that of Alibaba, and the other is the first large-scale price reduction in the 17 years since the establishment of BESTORE, which makes people feel that the "era of parity" is rolling in. Especially in the snack industry, this year's main cost-effective mass sales snacks pressed the accelerator button, and a street was eager to open 10 stores of different brands, merging Zhao Yiming's snacks are very busy, and there is no suspense about the scale of breaking 10 billion this year. In such a competitive background, many people are curious about how the "older generation" snack brands such as Three Squirrels, BESTORE and Baicaowei should respondIn fact, as early as the beginning of this year, the three squirrels have also started the "high-end cost-effective strategy" to welcome the snack trend in the new era. 
In the era of rational consumption, the strategy of "high-end cost performance" was opened
At the end of 2022, the three squirrels clarified for the first time the core strategy for the future - "high-end cost performance";From March 2023 to the present, adhering to the strategy of "high-end cost performance", Three Squirrels has accelerated the launch of new products in all categories, continued to make efforts to expand omni-channel, and created a "omni-channel + all-category" business model to adapt to changes in consumer demand in a timely manner. What is "high-end cost performance"?"High-end" mainly refers to product quality, first of all, to ensure that the selection of quality assurance, market share of the product, through the first chain upgrade to remove the brand premium. Then, while ensuring the real material, give consumers real **. In the era of wild consumption, it was delicious and insensitive to **In the current era of rational consumption, when you buy, you pay attention to the taste, only by taking both into account can you bring about stable repurchase, especially the awakening of consumption in the middle and lower tier markets, so that "parity consumption" has a broad enough basic plate. Michael Porter once proposed three classic general strategies: total cost leadership strategy, differentiation strategy and concentration strategy. Three squirrels believe that "total cost leadership" is a more effective strategy in China at present and in the future, and the essence of products is good and cheap, so they put forward and confirmed the "high-end cost-effective" strategy. Mass sales snacks are hot, and three squirrels lead the differentiated competition, so what are the differences between the three squirrels and BESTORE snack brands that have started the discount reform?1. Product attributes: The three squirrels are brand owners and create their own brandsMass-selling snacks are platform attributes, focusing on the external brand combination of "big brand + white label". What should be emphasized here is that the current situation is not "consumption downgrade", but "consumption replacement" - that is, with a lower **, to obtain the same or even higher satisfaction than the original, and the trust and demand of the brand still exist. A simple question: the same **, will consumers choose a big brand or a white brand?The brand value of the three squirrels is obvious to all, and it has won the Double 11 category for 12 consecutive years, with 1 fans on the whole network700 million, with a total of 800 million consumer visits. Today, what the three squirrels have to do is to turn ** into an advantage on the premise that the brand has an advantage. How do you knock the ** down?The answer is: to optimize the ** chain with the ultimate standard. At present, the three squirrels are mainly working in three links: raw materials, processing and manufacturing, and from the factory to the consumer, connecting the first, second and third production, effectively promoting the quality and efficiency of the entire industrial chain - the planting end, the three squirrels and the first business have successively established nut raw material planting bases in Yunnan, Guangxi, Northeast, Anhui, Jiangsu, Xinjiang and other regions, and will purchase more than 7,700 tons of nut raw materials such as Yunnan Guizhou macadamia nuts, Northeast pine nuts, and Xinjiang walnuts in 2023;
Three Squirrels · Yunnan macadamia nut planting baseOn the manufacturing side, the three squirrels have independently built four core nut category demonstration factories for daily nuts, macadamia nuts, pecans and pistachios, among which the daily nut production line has a total of six production lines and 36 sets of fully automated production equipment, which has greatly improved the automation level of the industry. At the same time, it has joined hands with the global nut chain giant Singapore Olam Group to build a joint venture factory, and reached in-depth cooperation with the global food giant Youxianpei, driven by the scale advantage, the output has gradually increased, the production cost has been gradually optimized, and the yield of finished products has been gradually improved
Three Squirrels Daily Nut Demonstration FactoryOn the procurement side, we directly cooperate with world-renowned enterprises or farms in the industry to actively play a large-scale centralized procurementOn the delivery side, we comprehensively upgraded the logistics delivery model in combination with the channel strategy adjustment, actively explored the origin warehouse and cloud warehouse mode on the basis of our own warehousing business, and cooperated with many upstream first-class merchants to promote direct delivery from factories to further reduce costs and increase efficiency. Throughout the retail industry, private label endorsement + efficient ** chain, typical such as Sam's Club, 40% of the goods are private label member's mark, almost all of them are explosive, they have more comprehensive consumer research, more unified whole chain standards, lower **, stronger brand trust endorsement, and are praised by consumers as "buying with closed eyes", which is the advantage of private labels, and it is also the direction of transformation of three squirrels and BESTOREFrom "high quality at high cost" to "high quality at low cost". 3. Channel typeThe "era of parity" runs through all formats, and Pinduoduo's current prosperity is also due to this. The online and offline omni-channel layout of the three squirrels has been integrated into shelf e-commerce, interest e-commerce, social e-commerce, instant retail, including offline traditional supermarkets and other formats, to achieve multi-point flowering and comprehensive growth. In the "base camp" e-commerce channel, the three squirrels changed the traffic play, promoted the new e-commerce strategy of "integration of product and sales", focused on opening up the integrated operation system of users, platforms and chains through digitalization, and continued to create a "rich, fresh, high-quality, low-price" product matrix, while focusing on single product operation, Tmall achieved double-digit growth in July, Jingdong platform gradually stabilized, Douyin focused on vertical operations, and the overall growth rate continued to lead, driving the overall online growth to achieve rapid growth. Take the Douyin channel as an example. Combined with the characteristics of Douyin channel, Three Squirrels has turned to a new sustainable management model based on large single products, and has created tens of millions of single products such as 500g canned daily nuts, macadamia nuts, and cod intestines. 
* Under the channel, there are distribution businesses to reorganize the product system, to create a benchmark terminal, there are also different from the inherent model of mass sales snacks "private label community snack store", focusing on the community as a unit, to provide high-quality snack products of the family consumption scene, in addition to peeling weighing, integer quantitative, no discount and other differentiated business methods, but also relying on the core brand advantages of their own nuts and the development of the first chain of the whole category, directly to the high-quality factory customization, remove the middleman and brand premium. On December 2, three squirrels opened 17 stores in a single day in Jiangsu and Zhejiang, with a total of more than 150 stores, and the unique store model has been recognized by the market. 
The performance is improving, and the "high-end cost performance" has achieved remarkable resultsIn the 9 months since the practice of "high-end cost performance", the product structure and first-class system of the three squirrels have taken on a new look, and they have achieved "excellent quality". For example, last year, the price of the mass-sold large bag of macadamia nuts (500g bags) sold online by three squirrels was about 30 yuan bags, and now the price of Tmall *** is only 229 yuan, during this year's double 11, the sales of this product increased by more than 50% year-on-year;Compared with last year, the cost of mainstream grammage meat muffins has been optimized by 40%, and it has "evolved" from 300 boxes of daily sales to more than 10,000 boxes of single products per day. Not only to "compare" with the previous self, but also to "compare" with the current peers - the benchmark expert brand is far lower than that;The benchmark brand of the same industry should be significantly lower than ;Benchmark low-end brands to be close. Macadamia nuts in the Three Squirrels Community Snack Shop cost $298 yuan catty, and some fried food shops often cost more than 50 yuan;Air-dried duck neck is priced at 56 yuan, while similar goods are sold in supermarkets for 99 yuan, snack stores sell 5$9 or $6$5 ......Judging from the results, relying on the "high-end cost performance", the three squirrels have resumed healthy growth, and the correctness of the strategy has been verified with performanceIn the third quarter of 2023, Three Squirrels had an operating income of 168.9 billion yuan, a year-on-year increase of 3856%；Net profit 1600940,000 yuan, a year-on-year increase of 4086%；Deduct non-net profit of 1229010,000 yuan, a year-on-year increase of 17539%。Three squirrels, still with enough chips to sit at the table, stir up the snack rivers and lakes.