**10,000 Fans Incentive Plan
On November 29, 2023, BESTORE announced that 300 products in various channels will be reduced simultaneously, with an average price reduction of 22% and a maximum reduction of 45%.
Hema Xiansheng, which has opened more than 350 stores in the past 8 years, has begun to reform the procurement and marketing system internally, adopting in-depth "discounting" reforms, and normalizing 5000+ products in stores with 20% off. Further intensify the degree of competition in the retail circle. For consumers, affected by the shock of the epidemic, the story of brand consumption upgrading in the past cannot be told, and everyone has begun to actively or passively "cover" their personal wallets, and have switched to consumption downgrades, and discount stores just coincide with it, pursuing cost-effective advantages. 01The industry rolls up, and the discount is on top
In the post-epidemic era, consumption has begun to downgrade, product involution and brand involution, and hitting the market downward has become the common goal of major brands, and discount stores are the embodiment of the key breakthrough in 2024. In addition to the head snack brands such as BESTORE to join the battle, many retail companies have also begun to compact, through the adjustment of the free shipping threshold of the market-oriented means, optimize the capacity resources, at present, Hema fresh, Sam's speed, Aldi and other free shipping thresholds are 99 yuan, Pupu supermarket also raised the free shipping threshold in some cities in November last year. In the past six months, more and more offline supermarkets have also successively tested the water discount reform, Yonghui supermarket in many stores across the country to open a "discount store" shop-in-shop, the first Yunnan *** before the Spring Festival in Kunming Century Jinyuan Shopping Center officially opened, through the first chain optimization, fine management of the main "parity". The revival of BBK also announced a 15% drop in merchandise** in line with the retail industry's low-price strategy. This also means that the brand has begun to roll downward, and for enterprises that are beginning to take shape, reducing edge costs and optimizing the structure can be close to discounts, so as to benefit consumers. In the short term, the expiring discount stores that have become popular in recent years can meet the needs of low-cost "early adopters", but the model moat is not deep, it is easy to fall into homogenization, unstable supply of goods, and food safety problems under the constraints of logistics and warehousing, which will further affect the customer experience and repurchase. At the front end of the chain, the snack discount channel abandons the middleman model of the past layer of distribution, and the goods are transported directly from the source factory to the warehouse of the channel side, and the first merchant does not need to pay the entrance fee, ** fee, etc., and even directly adopts cash settlement. Retailers believe that consumption is tightening, the traditional brand premium is weakened, and brands are using their own first-chain advantages to reduce intermediate costs. On the one hand, the general environment is not ideal, and it is difficult for commodities to stimulate mass consumption and maintain back-end operation services; On the other hand, the brand is discounted, and it is transparently transmitted that the brands fall into the involution mode, and the ** chain determines the final advantage. 02Discount advantage, channel is kingMore and more players are pouring into the discount food track, and this market is gradually facing the problem of shortage of supply. Hema announced a comprehensive discount, why should we completely reform the procurement and sales system and establish a new zero-supply relationship? Because only in this way can we achieve differentiated products and high-quality and low-price capabilities brought by scale, and become a retailer that allows consumers to "like to see", save money and rest assured when buying things, and do not do a big wrong. In October last year, Hema opened its premier store in Shanghai with a supporter price ratio, with nearly 50% of imported goods, half of which were Hema's own brands or direct purchases, and many goods** were about 30% cheaper than high-end boutique supermarkets in the market. The confidence of Hema to be able to "discount" in all fresh stores is also due to the development of vertical chains in China and around the world in the past few years, which can provide cost-effective and differentiated products. At present, there are several more powerful discount retail formats in China, which have staged a battle for the No. 1 position, accelerating the carve up and penetration of the sinking market at all levels. Retailers believe that simply "bargaining" with ** merchants or reducing gross profits, or even reducing quality, will definitely not go far in the long run. It is the right way to continue to forge the best chain, improve efficiency and innovation ability, strive to develop high-quality private brands, and improve operational efficiency. In fact, the discount model has been developed abroad for decades, and the successful path has long been proven. On the road of discount reform, it is difficult to have an ambiguous middle ground, which looks simple "low price" on the surface, but behind it is real retail effort. Traveling all over the world to find good goods, removing middlemen, vertical chains, and selecting goods, this is the internal strength that retailers need to cultivate. 03Consumers are benefited, and young people support discount storesDiscounts are irresistible to consumers in any region. Especially under the current downward trend of the global economy, the discount strategy caters to the current trend of changing consumption concepts to a certain extent. In fact, based on the current situation of weak consumption during and after the epidemic, coupled with the higher sensitivity of the people in the sinking market, snack discount stores like Snack is very busy and Zhao Yiming Snack can expand rapidly, the core lies in finding the right market target group in a special consumption environment. For young consumers at this stage, although the discount store is not the planned destination, when passing by such a store, they will not hesitate to go in, and as long as they enter the store, few people will resist the low price **, and almost will not return empty-handed, which is also the core of the discount retail store. Retailers believe that retail discounting seems to be a simple way to sell goods cheaply, but in order for platforms, channels and brands to develop sustainably, they must get out of the "comfort zone" of the successful model of the past and promote more lean changes in the supply and marketing system, product structure and operation model. On the one hand, the snack discount channel continues to roll up low prices, and the single first-class competition limits the use of resources on the channel side, making it more difficult to go deep into the upstream of the first-class chain and optimize the commodity structure. On the other hand, under the current young economic outlook, discounted products still need to be competitive in order to be recognized by young consumers, and both quality and quality need to be combined. Nowadays, retail discounts have become a new trend, all parties involved in the retail chain, survival, is the last word, through its own brand or joint customization, the establishment of a vertical chain, cut out middlemen and shelf fees, squeeze out the premium, may help retailers to achieve "discounts".