China Food

20000 chicken chops shops, 10000 milk tea shops, “small town F4” has seized the sinking Market

“ 
“town F4” is more than price performance.
 ”
New chicken chops, Dexter, Michelle ice city, Guerlain beauty, known as “town F4”.
Sitting in the office buildings of Beijing, Shanghai and Guangzhou, you may not be interested in them, but when it comes to their scale and influence today, they are quite existential.
The number of these four stores today is nearly 40000. What is the concept of 40000? KFC and McDonald’s, which are blooming everywhere, have only opened 10000 in China in more than 30 years. Among them, the number of Zhengxin chicken chops, which is at the top of the sinking catering market, has reached 22030 stores nationwide. Another “good heart” of the young people in the small town is that the number of stores in miyue ice city has also exceeded 10000 in 2020, while the number of stores in the first tier cities is only one twentieth of that of Xicha.
 
In early January, when the news came out that miyue ice city was financing and preparing for IPO, there were a lot of discussions in the industry about “forced grid” and scale, who had a better future. Coincidentally, at the beginning of this month, DEX, known as “the first foreign fast food for young people in a small town”, also came out with the news of its listing. Overnight, we can’t help but sigh that those brands that used to be in the lower reaches of the disdain chain are quietly making progress in places we can’t see.
 
To see their influence in the low line market, in March, in the three and below cities, Dicos, Zhengxin chicken row, honey snow city and Guerlain beauty represent the brand of four brands. Alipay’s search volume or big promotion ticket fever is among the best in the industry. Among them, in the first week of March, the search volume of Guerlain beauties in Alipay increased by 5 times, and Dicos coupons were robbed more than 1 million.
 
The sinking market with huge population base and broad prospects is increasingly becoming the focus of brand layout. In fact, in recent years, many big brands, including KFC, have gone to the countryside to make efforts in the sinking market. However, in terms of scale, they can’t compete with 10 yuan chicken chops and 8 yuan milk tea.
 

The birth of “town F4”

 
A cup is only sold for 6 yuan, but it earns more than 6 billion yuan a year. Cost performance and scale are the magic weapons for these brands to win in the sinking market in the past.
 
Zhihushang on “how to treat the ice city of honey snow?” Among the questions, a highly praised reply was, “I heard that the purpose of honey snow is to make milk tea that college students can drink. I was moved to cry.”
 
Today, with a cup of milk tea sold for 20 or 30 yuan, you can buy a cup of milk tea in miyue ice city for 8 yuan. Although milk tea with fresh milk as the base and milk tea powder are not in a competitive dimension, in many consumers, one-third of the price of milk tea with a little discount is enough. Moreover, in many places, there is no such thing as Xicha and Naixue, Without comparison, the experience of miyue ice city may be as good as 80-90.
 
The price is lower than that of competitors. Each product has its own merits, and individual products are even better than others. In the vote launched by Douban’s “K Ji m Ji new product exchange” group, the one who got the highest vote was Dexter’s pistol leg. Its other leading product, pineapple drumstick Fort, was called “eating pineapple fort in Dexter is like opening a small stove with the money of a box lunch”.
 
When it comes to how to achieve low prices for ten years, cost control and scale effect are the two key winning points. It is well known how expensive store rent and labor costs are in the first tier cities today, and both online and offline are facing the problem of increasing customer acquisition costs. The lower rigid cost corresponds to the larger market and the increasing purchasing power.
Although the most purchasing power people in China are gathered in high-speed cities, the size of the sinking market still can not be ignored. At present, nearly 70% of the total population of the country is in the sinking market, reaching 930 million people. To grasp how powerful this group is, pinduoduo has demonstrated for the public the growth path of overnight rise.
 
“The so-called b-grid is to force yourself into a small grid. Like Xicha, there are more than 400 stores, only one twentieth of the top brands. They all line up, and they can’t do much business. ” Hua Shan, the chairman of Hua Yu Hua, once said such a sentence when commenting on miyue Bingcheng and Xicha. Although as the marketing director of miyue Bingcheng, this remark has obvious standing in line, it is quite vivid and shows the power of scale.
 
Open the map to search the stores of Zhengxin chicken chops. As the largest number of restaurants in China, 22000 stores are so dense that you can suffer from phobia every minute.
 
The store area of new chicken chops and miyue ice city is about 20 square meters, while KFC and Xicha often spend two or three hundred square meters, squeezing out a lot of costs in terms of store rent and manpower. Smaller size also means faster replication speed. In particular, these amazing brands all match the franchise mode, with low franchise fee and low rigid input cost, making these brands overnight It blooms all over China and even goes abroad.
 
From one store to 1000 stores, Zhengxin chicken chops took 13 years; from 1000 stores to 10000 stores, Zhengxin chicken chops took more than 3 years, while from 10000 stores to 20000 stores, Zhengxin chicken chops took only 2 years. Moreover, Zhengxin chicken chops are not only in China, but also in Myanmar, Vietnam and other Southeast Asian countries.
 
On the one hand, the rapid expansion of scale can greatly reduce the cost, on the other hand, it can support the brand to build its own supply chain, further reduce the cost and improve the competitive base.
 
Because the scale is large enough, the brand has obvious premium advantage in purchasing, logistics and other aspects, so that the gross profit of the product is still very considerable at a very low price. Take Michelle ice city for example, the official website data shows that its average gross profit is stable at more than 50%. The gross profit rate of stores with large passenger flow is as high as 70%.
 
Of course, there are tens of millions of franchise brands in the market over the years. These brands can exist in the market for so many years, obviously not only by the ability to open stores, but also by the stable quality and stable low price, which is supported by a strong supply chain.
 
Take Zhengxin chicken chops as an example. This company has spent a lot of money on the supply chain in recent years. It has also built a logistics company, compass logistics. At present, relying on seven central warehouses, it has established more than 50 front warehouse distribution centers all over the country.
 
At the same time, it has formed a mature system in the food supply chain, not only serving itself, but also providing supply chain ecological services for other brand restaurants. According to the official data, Zhengxin’s food supply chain now serves more than 28000 stores, with annual sales of more than 10 billion yuan.
 

More than cost performance

 
In addition, in the past, many franchise stores failed to come out because they stayed in the impression of miscellaneous brands and local stalls. In Zhengxin chicken chops, Huang Bo was the spokesperson of Zhengxin chicken chops, followed by variety shows. Recently, all kinds of online marketing played 666.
 
This year’s Valentine’s day, Zhengxin chicken row and Alipay launched a micro-blog car interactive activity on the Valentine’s day, micro-blog. The customers ordered 15 yuan from Zhengxin chicken pilot Alipay program, and they could get “single dog lamp eardrop” and “single dog necklace” and so on. They could also collect certificates such as vouchers, gift lights and other prizes. In Alipay, Zhengxin chicken chop is ordered, and a Wuling Hongguang Mini can be picked up.
 
This activity, which is intended to express that “your hero of the world will surely come to marry you with a heart-shaped chicken chop and a Wuling Hongguang mini”, has attracted a lot of attention. On February 14, # Valentine’s day light bulb people # topic received 110 million reading and 47000 discussions.
 
This Valentine’s day and the whole year March, Alipay launched the digital marketing, including issuing vouchers, playing cross border lottery, sending Wuling Hongguang, etc., directly led the search volume of Zhengxin chicken row to skyrocket 204%, and hit the top of the university student’s favorite brand search list.
 
Of course, not only is onlookers, but also direct sales promotion, the company said its Alipay small program daily trading volume has exceeded 70 thousand. More importantly, the brand also improves its digital ability to lay a foundation for subsequent users’ accurate touch and operation.
 
In other words, today’s brands such as “small town F4” not only surpass the major international brands with the first and second tier cities as the main battlefield in terms of store size, but also keep up with or even surpass the major brands in terms of digitalization, which has become the basis for them to continue to dig deep into the sinking market and even enter the high-speed market.
 
In other words, the reason why “small town F4” can develop so rapidly is not only cost-effective, but also inseparable from its advanced digital concept. For example, DEX put forward the digital transformation strategy as early as 2016. It once faded out of Beijing, Shanghai and Guangzhou under the run of McDonald’s and KFC. In the same year, it announced in a high profile that it would try to return to the first tier cities. Since then, it has been exploring and expanding the digital scene, building and improving the digital ecosystem.
 
The first was the introduction of an unmanned restaurant in 2017, and then in collaboration with Alipay word of mouth in September 2019.
 
After accessing Alipay ecosystem, Dicos launched a series of membership rights and small numbers of life and number on the Alipay and wom. The center also launched a series of membership interests such as group purchase coupons, distribution fee waivers and so on. These rights can be used in Alipay, word of mouth, hungry, Taobao four platforms, covering takeaway, group purchase and offline payment. And other consumption scenarios.
 
According to the data, Alipay launched a series of rights and interests in 1 yuan chicken wings, including a total of 1 million 40 thousand pieces, in Alipay’s “promotion in the beginning of March”. Dexter, which was once squeezed out of Beijing, Shanghai and Guangzhou by KFC and McDonald’s, now not only competes with KFC and McDonald’s in the third and fourth tier cities, but also tries to counter attack the first tier cities in the past two years. Part of the emerging consumption potential of the sinking market is digital means, which is also a big weapon to realize overtaking on curved roads.
 
Of course, nowadays, the consumption potential and huge market of the sinking market have been paid more and more attention by more and more brands, and the market may be in flames of war in the future.
 
In order not to be hit by their “dimension reduction”, small town F4 also need to have more means of competition besides cost performance. After all, cost performance is not a panacea. Consumers are constantly changing, and the market is also constantly changing. How to seek more certainty in the rapidly changing uncertainty? From customer acquisition, to sales promotion, and then to refined operation, digitalization has become a necessary skill for every brand.
 
While leading brands such as KFC and McDonald’s have made great efforts to sink into the market, they have also made a big bet on the digital transformation, such as delivery, mobile ordering, self-service ordering and smart restaurants. Deep digitization has become the consensus of more and more industries: in the future, those who get digitization will get the world.
Author: Xie Kangyu; source: future consumer app (ID: lslb168), reprint has been authorized. Joining the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). It’s recommended to read the secret selection column of quality original plant protein beverage, NMN, Mengniu’s eight new take away packaging brands to keep alive for a week hot news, innovation interview, lingting, new Xiu brand, trend insight, packaging outpost fbic 2021 , food people are “watching”

Read the original

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *