Source | Venture capitalist
"Text"
This is a marketing era dominated by "brainwashing advertising". In addition to the magic of advertising words, the soundtrack must be catchy.
Children's songs and songs of online celebrities are out of date. Beethoven's symphonies are passionate, full and eye-catching, especially favored by advertisers of ladder media.
Under the melody of ode to joy, these women repeated brand advertising words over and over again. The Ninth Symphony was already used in the filming of Platinum Knight Brigade before New Oxygen Medicine Beauty.
Although this kind of advertisement has been criticized, it doesn't matter to sacrifice a little reputation as long as it can make the ditty you hummed in your mouth belong to my family.
Further, advertisements without BGM can also have brainwashing effect. Just like the advertisement of Youmei that appeared on TV six years ago.
But today, six years later, I want to ask Mei Youyou, are you okay?
1997, john young, who was born in Wuhu, Anhui Province, returned to his hometown after nine years in Beijing.
Wanting to transform from a businessman, he founded Wuhu Kaixuan Food Co., Ltd. with the skills he learned from business and began to join the industry.
At the beginning, the company's business was aimed at pastry food. At that time, major brands at home and abroad had preconceived ideas and it was extremely difficult to squeeze into the market. John young conducted market research everywhere, but failed to find a way to break this situation.
John young accidentally discovered that a new product of 200 1 "Youmei" had unexpected market performance, so he conducted an in-depth investigation.
Plum is the raw material of "Liu Liu Mei", which has high nutritional value and medicinal value. It is very popular in East Asia, especially in Japan, and can even reach the level of national ceremony. But in China market, plum products are not very popular. John young on second thought, rather than fighting in a saturated battlefield, it is better to create a new world and be a pioneer.
In 2006, john young, who was determined to implement product transformation, pushed through the crowd, leaving only the preserved plum production line and stopping all other production equipment, determined to be the first brand of preserved plum.
After the overall transformation of the enterprise, John Yang went to Taiwan Province Province nonstop to learn plum production technology and introduce technology and equipment. Before the influx of competitors, the head and tail of the plum products were thoroughly touched.
In May of the same year, with the trial of the trial marketing model, the new series of products of Youyoumei were promoted to the whole country and became an instant hit.
After the product market was opened, john young did not rush to distribute goods in large quantities, but visited many green plum producing areas, focusing on the raw materials and technology of the products. Over the past six years, four production and processing bases have been built in Liu Liu Orchard, which has become the cornerstone of the fire in Li's market in Liu Liu.
Grasping resources on the one hand and the market on the other is the philosophy that John Yang, the founder of Youmei, has always adhered to. After winning the resources, john young thought it was time to let more consumers know about yo-yo.
So he decided to spend 20% of his annual income on advertising and brand promotion, which led to the "magic advertisement" mentioned at the beginning of the article.
That year, Yang Mi, who was very popular because of the TV series "Palace Lock Heart Jade", became a superstar IP and said, "Eat plums if you have nothing to do!" It brought more than 65.438+0.5 billion yuan in sales. This move has also enabled Yo-Yo Huamei to successfully occupy the minds of consumers and become the top brand of Huamei products.
Although there is already a golden signboard, when the prospectus is formally submitted, it still makes people feel incredible. With plums, you can go public.
1. The market is huge and the track is crowded.
In fact, with the consumption upgrading in recent years, the rise of the snack market has changed the pattern of the whole snack industry. It is no longer in line with the market rules to make a small and beautiful snack bar. It is the trend to make Wang Guocai a big and complete snack bar.
According to public data, since 20 12, the market size of leisure food in China has increased from 362.5 billion yuan to 543.9 billion yuan, and the sales of leisure snacks have exceeded one trillion yuan, with a compound growth rate of over 20%. It is estimated that it will exceed two trillion yuan in 2020.
At the same time, people's requirements for the quality of snacks have also reached a new level, and the price of snack products has risen. ......
The expansion of the whole market has made many companies eager to share a piece of the Red Sea.
Looking at the whole industry, qiaqia and Laiyifen took the lead in listing, becoming the vanguard of the snack industry in the capital market, and then Yanjindian was listed as the first snack stock in China. Three squirrels also succeeded in IPO after going through rough times, and competitors who were still waiting in line even grabbed it.
At this rate, listing is imperative.
2. Competition intensifies and funds are tight.
Before submitting the prospectus, Liu Liu Orchard has received two rounds of investment from Sequoia Capital and natural investor Li Qing. However, after three consecutive years, walking around the orchard failed to bring satisfactory results.
From 20 16 to 20 18, not only did the sales revenue of Liu Liu orchards not increase much, but the net profit also declined all the way.
Despite the poor performance, every penny has to be put into the market. Coupled with the influx of competitors, various pressures followed, and capital was the first to bear the brunt.
Therefore, seeking listing first is to alleviate the financial pressure.
In addition, it is worth mentioning that when accepting social investment, Liu Liu Orchard made a gambling agreement in the agreement. Once the company submits the listing application, the special rights of investors, such as liquidation priority, preemptive right, preemptive right and * * * co-sale right, anti-dilution, repurchase and sale right, will no longer exist.
On the other hand, if the listing fails, these powers will return to investors.
From this point of view, the listing trip of Liu Liu Orchard is still under pressure from capital.
Is going public for freedom? Or for what? The intention is worth pondering.
Listing, the attraction of capital will inevitably accelerate the development of enterprises, but obviously, now is not necessarily the best time to go public.
1. Single channel, too dependent on dealers.
Throughout the enterprises that make snacks, almost all have their own sales models:
However, in recent years, with the increasing diversification of consumers' purchasing channels, snack enterprises began to balance the sales model and explore new channels other than the main sales channels.
On the other hand, in the orchard, their sales model is "distribution+direct sales", but in fact most of them sell goods through dealers.
According to the data in the prospectus, the revenue of Liu Liu Orchard through distribution mode accounts for 93.99%, 88.72% and 86.44% respectively, and the "partiality" in the channel makes Liu Liu Orchard subject to dealers in its operation.
Coupled with the migration of people's consumption habits, the offline distribution mode of taking the orchard is increasingly deviating from the needs of consumers.
2. The product is single, and the competitive products are constantly.
As far as the hardware facilities of the orchard itself are concerned, in addition to the channels, the products are also seriously damaged.
Nowadays, it is an indisputable fact that a single product type can't satisfy the increasingly bitter mouth of consumers, and the orchard is still obsessed with making a fuss about plums:
Although this is indeed in line with the founder's requirement of "making plums to the extreme", the fact that new products are always inseparable from plums also reflects the single product structure of Liu Liu Orchard.
At the same time, it is also accompanied by the excessive dependence of enterprises on raw materials.
Because the raw materials of Prunus mume are easily influenced by climate, and the raw materials account for a relatively high proportion in the cost composition of orchards in Liu Liu, in 20 17 years, the production of Prunus mume was reduced due to frosty weather, so Liu Liu orchards had to buy raw materials at a high price.
Therefore, the secondary problem caused by a single product is also one of the factors that have an important impact on enterprise performance.
At present, snack enterprises have turned to the development path of product diversification, and realizing "one-stop purchase of snacks" for consumers has also become a recognized goal of the industry.
Although Liu Liu Orchard is also trying to cross-category, its main competitors have passed the running-in period of new products and are in the forefront of all-round development.
It's not difficult to sneak around the orchard after knowing it, and want to catch up later.
However, the more optimistic signal is that the proportion of income brought by the "Hello Fruit" series of dried fruit products in the orchard is increasing year by year, which may become the vane of product structure adjustment after the orchard.
3. Process outsourcing, quality control is difficult
Most of the products of Liu Liu Orchard come from its own processing base, but in order to achieve rapid development, the production processes of pickling and drying blanks are handed over to other factories.
Although the company claims to strictly screen the manufacturers according to various production conditions, the cooperative manufacturers are not directly managed after all, and it is difficult to achieve synchronous and transparent product quality control. Once a product quality incident occurs, it will endanger the company's reputation.
In addition to these major hidden dangers, the prospectus of Liu Liu Orchard also marked the public with risk warnings such as food safety, environmental pollution and rampant shanzhai.
Although there are many risks and negative returns, listing is not necessarily undesirable. After all, in today's intensified peer competition, channels, production capacity and marketing all need a lot of financial support.
There is nothing new in the sun, but in the capital market where people turn their faces like books, will walking around the orchard stop bleeding or accelerate blood loss? It is worth looking forward to.
About the author: Jane, explore the financial space from a minimalist perspective, observe the business laws under hot spots, and interpret the business logic behind the enterprise.
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