those who once held the right to speak have another situation today.
Zheng Yi, a post-90s consumer, has formed the habit of online shopping. During the new year’s festival, unable to resist the overwhelming advertising enthusiasm in the elevator, she finally walked into a nearby Huarun Suguo supermarket, but was surprised to find that in this traditional supermarket, some common online red new brands were quietly placed in the center.
The promotional products stacked in the aisle, in addition to the milk, orange juice, wangzi and entertainment in the past, the combination of three squirrels and baicaowei, plum seven snail powder and Yuanqi forest also occupy the core area.
Generally speaking, relying on the endorsement effect of its own brand and the advantages of channel layout, Dachang supermarket has always been in an advantageous position in the game with incoming goods. Therefore, old industry practices such as entry fee and long account period have been born.
The most direct result of the high threshold is that most of the products of traditional large enterprises have the opportunity to be put on the shelf – especially in the highly competitive food and beverage area.
Online brands rising rapidly from e-commerce platforms rely on their barbaric growth in the traffic dividend period of the Internet, while new brands that open up new battlefields like Yuanqi forest go through their own convenience store channels.
It seems that there is no intersection between big supermarkets and new brands, but today, they begin to collide and connect offline.
The well-known reason is that the former is increasingly depressed under the influence of online shopping, fresh e-commerce and other business forms, and traditional supermarket enterprises are struggling with the vortex of closing stores and transformation, losing their pride. The latter re recognizes the importance of offline channels, and the argument that “new consumption can’t be sold” has been hanging overhead.
They need each other – the most intuitive answer to their relationship.
What the new retail business review wants to explore is, what are the deep factors behind this connection? Is the new brand the most effective life-saving straw for large supermarkets in transition? On the other hand, what choice do new brands make?
When it was mentioned that one of its new fast food products could be put into supermarkets for sale, the voice of the new retail business review was not lost, and the founder of a catering brand expressed such emotion.
He has tried to contact Yonghui supermarket. The first threshold in front of him is the three-month account pressing period. As a small brand that has just gained a firm foothold in the market, it is simply unable to afford this “heavy investment”.
“If you’re not careful, you’ll crush us to death.”
If you want to understand the inhumane rules on the negotiation table, you need to start with the operation of supermarkets.
In the era when offline is the king, large supermarkets have become the best channel to link consumers with their expanding outlets at low and attractive prices. The means to realize low price and expansion comes from pressure transfer.
Generally speaking, the price difference between purchase and sales and the additional fees constitute the basic plate of the revenue of traditional supermarkets. The former means further lowering the purchase price of goods, so as to have enough confidence to provide consumers with low-cost goods. But in any case, there is always a small profit between purchase and sales, and the big appetite needs to be satisfied.
The earliest is the chain supermarket in the United States. When goods are promoted, supermarkets will charge certain promotion fees from suppliers. Slowly, it has developed into the entry fee that suppliers must pay to ensure that goods can be sold on the shelves. In the 1990s, Carrefour introduced this system into China, which became a common practice in the industry.
Accounting period is a stubborn rule. Today, whether offline retail channels or online e-commerce platforms, the “debt period” passed on to suppliers or brands already has financial attributes and has become the cash flow basis for retailers to survive.
This means that because of low risk tolerance, it is difficult for small and medium-sized enterprises to stand at the negotiating table fairly. Only large enterprises and big brands are qualified to become the protagonists of traditional supermarkets.
It seems that the new brand has pried a small opening.
Gao Yan, the person in charge of related business of Baman beef powder, told the new retail business review that when Baman entered the offline supermarket channel in the early stage, the channel side gave different concessions and support to the entry fee, gross profit margin, product display resources, etc.
During the visit of the new retail business review, it was found that in Huarun Suguo, there was a special area for “online red tide products”. Ramen said, Baman beef powder and Wang full saturated plum Qi snail powder were placed on the same shelf. In Beijing Hualian, Wang Xiaolu occupies a prominent display space at the end of a row of shelves. Next door are zihi pot and Baman.
In the beverage area, Yuanqi forest and its brother brand Qingquan came out of the mountain and shared the shelves with the products of traditional beverage manufacturers. Among them, Yuanqi forest, like meizhiyuan and Coca Cola, has a large barrel combination.
The situation is different. The former voice controllers have another situation today.
In recent years, large supermarkets have been deeply involved in the tide of closing stores. Wal Mart, a representative case, has closed hundreds of stores in the Chinese market since 2016. Carrefour, another retail giant, recently closed three stores and completely withdrew from the Nanchang market.
According to Kearney’s analysis data, most of the customers lost by traditional hypermarkets are urban youth and white-collar workers, and these consumers flow to e-commerce platforms and convenience stores. On the one hand, it is to enjoy more convenient home service. On the other hand, it is because they have obvious consumption preferences of fashion, online popularity and popular products.
Shangchao selection needs fresh blood.
As a symbol of innovation and vitality, new brands match the demand.
Wanghong wants to go down to earth
The business philosophy of Sam Walton, the founder of retail giant Wal Mart, is that commodity turnover is higher than anything else. Those commodities with large sales volume, fast turnover and high purchase frequency are the products favored by supermarkets.
Obviously, Shangchao is not a charity field. When we look back at the new brands that have successfully settled in and competed with Master Kang, uni president and Coca Cola in the food and beverage area, they are not just “new”.
Vitality forest leads an era of bubble water; Wang Xiaolu has won the sales champion of tmall chicken snacks for 13 consecutive months; Ramen said it would complete six rounds of financing within five years, with annual sales of more than 600 million yuan.
Wang Xiaolu brand public relations said: “compared with several halogen giants, we are still far behind.” The ability of e-halogen stores or e-halogen stores has been verified one by one.
The attitude of large supermarkets today is closer to achieving a delicate balance between “embracing all rivers” and “traditional rules”.
Last year, when snail powder became the darling of capital, the new retail business review saw a number of snail powder centralized display areas, including liziqi snail powder, in a Hualian BHG supermarket. Now, with the cooling of the market, it is difficult to find snail powder in the same supermarket.
The premise of mediation between Shangchao and online popular products is mutual needs, which is right.
Gao Yan said that new consumer brands and big supermarkets have a win-win relationship with each other. When the performance of offline traditional big supermarkets has become worse and worse in recent years, new consumer brands need to bring certain new traffic, new innovative categories, new consumers and new growth points. At the same time, new consumer brands need a certain number of large supermarket terminal outlets to carry out brand publicity, achieve a certain market share and form sufficient brand potential energy, so as to create more income and brand value.
However, in the seemingly equal relationship, the needs of one party are more urgent.
In the second half of last year, the industry keyword of new consumption was from hot to cold. A large number of investors turned to hard technology. The investment and financing events fell steadily from 153 in July. In the pre-sale list of coffee / cereal / drinks, tmall’s double 11, the top 10 has been innovated for a round compared with 2020. The pre-sale volume of ozak has decreased by 30%, and Wang Satin has cut his back.
Tmall, Xiao Hong Shu and jitter are becoming more and more expensive. New brands are getting harder and harder to run out. The battle under the tiktok is starting.
Tao Shiquan, founder of jiangxiaobai, said that an important preparation condition for the brand is the arrival ability of all channels. “E-commerce brands and live delivery channels can also solve some problems, but the arrival ability of all channels is still very important. Otherwise, pure brands can only hear, but can’t see and buy in a sense”.
Wang Xiaolu, the brand of e-commerce, grew tiktok in 2019 and grew rapidly by KOL. In 2020, the layout line began. According to the official statement, almost all large supermarkets in the country have been stationed in order to “lay a good channel and talk to users”.
An often overlooked fact is that when the traditional big business supermarkets fall into the negative public opinion of closing stores and declining performance year after year, in fact, they are still mainstream enough compared with e-commerce platforms, live delivery and other formats.
According to the data of China chain operation association, in 2020, the overall sales scale of China’s top 100 supermarkets was 968 billion yuan, a year-on-year increase of 4.4%, and the total number of stores was 31000, of which community supermarkets accounted for about 73.3%.
Taking Baman beef powder as an example, according to the data provided by Gao Yan to the new retail business review, at present, Baman accounts for about 50% of the sales in large supermarkets. Its offline layout includes all channels including HEMA, 7fresh, boutique chain supermarkets, traditional supermarkets and convenience stores.
More importantly, “the combination of online and offline means that for new brands, the market has stronger anti risk ability and will be more concerned by investors.” High rock supplement.
When offline becomes a symbol of hard power, in other words, new brands are also extending the line of defense for themselves.
7-11 founder minwen Suzuki said in his book philosophy of retail:
No matter what industry the enterprise belongs to, if it loses its vigorous spirit and is trapped in the glory of the past and allows “old age”, then the operation will come to an end.
Therefore, “responding to change” is the basic principle for the operation of 7-11.
This sentence is suitable for traditional supermarkets or new brands. The response speed of traditional supermarkets to new things has become a key factor determining life and death today. For the latter, in the face of fierce competition in terms of life cycle in years, the fault tolerance rate should be a little lower.
Of course, it does not depend on their own brand transformation and upgrading, but on their own brand transformation and upgrading.
The new trend offline more reflects how different business formats judge the situation. As long as it is not invariable, there will be new stories to tell.
Author: Wang Mingya; Source: new retail business review (ID: xinlingshou1001), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Foodaily Expo 2022] in line with the original intention of providing the whole value chain and one-stop industrial innovation services for the industry, foodaily Expo 2022 (2022.05.31-06.02, Shanghai) is further upgraded. In addition to the upstream and downstream of the food industry, it also covers and gathers multiple resources such as e-commerce, social media, traffic, channels and capital, aiming to bring you an annual innovation feast. Here, products, content, technology, marketing and other aspects related to food & brand innovation will be presented in the form of “professional exhibition + innovative content + interactive experience”, breaking through and differentiating in the consistent form of industry exhibition.
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