Author |Shi ShunhaiThe price of 40g Lay's potato chips in supermarkets and convenience stores is 4$8 and $42 yuan, snacks are very busy, the price is 2$9. The price of 330ml Coca-Cola is 3 yuan in convenience stores and 2 yuan in supermarkets5 yuan, snacks are very busy, the price is 1$9. The 570ml Baisui Mountain, which costs 3 yuan in supermarkets and convenience stores, and the price of snacks is 1$8. "Thirty years in Hedong and thirty years in Hexi", when the times change the theme,The twilight of one industry is often accompanied by the rising sun of another industry. For example, in the past two years, while hypermarkets and supermarkets have declined, snack systems and discount stores have entered an explosive period. There are many articles on snack discount stores, among which two types of authors are the most, one is investors, who more or less exaggerate the prospects of the industry, and the other is to do discount store training or knowledge lectures, in order to guide registration. I am Shi Shunhai of winning power, today, I will talk to you about those things in snack discount stores, mainly talking about four aspects: 1The history of snack outlets.
2.Why did it succeed?
3.What are the future trends?
4.How should dealers and manufacturers deal with it?
The history of snack outlets.
Reform and opening up is the dividing line between the majority of China's population who are well fed and clothed, and the snack market is born after they are full. Snack 10 times:In the 80s and 90s of the 20th century, snacks were mainly sold by vendors along the street, mainly in bulk forms such as candy and roasted goodsSnack 20 times:Snacks enter the store, among which the sales volume in the KA store in the traditional sales channels is the majority, and the representative type is the type of bulk tank basket display, which realizes the functional division of the category;Snack 30 times:From 2004 to 2019, the models represented by the snack collection store model chain developed rapidly, such as Laiyifen, BESTORE and other brands have opened up a new path, and there are thousands of leisure snack chain stores across the country, and their ** chain is mainly in the form of OEM and ODM. 
At the same time, online brands such as Three Squirrels and Baicaowei have entered a period of rapid development by focusing on B2C e-commerce and upgrading their brands.
Snack 40 times:In 2020, under the influence of the epidemic, domestic consumption stratification has been significant, and snack chain stores represented by Snack Very Busy, Zhao Yiming, Snack Youming, etc. have risen, and with the blessing of capital, they have rapidly expanded their stores. At the same time, the snack discount stores led by good sales, hi special purchases, and chains distributed in various provinces are also like sparks. Most of these leading brands have opened more than 1,000 stores, and some investors predict that a number of 10,000-store chain brands will be born in the snack store track2
Why are snack discount stores successful?
Some people think that snack discount stores are just low prices and low prices, and there is no technical content!In fact, the snack discount format has risen from the initial reckless players to various places, and in just a few years, with the help of capitalization, it has become a pivotal channel in the food industry, and in the final analysis, it must be the success of the model. Now there are two models of domestic snack discount stores:The first is a hard discount store that focuses on brand discounts and private labels, supplemented by a small amount of tail salesOn behalf of the company, snacks are very busy, Zhao Yiming, snacks have Ming, etc. What is a hard discount?Hard discount refers to taking low ** as the core competitiveness, through cost cutting, streamlining services and marketing, etc., like direct cooperation with brand manufacturers, point-to-point delivery, to reduce product ** to attract consumers. The other is a soft discount store that mainly sells brand tail goodsThe representative enterprises are Hi Special Purchase, Good Special Sale, Discount Cattle, etc. Soft discounts are better understood, which is to rely on the changes in the situation of the goods themselves to carry out discounts, such as dumping, expiring, etc. Some people will ask, is the success of snack discount stores accidental?No, unlike China's unique community** and fresh e-commerce, hard discount retail is not unique to China, it is a mature business model. 
According to statistics, 70% of the top 50 global retail lists are discount business models, such as retail giant Walmart, Germany's ALDI, and Japan's discount retail model Don Quijote. China's snack discount model is mainly based on Japan's Don Quixote. Don Quixote is 45 years old, how did it succeed?Don Quijote originated in 1978 as a tail goods discount store, which started by selling tail goods and slightly defective products. From 2002 to 2008, when the Japanese economy was in a downturn and many companies went bankrupt, Don Quijote seized the opportunity to acquire a large number of cheap tail goods, which was a great success. By 2010, when the economy recovered, don Quijote had a requirement of 40% tail goods + 60% general goods. Regarding product pricing, don Quijote uses products that are lower than the market to establish a low-price image perceived by customers, attract customers to enter the store, and then drive the sales of high-margin goods such as tail goods and private labels, so as to balance customer flow and profits. Don Quijote has developed so far, with 700 stores, annual sales of more than 100 billion RMB, top 4 retail sales in Japan, an annualized increase of 13% in sales and an annualized increase of 11% in net profit in the past 10 years7%；The consolidated gross profit margin was 30%....The data speaks for itself, and the results speak for themselves. Can China's business environment produce a 45-year-old "don Quixote"?We'll see. 3
Snack Discount Store Future Trends
A rising industry will experience the development law of "germination-growth-maturity-decline".At present, snack discount stores are in a growth period.
The snack chain is a pattern of two supers and three strongThe two supers are Wanchen and snacks are very busy, and the top three refer to Zhao Yiming, snacks Youming, and sugar nest. Under the umbrella of Wanchen Biotechnology, a "mass snack listed company", there are five major brands, such as Haoxianglai, Laiyoupin, Snack Workshop, Lu Xiaoyu, and Dididi, adding up to more than 5,000 in total. Snacks are very busy, representing one of the leading enterprises in the industry, reaching 3000+ stores this year, Zhao Yiming currently has 1500+ stores, and Sugar Nest is 1000;Different from snack chains, snack discount stores are more regional chain layouts, such as Changsha's Leerle (3000+), Shanghai's Good Sale (600+), Zhengzhou's Discount Cattle (200+), Chongqing's Tiaoma (200+), Xi'an's Jing Xiaobox (100+), etc. 
At present, in the short term, snack discount stores are still in the expansion stage, according to the conservative average of 3,000 stores per province to measure the capacity, the country is expected to be 100,000, the current number is just over half, snack discount stores still have a running period. But people in the industry are also gradually feeling itAfter experiencing savage growth, snack discount stores have inevitably entered a round of mergers and acquisitions, reshuffle, and the process of increasing the concentration of industrial chain leaders. On September 12, Wanchen Biotech, a "listed company of mass selling snacks", announced that it would officially merge its four retail brands, Laiyoupin, Haoxianglai, Qidididi, and Lu Xiaotao, into "Haoxianglai Brand Snacks". On November 10, Snacks was very busy with Zhao Yiming's official announcement of merger. The battle of leading mergers is about to break out, and the reshaping of the snack industry will soon come. 4
How should dealers and manufacturers respond?
There are endless topics to talk about in snack discount stores, let the bullets fly for a while, and how should FMCG companies and distributors deal with it?For enterprises, follow the trend and embrace the new format with an open mind, rather than going to the first place when you see a low priceIn the trillion cake market, if you don't grab it, it's a competing dish. At present, the discount snack chain has accounted for 10-30% of the shipments of some enterprises, and even reached 40%, which is a data worth paying attention to. For the dealer group, snack discounts have accelerated, accelerating the reshuffle of dealers. Some dealers have chosen to lie flat, refuse to lie flat, and have to find a way. If you have a lot of energy and experience in opening a store, you can try to join a snack discount store as an expansion of new business. 
Secondly, we must first regain the lost market share through the "stupid" methodNew channels. The advantages of KA and circulation terminals are not there, but various channels such as catering, campus, and special communication are relatively less affected by snack discount stores, and the expansion of new channels is the growth opportunity point. New products. If you are resting, a year-on-year decline of 20% is conservative, and you can add new products according to your own resources, such as wine, condiments, and washing. Behind the rise of snack discount stores and the decline of traditional channels, there are visible risks and opportunities for overtaking in corners. After this big shuffle, let's see who has the last laugh. (The source of the image is not indicated: photographic network).