China Food

Wanda self rescue, extra milk tea

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The box office was not enough and milk tea came together. Wang Jianlin, once the “richest man in Asia”, also sold milk tea.

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On April 28, Wanda Film Co., Ltd. released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 12.49 billion yuan, an increase of 98.4% year-on-year. Among them, the sales revenue of commodities and catering was 1.5 billion, with a gross profit margin of 63.49%.
 
Compared with 2020, the proportion of sales revenue of commodities and catering in the total revenue has increased year by year, and the gross profit margin is the highest, which also means that the revenue of non box office business such as selling business has become a new profit growth point of Wanda film.
 
In fact, as early as 2017, Wanda has carried out in-depth cooperation with Costa, an old brand coffee in the UK. In 2019, Wanda tested new tea for the first time and launched the milk tea shop “wanxiaocha”. Since then, Wanda cinema has launched its own tea brand “wancha” in some stores across the country. The store forms include independent stores and Costa quick selection fusion stores.
 
Enterprise check app shows that Wanda increased its milk tea business in April this year and applied for multiple “wancha” trademarks, involving food, fitness equipment, beer and beverages. At present, the trademarks are in the application for registration.
 
The tea drinking track is constantly in secret battle, and cross-border players flock to it. If Wanda wants to give full play to its real estate advantages and create one-stop catering and entertainment services, overweight milk tea business will become a key step in its asset light operation transformation.
It is reported that Wanda film has 800 opened cinemas in China, including 707 directly operated cinemas and 93 asset light cinemas. In addition, there are 56 overseas cinemas. If Wanda “Wanjia” is fully launched, it means that the number of its stores will comprehensively surpass the head tea brands such as Naixue and Xi tea.
Flow freezing point, eat all over the plate
Three years after the outbreak, the cinema has fallen into the dilemma of self-help from its former grand occasion. Due to factors such as airtightness, lack of ventilation and crowd gathering, cinemas have naturally become the places with the strictest epidemic prevention supervision.
 
Since this year, the operating rate of domestic cinemas has been less than 50%. The total box office of Chinese films in the first quarter was 14 billion yuan, a year-on-year decrease of 23%. In the context of the withdrawal of many heavyweight films, the cinema box office has directly fallen to the freezing point. It is understood that at present, the box office of national film day has been less than 12 million for many consecutive days.
 
External environmental factors are only appearances. Under the combined influence of factors such as the lack of high-quality films, the lack of imported blockbusters, the sharp rise in ticket prices and the continuous slowdown in the growth of the number of domestic cinemas, the willingness to watch movies has decreased, the box office of cinemas has declined greatly, and cinemas are still facing great business pressure.
 
Although Wanda’s net profit turned from loss to profit in 2021, its performance in the first quarter of 2022 was relatively poor. According to the data of Lighthouse professional edition, the domestic box office of Wanda film in March this year was only 175 million yuan, only half of that in the same period last year.
 
It is reported that Wanda’s film revenue in the first quarter of 2022 was about 3.461 billion yuan, a year-on-year decrease of 16.01%; The net profit attributable to the shareholders of the listed company was about 44.99 million yuan, a year-on-year decrease of 91.42%; The basic earnings per share was 0.0202 yuan, a year-on-year decrease of 91.4%.
 
Capital enters the market for profit. As a listed enterprise, Wanda film urgently needs to find new business growth points to stimulate investors and shareholders. In the non box office business, catering is obviously a very good business line.
 
The 2021 annual report shows that the revenue of Wanda cinema line exceeds 7 billion, accounting for 56.64% of the total revenue, but the gross profit margin is only 4.87%; On the contrary, although the sales revenue of commodities and catering is only 1.5 billion, it accounts for 12.03% of the total revenue, and the gross profit margin has reached 63.49%.
Figure / Wanda film 2021 financial report
 
Selling products is Wanda’s second largest product business, including catering products and derivatives. Catering products refer to the commodities that the audience chooses to eat during film viewing, mainly including food and beverages. Derivatives include theme commemorative commodities related to film characters, plot and props, animation surroundings, trendy games, etc.
 
Compared with 2020, the proportion of sales revenue of commodities and catering in the total revenue has increased year by year, and the gross profit margin is the highest, which also means that the revenue of non box office business such as selling business has become a new profit growth point of Wanda film.
 
From another point of view, Wanda has the meaning of eating all fish and shrimp. In the past, “popcorn + Cola” was the standard configuration for watching movies. With the popularity of new tea, many consumers will go to the new tea shop near the cinema to buy milk tea before watching the movie. “Popcorn + milk tea” has instead become a trend for young people.
 
Under the sudden drop of viewing traffic, Wanda is eager to eat all over the plate. With the advantages of exclusivity, independent pricing and no rental fees, the new tea business line has become an excellent choice for Wanda cinema to supplement profits.
Milk tea with movies, double happiness
The new milk tea originated from British afternoon tea has been improved by the traditional “Hong Kong style milk tea”, which has become a living need that can be obtained by migrant workers anytime and anywhere. It is not difficult to find that nowadays, more and more young people drink milk tea while wandering; In the cinema, more and more consumers are eating popcorn and drinking milk tea.
 
According to the Research Report on China’s new tea industry in 2021 released by iResearch consulting, the market scale of existing tea is about 10.9 times that of freshly ground coffee from 2020 to 2021, and the growth rate is faster than that of non existing tea, indicating that the development of existing tea is the fastest in the track of addictive drinks, including tea and coffee. At the same time, there are also reports that nearly 295% of them consume more than 100 yuan of milk tea per week; Nearly 50% drink 2-4 cups a week after 95%.
 
The “sugar” in milk tea makes people “material addicted”. It’s not difficult to understand why people shout “why worry can be relieved, only milk tea”. The sugar in milk tea has the effect of placebo, so it has gradually become a kind of “just need” for young people.
 
Compared with coffee or “fat house happy water” cola, milk tea often knows more about “marketing”. It jumps out of the restrictions of traditional drinks and creates all kinds of new proportions. Users have the option to allocate milk tea. In addition to indicating their needs to the clerk, the playing methods of punching in, unlocking the hidden menu and DIY milk tea have also become important factors for more and more consumers.
 
This freedom and selectivity greatly stimulate consumers’ desire to buy. When their autonomy is fully mobilized, they will no longer be passive consumers of a single product.
 
A cup of milk tea with movies brings both psychological and physical happiness to young people.
 
It is reported that in 2020, 10000 tea shops have exceeded 70; The price of tea is 269000 yuan, the lowest.
Source / screenshot of “hungry”
 
As for the self owned tea brand “wancha”, Yu Wanda film may be able to bring new performance breakthroughs with absolute point advantages, but in the final analysis, it can only add icing on the cake. After all, Wanda cinema is “a place for film screening” in the eyes of users. Such a place is difficult for users to form “products that can make delicious and delicious”.
 
In the final analysis, the technology industry specializes in whether a good cinema can create good drinks, and whether consumers buy milk tea for convenience or taste, the market will give the answer.

Product is king or channel must win?

2018 is a turning year for the film and television industry. Several national documents directly point to the disorderly expansion of the film and television industry. The industry has experienced many rounds of rectification, such as “sky high film remuneration”, “Yin-Yang contract”, tax evasion and so on. Since the second half of 2018, the attitude of capital towards the film and television industry has changed significantly, the investment in the whole industry has decreased sharply, and many projects can not be started.
 
Wanda smelled the cold winter of capital early, and also made efforts to build the tea track in the same period, and increased investment and brand cooperation. When an enterprise starts to involve more and more industries, it mostly indicates that its profits have bottomed out.
 
In the view of the outside world, the tea industry has many advantages, such as low threshold, high turnover and high gross profit, which also attracts more and more players. New tea brands with their own characteristics emerge one after another. Milk tea seems to have become an “online Red” industry that everyone wants to make money.
 
It is not easy for Wanda to make milk tea well. After all, this is an industry that is “easy to enter and difficult to do”. What attracts Wanda to increase its weight continuously?
 
First of all, the film has entertainment and social attributes, which is consistent with the new tea.
 
The tea industry links a large number of young consumers, which is also the main group of domestic consumption at present and in the future. The way young people say hello even becomes “Hey, did you drink the new milk tea from XX family?”, The content sharing notes on milk tea grass planting and weeding in Xiaohong book have accumulated more than 5 million +. Punching in and unlocking new online red products have become the daily life of young people chasing fashion trends.
 
At present, the high-end current tea industry is still in a growth period, and the retail sales are expected to exceed 200 billion yuan in 2025. Faced with such a big cake, Wanda naturally couldn’t help but want to take a share.
 
Secondly, Wanda chooses to make tea, which is an abacus to integrate upstream and downstream resources of the ecological chain and enhance its direct marketing strength.
 
Wanda’s biggest advantage lies in offline channels. At present, Wanda cinema has more than 700 cinemas and more than 6000 screens in China. It is in an absolute leading position in terms of box office, film viewing passengers and market share.
 
In the new era of reform and upgrading of new retail and new consumption, Wanda is not the only one with channel advantages. China Post has also launched “postal oxygen tea” milk tea shop across the border, which has triggered a discussion on the topic of “whether products are the king or channels and traffic will win”.
 
Taking China Post’s “postal oxygen tea” as an example, Zhu danpeng, an analyst of China’s food industry, said, “although postal cooperative milk tea has its network foundation and scale advantages, the advantages of scale and stores alone cannot be transformed into their competitive advantage, because their system and mechanism are relatively rigid.”
 
“Wancha” relies on Wanda, just as Yijie convenience stores and Kunlun hospitality convenience stores rely on gas stations. It’s wise for “wancha” to use the cinema as an entry point for making milk tea, but it doesn’t have scale effect or capital to play in this new field.
 
Improving non box office revenue and creating new profit growth points with one-stop catering and entertainment services have become the focus of Wanda’s next development. In the final analysis, how to cultivate the consumer mind of watching movies and buying wancha depends on the product innovation and supply chain ability of “wancha”.
 
In 2022, the competition of the new tea drinking track is becoming more and more fierce. Wancha wants to “get out of the circle” in the milk tea Jianghu with a forest of experts. The road is blocked and long.
reference material:
1. Nearly 60% of cinemas closed: can cinemas survive the epidemic
2. New consumption planet “push its own tea brand” wancha “, can the milk tea of Wanda film beat the head players?”
作者:博雅;编辑:鹤翔;来源:零售商业财(ID:Retail-Finance),转载已获得授权。
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