BESTORE, one of the giants in the snack industry, has ushered in a major change. Not only did Chairman Yang Hongchun step down, but the positions of general manager and chairman were also taken over by Yang Yinfen, and a comprehensive price reduction strategy was implemented. The price of more than 300 of the company's products has been reduced by an average of 22%, and even reached a maximum of 45%. This reshuffle in personnel and management strategy is the largest since the company's founding.
So why did BESTORE suddenly decide to cut the price? In fact, in the past few years, BESTORE has been in a difficult situation. Online sales are mediocre, while offline sales are threatened by competitors such as Three Squirrels and Baicaowei. In the first three quarters of this year, BESTORE's revenue and net profit both experienced double-digit declines.
The new chairman Yang Yinfen said"Today's BESTORE is no longer a question of living a difficult life, but whether it can continue to survive。So why is this happening?
One of the main reasons is that BESTORE pays too much attention to the details that consumers do not care about, such as pursuing targeted procurement of nut raw materials of specified sizes and specifications in the selection of materials. This has led to a long period of high procurement costs, which is reflected in the gradual becoming more and more expensive in the product. However, in the current market environment of consumption downgrade, many consumers have begun to pay more attention to **sensitivity.
In addition, the rise of Zhao Yiming's snacks and other mass-merchandised snack stores has also had an impact on BESTORE. By seizing market share through the first battle, BESTORE's revenue further declined. Although the company is undergoing a major overhaul, it may be difficult to recover lost market share in a short period of time.
Although the situation is not optimistic for BESTORE, for ordinary consumers, they can take advantage of this opportunity to stock up on snacks. After all, this is a period of increasing the number of sensitive customers.
Overall, BESTORE has changed its leadership and reduced its price, which can be described as a strategic adjustment made for survival. In the face of increasingly fierce competition and the trend of consumption downgrade, BESTORE hopes to revitalize its strength through this move. However, it will not be easy to regain lost market share, and it is only expected that their reforms will bear fruit and find new opportunities for development in adapting to market changes.
BESTORE's competitors mainly include the following companies:
Three squirrels:As one of the leading companies in China's snack industry, Three Squirrels is known for its high-quality and innovative products. They offer a variety of snack snacks such as nuts, roasted nuts, dried fruits, etc., which are sold through both online and offline channels.
Herb flavor:Baicaowei is another snack brand that is loved by consumers. They are committed to providing healthy, delicious and creative products, covering multiple categories such as nuts, preserves, melon seeds, etc.
Zhao Yiming snack shop: Zhao Yiming snack store is a mass-selling snack chain that has risen rapidly in recent years. They focus on providing the most affordable and good-tasting casual snacks that are more convenient and competitive than traditional large supermarkets.
In addition to these major competitors, there are also other small snack brands and some supermarket e-commerce platforms that are also participating in this fierce competition. The influx of these competitors and the competition for market share have put more pressure on BESTORE.