After the ＂adult ceremony＂, can the good shop be expected all year round？

Recently, at the semi-annual performance briefing in 2024, the healthy product innovation and the business strategy of "good goods are not expensive" were further clarified. Facing the complicated and changeable market environment in recent years, Yang Yinfen, the chairman and general manager of Liangpin Store, once said: "The current difficulty is the adult gift given by the market to Liangpin Store. The essence of retail is a dispute over benefits, and good shops will further focus on improving product efficiency, floor efficiency and human efficiency. "

In the first half of the year, good shops have achieved results by reducing costs and increasing efficiency in the supply chain and building healthy and innovative competition barriers. It can be seen that, starting from insisting on the implementation of "good goods are not expensive", the significance of the "strategic blueprint" put forward by Liangpin Store is being understood: deeply reconstruct the whole industrial chain, and realize the double promotion of leisure snack product strength and price strength by improving quality and efficiency, so as to lay a solid foundation for the long-term development of the brand under the background of increasingly fierce competition in the current industry.

Adhere to the implementation of "good goods are not expensive"

On the afternoon of September 24th, Liangpin Store held the 2024 semi-annual performance briefing in Shanghai Stock Exchange Roadshow Center. The semi-annual report of Liangpin Store in 2024 shows that despite the pressure on performance, during the reporting period, the company achieved an operating income of 3.886 billion yuan, exceeding the expected target of cost reduction and achieving a net profit attributable to listed shareholders of 23.89 million yuan.

In fact, since last year, good shops have carried out drastic business strategy adjustment. Facing the changing market and consumers’ increasingly picky tastes, good shops embrace changes with more people-friendly price strategies.

The deep worry that "it is not only difficult to live, but whether to live or not" was written by Yang Yinfen in an open letter to all employees. In November, 2023, the new helm initiated an unprecedented strategic adjustment in the history of good shops-comprehensive price reduction, and called it "the biggest price reduction in 17 years".

According to reports, this price reduction action covers more than 500 products under the good shop, and this is only the beginning. "The ultimate goal is to make 80% of the total product line enjoy the benefits of price reduction." Among them, commodities with high repurchase rate, such as nuts, meat snacks, dried beans and spicy strips, have become the main force of price reduction. According to statistics, after the price reduction, the nut products can be reduced by up to 40%. A bag of 60 grams of hand-torn meat jerky, which was originally expensive, only needs 5.9 yuan, with a drop of nearly 40%; The price in crisp dates has also dropped from 7.9 yuan to 5.9 yuan, with a drop of about 25%.

At the performance briefing, Liangpin Store said that the company adhered to the price strategy of "good goods are not expensive" in store business. By the first half of the year, through the supply chain to reduce costs and improve efficiency, more than 500 products had been reduced in price, and a special exhibition area was set up in the store to display and communicate representative products, which promoted the steady increase in the number of customers and doubled the sales volume of various single products.

According to Zhu Danpeng, a food industry analyst in China, good shops have undergone some reforms since last year, especially in terms of price. "The key depends on the speed and quality of the overall innovation and upgrading iteration of good shops in the second half of the year, which is worthy of consumers’ expectation."

Deepen the omni-channel differentiated layout

Behind the price reduction, it may also be the result of the deep insight of good shops into the current market environment, but the price reduction is not a simple digital game, but behind it is the all-round optimization of product quality, cost control and supply chain management by good shops. Market participants generally believe that in today’s increasingly fierce price war, only by continuously improving product quality, optimizing cost structure and strengthening supply chain management can the profitability and sustainable development of enterprises be guaranteed while reducing prices.

Yang Yinfen revealed that at present, under the premise of ensuring product quality, the company has carried out cost control around refined management methods such as product packaging optimization, price locking of bulk raw materials, direct mining of origin, centralized procurement of packaging, and adjustment of distribution methods, giving full play to the advantages of supply chain resources, completing the company’s cost reduction goal at this stage, and the cost control of supply chain has achieved results.

While focusing on "high cost performance" at the product level, good shops have also stepped up their adjustments at the channel level. In the first half of the year, the revenue of e-commerce, franchise, direct retail and group purchase of good shops was 556 million yuan, 507 million yuan, 433 million yuan and 106 million yuan respectively, and the channel structure was continuously adjusted.

Specifically, in terms of group buying business, in the Dragon Boat Festival in 2024, good shops focused on healthy recipes, national tide culture IP and creative packaging structure to create differentiated group buying products, achieving a 67% increase in sales of the Dragon Boat Festival gift box; In terms of e-commerce, several new explosions, such as finger sucking duck clavicle and whey protein bread sticks, were created in good shops. The sales of new products increased by 421% year-on-year, focusing on single products. The sales of Tik Tok Mall and supermarket business increased by 443%, and the profitability of e-commerce business continued to improve.

Offline, while the store business adheres to the price strategy of "good goods are not expensive", good shops continue to explore new categories of store business, and introduce freshly baked and seasonal snacks in stores to better meet the diversified needs of customers, such as baked sweet potatoes, sausages and ice cream, which effectively improves the passenger flow and sales of stores in the current season.

Online, good shops drive performance improvement with new products, and focus on single products to promote scale growth. By continuously deepening the cooperation with local life platforms such as Tik Tok, Aauto Quicker, etc., Liangpin Store has effectively improved the efficiency of product promotion and enhanced the ability of single store to obtain customers. Through the continuous promotion of new products through local life platforms and WeChat private domain, the sales of various products exceeded one million in the first month of listing.

Huaxin Securities commented in the research report: "Good shops continue to explore and optimize the store model, and through the supply chain to reduce costs and increase efficiency to adapt to the development strategy, increase the scale of suppliers to reduce costs, select products to extend to the source, establish supply chain barriers, and improve business efficiency in many aspects. In the long run, new positioning and supply chain optimization are expected to help sales growth and profitability."

Promote the healthy upgrading of products

Another step of growth, the good shop chose health.

At present, the competition in the snack market is fierce, and the homogenization of products is serious. As for how to enhance consumers’ differentiated awareness and brand identity, good shops have begun to "roll up health".

Liangpin Shop said that in order to comply with the changes in market demand, in 2024, the company released a brand-new brand value proposition "natural and healthy new snacks", which further expressed and interpreted high-quality snacks as "more natural, healthier and more new experiences". At the same time, the company promotes product upgrading with "good raw materials, good formula and good taste" as the anchor point, bringing more healthy and delicious snacks to consumers.

In the fast-paced life, consumers’ demand for healthy and light snacks is growing day by day. Based on this, the good shop is committed to developing differentiated products that not only satisfy the taste buds, but also take into account the health burden. By introducing natural ingredients, reducing the use of additives, improving the content of nutrients and other measures, the good shop has successfully created a series of new products that are well received by the market.

In the first half of the year, there were more than 140 new healthy snacks in good shops, including "thick-fleshed prunes" with only prunes as raw materials, and 60-day bread preservation with natural sucrose fermented products and whey fermented products instead of preservatives. Among them, the sales performance of newly upgraded wild bamboo shoots, crispy pancakes and prunes is bright.

It is worth mentioning that Liangpin Shop also participated in the drafting of the group standard "General Requirements for Healthy Snacks" (T, CAB 0235-2023), which clearly defined healthy snacks from sensory, physical and chemical dimensions.

For "healthy growth", good shops are also ready. It is reported that Liangpin Shop has developed in-depth food research and development cooperation with China Academy of Agricultural Sciences, China Food Fermentation Industry Research Institute, Hubei Academy of Agricultural Sciences, Wuhan University of Light Industry, Hunan University of Chinese Medicine and other scientific research institutes and universities, and held regular seminars. These external R&D institutions will become solid support for the company’s technology R&D and product development.

In addition, Liangpin Store has invested in the construction of six professional R&D laboratories, including meat seafood vegetarian R&D laboratory, candied preserved fruit R&D laboratory, beverage R&D laboratory, packaging R&D laboratory, sensory evaluation laboratory and pilot plant, established its own product testing center, passed the certification of National Laboratory (CNAS), and cooperated with a number of third-party testing institutions to continuously strengthen product quality and safety control.