Three squirrels suspended store expansion and closed 300 stores within two years. Three squirrels said on the investor interaction platform that they would vigorously close stores that did not meet the long-term positioning and poor performance, and the next step would be to improve the profitability of single stores. Three squirrels suspended store expansion and closed 300 stores within two years.
Three squirrels suspended store expansion and closed 300 stores in two years. 1 Three squirrels said on the investor interaction platform that the store expansion has been completely suspended.
Three squirrels said that from the perspective of high-quality development, there were problems in the large-scale and extensive development model of stores in the past. To this end, the company completely suspended the expansion of stores and vigorously shut down stores that did not meet the long-term positioning and poor performance. The next step will be to improve the profitability of single stores and focus on the high-quality development of high-quality stores.
Three squirrels were founded on 20 12, and landed on GEM on July 20 19, becoming "the first snack for network celebrities". 20 19 Zhang Liaoyuan, the founder of Three Squirrels, threatened to complete the "offline store" plan within five years. However, two years later, three squirrels closed 300 stores in two years, so they went on a hot search.
On April 26th, the general manager of Three Squirrels Distribution Division, Shu Yi, released the global distribution strategy of Three Squirrels in the form of live webcast. This is the first official interpretation of the key planning of distribution business in 2022 after the three squirrels issued the "Important Announcement on Comprehensively Promoting Strategic Transformation and Upgrading and Towards High-quality Development".
According to Shu Yi, the distribution of three squirrels has determined three major battles in 2022, among which the "scattered counter" project brought about by the battle of new business incubation has achieved some phased results.
It is reported that the project of "Scattered Weighing Counter" started internally in September, 20021year, which lasted about eight months from image design, product planning, upstream supply chain docking, product selection and pricing. Finally, it was released in April of 14 through the official micro of three squirrels.
According to the news released by the official WeChat account of the three squirrels, the weighing counter attracts customers to the counter with the IP image of the three squirrel brands, bringing a brand-new interactive experience. This move can make good use of the brand advantages of the three squirrels and quickly build their unique position in the pre-packaged weighing market of blank nuts.
As one of the key projects of the three squirrels in 2022, the first batch of products of the counter project are selected from 50 SKUs in 7 categories, taking into account product quality and cost performance, and perfectly combining the brand advantages, supply chain advantages and production advantages of the three squirrels, which will be officially launched in June 2022.
In order to adapt to the strong seasonal and annual consumption characteristics of nut products, the three squirrels will launch snack products in addition to the core small package nut products to meet the needs of annual consumption scenes and cover the preferences of consumers in different seasons.
At the same time, as an online snack giant, the three squirrels can compare data according to consumer preferences /90-day repurchase rate/past sales, and launch differentiated product choices, thus quickly bringing online hot-selling products offline, truly realizing online and offline information exchange and creating value. Through data screening, we can quickly grasp the trend changes of scattered snacks, complete the rapid iteration of terminal products on a quarterly basis, and satisfy consumers' pursuit of scattered snacks.
It is reported that at present, three squirrels have simultaneously planned the second phase of the counter. In addition to adding hot-selling categories like potato chips, transparent and simple nuts are also planned.
Three squirrels suspended store expansion and closed 300 stores in two years. On May 9, three squirrels said on the investor interaction platform that from the perspective of high-quality development, there were problems with the large-scale and extensive development model of stores in the past. To this end, the company completely suspended the expansion of stores and vigorously shut down stores that did not meet the long-term positioning and poor performance. The next step will be to improve the profitability of single stores and focus on the high-quality development of high-quality stores.
Last year, the total number of three squirrel "feeding shops" and squirrel alliance shops closed was 43 and 288 respectively. By the end of 20021,three squirrels owned 140 food stores, achieving a total revenue of 800 million yuan, with an average annual revenue of about 5.7 million yuan per store; There are 925 small squirrel alliance stores, and the total revenue of the stores has not been disclosed.
What are the reasons for the double frustration?
We don't produce snacks, we are just porters of snacks. This is the label of "Internet celebrity" on three squirrels.
Even though today's three squirrels have become "the first in all categories of snacks" and even ring the bell, the company's snack production still relies heavily on the foundry.
The production mode of "OEM+OEM" of the three squirrels is the fundamental reason for their frustration everywhere. In addition, the rise of competitors on the same track is also an important reason for affecting their revenue.
First of all, this model of "finding someone else to produce and labeling themselves" is conducive to the early light asset entrepreneurship of the three squirrels. After all, at that time, e-commerce was in the era of traffic dividends, making money easily and without burden.
But it's different now. After accumulating enough original capital through traffic dividends, today's three squirrels are also the leading businesses of zero food in the e-commerce market and the top food brands in consumers' minds.
However, in the past two years, three squirrels were criticized by consumers because of food quality problems, which had a bad influence on the brand. More importantly, it has no way to control the quality of products.
The outsourcing of production links has brought about large and small quality control problems. Whether it is the production equipment or the employees on the production line, the three squirrels can't guarantee a unified standard, and they can't supervise them one by one.
Once the foundry goes wrong, the three squirrels facing the consumers will be reviled. Failure to guarantee product quality is the achilles heel of food enterprises.
At the same time, food brands such as qiaqia and Liangpin Store, which have been deeply involved in the offline market for many years, have also started to move online, and achieved good results in the e-commerce market by innovating and constantly expanding categories.
These brands with a certain consumption base offline are easily recognized online and quickly occupy a certain market share.
The appearance of the drawbacks of its own development model and external diversion have led to the slowdown of online revenue, while offline stores have failed to become a solution to their revenue growth dilemma because of the impact of the epidemic and the high cost of physical stores.
Internet celebrity squirrel, what's the future?
Internet celebrity squirrel wants to be a national brand.
The store can't do it. It's distribution 2002110, at the autumn sugar fair, Zhang Liaoyuan, the founder of the three squirrels brand, released a new distribution strategy, proposing to achieve the goal of "5 billion in three years and 0 billion in five years".
According to related news, in the next two months, the three squirrels developed 33 products for distribution, established cooperation with nearly 300 dealer partners, and settled in famous supermarket chains such as Yonghui, Wal-Mart and RT Mart, covering nearly 300 prefecture-level cities in China.
Staggered with the high-end layout of competitors' good shops, online celebrity squirrels began to create their own "national snacks" positioning through traditional distribution channels.
But if you want to be a national brand, one hurdle that you can't get around is cost performance. But at present, the price of three squirrels does not have this advantage in snacks. In recent years, there has been a trend of "secretly raising prices".
Regarding the price issue, the three squirrels once said that by establishing an "alliance factory" model, that is, investing in one or more production lines of the factory and cutting into the upstream supply chain, the cost will be further reduced.
The three squirrels who still haven't chosen to build their own factories want to achieve the goal of reducing costs and increasing efficiency through the mode of "producing their own things without building factories, and the factories mainly charge processing fees and management fees". Whether it can be successful remains to be verified.
However, the network celebrity squirrel relying on OEM economy has finally taken a step to the supply chain, but the road ahead is still unknown. If the three squirrels want to embark on the road of high-quality development, they need to make more efforts.
Three squirrels suspended store expansion and closed 300 stores within two years. On May 9, three squirrels said on the investor interaction platform that "the company has completely suspended the expansion of stores and vigorously shut down stores that do not meet the long-term positioning and poor performance". The relevant person in charge of the three squirrels said that the comprehensive stop of expansion was mainly due to the consideration of long-term steady development, slowing down the pace and looking for a high-quality store management path.
Transformation is something that three squirrels have been talking about and doing for a long time in the near future. Recently, three squirrels released a strategic transformation report, which mentioned that "we should transform from e-commerce to omni-channel, and build a traditional distribution network based on the global distribution division".
In the eyes of the industry, the three squirrels have carried out a large number of offline store expansion in the context of the loss of Internet dividends, ignoring the store cost and management hidden dangers to some extent, and even affecting the company's performance. Now transforming into distribution may maximize the integration of online and offline operations.
Suspend store expansion
Announced a complete suspension of store expansion, and the goal of three squirrels "Wanjiamen Store" was abandoned.
On May 9, in response to the question of whether investors will continue to increase their efforts to open stores after optimizing their stores, three squirrels said on the investor interaction platform, "From the perspective of high-quality development, there were problems in the large-scale and extensive development model of stores in the past. To this end, the company completely suspended the expansion of stores and vigorously shut down stores that did not meet the long-term positioning and poor performance. The next step will be to improve the profitability of single stores and focus on the high-quality development of quality stores. "
Regarding the reasons for the suspension of store expansion, the relevant person in charge of the three squirrels said in an interview with beijing business today today that the overall suspension of expansion was mainly due to the consideration of long-term steady development, slowing down the pace and looking for a high-quality store management path.
"In the long run, the three squirrels will transform from the past e-commerce model to the mainstream model, taking into account online and offline, and the channel focus will be tilted to offline, especially the distribution channel. Online, they will give full play to their years of experience in operation and management, build them into replicable samples, and become bigger and stronger through the exploration of new e-commerce channels and multi-brand application practices. "
According to the data, the three squirrels were founded on 20 12, which is the first enterprise in China to be positioned as a pure internet food brand. The main business covers nuts, bacon, dried fruits, puffing and other leisure snacks.
On July 19 and 10, the three squirrels announced the issuance of common shares, and listed on the Growth Enterprise Market of Shenzhen Stock Exchange on July 12, becoming the "No.1 snack stock for online celebrities". At the end of 20 19, Zhang Liaoyuan, the founder of Three Squirrels, said that in 2020, Three Squirrels will open 10000 offline stores and10000 offline stores within five years.
In addition to stopping the expansion, the three squirrels are still doing the subtraction of the store layout. Not long ago, three squirrels boarded a hot search in Weibo because of the topic of closing 300 stores. Specifically, in 20021year, 3 squirrel food stores opened 12, and 43 closed, totaling 140 at the end of the period; Alliance stores opened 34 1 stores and closed 288 stores, with a total of 925 stores at the end of the period.
The financial report shows that in the first quarter of 2022, the operating income of the three squirrels was 3.089 billion yuan, down15.85% year-on-year; The net profit attributable to the parent company was 1.6 1 billion yuan, down 48.75% year-on-year. In 20021year, the annual revenue of three squirrels decreased by 0.24% to 9.77 billion yuan, which is the second consecutive year that the revenue of three squirrels fell below 100 billion yuan since 20 19.
For the decline in performance in the first quarter, the three squirrels explained in the financial report that in addition to the impact of the New Year Festival, the continuous intensification of competition under the background of traffic differentiation, and the increase in raw material costs, the "phased closing of stores" also had a certain impact on its performance and revenue.
Turn to "distribution"
Perhaps it is a reconsideration of the expansion and performance of the store, and the three squirrels have started a new round of transformation.
Recently, the three squirrels released the 20021annual report, and at the same time released the "important announcement on comprehensively promoting strategic transformation and upgrading towards high-quality development." In the report, it is proposed to transform from e-commerce to omni-channel, and build a traditional distribution network with global layout based on the distribution division.
As the leader of the snack industry, the three squirrels are more cautious in the expansion of online stores, but the importance of offline markets cannot be ignored. According to Frost &; Sullivan data shows that in 2020, the offline sales scale of snack food will exceed 1 trillion yuan, accounting for 82%, and offline will still be the main channel of snack food market.
In this context, the three squirrels changed their offline layout ideas, suspended store expansion and turned to "moderate distribution". 202 1 10 three squirrels announced the launch of the long-planned media distribution strategy at the distribution strategy star product launch conference. The so-called "moderate distribution" is summed up by the general manager of the distribution division in one sentence: "Channel efficiency replaces low efficiency, channel low cost replaces high cost, and channel scale replaces localization."
The distribution of three squirrels has achieved some results. The data shows that in 20021year, the newly released three squirrels realized an operating income of160.9 billion yuan, up by 38. 16% year-on-year. In terms of products, three kinds of squirrels have developed more than 30 special products for distribution;
In terms of channels, it has established cooperation with nearly 300 dealer partners and settled in the top 100 China chains such as Yonghui, Wal-Mart and RT Mart, covering nearly 300 prefecture-level cities across the country; In terms of brand, more than 60% of the top 100 chain stores have settled in, and the sales of three squirrel nuts ranked first in the New Year Festival.
China food industry analyst Zhu said that at present, the homogenization of snack products has intensified. For the three squirrels, how to break the ceiling and realize the short-board complementarity and integrated operation of online and offline will be the biggest challenge for their brands. The distribution of three squirrels can maximize the integrated operation of online and offline, the integration of online and offline resources, and the complementarity of online and offline short boards.
Shen Meng, director of chansons Capital, suggested that in the future, the three squirrels should adjust and optimize their management, especially the cost structure, increase the gross profit margin, reduce unnecessary expenses, and reorganize their assets and business structure based on the rate of return.