Last month, the newly renamed Mingminghao Group (formerly Snacktime Group) announced that the total number of stores for its brands Snacktime and Zhao Yiming across the country has exceeded10,000Home. At the same time, under the impact of emerging channels such as snack convenience stores and interest-based e-commerce, traditional distributors are facing reduced customer flow and declining sales. Emerging channels like convenience store snacks and Douyin continue to maintain high-speed growth, impacting traditional channels. From the perspective of the industry-wide channel distribution ratio, will the pattern dominated by distributors change? Review2023The performance of listed companies in the year showed a differentiated trend overall. Among them, companies such as Yanjinpuzi, Jinger Food, and Ganyuan Food, which actively embraced new channels, performed outstandingly. With the continuous growth of emerging channels, is it possible that the differentiation among leisure snack companies will further intensify in the future?
Frost & SullivanFrost & Sullivan,Liu Xufeng, a senior consulting advisor at Frost & Sullivan's Greater China region and referred to below as 'Frost & Sullivan', was interviewed by Cailian News to discuss the development of the snack industry.
Cailian Finance & Economics News Agency
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Q: New channels such as convenience stores and Douyin continue to maintain rapid growth, impacting traditional channels. From the perspective of the industry's overall channel distribution, will there be a shift towards a dealer-dominated pattern?
From the perspective of current development trends, the traditional channel pattern, which is dominated by distributors, is indeed under pressure to change. The share of traditional supermarket channels and distribution networks is declining rapidly.2023In [year], the proportion of traditional shopping mall channels has dropped to43.5%, is expected to arrive2027The year will further decline to35.7%This change indicates that consumers are increasingly inclined towards more convenient and diverse channels when choosing leisure snacks.
Meanwhile, the rapid growth of e-commerce channels has been remarkable. The proportion of e-commerce channels has risen to15.3%, is expected to arrive2027Will reach in19.4%, with a sales scale as high as1,898Yuan. Emerging e-commerce platforms such as Pinduoduo, Douyin, and Kuaishou have seized the development opportunities of short video platforms by vigorously developing e-commerce channels, achieving rapid growth. Brands like Yanjinpuzi and Three Squirrels have gained significant market share through the rise of their e-commerce channels.
The convenience store channel also demonstrates clear advantages. Convenience stores, with their proximity to residential areas, 24-hour operation, and rich offerings,SKUWith features such as high operational efficiency, its proportion in the snack sales channel is gradually increasing. The advantage of this channel lies in providing consumers with the convenience of immediate purchase, meeting people's demand for quick and diverse choices.2023The proportion of the convenience store channel in annual revenue is8.8%, is expected to arrive2027The year will grow to9.7%.
In addition, snack convenience stores are also rapidly emerging. Snack convenience stores have gradually become a rapidly growing channel due to their rich selection of snacks and convenient shopping experience.2023In [year], the proportion of snack convenience store channels was approximately6.1%, is expected to arrive2027The year will grow to14.9%These channels focus on low prices and practicality, meeting consumers' cost-effective requirements for daily consumption and social gatherings.
The traditional channel pattern, which is dominated by distributors, is being impacted and reshaped by emerging channels. With the changing shopping habits and preferences of consumers, traditional distributors who do not actively adjust their strategies and optimize their operational models face the risk of reduced customer flow and sales decline. In the future, the proportion of channels across the entire industry will become more diversified, and the dominant position of distributors in the industry may be weakened. Traditional channels need to adapt to this change by integrating online and offline resources, improving service quality, and enhancing customer experience to maintain competitiveness.
Q: Review2023The performance of listed companies in the year showed a differentiated trend overall. Companies such as Yanjinpuzi, Jinzi Food, and Ganyuan Food, which actively embraced new channels, performed outstandingly, while enterprises like Laiyifen and Youyou Food faced declining performance. With the continuous growth of emerging channels, is it possible that the differentiation among leisure snack companies will further intensify in the future?
2023In [specific year], the performance of listed companies indeed showed a clear divergence. Some leisure snack companies that actively embraced new channels, such as King Kong Snacks, Yanjinpuzi, and Gan Yuan Food, effectively expanded their market coverage through emerging sales methods like e-commerce, social media marketing, live streaming sales, and snack convenience stores. This attracted more consumers, thereby achieving significant growth in their performance. For example, King Kong Snacks2023Annual revenue reached20.65Yi, a year-on-year increase41.26%The revenue of Yanjinpu Store has also been achieved42.22%The growth has been remarkable. The utilization of new channels enables these enterprises to quickly respond to market demand changes, enhance brand exposure and consumer loyalty, and thus achieved good market performance.
However, at the same time, some enterprises that have not been able to adapt to market changes in a timely manner or are relatively lagging behind in new channel layout, such as Youyou Food and Laiyifen, are facing pressure from declining performance. For example, Laiyifen2023Year-on-year revenue decreased9.25%, Youyou Food's revenue decreased year-on-year5.68%This is mainly because these enterprises rely heavily on traditional channels and lack development in emerging channels, resulting in a gradual loss of advantage in the fierce market competition. The reduction in customer flow and sales volume from traditional channels directly affect the overall performance of these enterprises.
With the continuous growth of emerging channels and the transformation of consumers' shopping habits, the polarization in the snack industry may further intensify. Enterprises with an innovative mindset, the ability to quickly adapt to market changes, and effective utilization of emerging channels may continue to expand their market share and achieve steady performance growth. The extensive reach provided by new channels and flexible marketing strategies enable these enterprises to quickly adjust and optimize their operational models, maintaining competitiveness.
*This interview has been published in Cailian Finance & Economics News Agency Reporter: Wu Weiling, original title: 'Convenience Food Brands Aim for 10,000 Stores to Smash the Old Pattern Listed companies are taking advantage of emerging channels to tap into incremental performance."
