According to the data, the scale of the snack food market was close to 1.3 trillion yuan in 2020 and exceeded 1.4 trillion yuan in 2021. The snack food industry market is expanding steadily.
According to the statistics of China Business Industry Research Institute, the scale of China’s snack food market has exceeded trillion, with a compound growth rate of more than 10% in recent five years.
In 2020, covid-19 epidemic had an impact on the snack food industry in the short term, and the growth rate of market scale slowed down slightly compared with previous years, but it also promoted the development of the snack food industry in emerging channels such as live e-commerce and community group purchase.
According to the data, the scale of the snack food market was close to 1.3 trillion yuan in 2020 and exceeded 1.4 trillion yuan in 2021. The snack food industry market is expanding steadily.
In this context, on March 21, Bestore Co.Ltd(603719) 2021 annual report was released. What kind of report card did the “first share of high-end snacks” hand over?
listed companies increase revenue but not profit in the next year,
key customer group purchase channel realized operating revenue 321 million yuan
In 2020, Bestore Co.Ltd(603719) as the first “cloud listed” enterprise in Shanghai Stock Exchange, landed in the A-share market and became the “first share of high-end snacks” in China.
In 2021, Bestore Co.Ltd(603719) realized an operating revenue of about 9.324 billion yuan, with a year-on-year increase of 18.11%; The net profit attributable to the shareholders of the listed company was about 282 million yuan, a year-on-year decrease of 18.06%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was about 206 million yuan, a year-on-year decrease of 25.15%.
As for the reason of increasing revenue without increasing profits, Bestore Co.Ltd(603719) explained that in 2021, the company actively faced the changes of online business environment, the rise of prices of some raw materials and the continuous impact of multi-point epidemic, actively optimized and adjusted its business strategy, further expanded the market share of traditional platform E-commerce, increased the layout of emerging traffic channels such as social (Live) e-commerce and community e-commerce, and increased the investment of marketing and promotion expenses, Increase the share of Omni channel market. Meanwhile, affected by the increase of online channel share and other factors, the gross profit margin of the company’s online business in the fourth quarter decreased in a short term compared with the same period, resulting in the decrease of the company’s net profit compared with the same period.
It is understood that in 2021, Bestore Co.Ltd(603719) focused on the research and development of core categories and achieved effective results in product innovation in market segments such as children’s snacks and festival gift boxes; Combined with the product characteristics, a new product operation matrix was established to promote the in-depth coordination of the supply chain, improve the product operation efficiency, and create the first 500 million level large single product preserved pork; Increase the integrated operation of all channels, focus on the improvement of single store for offline business, optimize the market layout, refine the user operation of online business, make breakthroughs in multi-channel innovation at the same time, and promote the continuous and steady growth of business scale.
Specifically, Bestore Co.Ltd(603719) in 2021, the revenue of all channels will achieve balanced growth, of which the online revenue will increase by 21.42% and the offline revenue will increase by 16.31% over the same period.
At present, Bestore Co.Ltd(603719) has laid out store channels, platform e-commerce channels, social e-commerce channels, group purchase channels, community e-commerce channels and circulation channels.
Among them, the provincial gift distribution agent of Bestore Co.Ltd(603719) group purchase business has covered 14 provinces in China, and has developed a new distribution model of industry associations. In 2021, Bestore Co.Ltd(603719) the group buying channel of key customers realized an operating revenue of 321 million yuan, an increase of 208.58% year-on-year.
In terms of warehousing and logistics, as of February 16, 2022, Bestore Co.Ltd(603719) has set up six self operating regional central warehouses in Wuhan, Hubei, Nanjing, Jiangsu, Chengdu, Sichuan and Dongguan, Guangdong through self construction or leasing, and cooperated with high-quality third-party warehousing service providers in the industry to set up three urban warehouses in Shandong Dezhou, Xi’an, Shaanxi and Shenyang, Liaoning.
Among them, liangpin smart warehouse is the first intelligent digital logistics center in Central China of retail industry. On April 12, 2021, the company officially launched the liangpin smart warehouse warehouse construction project, which aims to build a set of scientific and open warehouse logistics management platform and realize an online, digital and intelligent logistics center of human machine material. In December 2021, liangpin smart warehouse was officially completed and began to operate the deployment and warehousing business.
horse racing enclosure at the right time,
Bestore Co.Ltd(603719) new stores opened last year 619
Huaan Securities Co.Ltd(600909) analysts have combed Bestore Co.Ltd(603719) the past: the company established its first store in Wuhan in 2006 and gradually penetrated into Hunan, Jiangxi and other markets; In 2011, the company began to seize the bonus of online e-commerce and entered the stage of rapid development, forming an omni-channel system of chain stores + o2o takeout + group purchase of key customers + e-commerce platform + community group purchase + self operated app; In 2019, the company proposed the strategy of positioning high-end snacks.
In March 2020, Bestore Co.Ltd(603719) said to the public: the company’s future competitive strategy is the high-end snack strategy, focusing on the customer’s pursuit of high-quality food and systematically upgrading the product value. The company has three product upgrading paths: the first is to upgrade the health and nutrition of products, and develop healthy and nutritional product series according to the physiological needs and nutritional and health needs of different subdivided users; The second is to generally improve the standards of raw materials and auxiliary materials of products; The third is to provide users with consumption solutions with different purchase tasks and use scenarios.
From the perspective of products, Bestore Co.Ltd(603719) there are many innovations in 2021.
For example, the company focused on the market opportunities of high protein preserved pork, carried out category innovation, and developed a delicious and more nutritious “high protein preserved pork”. With the efficient penetration of brand marketing, the company created the mental first choice of preserved pork users, seized the market opportunity and led new growth opportunities. In 2021, the annual terminal sales of pork preserved products exceeded 500 million yuan, with a year-on-year increase of more than 41%.
In order to quickly meet the needs of consumers, Bestore Co.Ltd(603719) reshaped the new product process and established a 35 day rapid product launch mechanism. Under this mechanism, a total of 49 new products were introduced in the whole year, and the sales volume of omni-channel terminals was 183 million yuan.
In terms of market expansion, in 2021, Bestore Co.Ltd(603719) opened 619 new stores, including 185 Direct stores and 434 franchise stores.
In 2021, Bestore Co.Ltd(603719) further expanded the layout of new markets in 19 cities in 10 provinces and increased the depth and density of regional layout: among them, 139 new stores were opened in Southwest China throughout the year, and 72 new stores were opened in South China through the mode of deep exploration of new resources and cooperation with big owners.
By the end of the reporting period, Bestore Co.Ltd(603719) had 2974 offline stores, distributed in 179 cities in 22 provinces / autonomous regions / municipalities directly under the central government.
According to Bestore Co.Ltd(603719) introduction, focusing on single customer check-out operation, relying on local life service, Alibaba ecology and wechat ecology, the company integrates high-quality check-out resources, widens the scope and radius of store services, expands and operates store circle traffic in multiple dimensions, and precipitates private domain users. In 2021, WeChat’s official account increased by 2 million 690 thousand, up 81.2% from the same period last year, and the number of friends in the private sector reached 16 million 60 thousand.
Huaxin securities analysts believe that Bestore Co.Ltd(603719) accelerate the layout of “store +” business, and further expand market share by focusing on four businesses: takeout operation, store circle community group purchase, online live broadcast and member online service.
In terms of live broadcasting, Bestore Co.Ltd(603719) the strategy is to link a large number of talent anchor resources by building its own brand exclusive live broadcasting base. On the one hand, the company closely follows the development trend of platform self broadcasting and cooperates with high-quality outsourcing institutions to drive the rapid development of brand self broadcasting; Tiktok Kwai, special purchases for the Spring Festival, is also working closely with the super head master of the jitter and the fast track platform.
