Xiabu Xiabu (0520. HK), the “first share of chain catering” of Hong Kong stocks, has made frequent moves recently.
Following the previously announced price reduction, Xiabu Xiabu also threw out the plan to set up a second management headquarters in Shanghai in order to increase its weight and expand the southern market. At the same time, in the next three years, Xiabu Xiabu expects to add at least 500 stores nationwide, expand from the existing 1000 stores to about 1500, and differentially operate the north and South markets.
“Due to the difference between the southern market and the northern market, the dual headquarters pattern can make the decision more accurate. After the integration, Xiabu mainly focuses on package, supplemented by scattered points, and takes the high cost-effective popular route, which is in line with the current situation of Xiapu.” Zhu danpeng, an analyst of China’s food industry, told the reporter of the securities times e company that the southern region, especially South China and East China, is one of the two best regions in China’s economy. Previously, Xiabu did not pay attention to the southern market. Under the background of “Involution” of the hot pot industry, we should observe how Xiabu differentiated in the southern market in the future.
announced its entry into the southern market
On December 22, Xiabu announced that thousands of stores across the country had officially launched a new menu and launched a number of cost-effective packages and online red products, which also means that Xiabu has returned to the mass consumption line.
The reporter saw from the new menu that in addition to the beef and mutton package often eaten by consumers, it also launched a new golden diamond plum blossom pork package, black golden black chicken roll package, maoxuewang platter package, etc. The price of single package ranges from more than 50 yuan to more than 70 yuan; The double set meal is 140 yuan, including pot bottom, small ingredients, meat, vegetable platter, staple food, tea, rice, tea, hand-made tea, etc.
“Many new products we have launched this time have been prepared for nearly half a year and selected from hundreds of new products developed.” The relevant person in charge of the company said that the R & D teams of Xiabu Xiabu and CuO have been merged and opened up. Nearly 1000 new products are developed every year, and only 5% to 10% are launched into the market.
At the same time, Xiabu also announced the latest heavyweight strategy on the same day. Next, Xiabu will set up a second management headquarters in Shanghai, implement the “double headquarters” strategy of Beijing and Shanghai, and start the development strategy of “expanding East and moving south”. Xiabu will expand rapidly in eastern coastal cities, Yangtze River Delta and Dawan district.
He Guangqi, founder and chairman of Xiabu group, said that the group will vigorously expand its layout in eastern coastal cities, Yangtze River Delta, Dawan District, central provinces and other regions. At the same time, in the next three years, Xiabu Xiabu expects to add at least 500 stores nationwide, expand from the existing 1000 stores to about 1500, and differentially operate the north and South markets. “The stores of Xiabu going south will be gradually developed. The super first tier cities such as Shanghai, Guangzhou and Shenzhen are the first batch of main battlefields, and the new first tier and second tier cities are the second batch of main battlefields, and then March to the northwest and southwest regions.”
In fact, at present, the hot pot Jianghu is in the “inner volume” period, which has become the consensus in the industry, but the scale of the catering market can still be expected in the future. According to the report on China’s chain catering industry in 2021, due to the impact of the epidemic, the catering market scale will decline by 15.4% to 4.0 trillion in 2020. However, it is expected that the market scale will recover to 4.7 trillion in 2021, and then the industry will grow healthily again. The market scale can reach 66000 billion in 2024.
the founder took over and started the integration
Founded in 1998, Xiabu group opened the market with the brand of “desktop small hot pot”, and was listed in Hong Kong as “the first share of chain catering” in 2014. At present, Xiabu group owns Xiabu, qiaocuo, tea rice tea, Xiabu food and other brands and alliance brands, and its business covers brand restaurant management, meat processing, supply chain management, engineering design and other fields.
In the first half of this year, Xiabu Xiabu entered an adjustment period. First of all, in the first half of this year, the management of the company changed frequently. Following the departure of Zhang Zhenwei, the former CEO of Xiabu group in April, Xiabu announced the replacement of the chief executive in May this year. Zhao Yi, the former CEO of the company, was dismissed and replaced by he Guangqi, the founder of the company.
In this context, Xiabu Xiabu opens the road of internal integration and optimization. Northeast Securities Co.Ltd(000686) according to the recent research report, the internal integration after he Guangqi took over the management includes flattening the management mechanism, improving organizational efficiency, integrating at the group level from talent / management / it / development, reforming the incentive mechanism, improving employee treatment, linking revenue with store profits / performance, etc; Optimize the store model, update Xiabu dishes, and increase the promotion of takeout business.
Secondly, from the perspective of operating performance, on August 30 this year, Xiabu Xiabu released the interim performance report for 2021. In the first half of this year, the revenue of Xiabu Xiabu was 3.047 billion yuan, a year-on-year increase of 58.5%; The net profit attributable to the parent company was a loss of 49.92 million yuan. Although it was significantly narrower than last year, it still failed to turn loss into profit.
In addition to being affected by the epidemic, Xiabu frankly said that the loss was due to the provision of asset impairment loss of about 120 million yuan. It is expected to close about 200 loss making stores of Xiabu brand throughout the year.
But in contrast, another Haidilao, as a “hot pot couple”, has turned losses into profits. On the evening of August 24, Haidilao released its interim performance report for 2021. In the first half of 2021, Haidilao achieved a revenue of 20.094 billion yuan, a year-on-year increase of 105.9%; The net profit attributable to the parent company was 96.5 million yuan, a year-on-year increase of 110%.
Thirdly, the competition in the hot pot industry is quite encouraging. New hot pot brands such as Banu Maodu hot pot and Xiaolongkan, as well as fast food brands such as Yoshinoya and Hefu Laomian, have entered the hot pot track and constantly stirred the hot pot Jianghu.
It is against this background that Xiabu Xiabu has made frequent moves recently. He Guangqi, the founder of the company, has taken the helm again and carried out a series of reforms, including returning to the mass consumption line and establishing “double headquarters” to expand the southern market.
(Securities Times · e company)
