Liangpin Store’s self-rescue successfully achieved both revenue and profit growth, and what kind of signal did it release to the snack food industry?

Recently, the 2020 annual financial reports of various listed companies have been released one after another, revealing the performance of each company in 2020.
In 2020, due to the outbreak of the epidemic, the financial status of all companies will be more or less affected by the epidemic.
As for the snack food industry, some companies have been affected by the epidemic to resell their businesses, while some companies have found new growth points and demonstrated their own "resilience.
"

On the one hand, Baicaowei sold PepsiCo for USD 705 million, and Nestlé Group sold Yinlu peanut milk and Yinlu canned eight-treasure porridge business in China; on the other hand, the annual financial report of Liangpin Store showed that the company's revenue and net profit achieved both growth, 2020 The annual operating income was 7.
894 billion yuan, a year-on-year increase of 2.
32%, and the net profit attributable to the parent was 344 million yuan, a year-on-year increase of 0.
95%.

According to the "Report on the Development of the Snack Industry under Consumption Upgrade" issued by the Ministry of Commerce, by 2020, the total industrial scale of the snack industry is expected to be close to 3 trillion yuan.

It has to be said that self-rescue from the entire snack industry has supported the total market of China's snack industry in 2020, and the self-rescue methods of leading companies also provide valuable experience for the development of other companies in the industry.

Coinciding with the release of Best Store’s 2020 annual financial report, let’s take a detailed interpretation of Best Store’s financial report to see why Best Store can achieve both revenue and profit growth.

Strength of internal repair, current appearance, market segmentation and new additions

Strength of internal repair, current appearance, market segmentation and new additions

After experiencing the traffic dividends brought about by the rise of e-commerce platforms in the past few years, the snack food industry has gradually moved from an incremental market to a stock market, and market competition has become increasingly fierce.

With the fierce market competition, the homogeneity of the products of leading companies has become more and more serious.
If no measures are taken, price wars that are unfavorable to the companies will inevitably occur, and the way to avoid price wars is to differentiate products.

On the other hand, Clayton Christensen (Clayton Christensen) once put forward a famous "disruptive innovation" theory, the core point of view is that in a market controlled by dominant companies, new companies can provide for those neglected groups More appropriate and cheaper services, so as to gain a firm foothold.

For these two reasons, the leading companies and new companies in the snack food industry have chosen to take the route of neglected market segments.

Leading companies have launched sub-brands for market segments.
For example, Liangpin Shop, Three Squirrels, and Baicaowei all have sub-brands for children's snacks; new companies also choose to start with segmented products, for example, Wang Baofeng starts with oatmeal.

Each company chooses to start with market segments, but the models and results are not the same.

Some companies have gained a firm foothold in the market segment, and even promoted the market segment to become a new incremental market for the snack industry.
For example, the children's snack sub-brand "Good Product Xiaoshixian" of Liangpin Shop had sales revenue of 295 million yuan as of the end of 2020, a year-on-year increase 51.
27%, in the top brand echelon in the children's snack market segment.
Some companies have become cannon fodder in the development of market segments, and have closed their market segments after losing money.

In the author's opinion, although various snack companies have entered the market segment, they have different results because of their own R&D capabilities and different insights into consumer trends.

The leading company takes Liangpin shop as an example, and the new company takes Wang Baobao as an example.
With the help of these two companies, they conduct in-depth analysis of the snack industry's entry into the market segment.

In terms of R&D strength, according to the 2020 financial report data of Liangpinshop, R&D expenses increased by 23.

22% year-on-year, and a total of 33.
717 million yuan was spent on research and development, including 9.

Science and technology are the primary productive forces.

Snack companies have R&D capabilities.
After entering the market segment, they can rely on their own technology to empower products, and then promote the development of the entire market segment.

In terms of consumer trend insights, according to the division of Japanese modern consumer behavior stages in the "Fourth Consumer Era" by the Japanese writer Miura Exhibition, Chinese consumers are in the third consumer era, advocating personalized consumption, advocating brands, and pursuing consumption more The meaning behind it.

Liangpin shop launched snacks for children and fitness snacks.

Wang Baofeng chose to establish a snack brand from cereals, a nutritious breakfast, first to establish a brand in market segments, and second to grasp the consumption of today’s consumer scene-oriented and healthy consumption trend.

In the snack food industry, companies have a strategic vision for market segmentation, as well as R&D capabilities and insights into consumer trends, so that they can break through the market segments and find incremental markets.
Best stores can achieve both revenue and profit growth in 2020.
First of all, relying on its own R&D strength and insights into consumer trends, it can deliver good products in market segments and build its own segmented product matrix.

Launched with multiple online and offline engines, reaching consumers across all channels

Launched with multiple online and offline engines, reaching consumers across all channels

The snack food industry belongs to the retail industry.
The underlying logic of the retail industry is that merchants deliver a good product and consumers are willing to pay a certain gross profit, so as to slowly expand the scale.
After snacks companies deliver products through R&D capabilities, they need a certain path to reach consumers, and this is the channel.

For the snack industry, channels are also very important.
In the past year, offline channels have been impacted by the epidemic, and online channels have also been impacted by live broadcast e-commerce.
It is also a challenge for companies in the snack industry to cope with the difficulties from channels while looking for increments.
.

In terms of offline channels, BESTORE did not blindly choose to deploy supermarkets, but continued to expand offline stores based on consumers' consumption experience.

As mentioned above, in today's consumer era, consumers are more inclined to personalized consumption, and the same is true for offline consumption.
Shopping malls and supermarkets, which are biased towards comprehensive consumption scenes, are outdated.
People are more inclined to the more vertical consumption scenes of branded stores.
Therefore, BESTORE chose to continue to deploy branded stores.

At the same time, steadily and steadily looking for incremental markets.

The epidemic has a relatively large impact on BESTORE.
The headquarters of BESTORE is in Wuhan.
The annual revenue of offline stores in Central China is 2.
059 billion, a year-on-year decline.
Therefore, in 2020, BESTORE has stepped up the pace of opening stores in East China and South China, looking for incremental markets.

In 2020, the offline revenue of BESTORE finally achieved positive growth in the fourth quarter.
This is due to the gradual stabilization of the epidemic, as well as the consideration of the consumer experience and the incremental market for BESTORE.

In terms of online channels, Best Stores balances online channels based on its own insights into consumer trends.

One is the traditional e-commerce platform.
Amoy e-commerce companies are about to reach the ceiling of the total number of e-commerce users in China, and traffic growth is slow.
Other e-commerce platforms such as JD are still in the stage of power growth, and the layout of Liangpin stores on all e-commerce platforms is relatively balanced.
Tmall and JD channels contributed 1.
756 billion yuan and 1.
444 billion yuan respectively in 2020, and JD’s self-operated store revenue was 1.
061 billion yuan, a year-on-year increase of 69.
95%.

The second is live e-commerce.
Affected by the epidemic, live e-commerce has become a new outlet for online channels.
Liangpin shop seized the traffic dividend brought by this trend and established a social e-commerce business unit.
As of the end of 2020, the cumulative sales revenue from Douyin and Kuaishou channels reached 123 million yuan.

In addition, BESTORE uses digital empowerment of offline stores, opening up offline and online channels.

Now we are in the second half of the mobile Internet era.
When the public domain traffic dividends of various e-commerce platforms are gradually peaking, the traffic law in the second half gradually evolves into traffic quality greater than quantity, scenarios greater than traffic, and retention greater than refreshing.
Private domain traffic is in line with the traffic requirements of the second half of the mobile Internet.

The “Store+” of BESTORE empowered offline stores, which not only solved the problem of contactless delivery during the epidemic, but also accumulated a large amount of private domain traffic for BESTORE.
Under Meituan's ecology alone, 260 million people have been exposed.

If Z=P×N×S is used to represent the relationship between the revenue space of the Best Store and the unit price, demand, and market penetration rate, since the Best Store considers the omni-channel layout based on consumer experience, consumer insight, and digitalization, increase and consumption There is still room for improvement in the market penetration rate of BESTORE, and the revenue of BESTORE will naturally increase.

The snack food industry has entered a new era, and the trillion-dollar consumer market needs companies to develop together

The snack food industry has entered a new era, and the trillion-dollar consumer market needs companies to develop together

According to the data of the China National Commercial Information Center, the retail sales of my country's snack food market in 2020 will increase by more than 6% year-on-year.
There are several reasons why the snack food industry will grow against the trend in 2020.

First, there are external reasons.

First, affected by the epidemic, the global economy has gradually shown a trend of counter-globalization, driving the economy's troika of investment, consumption, and exports as a burden on consumption, and the country has begun to advocate economic internal circulation.
The snack food industry is a fast-moving consumer product, which assumes the responsibility of economic internal circulation and comes from the consumer demand for domestic products.

The second is consumption trends.
Affected by economic development and changes in the retail industry, the middle class has become the main consumer group.
The current consumption trends in my country are mainly consumption upgrades, scene consumption, brand advocacy, personalized consumption, and healthy consumption.
In the high-end brand market of the snack food industry, the high-quality and competitive price products meet the consumer's consumption trend, eating safe, nutritious, and healthy.

Secondly, it is the reason of the snack industry itself.

Relying on their accumulation of R&D capabilities and insights into consumer trends, leading companies and new companies in the snack food industry have opened up market segments and used tangible product technology to promote the development of sub-industry, and indirectly promote the entire industry.
The snack food industry has re-entered the incremental market from the stock market.

With the development of various brands in the snack food industry in terms of segmentation scenarios, the snack food industry will also enter a new era and continue to achieve an increase in market space.

2020 is an extraordinary year, and Best Store has achieved both revenue and profit growth.
In fact, it is just an example of thousands of enterprises successfully implementing self-help innovation.
By gaining insight into consumption trends, accumulating technical strength, rationally arranging channels, and earnestly achieving these, all companies can also achieve growth when crisis comes.

Best shop tastes the sweetness of focusing on research and development

Best shop tastes the sweetness of focusing on research and development

Yesterday, Best Snack, a leading leisure snack company, released its 2020 Q4 and full-year financial reports.
Both its revenue and net profit attributable to the parent rose, representing an accelerated recovery in performance.
What is gratifying is that despite the impact of the epidemic in 2020, BESTORE did not reduce R&D expenditures, but showed double-digit growth.

The financial report shows that its research and development expenses in 2020 will increase by 23.
22% year-on-year to 33.
717 million yuan.
Among them, information research and development is 9.
378 million yuan, product research and development is 24.
355 million yuan.
Research and development expenses are mainly composed of employment costs, and the research and development expense ratio (R&D in revenue) reaches 0.
4%.

Some people can't help but wonder, how can the small snacks have any technical content? Does Best Store invest tens of millions of yuan in research and development expenses every year? In fact, the situation faced by BESTORE is just the opposite.
The outside world is not questioning that its R&D investment is too much, but that it is less.
The R&D expense ratio has been low for a long time, especially when compared with the high sales expense, it is even more criticized and posted.
Put on the label of "Light R&D, Heavy Sales".
But, is this the truth?

What is the level of R&D of Best Store?

What is the level of R&D of Best Store?

Due to well-known reasons, in recent years, my country's efforts to overcome difficulties in frontier fields and basic research have attracted much attention.
Technology and Internet companies have rushed to the front line, especially in the fields of chips, artificial intelligence, big data, cloud computing, etc.
, which have attracted a lot of funds.
And the influx of talents.
They are strong, invest tens of billions of yuan or more in research and development every year, and form a technical team of tens of thousands of people.

Nowadays, when it comes to technology research and development, many people are accustomed to aligning with technology and Internet companies.
In other words, technology and Internet companies are willing to invest in hard-core technology and implicitly set a high standard.
Some people often use this standard to demand other companies.
If they fail to meet the standard, they will be labeled as not paying attention to technology research and development.

In my opinion, this extreme view is unfair to other companies.
After all, each industry has its own unique characteristics and cannot be measured by the same standard.
For example, a large number of high-tech technologies have emerged in the field of science and technology, and R&D costs are naturally indispensable.
Leisure snacks have never been a technology-oriented industry.
It is not realistic to invest tens of billions and attract tens of thousands of people to do research and development.

It is understandable that BESTORE is in it, and it determines R&D investment according to the characteristics of the industry and its own development needs.
From 2018 to 2020, its research and development expenses were 20.
81 million yuan, 27.
36 million yuan, and 33.
72 million yuan respectively, a year-on-year increase of 31.
50% and 23.
22%.
The annual R&D investment of tens of millions of yuan and maintaining double-digit growth is really not low, even if it is placed in the entire industry, it is at the upper middle level.

The financial report shows that in 2020, the major players in the leisure snack industry will spend 10-50 million yuan in research and development, with a growth rate of 6-70%, and the research and development expense ratio will be between 0.
3% and 2%.
With these three indicators, BESTORE’s performance is remarkable and has certain advantages.
After all, it is the only company in the industry that has maintained growth in R&D expenses and personnel year after year.
Therefore, objectively speaking, the R&D strength of BESTORE is not as weak as outsiders imagine, and it still maintains a certain level.
Don't deny its efforts easily.

Of course, BESTORE not only consolidates its own technical foundation, but also invests a lot of energy in joint development with suppliers to ensure the upgrade of supply guarantee capabilities.
Taking children's snacks as an example, Best Shop not only integrates the product advantages of global high-quality food companies, but also cooperates with domestic suppliers to explore a set of value-added supply chain models, and achieve mutual empowerment and common progress, so that children's snacks can be formulated.
There are five children's snack manufacturers behind.

It is worth noting that some people always talk about R&D and sales at BESTORE.
This means that they naturally oppose sales and R&D in their subconscious mind.
It is politically correct to think that R&D is more and less sales or even zero.
It is not right to reverse the situation.
.
In fact, there is no need to antagonize sales and R&D.
The high sales expenses of Best Stores are due to not only celebrity endorsements and variety show naming, but also promotional expenses.
Promotions are a necessary means or even the norm to drive growth in the post-epidemic era.

It's time to perform real technology

It's time to perform real technology

You may be curious, since Best Shop has invested high R&D expenses, where is it spent, and why can't you feel it? The reason is simple.
The R&D expenses of BESTORE are mainly spent on recruiting scientists, recruiting scientists from around the world, and cooperating with universities and research institutions externally, and are committed to building a first-class R&D talent system to provide an important guarantee for winning in the future.

In April 2020, Liangpin Shop established the Liangpin Nutrition Research Institute and the Liangpin R&D Division.
Currently, the number of technical personnel related to product R&D and food nutrition increased by 89 to 226, a year-on-year increase of 64.
96%.
Among them, the Institute of Nutrition and Health Research has a master's degree and Ph.
D.
degree talents accounting for up to 92%.
Together with the product innovation center, product research and development center, and product inspection center, it has established a complete product research and development verification system.

Three months later, Liangpinpuzi Nutritional Food Co.
, Ltd.
was established with a registered capital of 100 million yuan.
Its business scope includes technical research and development, technical consulting and technical services in the field of nutritional food technology.
The large-scale investment demonstrates its determination.
At present, Liangpin Shop has established a professional laboratory in the Wuhan headquarters building to study exactly what high-end snacks are needed in each market segment, and what high-end snacks can be produced that meet the functional needs.

With the completion of the R&D system of BESTORE, scientific and technological research and the transformation of results have gradually improved, and they have begun to taste the tangible benefits, which are mainly reflected in three aspects:

One is the Nuggets market segment.
In 2020, BESTORE will enter the market segment, launching snacks for children and fitness snacks one after another.
This is the result of continuous increase in research and development and a natural outcome.
In May, liangpin shop released the children's snack brand "liangpinxiaoshixian", the first thing to enter the game is to participate in the formulation of children's snack group standards to fill in the gaps in the standard.
Without deep accumulation and R&D strength, it is difficult to be competent, and it is a great success after entering the game.

According to data, in the first half of 2020, Liangpin Store’s children’s snack revenue increased by 34% year-on-year, leading the growth rate of other categories.
Since then, Liangpin Shop has increased its size on the subdivision of the track, targeting the fitness crowd, and launched the sub-brand "Good Product Feiyang" for fitness light snacks.
Since its listing in July, it quickly opened up the market.
In September, revenue reached 10.
99 million yuan, and the monthly compound growth rate for the three months of listing was as high as 256.
73%.
Among them, the "triple control sugar" technology is not low in gold.

The second is the acceleration of digital transformation.
Relying on the information system construction and digital application capabilities accumulated over the years, the digital transformation of BESTORE has achieved initial results in 2020.
Based on digital drive, it builds consumer-oriented digital management, covers the management platform of key quality processes, and implements lean management based on quality improvement.
For example, through lean management, product development time was shortened by 60.
7%, and 447 new products could be launched in 2020.

At the same time, the data middle-office system built by Liangpin Shop completed the cloud work of 10.
75T historical data.
The cloud access data from 18 business systems and 22 business databases, data timeliness increased by 30%, and computing power increased by 3.
75 times.
In addition, it took 26 days to build its own private domain operation system, which can realize private domain live broadcast.
In the first live broadcast, the number of exposures exceeded 400,000 with a traffic cost of almost zero, and the sales target achievement rate was 107%.

The third is to empower suppliers.
Paying attention to technology research and development not only benefits Best Stores, but also allows suppliers to follow suit.
Because suppliers lack the ability to develop and upgrade, it is necessary for brand-based companies like Best Shop to take the lead in R&D and innovation.
Therefore, you will see that BESTORE builds an industrial chain alliance, and improves the overall technological level of the food industry chain by introducing the most advanced production lines from abroad, searching for, introducing technology transformation, and applying methods.

Specifically, first, “factory + quality” empowers suppliers to comprehensively improve product quality; second, “factory + R&D” empowers suppliers to create a flexible and fast-reverse supply chain; third, “factory + efficiency” empowers supply Commerce, so that products reach consumers faster and more effectively.
Focusing on quality management, product innovation, and efficient collaboration, BESTORE empowers suppliers with high-quality development and drives the upgrade of the entire supply chain.

Overweight R&D to help stabilize the high-end road

Overweight R&D to help stabilize the high-end road

As we all know, competition in the mobile phone industry is unprecedentedly fierce.
Lei Jun, the head of Xiaomi, mentioned that the outside world has three misunderstandings about Xiaomi, one of which is that Xiaomi has no technology.
This made him very depressed.
He explained, "Xiaomi is in the most competitive field in the world.
There are Apple, Samsung, and Huawei.
They can't survive without a foothold.
"

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