** It is a very fantastical place, especially at the moment when it is currently in the torment of the bear market, and all kinds of unreasonable interpretations can be described as endless. No, BESTORE, which has always been positioned as a high-end snack, suddenly announced on the evening of November 30,The largest price reduction in the brand's 17-year history - an average price reduction of 22% and a maximum reduction of 45% for 300 products. General Manager of the companyYang Yinfen said, "At the moment,What is before us is not only the question of how difficult it is to live, but also the question of whether we can survive. "Means it isIn the face of the new competitive situation in the industry, the choice that has to be made cannot be regarded as good news.
In fact, since its listing in 2020, under the influence of the epidemic and sluggish consumption, the performance of BESTORE has deteriorated, and it has long lost the momentum of super growth stocks before listing. Second, the high-end positioning and gift attributes are a little unbearable, and the price reduction will undoubtedly have a negative impact on the high-end brand image.
However, what is more surprising is that the market actually interpreted this news as a good thing, and the day after the news was announced, the stock price unexpectedly came directly to the high opening limit. The reason why the market will react like this is that the market still recognizes the brand status of BESTORE as the king of snacks, and believes that as long as BESTORE reduces its price and embarks on the people-friendly route, it can form a dimensionality reduction blow to the latecomers who are busy with snacks and gluttony.
Of course, from a short-term logical point of view, this makes perfect sense. That is, in terms of quality, I can crush you, and now ** has also been adjusted, which is equivalent to offsetting your so-called advantages, so in the case that ** has been played so low, can you continue to adjust the price to PK with me?
Pushing opponents into a corner seems to be a smart move for the company to overcome its current predicament, but there is one thing that the market may overlook, that is, the net profit margin of snacks is actually very low. This big price cut, will undoubtedly bring greater pressure on gross profit margin and even net profit margin, relying on this blow to competitors is quite a bit of a kill 1000 self-loss 800 meaning, as for whether it can rely on the activation of the amount to make up for the lack of profits, it is still an unknown number. In addition, according to the positioning theory, it is easy to reduce, it is difficult to pull up, and the price reduction is equivalent to educating consumers that you are actually not worth the money, and the gift attribute that has been established with great difficulty is easy to fall short, which is very unfavorable to the company's long-term differentiated competition.
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