At the end of 2023, the head brand of casual snacks, BESTORE, will "reduce its price" and become a hot message. At the end of November, Yang Yinfen, chairman and general manager of BESTORE, said in an open letter to all employees that they would take the route of good quality and close to the people. Subsequently, the company announced that it would implement the largest price reduction in 17 years, focusing on 300 snacks with cost optimization but not affecting quality and high repurchase rate, with an average reduction of 22% and a maximum reduction of 45%.
This price reduction is not only a "change release", but also a "results release". Behind the results is the confidence accumulated by BESTORE as a sample of private economy and with the "three-chain isomorphism" model.
Recently, the "Fulcrum" magazine (i.e., "Fulcrum Finance"), a subsidiary of Hubei **Media Group, released the research report "Sample of Private Economy - Interpretation of BESTORE's "Three-Chain Isomorphism" Development Model with "Long-chain Enterprises"" (hereinafter referred to as the "Report"), which systematically shows the high-quality development path of BESTORE with 10 manuscripts and more than 30,000 words.
It is reported that from the "integration of three industries" in 2019, to the "lighthouse enterprise" industrial router model in 2020, and then to the "three-chain isomorphism" this time, Fulcrum Finance has focused on the BESTORE chain model for three consecutive times, which has become a historical witness to BESTORE's continuous improvement of the modernization level of the best chain, and is also a vivid epitome of China's private enterprises from small to large, from weak to strong, and gradually becoming the backbone of the national economy.
Dig deep into the underlying support behind "price reduction without quality reduction".
According to the report, the three-chain isomorphism of "lengthening the industrial chain, completing the first chain, and improving the value chain" is an important driving force for the modern industrial system. Xiaomi, Huawei, Anta, and BESTORE are all typical cases. Among the private enterprises, BESTORE has its differences in quality, quality and "price advantage". In terms of industrial chain, most of the "three-chain integration" benchmarks only span industry and service industries, and BESTORE is one of the few long-chain enterprises that span agriculture, industry and service industries, which has a large driving effect and reference effect.
Yunnan macadamia nuts, Yunnan Zhaotong wild bamboo shoots, Xinjiang chickpeas, Nanri Island kelp, Zhao'an green plum, Jingzhou lotus root ......The process of transforming from raw materials to high-quality snacks is the "industrial chain integration" of BESTORE as a tertiary industry to promote the primary and secondary industries. In terms of value chain, BESTORE has always grasped the brand building, R&D in the upstream of the value chain and the channels, sales and after-sales service in the downstream to gain insight into and meet consumer needs and create huge market value. The most critical is the ** chain. BESTORE is mainly engaged in the research and development, procurement, sales and operation of snack food, and cooperates with leading merchants in the planting, breeding, production and processing of raw materials.
This is the "three-chain isomorphism" model formed by BESTORE for many years, and it is also the underlying reason why BESTORE realizes "price reduction reform" and creates "price advantage" based on the bottom line of quality.
In recent years, the main low-price mass sales model has had a huge impact on China's snack industry. Reflected in the perspective of users, consumption has entered a rational era, and the consumption levels of different groups of people are more differentiated and distinct. Mass sales of snacks focus on channel logic, do not do ** chain, do not produce snacks. The low price comes from low gross profit, high turnover and large-scale store opening, forming an absolute voice on the first business.
The report pointed out that the "volume" of mass sales of snacks is the best business. In contrast, BESTORE pursues the "best advantage" of quality, win-win chain, and more gold content and long-term strategy. BESTORE's "squeezing water" is not the squeeze of the best merchants, but through lean management in terms of cost control, production efficiency, business efficiency, etc., so that each participant in the industrial chain can become a participant, contributor and beneficiary of cost reduction and efficiency increase.
The report said that the revolution of the "price advantage" of the first chain has started as early as 2020. This year, BESTORE's strategic goal is to make a breakthrough in cost auditing. Through 12 dimensions such as operation standardization, automation, and continuous flow operation, it helps the best business to improve its lean management capabilities. Based on this, BESTORE has established a digital management system for the cost of the first chain.
Under the guidance of BESTORE, the leading merchant of more than 100 million popular single products of fragrant iron brine eggs has saved 1.05 million yuan a year by optimizing production equipment, changing egg peeling methods, improving packaging processes, and introducing color sorters instead of manual selection of "flower eggs".
A little bit of the cost of "picking" out is given to consumers. Aromatic iron brine egg powder product per catty** decreased by 23% to 399 yuan, while the Hema fragrant halogen iron egg product 92 grams 99 yuan, converted into a catty price of 53$8.
The report pointed out that in the next step, BESTORE will further reduce the cost of the first chain by optimizing product design and reducing losses, and reduce the cost of sales by improving operational efficiency ......So that BESTORE can maintain product quality while constantly building the "best advantage" of the whole product line.
Leading the high-quality development of private enterprises with "three-chain isomorphism".
A series of measures have also been praised by the industry.
On December 7, 2023, BESTORE won two awards in the "Jingdong Annual Gold List Ceremony". It is understood that this year's Jingdong Gold List will also include the best in the evaluation index on the basis of the traditional indicators, which represents the "best advantage" of BESTORE.
In this process, BESTORE has in-depth collaboration with domestic core first-class merchants to drive the upstream and downstream to "one prosperous, one hundred strong", so that consumer terminals and upstream and downstream industries can benefit. According to the data, there are more than 160 of the best merchants in BESTORE, which rank among the top 5 in China.
Good cases deserve to be shared and copied.
According to the report, BESTORE promotes the high-quality development model with "three-chain isomorphism", which has been highly recognized by experts and scholars from think tanks such as China Food Industry Association and Wuhan University.
They believe that BESTORE conforms to the changes in consumption concepts, optimizes the supply quality of the first chain, makes up for the shortcomings and forges the long board through key technological innovations, enhances the resilience of the industrial chain and the first chain, strives to improve the adaptability of supply and demand, and continues to stimulate the endogenous power of enterprise development, which has reference significance for the current private enterprises to achieve high-quality development.
In November 2023, the national level issued opinions on promoting the development and growth of the private economy, reaffirming the positioning of the private economy in China's economic development. It is foreseeable that private enterprises represented by Huawei, Xiaomi, and BESTORE will further explore high-quality development paths through the model innovation of "three-chain isomorphism".
From winner-take-all to win-win cooperation, the model innovation of a number of private enterprises represented by BESTORE is empowering the healthy development of the real economy and playing an increasingly important role in building a modern industrial system.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.