"Three fires for the new official to take office", the first fire for the new handsome of BESTORE to take office, it "burned" to **.
On November 27, BESTORE held an extraordinary general meeting of shareholders to complete the general election of the company's third board of directors and board of supervisors, and Yang Yinfen was elected as the new chairman of BESTORE and once again assumed the position of general manager.
On the third day of her new appointment, Yang Yinfen fired the "first shot" and issued an open letter to all employees to start a new round of reform.
The focus of this reform is on the business side. BESTORE implemented the largest price reduction for the first time in 17 years, with an average price reduction of 22% for 300 products and a maximum price reduction of 45%. However, it also emphasized that price reduction is concentrated on snacks with cost optimization but not affecting quality and high repurchase rate, and "price reduction without quality reduction" is the main principle.
Or affected by the news, on December 1, the opening stock price of BESTORE rose straight to the daily limit, as of **, closed at 2132 yuan shares, with a total market value of 85500 million yuan.
A call to "live".
In an open letter entitled "Crossing the Economic Cycle with Consumers, Liangpin Family, and Partners", Yang Yinfen gave three reasons for the reform:
At the industry level, online consumption traffic has shifted, competition has intensified, various offline snack models have blossomed, and a series of new species have emerged.
At the user level, consumption has entered a rational era, and the people's money bags have been tightenedThe reality that consumers think that BESTORE is "expensive".
At the enterprise level, with the development of BESTORE for 17 years, the organization is bloated, people are superfluous, and bureaucracy and self-centeredness have emerged. Externally, it is sluggish development, and the scale and profitability are declining.
It is not difficult to see that the original intention of BESTORE's reform is to "survive", and the purpose is to make the products more accessible to the people on the basis of adhering to "BESTORE".
In the open letter, Yang Yinfen called on all Liangpin people to "have a clearer understanding of the current economic situation and the status quo of the enterprise", and he said that what is in front of him is not only the problem of living difficult, but the problem of whether to live or not.
Previously, the high-end BESTORE was questioned as a "snack assassin", which is inconsistent with the current sinking and rational consumption trend, which is also a reason for the new head to "bargain".
Photo by Sun Wanqiu. Specifically, nuts such as macadamia nuts, pine nuts, pistachios, and cashew nuts, meat snacks such as pork jerky, duck neck, and grilled sausages, and products with a high repurchase rate such as spicy strips, dried tofu, bread cakes, and melon seeds are the main force of BESTORE's price reduction this time.
In the nut category, for example, the number of macadamia nuts (400g) on sale dropped to 299 yuan can, roasted purple cashew nuts (500g) member price dropped to 499 yuan cans, the price of macadamia nuts, pine nuts, almonds and other nut products after the price adjustment has been reduced by up to 40%.
From the perspective of the pressure of the macro environment and the lack of consumer confidence, BESTORE's strategic adjustment is very timely. Zhu Danpeng, an analyst of China's food industry, said that with the decline of the head brand, it will have an impact on Qiaqia, the three squirrels and the entire industry. Everyone is carrying out the layout of reducing costs and increasing efficiency, through the optimization of the first chain, the control of costs, and the reduction of store operating costs, the quality can be maintained, and the purpose of becoming more and more preferential.
To save performance.
At present, the general environment of the consumer market has changed, new players are emerging, the snack mass merchandiser track is hot, and the mass merchandiser stores that take the cost-effective route have also had an impact on the performance of many leisure snack brands.
As one of the founders of BESTORE and an industry veteran, Yang Yinfen not only knows the internal ills of the company, but also understands the industry trends, and can also see the current situation of BESTORE from the "problem of whether the company can survive" pointed out.
More than a month ago, BESTORE released its third quarterly report.
In the third quarter, BESTORE's revenue fell by 453% to 201.3 billion yuan, and the net profit attributable to the parent company fell sharply by 9788%, only 2 million yuan, which also lowered the company's revenue in the first three quarters fell by 14 year-on-year33%, and the net profit attributable to the parent decreased by 33 year-on-year43%。
In the record of investor relations activities released on November 17, some investors directly asked, "Why is the third quarter performance so poor?".”
At that time, the company responded that the overall sales scale of BESTORE fluctuated due to factors such as the hierarchical grading of consumer demand, the differentiation of online platforms and users, and at the same time, the company's profit fluctuated in the third quarter due to the increase in labor and leasing expenses corresponding to the newly opened directly operated stores and the fluctuation of gross profit margin.
BESTORE pointed out that in the future, the company will increase the number of franchised stores, strive to improve the scale of offline sales, and gradually reduce the impact of the increase of directly operated stores on operating profits**We will continue to improve our online operations through traffic strategies and product strategies.
This is not a stall for BESTORE. In the first three quarters, the revenue of three squirrels also fell by 14 year-on-year07%, Laiyifen's revenue decreased by 7% year-on-year61%, the three heads of the leisure snack industry have encountered growth bottlenecks.
In addition to performance, Yang Yinfen is also burdened with market value management pressure.
On November 28, BESTORE's intraday share price fell to 1927 yuan shares, a new low in three years, after the positive signal of reform, the company's stock price rose on December 1, but it still fell by more than 41% during the year, and the total market value evaporated nearly 5.9 billion yuan.
Now, BESTORE, one of the Big Three, has taken the lead in seeking to change its desire to break the game, will the other two follow its footsteps?