In the early years, with the help of the Internet, the industry was full of aftermath of redoing all consumer goods!
Over the years, all consumer brands are still worth redoing, but the trend has become worth returning to offline and redoing again.
Counting the hottest consumer track this year, the snack track has an extraordinary story, and new trends in the industry are redistributing resources. And this time it is not driven by new channels, in the author's opinion, it is more like a form of passive pursuit of cost performance by consumers, thus fueling the fire.
The most significant is the gradual stabilization of snack specialty stores and the rise of the snack mass store model.
The three squirrels that first became famous through the Internet are still unstable in their overall online sales.
Wanlian** cited the data of radish investment, the sales proportion of the three squirrels in traditional e-commerce platforms such as ** and Jingdong declined, and the sales proportion of Pinduoduo was basically stable. The online sales of the content sharing platform and the Douyin platform increased by 38% year-on-year52%。
Not long ago, in order to adapt to market changes, BESTORE launched the first large-scale price reduction in 17 years, with an average price reduction of 22% for its 300 products, and a maximum reduction of 45%.
With the rise of snack stores, after the cycling war, milk tea war, and grocery shopping war, it is also the turn of the 100 regiment war to snack shops!
The goods are not fine, ** discount on the line
Before the snack mass sales model became popular, expiring food stores were all the rage.
The reason why it is popular is not that it has a complete range of things and outstanding categories, but more because it is cheap enough. 1-2 yuan a bottle of Evian, 4 yuan a bottle of Perrier, 65 yuan a can of Starbucks coffee, 45 yuan Mo Xiaoxian self-heating rice and 59 yuan Bordeaux wine.
Relatively high-end things, it is obviously more cost-effective to buy them at the expiring food store.
In addition to being cheap, the reason why expiring food is highly sought after is that it is constantly updated SKUs, from food, daily chemicals to toys, etc., which can almost cover the needs of customers at all levels, but there are not many SKUs.
However, temporary food stores also have a small disadvantage, that is, the stores are generally small, and most of them are opened in big cities. In contrast, the snack mass merchandisers that broke out at the end of 2022 not only took the length of the expiring food store, but also made up for the shortness of the temporary food store. Because, snack mass sellers have thousands of product SKUs, and they are cheaper than traditional retailers. Depending on the area, the store area will be larger than that of a temporary food store.
"Hard Discount on Chinese Snacks*** shows that the mass merchandising snack stores that sink into the community are 20%-40% cheaper than traditional retail stores.
According to the statistics of China Merchants**, supermarkets** are about 20%-75% higher than snack storesConvenience stores** are relatively higher, about 44%-85% higher than snack storesE-commerce** is about 7%-59% higher than snack stores.
More quintically, these stores are usually aimed at lower-tier markets, and most of them are located near neighborhoods.
Don't think about the future, you have to be big first
The reason why snack stores can spread so much is inseparable from stepping on the right outlet and the boost of capital.
The origin of the tuyere lies in the change of consumer tendencies and the change of consumption radius habits.
The province, the province, the flower" has become the mantra of many people, and it is further refined, which reflects the actual behavior of shopping is to shop around, and shopping is more cost-effective.
According to the "2023 "Double 11" Consumer Rights Protection Public Opinion Analysis Report released by the China Consumers Association, competition for "best power" is the main means of merchant marketing, and the pursuit of "cost performance" has become a new trend in residents' consumption.
With the development of the economy and the changes of the times, consumer behavior has gone through several stages of migration, from cognitive products, to consumption upgrades, the pursuit of quality, high-end, and then to return to controlled pragmatism.
In addition to the change in consumer will, in the past two years, the situation of mostly staying at home has also narrowed the radius of consumers' actions. In addition, due to the hoarding of goods, manufacturers have also given snack wholesalers certain channels. The superposition of various factors has allowed capital to see the market opportunities of snack wholesalers.
According to the "2022-2027 In-depth Analysis and Development Trend Report of China's Snack Food Industry**" released by the China Business Industry Research InstituteIn 2022, the market size of China's snack food industry will reach 843.7 billion yuan, with an average annual compound growth rate of 4 in the past five years24%。According to analysts from the China Business Industry Research Institute, it will reach 1,009.3 billion yuan in 2024.
In the single-store model, categories, distribution channels, and store operations including location are the core competitive factors.
According to the data of Qichacha, from January to November 2023, the number of domestic snack food-related enterprises registered reached 20350,000, accounting for 32 of the total number of registered enterprises37%。
Tianyancha data shows that in May 2021, the snack chain brand "Snacks is Busy" completed 2400 million yuan Series A financing. In February this year, the snack brand "Zhao Yiming Snacks" completed the 1500 million yuan Series A financing.
Traditional snack brands have also entered the game. On the evening of December 18 this year, I want you to announce that the company and its wholly-owned subsidiaries invested a total of 700 million yuan in monetary funds to increase the capital of snacks, and after the completion of the capital increase, the company and its wholly-owned subsidiaries held a total of 664% equity.
In fact, if the shift in consumer tastes to capital points the way, the characteristics of this business model make capital willing to spend money to invest.
China's snack hard discount*** shows that although the retail mass sales model has a low gross profit, it has the characteristics of high turnover, and the so-called quantitative change leads to qualitative change.
Jiemian News once reported that snacks are very busy, the daily sales of a single store are 8,000-11,000 yuan, the gross profit is 15% 20%, and the net profit that franchisees can obtain is 8%. In-store products are divided into branded products and white-label products (non-well-known brands), with a ratio of 4:6 or 35:6.5。Among them, the brand's drainage function is stronger, and the gross profit generated is extremely low;And the real profit** depends on white label goods, with profit margins of 30% or even higher.
Hard discounts on Chinese snacks***
In addition, hard discounts are not essentially a retail format, but a business model that pursues ultimate efficiency, accompanied by a first-chain revolution in the era of consumer sovereignty.
In the absence of good investment projects and the difficulty in developing new consumer demand, the rapid seizure of this innovation track continues.
In the consumer industry, the size of 10,000 stores seems to be an unwritten standard of success. Luckin and MINISO both regard it as a small goal. The snack wholesale industry is also using various means to achieve the goal of 10,000 stores as soon as possible.
In November this year, according to ** Times, Snacks is busy signing a transaction agreement with Zhao Yiming, and Snacks is busy becoming the controlling shareholder of Zhao Yiming Food through this transaction, as of November 2023, the total number of stores in the country has exceeded 6,500, and the number of stores opened ranks first in the industry.
Destined for involution
Snacks are not essential, but the pleasure they bring is also indispensable. The "Snack Industry Development Report in the Context of Consumption Upgrading" defines snacks as follows: foods that are eaten sporadically outside of three meals a day, corresponding to "staple foods";Impulse buying of consumer discretionary products with multiple attributes such as social, entertainment, and leisure attached. In 2019, the "Report on the Development of the Snack Industry in the Context of Consumption Upgrading" released by the Ministry of Commerce showed that the total annual output value of China's snack industry has reached 22,156400 million yuan.
Compared with other industries, the snack wholesale industry is a highly competitive industry because of the high homogeneity of goods. This industry can be summed up in one sentence:Only cost performance can beat cost performance!
Therefore, as a merchant who operates mass-selling snacks, only a faster store, a lower **, and a faster SKU launch speed can take down the opponent.
For franchisees, there is also a blind spot: can it be recovered?
According to official information, the franchise fee of Zhao Yiming's snack shop is 380,000 yuan, deposit 20,000 yuan, management fee 800 yuan month, decoration cost of 80,000-120,000 yuan, equipment cost of 70,000-100,000 yuan, etc.
The snack wholesale industry, which has not been popular for a long time, has been involved in the "Warring States Period"!After a lot of fighting, how many end up at the table?
Disclaimer] The content of the article is for research and study purposes only and does not constitute any investment advice.