BESTORE has drastically reduced prices!High end, yellow?

The snack industry is once again ushering in a hammer!

On November 30, BESTORE announced the largest price reduction for the first time in 17 years, with an average price reduction of 22% and a maximum reduction of 45% for more than 300 products sold in stores, mainly focusing on snacks with cost optimization but not affecting quality and high repurchase rate.

Not long ago, the head snack company in the retail leisure snack industry, Snacks was very busy merging with Zhao Yiming Snacks.

In November, the retail end and the brand side of the leisure snack industry have made large-scale adjustments, before the price reduction of BESTORE, the three squirrels have made corresponding adjustments earlier than BESTORE, and said to the outside world that since this year, we have been implementing the strategy of "high-end cost performance" for a long time, and through the integration of the first chain and strengthening internal management, the terminal price will be maintained at a benign level under the premise of ensuring basic profits, and will continue to promote in the future.

Baicaowei said that it would not follow up on the price reduction for the time being.

Whether it is the "high-end cost performance" of the three squirrels or the "price reduction without quality reduction" of BESTORE, it indicates that a new round of changes in the snack industry has begun to accelerate.

Return to the "image of the neighborhood".

Is it in conflict with high-end?

On November 27, BESTORE held the second extraordinary general meeting of shareholders in 2023, and after the election of the board of directors, Yang Yinfen was elected as the chairman of the company and served as the general manager again after two years.

On the 29th, Yang Yinfen issued an open letter to all employees, saying that a new round of reform will be launched and return to the image of BESTORE as a neighbor. BESTORE said that the business side will implement the largest price reduction in 17 years, with an average price reduction of 22% and a maximum reduction of 45% for 300 products, mainly focusing on snacks with cost optimization but not affecting quality and high repurchase rate.

BESTORE, which has been established for 17 years, has reached a moment of great breakthrough in the face of the general environment of the consumer grading market and the new force of mass selling snacks.

Open the official website of BESTORE, and the words "high-end snacks" are prominently listed: BESTORE high-end snacks are better in conscience quality.

In 2019, BESTORE took the lead in proposing high-end snack positioning in the industry, providing consumers with high-quality, high-value, high-experience, and spiritual products, and clarifying three core directions: clarifying high-quality product standards, focusing on the health and nutrition of subdivided groups, and meeting the needs of consumers' life scenarios.

On February 24, 2020, BESTORE was successfully listed on the Shanghai Stock Exchange, becoming the "No. 1 stock of high-end snacks".

And in this internal letter, it was mentioned that what does it mean to return to the image of the neighbor?Does this image positioning conflict with the previous high-end positioning?

What is a high-end snack?Cleaner?Better?**More expensive?But good taste and high quality shouldn't it be the basic literacy that food companies should have?Blindly ** does not mean high-end.

The words "high-end, low-end" are relative concepts, not absolute concepts, and should be a social consensusOnly by making consumers think that you are high-end, is it truly high-endIt is not a one-way value expression of enterprises facing consumers.

How to build high-end?

The empty-handed teacher mentioned that if enterprises want to truly build a high-end brand, they should let consumers experience high-end through the technology and design of their own products, packaging, services, channels, store image, sales personnel, advertising, spokespersons, public relations, public welfare, brand content, etc., rather than shouting slogans to declare themselves high-end.

On this issue, the author asked the BESTORE brand, and the other party replied:There is no conflict between this price reduction and high-end positioning, and BESTORE adheres to the high-quality route.

It's not that it's difficult to live, it's whether you can survive!

Regarding the price reduction of BESTORE, the popularity on Zhihu was once close to 10 million, and a Zhihu netizen said: In the economic downturn, if any company wants to survive, it is inseparable from the adjustment of the best.

Indeed, Yang Yinfen said in an open letterThe 17-year-old Liangpin is facing the most difficult challenge since its establishment, not only the problem of living a difficult life, but the problem of whether to live or not.

Yang Yinfen analyzed the three reasons for the price reduction:

In terms of industry, online consumption traffic has shifted, competition has intensified, various offline snack models have blossomed, and a series of "new species" have emerged.

In terms of users, consumption has entered a rational era. In addition, the letter reads: "The fact that consumers think we are expensive also shows that our products** must be more accessible to the people." ”

On its own side, the company has been developing for 17 years, and the organization is bloated, people are superfluous, and bureaucracy and self-centeredness have emerged. Externally, it is the sluggish development and the decline in scale and profitability.

It can be seen that the life of BESTORE is not easy.

In the past three years, BESTORE has also experienced three years of performance fluctuations.

From 2020 to 2022, BESTORE's total revenue will increase from 789.4 billion yuan increased to 944 billion yuan, the growth rate is. 11% and 124%, which is a significant slowdown from the growth rate of about 20% or even more than 30% in previous years. Entering 2023, BESTORE's revenue in the first three quarters decreased by 14 year-on-year33%, and the net profit attributable to the parent decreased by 33 year-on-year43%。

This time, Yang Yinfen took the helm and made drastic reforms, which may be a "self-help" for BESTORE.

In fact, BESTORE has launched relevant strategies under the trend of mass selling snacks.

In May this year, the mass-selling snack brand "Snack Stubborn" was launched. Tianyancha information shows that the operating company of "Snack Stubborn" is Hubei Qianbaiwei Food***, the latter major shareholder is Ningbo Guangyuan Juyi Investment***, and the legal representative of this company, which was established in June 2021, is Yang Yinfen.

As of mid-October this year, there are more than 300 stores in Snack Stubborn, mainly concentrated in the Hubei market.

Prior to this, BESTORE purchased 3% of the shares of "Zhao Yiming Snacks" for 45 million yuan, but after just 6 months, it was 10.5 billion yuan of ** sold all the shares held, it is said that because there is already a "snack stubborn", so it will withdraw from "Zhao Yiming snacks".

Clearance" Zhao Yiming shares, online snack stubborn, this time is a large-scale price reduction of "the bottom of the kettle", one after another actions, the side confirmed that BESTORE has indeed come to a corner, although it has not yet reached the moment of life and death, butBESTORE, which has smelled the smell of "life and death", is changing gears in time and actively looking for a way out of life.

Price reduction does not reduce quality

The "slamming economy" is becoming the theme

Through the incident of BESTORE, let's go back and look at the recent news.

Recently, the dazzling "Pinduoduo" is the best example. As early as March 2016, Huang Zheng, the founder of Pinduoduo, was still ridiculing that his team was 20 years different from the Ali team, but today, seven years later, Pinduoduo's beauty ** value once surpassed Ali's, as high as 192.4 billion US dollars.

According to the third-quarter financial report released by Pinduoduo on November 28, 2023, the revenue in the third quarter was 688400 million yuan, a year-on-year increase of 939%；Achieved GAAP net profit of 155400 million yuan, with a net profit margin of 226%；Adjusted net profit reached 1702.7 billion yuan, a year-on-year increase of 37%, and Pinduoduo's share price also soared by more than 20%.

In the current economic downturn, we have to admit that consumption downgrade seems to have become a norm, which has also become one of the key factors for Pinduoduo to win in the "** war".

Because young people in 2023 will begin to consume in reverse and pay more and more attention to cost performance, so that a new term has emerged, called "slamming the door economy".

As expounded in the "Contemporary Youth Consumption Report" released by the DT Research Institute, the rational consumption of "fighting, quality, and experience" is increasingly becoming the mainstream choice of the market.

In the past year, we have witnessed brands such as Zhongxuegao and Huaxizi fall from the altar, and we have also witnessed the peak of Pinduoduo's market value. Behind the ebb and flow of the brand, it reflects the urgent attention of users to the best.

In the face of the rationalization of consumption Xi and the differentiation of consumption levels, the old ** system will inevitably appear rough and general, lacking the ability to accurately impress consumers, which is not just a "special situation" in the snack industry.

Throughout the industry, including Freshippo, Yonghui, JD.com, etc., are adjusting their strategies through **, and it is discount stores that are raising the banner, especially snack discount stores. Several companies focusing on offline retail, such as Yanjin Shop, Ganyuan Food, Jinzai Food, etc., all mentioned the hot format in 2023 - discount stores at the third quarterly report meeting.

Discount stores are not a new format, they have been developing for at least 10 years, but they will only stand out in 2023. The change of BESTORE that actively adapts to the current trend of "price reduction without quality reduction" is also derived from this consideration.

When you can't change, embrace it.

From the perspective of the background of the times, it has become the theme of this era to impress users with more people-friendly and competitive products.

What needs to be determined is,No matter how the price is reduced, the price reduction is not the ultimate goal, and the essence is not to reduce the quality.

PS: On December 6-7, 2023, New Distribution will hold the first China FMCG Hard Discount Conference in Zhengzhou. This conference, with a 2-day agenda, is the first conference in the industry to focus on the theme of hard discounts.

This year's conference will revolve around:New ecology hard growthAs the theme, 2 days, 2 main forums, 2 theme seminars, and 1 closed-door private meeting, we will meet in Zhengzhou with hard discount chain brand practitioners, FMCG head brand executives, national businessmen, traditional retail enterprises, etc., to promote the new growth of the FMCG industry due to the ecological changes brought about by hard discounts