Recently, Snacks was very busy on the official account of a certain platform, announcing the news of three squirrels and 4 nuts on the shelves. What is puzzling is that the snack giant Three Squirrels and the head snack company Snack are very busy, and to some extent it can be regarded as a competitive relationship, but now the two sides are "shaking hands and making peace", what is the reason behind this?
The person in charge of the distribution channel of the three squirrels told the "China ** Network".In addition to the snacks are very busy, the four nut products of the three squirrels, macadamia nuts, pecans, pistachios, and almonds are also stationed in Zhao Yiming's snacksAt present, the number of stores covered is nearly 8,000. In the future, the variety of products will be expanded, and cooperation with other mass-selling snack stores will be considered, and even channel exclusive supply will be considered. So what made the three squirrels choose to work with a competitor?
According to a number of ** reports, Zhang Liaoyuan, the founder and CEO of Three Squirrels, once said in the circle of friends, "The so-called competition in this world is not life and death, but self-achievement in mutual competition." It can be seen that Zhang Liaoyuan believes that cooperation is also a way of competition. In addition, some ** believe that the three squirrels chose to cooperate with the head enterprises of mass snack sales such as snacks are very busy, which may also be related to the "omni-channel + all-category" business model formulated by them at the end of 2022. At the end of 2022, Three Squirrels set a goal for 2023, in addition to accelerating the launch of new products in all categories, that is, to expand omni-channel.
For the three squirrels, it is necessary to expand omnichannel. The financial report shows thatFrom 2019 to 2022, the total revenue of the three squirrels has been declining, the most severe decline in 2022, a year-on-year decline of 2535%。At the same time, the net profit attributable to the parent company in 2022 is only 12.9 billion yuan, a year-on-year decrease of 5795%。The main reason for the decline in the total revenue of the three squirrels may be related to the disappearance of dividends from traditional e-commerce channels. In 2022, the revenue from the e-commerce platform accounted for 65% of the total revenue of the three squirrels66%。However, in the past two years, the income of the three squirrels from third-party e-commerce platforms has been declining. In 2023, the income of the three squirrels from Tmall and JD.com will decline respectively. 45%。
In addition to cooperating with mass snack brands, Three Squirrels is also expanding the channel of Douyin. In the first half of 2023, Three Squirrels will have a revenue of 43.6 billion yuan. During this year's New Year's Festival, from January 6 to January 12, the sales of three squirrels increased by 70% year-on-year, and the total paid GMV reached 3100 million, of which, the official GMV of the three squirrels Douyin increased by 500% year-on-year.
In addition, the three squirrels also made adjustments to the offline storesA large number of directly operated and alliance stores were closed and converted into private label community snack stores. As of December 4, 2023, the number of Three Squirrels' own brand community snack stores has exceeded 150.
After adjusting the business model, Three Squirrels expects a net profit of 200 million yuan to 2 million yuan in 2023200 million yuan, an increase of 54 percent year-on-year97% to 7047%。It seems that the strategy of the three squirrels has paid off.
In fact, it's not just three squirrels, it's nothing new for snack brands to enter the mass snack track. At the beginning of last year, BESTORE and the investment institution Black Ant Capital jointly invested in Zhao Yiming Snacks 1500 million yuan. Although BESTORE later transferred 3% of the equity, this does not mean that BESTORE has given up the mass snack track, but becauseBESTORE has launched its own brand "Snack Stubborn" in the second half of 2022. Therefore, there is a view that the withdrawal of Zhao Yiming snacks may mean that BESTORE has decided to break into the mass snack track alone.
Snack brands such as Weilong, Ganyuan Food, and Qiaqia Food have also already reached cooperation with mass snack brands. According to the "August 2023 Mass Snack Channel Sales Data" released by Weilong, more than 10 mass snack brands have reached cooperation with it, and in August 2023 alone, Weilong sold more than 370,000 boxes of products in the mass snack channel. Ganyuan Food's 2022 financial report shows that a mass-selling snack brand has become the third largest customer of Ganyuan Food, and in the first half of 2023, the mass-selling snack channel has also become one of the important revenues of Ganyuan Food**. In January this year, Qiaqia Food also said that it had cooperated with the head mass merchandiser snack store, and the sales were good, and it would increase its layout in the track in the future.
A number of snack brands have entered the mass sales snack track, indicating that the track has broad development prospects. At the same time, the statistics of the China Business Industry Research Institute show thatIn 2022, the domestic generalized snack market space will exceed 15 trillion yuan, but the per capita consumption of snacks is less than half of that of Japan.
However, the influx of multiple snack brands has also intensified the competition in the mass snack track. And when the industry brawl is over, who will emerge victorious? We'll see.
Three squirrels enter the mass merchandising track