Baiguoyuan, which has been complained about by the outside world as a "fruit assassin", has had a hard time recently.January 16 was the first anniversary of Baiguoyuan's listing, but I didn't expect the stock price to give it a blow, and it exceeded 30% on the same day. As the first share of China's fruit retail chain, Baiguoyuan,At the beginning of the listing, the total market capitalization was HK$10.5 billion, and now there is only HK$5 billion left, and has been slowly**.
The stock price ** + market value "halved", Baiguoyuan has attracted widespread attention from people inside and outside the industryHundred Fruit Farm responded that "everything is operating normally".。However, on January 20th, the entry of why Baiguoyuan is not popular appeared on the hot search, some people complained about **, and some people diss services, which made its already not rich passer-by even worse.
2023 with both heat and controversy
Looking at the past 2023, Hundred Fruit Garden can be described in seven words:Heat and controversy fly together.
At the beginning of the year, as the first fruit retail enterprise to be listed on the Hong Kong stock market, Baiguoyuan has unlimited scenery, and the founder Yu Huiyong's worth officially exceeded 10 billion. But while the popularity continues to soar, Baiguoyuan has also ushered in many controversies and has been pushed to the forefront many times.
See watermark for the source, the bell ringing moment for the listing of Baiguoyuan).
On the consumer side, Baiguoyuan's reputation has been declining.
In June last year, some netizens complained about **, saying that they used 689 yuan ** 3 catties of watermelon coupons, and was ridiculed by the clerk when he went to the store for verification"The watermelon bought cheaply is not sweet, and the watermelon in the normal store is 99 yuan and 1 catty".。This matter directly sent Baiguoyuan to a high hot search. Subsequently, Baiguoyuan's official Weibo issued a statement, but unfortunately most netizens did not buy it.
For Hundred Fruit Garden, such incidents may have become commonplace. On the Black Cat complaint platform alone, it has received 2300+ complaints, containing:False publicity, lax quality control, poor service by clerks, and no refunds for non-performanceand other problems, which indirectly exposed the negligence of Baiguoyuan's management, which is also an important reason for the decline of brand reputation.
On the franchisee side, it was revealed by many parties that "joining Baiguoyuan is not profitable".
According to Future.com, Mr. Zhang, a franchisee from Guangxi, said"After joining Baiguoyuan for three years, I lost nearly 400,000 yuan".。In addition, all the products of Baiguoyuan are supplied by the group, even if they can't sell the pressed goods, they can't refuse to supply, they are all borne by the franchisees, either sold cheaply, or thrown away, which also causes a lot of losses for franchisees. 【1】
Since the ** account "Jingguantai" has also reported the current situation of Baiguoyuan franchisees, among which a former franchisee broke the news, saying"There are very few good stores, and the bosses around me who have worked for many years are now looking for a way", "Although the fruit in Baiguoyuan seems to be selling at a low price, excluding losses, there may not be 20% of the profit." ”
Facing consumer complaints externally, and internally bearing the complaints of franchisees, Baiguoyuan is really not good on both sides.
The goal of 100 billion yuan was slapped in the face
Time has come to 2024, and Baiguoyuan has set a lot of flags at the beginning of the year.
On January 6, at the first ten-year strategy conference of Baiguoyuan Group, Yu Huiyong, founder and chairman of Baiguoyuan, announced:Adjust the organizational structure and make efforts for the B-end (enterprise side). In the next ten years, Baiguoyuan will move towards the goal of 100 billion yuan with 10 billion revenue as the starting point.
Yu Huiyong, founder and chairman of Baiguoyuan Group).
Affected by the above news, Baiguoyuan's share price closed up 4 on the day9%, which can be described as another fame and fortune. At the same time, many industry insiders are also analyzing how Baiguo Yuan can quickly achieve this ambitious goal, and finally came to the following conclusions:
Open a store, open a store, or open a store. This also coincides with the goal of 10,000 stores mentioned by Baiguoyuan.
It is worth noting that unlike other brands that rely on earning franchise fees, Baiguoyuan regards franchisees more as "subordinate merchants", mainly through the sale of fruits and other products to franchised stores to obtain income. Under this business model, the more stores there are, the more revenue Hundred Fruit Farm will have.
This statement is not groundlessAccording to Baiguoyuan's 2023 interim financial report, the company's revenue from the sale of fruits and other food products is 611.7 billion yuan, accounting for 97% of the company's revenue2%；Royalties and franchise income totaled 985160,000 yuan, accounting for 1 of operating income6%。【3】
At present, Baiguoyuan has 6,000 stores, and it seems that there is still a long way to go before Yu Huiyong's goal of "exceeding 10,000 stores by 2032", but everything is possible in 8 years.
It's a pity that this hasn't been said for a long time, and it ushered in the ** event of "market value halved", and the drama was directly full.
Even if Baiguoyuan responds that everything is normal, the outside world still has doubts about its business situation, and as for the rhetoric of "100 billion revenue target", it has been complained that it is painting cakes, and the purpose is to "stabilize the morale of the army".
Will it survive into the next decade?
It is easy to fight the country, but it is difficult to defend the country.
From obscurity to listing and ringing the bell, it took a total of 22 years for Baiguoyuan. During this period, the business model was constantly adjusted, the product was upgraded and iterated many times, and several IPO failures were experienced, and finally sat on the throne of the first share of China's fruit retail chain, but this position was not stable, and the stock price almost knocked it back to its original shape.
The first two decades were not easy, and it is still unknown whether Baiguoyuan can survive the next decade.
When it comes to Baiguoyuan, the first thing that comes to mind for many people is the word "expensive", however, it is known as a fruit assassin, in fact, it does not make money as imagined, and its profitability has been questioned by the outside world as early as when the prospectus is submitted.
The data shows that from 2019 to 2022, the gross profit margin of Baiguoyuan is different. 2% and 116%, and the net profit margin were. 2% and 27%。
It is already an indisputable fact that the gross profit of Baiguo Yuan is low, although the net profit in the first half of 2023 has risen to 40%, but the profitability is still lower than that of competing products in the same period. Hongjiu Fruit, which has been compared to it, will have a gross profit margin and a net profit margin in 2023, respectively. 4%, the data shows a trend of "double killing".
In addition, in the era of the pursuit of cost performance, it remains to be seen whether the road of high-end fruits can continue to go through, and the opponents of Baiguoyuan are not only Hongjiu fruits and Xianfeng fruits, but also large-scale supermarkets, vegetable markets, communities and other channels. At a time when e-commerce on platforms such as Douyin, Pinduoduo, and ** is becoming more and more mature, it is already the trend of the times to buy better fruits for less money.
Fruit is still a good business, but it's not a good business. Compared with setting a flag of 100 billion stores, a good study of how to increase net profit may be the most important thing for Baiguoyuan to do at the moment.
Information**. 1] The other side of Baiguoyuan's market value**: "bitter" franchisees 2024-01-19
2] Baiguoyuan stock price**30% Franchisees have a hard time 2024-01-18
3] Baiguoyuan's financial report for the first half of 2023.