“Our children’s snacks business will have a new layout this year.” The relevant person in charge of Bestore Co.Ltd(603719) ( Bestore Co.Ltd(603719) . SH) told the reporter of China Business Daily that it may be announced at the end of April.
The reason for Bestore Co.Ltd(603719) to strengthen its layout in the children’s snack track is that it has tasted the “sweetness”: the data show that in 2021, the revenue growth of Bestore Co.Ltd(603719) ‘s children’s snack brands “liangpin snack Fairy” and lollipop series is higher than that of its main business, becoming a new growth point of the company’s performance.
Three Squirrels Inc(300783) ( Three Squirrels Inc(300783) . SZ) also benefited from the children’s food track. After more than a year of market cultivation, the performance of its deer blue also achieved rapid growth.
The reporter noted that at present, in addition to the large-scale layout of children’s snack tracks by snack enterprises such as Baicao flavor and Shanghai Laiyifen Co.Ltd(603777) ( Shanghai Laiyifen Co.Ltd(603777) . SH), the relevant data provided to reporters by tianyancha data research institute show that, especially since last year, many enterprises focusing on children’s snacks have obtained financing in different rounds from angel to round a and round B, mostly tens of millions of dollars.
“After the snack products have entered a high degree of homogeneity, how to bless the children’s snack sub circuit, highlight the value of the sub circuit, improve the added value of the products, increase the volume and profit, and only based on the value-added space of the sub circuit in the future.” Zhu danpeng, a researcher in China’s food industry, said that to make efforts in the subdivided track, we must rely on the following elements: the integrity of the industrial chain, the guarantee of food safety, the stability of quality, the tonality of the brand, the improvement of the service system, the continuous maintenance of customer stickiness and the continuous innovation of the scene. “In terms of the future development of the children’s snack industry, in addition to meeting the needs of the above consumers, it also needs the joint efforts of the policy side, the capital side, the industry side and the channel side.”
subdivision track “sweetheart”
In fact, from May to June 2020, as Bestore Co.Ltd(603719) launched the child snack sub brand “liangpin xiaoshixian”, Baicao launched the “Tong’an children” series products, Three Squirrels Inc(300783) opened the flagship store of the sub brand “Xiaolu blue” in tmall, and Shanghai Laiyifen Co.Ltd(603777) launched the “Yizi children’s snack series” products, which means that the subdivision track of children’s snacks has begun a new competition.
After more than a year of market competition and cultivation, the high growth of children’s snack segment has finally made the entrants taste the “sweetness”.
According to the data, Bestore Co.Ltd(603719) 2021 achieved an operating revenue of 9.324 billion yuan, a year-on-year increase of 18.11%. During the reporting period, Bestore Co.Ltd(603719) the omni-channel terminal sales of children’s snack brand “liangpin xiaoshixian” was 417 million yuan, with a year-on-year increase of 41.17%, and the growth rate of revenue was higher than that of the main business; The terminal sales of health nutrition lollipop (candy) series in children’s snack brands reached 128 million yuan, accounting for more than 30%.
“The company relies on differentiated product innovation to reshape the mind of children’s snack category, and the children’s snack series has been recognized by the market.” Bestore Co.Ltd(603719) relevant person in charge introduced that the company launched 28 new children’s snack products throughout the year, accounting for 35.17% of sales.
In addition, Three Squirrels Inc(300783) relevant person in charge introduced that by the end of 2021, under the layout of the whole network, the company’s Xiaolu blue had more than 2 million fans, becoming the new brand with the fastest growth rate of the category. “With the rapid growth of revenue, the promotion rate of Xiaolu blue continued to be optimized, the input-output ratio increased quarter by quarter, and the loss narrowed significantly in the third quarter.” Three Squirrels Inc(300783) in its third quarter financial report of 2021.
At present, there are more than 70 SKUs of Xiaolu blue, and it has created a number of best-selling items, such as cheese pieces, ocean cod intestines, fresh shrimp slices, rice cakes, hawthorn sticks, fun bibimbap seaweed and so on. In addition, based on the advantages of IP, Xiaolu blue has derived multiple interesting ecosystems such as surroundings and cartoons.
“As a new brand, to achieve such achievements, deer Blue first chose the right segment track. In the fast-growing children’s snack track, it focuses on developing professional baby snacks. It can be said that it is the pioneer of baby snacks, which makes consumers closely connect baby snacks with deer blue.” Three Squirrels Inc(300783) said.
There is also the “Tong’an children” series of baicaowei children’s food, which is positioned as a “beneficial supplement beyond dinner” for children. The brand has launched a variety of children’s food under the joint names of “fairy treasure dream” IP, Pikachu, Summer Palace IP, national treasure IP, Doraemon IP, etc.
“The children’s snack market is forming a new blue ocean with broad prospects”, Bestore Co.Ltd(603719) said optimistically that according to the data of Huaying capital, the children’s snack market is expected to reach nearly 150 billion yuan in 2023, with a compound annual growth rate of 13.7% in the next five years, and the children’s snack market shows a rapid growth trend.
Omni channel terminal competition
Tiktok relies on group’s overall layout, and it will exert force both online and offline. It includes online Tmall, Jingdong and other electronic business platforms, such as voice, fast hand and other social business. Bestore Co.Ltd(603719) will be sold near 3000 stores under the line. At the same time, it will also arrange distribution channels, supermarkets, convenience, new retail channels and community group purchase channels. Kwai Bestore Co.Ltd(603719) said that the rapid growth of “liangpin xiaoshixian” was mainly due to the competitive advantage of omni-channel terminals.
Omni channel has become the main battlefield of the whole snack track.
Three Squirrels Inc(300783) from the introduction, Xiaolu Lanlan has determined the structural layout of “Online + offline” from the beginning. The first step is to open flagship stores on traditional e-commerce platforms such as tmall and jd.com, and steadily build six mainstream platform channels: tmall.com flagship store, tmall.com supermarket, jd.com flagship store, jd.com self operated, Kidswant Children Products Co.Ltd(301078) flagship store and vipshop.
Tiktok tiktok tiktok is also a new consumer product. In order to follow the new consumption trend, the new layout of the “Blue Ribbon” is a new “belt carrying channel”, such as vibrant shop and master live broadcast. It can catch the wind quickly, such as the vibrant platform of the daily users with up to 600 million, and the blue deer quickly layout the quiver shop. “Through the brand appeal and content output drainage, the station’s system snack snacks tiktok cap was captured at one stroke. At present, the monthly sales volume of the blue deer in the jitter shop is kept at around 3 million yuan.”
Moreover, at present, Xiaolu blue has covered more than 6000 offline terminals and settled in vertical mother and child terminal channels such as Kidswant Children Products Co.Ltd(301078) , good children and so on. At the end of October 2021, the first official experience store of deer blue was also opened in squirrel town.
“This is the first step for Xiaolu blue to officially launch the offline layout plan. Xiaolu Blue brand will go from online to offline and establish a closer relationship between the brand and consumers.
” Three Squirrels Inc(300783) said.
In addition, Shanghai Laiyifen Co.Ltd(603777) said in the financial report that the company’s self media matrix has been comprehensively upgraded, and two new self media brands, fresh Zhishi and Yizai, have been added to break the circle of Shanghai Laiyifen Co.Ltd(603777) people from in-depth culture IP and trend art IP, so as to reach the Z era more Shanghai Laiyifen Co.Ltd(603777) , xinzhishi and Yizai build a comprehensive self-Media matrix integrating double micro and one shake, xiaohongshu, station B, blog, instagram and Facebook, with content as the core, continuous and high-intensity screen dominance rhythm, show brand value, expand brand voice and create a fully flowering communication effect. In the field of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) opening up, Shanghai Laiyifen Co.Ltd(603777) also opened up a new retail path for tmall to place an order and pick up goods in the store to drain the store. Jingdong supermarket channel, Gmv increased by more than 80% in the first half of the year.
“We can see that now all excellent enterprises are integrating online and offline, which is a trend and direction of future development.” Zhu danpeng said.
capital pays close attention to the air outlet of the track
On May 17, 2020, China non-staple food circulation Association officially issued the group standard of general requirements for children’s snacks, which standardized children’s snacks from the aspects of raw materials, senses and nutrients, filling the gap in the standard of children’s snacks in China. Under the guidance of the group logo, many brands have launched children’s snack products, and relevant new brands have sprung up. The heat of children’s snack track is heating up significantly.
“In the future, with the introduction and implementation of national standards and relevant laws and regulations, the children’s snack market will continue to develop in a standardized, orderly and healthy manner, and the industry concentration will gradually increase. The head leisure snack brand with significant advantages in R & D innovation, quality control and sales channels is expected to continue to benefit.” As one of the participants in the formulation of the above standards, Bestore Co.Ltd(603719) said so.
In this regard, the information provided by tianyancha data research institute to reporters shows that the financing of children’s snack track has entered a high outbreak period in 2021. Among them, more than ten children’s snack enterprises, including Akita Manman, wo Xiaoya, full score Niuniu and baobaogreedy, came from Beijing, Shanghai, Hangzhou, Guangzhou, Nanjing and Zhoushan respectively, and obtained dozens of enterprises including black ant capital, Ruifeng capital, xingnahe capital, Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) venture capital fund, Yiling capital and Haina Asia venture capital fund in different rounds, ranging from millions to tens of millions of yuan, And tens of millions of dollars of investment.
“Capital attaches great importance to children’s food track. In fact, its investment logic is first based on the fact that children’s food has sustainable development, high growth rate, high added value and high profit. For capital, subdivision track is very promising.” Zhu danpeng said.
In this regard, Three Squirrels Inc(300783) believes that “at present, the whole children’s snack track has entered the stage of stable development after the rapid development in the early stage, which is also a process of scouring the sand with waves.” The high growth of the track is bound to bring a large number of entrants and form a fierce competition pattern. For consumers, it is actually a good thing for more and more brands to enter this industry. On the one hand, the benign competition between brands will promote the growth of the whole category of children’s snacks, showing a pattern of a hundred flowers blooming and a hundred schools of thought contending, so that parents and children have more choice and better products; On the other hand, in the process of rapid growth and fierce competition, the market and consumers will ignore and eliminate bad brands, while excellent brands will gradually grow into the backbone, so as to provide consumers with more reliable and assured products.
