The biggest price reduction in the history of good shops, we finally have ＂snack freedom＂？

The good shop, one of the three giants of snack food, raised a machete to reduce the price. In an instant, the average price of more than 300 products was reduced by 22%, with the highest drop reaching 45%.At one time, the "Big Three Snacks" set up a wide moat of food safety due to their listing, and started a journey of leisure snacks with high prices and high quality. Now, consumers’ wallets are gradually shrinking, and hundreds of mass-selling snack shops on street corners have eroded their share, and the market has returned to low-price competition.A plot to control the price of capital on the consumer market has become invisible, and the giants have to bow their heads.

Stills of "When I Run to You"

The scenery and loneliness of snack food giants can be traced.The products with the highest price reduction rate in this good shop are nuts, including macadamia nuts, pine nuts, pistachios and cashews. In fact, the scenery of snack food giants is hidden in nuts.

Nuts are rich in protein and nutrition, and are the essence of life condensed by plants for breeding the next generation. Nuts are also rich in unsaturated fatty acids, which have certain effects on preventing atherosclerosis, hypertension, coronary heart disease and other diseases. All this means that consumers in China will consume more nuts. According to the data of INC in 2019, the per capita annual consumption of five kinds of nuts in China is only 0.23kg, and the average levels in the United States, Japan and the world are 8 times, 2 times and 2 times that of China respectively.In the process of improving consumers’ living conditions and upgrading consumption, the amount of nut consumption is certain.

But nuts taste fresh, but they are very easy to oxidize and deteriorate. The result of deterioration is aflatoxin, which is a carcinogen.Of course, generally speaking, there will be no such serious consequences. It is enough to pay attention to the production date and brand name.

In addition to eating by yourself, nuts are also used as gifts because of the high unit price. In this scenario, brands are more useful.At that time, survey data showed that more than half of consumers said they would pay attention to brands when buying nuts, and 83% of consumers tended to choose well-known brands and big brands, which gave big brand enterprises quite free pricing power.

Three years ago, the stock price of Liangpin Shop was 15 consecutive boards as soon as it was listed, which rose for nearly a month, and its market value more than tripled. The logic of capital is clear: in the field of snacks, especially nuts, a slight expiration may affect the taste and produce harmful substances. Branding is the only way, and brands protect the interests of enterprises and consumers.With a well-known brand and a tall product image, the leisure and snack giants have commercial barriers.The core of barriers is high quality, and high quality corresponds to high price, so-called high quality and high price. As a result of high price and high quality, the snack food giants who have made a name for themselves will get a high valuation.

Stills of "Yu Zi without Progress"

It seems that this is an ideal development path for both consumers and brands. You make money and I get safe food.. But I don’t know if you have noticed, but up to now, we still haven’t reached the average consumption level of consumers in the United States, Japan and even the whole world.However, enterprises use the trust of consumers to quietly increase the gross profit margin of leisure snacks.For example, when you look at corporate financial reports, you often see that the gross profit margin of nuts exceeds 30%, setting a new high.

Unfortunately, leisure snacks can be described as not having the life of liquor, but getting the disease of liquor.Being a giant doesn’t mean that nuts will be exclusively handled by them. Especially when the brand premium becomes too high and it is necessary to pay too high a price for trust, consumers can not buy it. After all, the threshold of this industry is really not high, and their own emerging enterprises fill the gap in the market.

The biggest change in the snack retail industry in the past two years is the emergence of a large number of mass-selling snack shops.These snack shops all over the street corner, large glass windows, simple display cabinets and a wide range of small packaged snacks have brought snack sales to a brand-new model.

The discount snack shop purchases directly from the factory, eliminating the dealer link, so the goods are cheaper.Compared with the snack shelves in supermarkets, the types of bulk products in discount snack shops are more abundant. Different from the way of selling super-large packaging, many snacks here are small grams, individually packaged and weighed by the weight. In 2021, there were only 2,500 discount snack stores in China, and it will expand to 13,000 by the end of 2022. According to this trend, there may be nearly 30,000 stores this year.

Discount-style snack shops have not only blossomed everywhere, but also recently started the capital operation of mergers and acquisitions.Zhao Yiming Snacks and Busy Snacks, two brands of mass-market snacks, have announced a strategic merger.

Since bulk snacks are equally delicious and cheap, the snack giants who have just established their brands will soon be defeated.The revenue of good shops has declined year-on-year for five consecutive quarters, and in the third quarter of this year, it fell into a double decline in revenue and profit, of which the accumulated revenue fell by 14.33%. Reducing prices to regain the market is the choice that must be made in front of snack giants such as good shops. In fact, as early as a year ago, the three squirrels put forward a high-end cost-effective strategy, which made the price of their main nut products significantly lower than that of their competitors. This strategy did not seem to stabilize the sales of the three squirrels. In the first three quarters of this year, the operating income also dropped by 14%, but it is believed that competitive prices were strictly implemented in the third quarter, and sales began to pick up.

Stills of Ode to Joy

Today’s big three snacks, their profit situation is far from comparable three years ago, and there is no hope of ensuring profits. If you want to survive, there is only one way to reduce prices.When the good shop launched the price reduction strategy in an all-round way, the capital market rewarded it with great rewards, and the stock price went up and down for two consecutive days, showing this state of being forced to die after being cornered.

This year’s price trend, price reduction is the mainstream, and CPI fell into a negative value in October.Among them, the price of food dropped by 0.8%, which became the main reason for the price drop. The price reduction of food is due to the weather, good weather and abundant products, and the overall supply of agricultural products is sufficient. However, considering that pork, which affects the price the most in a year, has not improved, it shows that consumption is in a state of insufficient purchasing power. At this time, for a large number of surplus food supplies, there is a chance to reduce prices. Even for Maotai, there is a huge price difference between wholesale and retail. For example, when the wholesale price of Maotai has increased by 20%, the retail price has only increased by 0.7%, which shows that the retail market has no ability to digest the price increase at all. I have been watching many liquor brands that are eager to try, so I have not followed up.

"Good Sir" stills

In such a market environment, price increases are tantamount to being against consumers and their own business prospects. And price reduction is to follow the trend and join the mainstream. The drop is less, just like a night trip, no one pays attention, and it can’t get market share.Only by lowering the price loudly and imposing manner can we earn the lottery.In this sense, the good shop is the main theme of this year’s business.