1
The price increase stems from the rising cost?
As for the reasons for the price increase, Hengshun Vinegar said that the price increase is based on the increase of cost factors such as packaging materials, and it is also to further focus on the strategy of Class A products and rationalize the price system.
However, in the eyes of the industry, the price increase of Hengshun vinegar industry is not only due to the rising cost, but also because Hengshun vinegar industry still has a big gap from the strategic goal of 2065438+2009 revenue of 2 billion yuan, so it is necessary to increase the revenue scale and net profit through price increase.
From 2065438 to 2004, the board of directors of Hengshun Vinegar Industry completed the change, and set the strategic goal that the sales of sauce, vinegar and condiments exceeded 2 billion yuan.
The financial report shows that in 20 17, the revenue of Hengshun vinegar industry was154.2 billion yuan, only increasing by 6.52% year-on-year. The operating income of 20 18 in the first three quarters was only12.36 million yuan, a year-on-year increase of 10.83%.
It is understood that the annual sales of the above five series of products in 20 18 are about 96.85 million yuan, 486 1 10,000 yuan, 439 1 10,000 yuan, 3710.6 million yuan and 9.58 million yuan respectively.
"If the price increase does not affect the sales volume, every price increase of 1% can increase the net profit by 25% and the sales volume of 13. 14%." Brokerage analysts pointed out.
In fact, in recent years, Hengshun vinegar industry has raised its price three times, namely 20 10, 20 14 and 20 16.
According to the analysis of Northeast Securities, compared with the changes of the company's revenue before and after the three price increases of Hengshun, the company's revenue in the first quarter declined after the price increases of 20 10 and 20 14, and the company's sales volume decreased after the price increases. After the price increase of 20 16 company, the company's income increased.
Therefore, it remains to be seen whether Hengshun vinegar industry can achieve the expected goal from the past experience of price increase and the current revenue situation.
2
"A+X" strategy is the layout of "big condiment"
According to public information, Hengshun Vinegar Industry is the only enterprise in A-share mainly engaged in vinegar manufacturing, which was listed on 200 1.
As we all know, vinegar is an acidic liquid condiment fermented from sorghum, rice, corn and wheat, and it is the third largest category in the condiment industry. Due to the influence of different fermentation raw materials and fermentation processes, with the development of history, four famous regional vinegars have been formed in China: Shanxi aged vinegar, Baoning vinegar, Zhenjiang aromatic vinegar and Yongchun aged vinegar.
The taste and taste of different vinegars are quite different. After consumers get used to a certain kind of vinegar, they will form certain taste and usage habit dependence.
In order to help the company's performance continue to rise, at the product level, Hengshun vinegar industry has formulated the "A+X" strategy, highlighted the positioning of Hengshun aromatic vinegar star products, allocated special resources for products to enter the market, laid channels, and increased the market share of A products, supplemented by non-A products such as white vinegar and cooking wine. On the product side, seven series of dozens of products have been developed, exceeding 100 SKUs.
In 20 17, the income of cooking wine for Hengshun vinegar industry exceeded 65.438+0.5 billion yuan, and the newly-built cooking wine production capacity was 65.438+0.00 million tons. The mid-year report of 20 18 shows that the proportion of cooking wine in total revenue is 10.88%, which is one percentage point higher than 9.90% at the end of 20 17.
Hengshun vinegar industry also regards high-speed rail as an important window for brand promotion, and strengthens brand value and expands its popularity by naming variety shows and inserting advertisements.
In order to adapt to the consumption upgrade, Hengshun vinegar industry has also actively laid out the high-end vinegar industry, developed pure white vinegar, healthy kitchen expert series, and derivatives such as vinegar beverage, milk vinegar, fruit vinegar and vinegar products.
Hengshun Vinegar has built 20,000 standardized farmer's terminal stores through deep distribution and channel sinking, and explored B2B and B2C channels such as e-commerce, special delivery and new retail.
With the implementation of product strategy, the sales of Hengshun vinegar industry have increased.
three
The condiment market is huge and the competition pressure is great.
As a necessity in our life, condiments account for a small proportion of food expenditure. The average annual income of first-tier cities is only 239 yuan, and the demand price elasticity is weak.
But it is an indispensable consumer product in people's lives, and its market scale is huge. According to the analysis report of market demand forecast and investment strategic planning of condiment industry, by the end of 20 16, the scale of condiment market in China had reached 288.598 billion yuan. It is predicted that during the period from 2018 to 2022, the scale of condiment market in China will maintain steady growth, and it is expected to reach 44 19 billion yuan by 2022.
Take Haitian Ye Wei, a A-share listed company, as an example. In the first three quarters, the operating income was 20127100000 yuan and the net profit was 31330000 yuan. In addition, condiment companies in listed companies include Qianheweiye and Zhongju Gaoxin.
The concentration of main business of Hengshun vinegar industry is low. In the big market, the concentration of CR5 in China vinegar industry is less than 15%. Therefore, if the price increase is too high, it is likely to affect consumers' choices.
However, the overall concentration of vinegar industry tends to increase, leading vinegar enterprises have more room for improvement, and the competition among enterprises is relatively mild. Therefore, as long as the company vigorously promotes and adopts reasonable methods, the company can achieve faster development.
The insiders believe that vinegar enterprises can compete from three aspects: brand power, product power and channel power: first, brand power and product power create the internal driving force of enterprise competition; Secondly, channel construction determines the long-term competitiveness of enterprises.