"High-end snacks" BESTORE has reduced its price.
On November 30, BESTORE announced the first large-scale price reduction in 17 years, with an average price reduction of 22% and a maximum reduction of 45% for more than 300 products on sale in stores. Behind the price reduction, demand is changing, and consumers are becoming more and more reluctant to pay for ** snacks.
Consumers in the future want "high-end cost-effective" snacks.
Just now, Zhang Liaoyuan made a public response to "high-end cost performance" in the circle of friends, pointing out the three key points of "high-end cost performance", and made a comprehensive and in-depth elaboration of "high-end cost performance" from the perspective of business model, consumer demand and brand strategy.
Looking at the price reduction of BESTORE, the public response of Zhang Liaoyuan's circle of friends and the overall economic situation in the past year, we can draw a conclusion: this matter is not so simple.
Behind the price cut, the snack industry may usher in a deep adjustment, and the three squirrels are running ahead of the trend. As early as the beginning of this year, the three squirrels announced the "high-end cost-effective" strategy to the outside world, and the official proposal of this "high-end cost-effective" strategy was actually at the end of last year, a whole year of rush.
If you want to dig deeper, the three squirrels ran away not for a year, but for six years.
Lay out early, work for a long time.
Back to six years ago, in August 2017, Three Squirrels invested in a park in Anhui Wuwei, the project is divided into two phases, with a total area of about 890 acres, integrating production, testing, logistics, research and development, comprehensive services and other functional areas. At that time, the new consumer market was in full swing, and many national tide brands were soaring, so the news of the three squirrels building factories in Wuwei did not attract much attention.
In the eyes of the outside world, the construction of the three squirrels in Wuwei is just a regular expansion, an evolution of the brand after it has reached a high level, and a key step in its ecological development.
In the subsequent development, the three squirrels launched a cloud manufacturing system, using the digital cloud manufacturing system to open up the management of the whole process from material quality, food safety testing, product packaging, storage and storage, transportation, and product circulation, so as to shorten the time from the factory to the consumer and improve management efficiency.
Similarly, in the eyes of the outside world, this is still an inevitable step in ecological evolution, and it is not surprising that the volume of the three squirrels went deep into the ** chain to open "intelligent manufacturing" at that time.
However, looking back now, whether it is to build a factory without doing anything, or to launch a cloud manufacturing system, it is not so simple.
In this process, the three squirrels take traditional e-commerce as the core, focus on emerging e-commerce, and coordinate the entire link from order to manufacturing to delivery to consumers, realize the vertical collaboration of the first chain and the horizontal collaboration of channels, and create a "1+4+1+N" full-category omni-channel capability.
The so-called "1+4+1+N" refers to the underlying ** chain and brand system, 4 emerging channels, community snack stores and other channels, which run through it is high-end cost performance.
No matter how the outside world interprets it, in the current consumer market, "sinking" and "cost-effective" are undoubtedly two key words, which are more and more valued by enterprises and consumers. Xianyu users are becoming more and more active, more and more restaurants on the street have started a la carte fast food business, and the market value of Pinduoduo has grown by leaps and bounds. These signs all seem to indicate that consumption is becoming more rational and people are becoming less willing to pay a premium for brands.
The three squirrels put forward the "high-end cost-effective" strategy, which is the right choice to stand in the trend. As Zhang Liaoyuan, the founder of the company, said in an exclusive interview with **, from the perspective of the entire large consumption level, the consumption of the broader middle and lower tier markets has awakened, and the current consumption power is mainly in the middle and lower tier markets. The "high-end cost-effective" strategy is in line with the overall environment and the changes of large e-commerce, and everyone wants to buy something delicious and cheap, which is a common demand.
In Zhang Liaoyuan's view, the essence of the "high-end cost-effective" strategy is to provide consumers with more high-quality and abundant snacks in all categories. The improvement of product cost performance is not a single profit, but through the optimization of the whole chain to ensure product quality and realize the overflow of profits, and transfer this part of the profit to consumers, so as to achieve high quality and cost performance.
From the inside out, intensive farming.
Running ahead of the trend sounds easy, as long as you predict the future, but in fact, it is not, procurement, production to operation and sales, there are countless links that need to be finely polished.
Let's talk about procurement first, in fact, since its establishment, the three squirrels have been constantly optimizing procurement, constantly through large-scale procurement and technology empowerment, market demand to the first chain, and the integration of production, supply and marketing. There are two key contents of this, one is to continuously find high-quality original mining sites, and the other is to promote technical forces to play an important role in it.
At the end of the chain, by broadening the quotientSome nut raw material procurement has shifted from foreign to domestic;Relying on the "direct purchase and direct sale" model, it has established direct cooperative relations with international large-scale farmsOptimize the efficiency of our own factories and other ways to effectively reduce the cost of nut products. On the delivery side, the three squirrels have comprehensively upgraded the logistics delivery model in combination with the channel strategy adjustment, actively explored the origin warehouse and cloud warehouse model on the basis of their own warehousing business, and cooperated with many upstream first-class merchants to promote direct delivery from factories to further reduce costs and increase efficiency.
The effect of this is obvious, according to the person in charge of the three squirrel category, the price of the mass-sold large bag of macadamia nuts (500g) sold online last year was about 30 yuan bag, and now the price is 22 on Tmall***$9. During this year's Double 11, the sales of this product increased by more than 50% year-on-year.
On the operation side, taking JD's self-operated channels as an example, based on refined operations, the three squirrels adapted to 11kg, 750g, 500g and other multi-** with daily nut matrix, 6 large granular tree nut matrix, channel customized nut gift package matrix, with a layered belt strategy, has won consumer recognition. In November this year, a total of 3250,000 boxes, sales exceeded 22 million yuan.
Through the upgrading of automated production equipment, the optimization of packaging materials, the reshaping of product grams, the exploration of the ultimate delivery mode - factory direct delivery, and the optimization of the details of the main picture, the overall delivery cost of the teared bread was reduced by about 18%, and the cost of mainstream grammage meat muffins was optimized by 40% compared with last year, from 300 boxes sold per day to more than 10,000 boxes per day. Spicy Marinade Gift Pack Super Value Pack 60 Packs (Price 19.)9 yuan), 75 packs of special packs (priced at 20.)9 yuan), 70 packs of special packs (priced at 199 yuan), etc., with daily sales of 10,000+.
The boundaries of best-selling products are still expanding, with sales of quail eggs, milk shaqima, air-dried beef, nut gift boxes, dried mangoes, cod intestines, boneless phoenix feet, etc., skyrocketing.
Community stores, soaring.
Not only can everyone afford it, but it must be available everywhere. The aroma of wine is also afraid of deep alleys, and the whole category naturally has to adapt to all channels. Since it is omni-channel, offline is naturally indispensable, and the focus here is on community snack stores.
Different from snack mass stores, Three Squirrels defines it as a "private label community snack store", with its own brand products as the main position, to meet the community consumption scene of high-quality snack products.
Specifically, the community store of the three squirrels adheres to the business philosophy of "high-end can also be cost-effective, and the real floor price is set at one time", in addition to differentiated business methods such as peeling and weighing, integer quantification, and no discount, it can also rely on the core brand advantages of its own nuts and the first-chain ability of the development of all categories, directly customize to high-quality factories, and remove middlemen and brand premiums, which is also the highlight advantage of independent brands.
These business ideas have obviously been recognized by the market and franchisees, and in June this year, the layout has been launched for half a year, and the three squirrels have exceeded 150 community snack stores in Jiangsu, Zhejiang and Anhui alone. Just yesterday, the news came that three squirrels opened 17 stores in Jiangsu and Zhejiang provinces, including 9 in Hangzhou. Three Squirrels said that as one of the important channels for the company's future layout of the offline market, with the continuous optimization of the single-store model, the national layout will be accelerated in the future.
According to the data of the WeChat official account of "Three Squirrels National Snacks", the Three Squirrels Community Snack Store performed well during the Double 11 period, with sales exceeding 4.1 million.
The flip side of performance is traffic.
Judging from the current market situation, the trend of consumers returning to offline is accelerating, which means that consumers' demand for offline scenarios will increase, and for Three Squirrels, community snack stores will take on this demand. While undertaking the return of offline consumers, the Three Squirrels Community Snack Store also undertakes the important task of bringing traffic to Three Squirrels.
When it comes to community snack stores, it is inevitable to mention mass snack brands.
In the past, snack brands such as Snack Busy and Zhao Yiming were very popular, and through the collection of multiple categories, multiple brand products or white-label manufacturers, mass retail brands have risen rapidly. But fundamentally, the mass snack brand is more like a traffic platform, which is fundamentally different from the three squirrels of its own products and brands.
From the perspective of revenue structure, the sales of Sprite, Coca-Cola and other big brand products in mass snack stores not only do not make money, but also have to subsidize, why?Because Sprite, Coca-Cola, etc. have their own traffic, mass merchandising snack stores need to rely on this type of product to attract traffic for themselves. From this point of view, there may be opportunities for mass retail brands to cooperate with Three Squirrels and BESTORE.
There is no other reason, the products of the three squirrels and BESTORE have their own traffic.