New retail cannot be blindly taken into consideration, based on the actual development of the enterprise, the number of stores, and the ability of the team.
Look at business with perspective. Super views, from the frontier observations of new business practitioners.
dictation | Chen Jianrong (president of Weijie Group)
Interview, editing | Huang Zhenyao
President of Weijie Group
Not every brand must make retail products
The epidemic has exacerbated many catering people’s thinking about retailing. When there is no crisis, everyone is unwilling to change.
Retailing has three main manifestations, The first one is takeout, I think this is a retailing action that all catering businesses must do , whether you are a high-end store, hot pot restaurant, traditional Fast food restaurants, etc., have to learn the takeaway strategy, whether you have done it or not, it is now a very important node.
The second kind is take-out. There are many modes of take-out, such as milk tea, and the cold skewers that were hot last year. They are open on the street where there are people flowing, and they cannot eat. Zhengxing Chicken Cutlet is a typical example, it is also a representative of new retail.
The third kind is made into retail products, such as Beijing ’s original Funiutang, which was later renamed Baman. The profit margin of its dine-in stores is very low. While compressing the store, it made the powder into a brewing type, which went to Tmall and its own channels, and sold it through private domain traffic channels.
Takeaway must be done, but retail products are not available for every brand.
It needs to have three conditions
1. The brand power of this company is very strong, and consumers cannot buy a new retail brand of a catering company that it has never heard of.
2. The original product type of the brand should be suitable for making new retail products, such as hot and sour powder. Like Grandma’s, its new retail product cannot be self-heating hot pot. If you do n’t have a category advantage and you have to do new retail, it will cause the new retail product to be completely out of sync with your brand, which is not in line with the user ’s perception of you, but also violatesBusiness essence and logic.
3. The demand is large enough and can be sold. If you want to make new retail products, most of the catering enterprises must not produce them by themselves. If your quantity cannot be achieved, it will have two drawbacks. On the one hand, these products are customized for your brand, and the foundry will not sell it for you, so you must sell it yourself. If the previous order is not large enough, You have no advantage in terms of cost. On the other hand, the other party is also reluctant to produce for you, and a production line of the processing plant will be tens of thousands of quantities when it is online. In addition, you have to have a large number of effective private domain traffic channels or public domain traffic channels, such as Meituan, Pinduoduo, various social e-commerce, small programs for private domain traffic, and even through the three-tier distribution method of Wechat To sell these products.
Therefore, blind new retailing cannot be done blindly, and comprehensive consideration should be made according to the actual development stage of the enterprise, the number of stores, and team capabilities. If there is no advantage, doing new retail is not worth the loss. As for the retailing ratio of catering companies, I think that from the commercial nature, on the basis of not affecting the original strong genes and cost structure, retail as an incremental part, of course, the higher the ratio, the better.
At this time, I think the most typical representative of the new catering retail is Xicha. Now it has gone to the Tmall flagship store, and has made peripherals, such as Xicha biscuit, and also made a joint youth league with other brands. At the same time, because Meituan is its owner, it has taken out Meituan. 80% of its sales during the epidemic came from online. Another point, Xicha has 22 million followers on the applet, and the private domain traffic is very strong.
New retail accelerated corporate shuffling has not been highlighted
There are two reasons for the emergence of new retail trends. The first one is forced to compare. The traditional dinning restaurant that has been moisturizing since the second half of 2019 has experienced a decline in turnover, a decline in net profit, and three highs and one low (high rent, manpower, raw materials, and low profits). Obviously, so many catering people are thinking about whether there is a better way to deal with the difficult traditional catering scene. The second is the active innovation of a small number of enterprises. These companies have been paying attention to the changes in the structure of the consumer group. The post-90s are already 30 years old. The post-95s and post-00s are loyal consumers of the mobile Internet. The consumption of this group of people may reach 80% of the market share, which also forces traditional To cater to this part of the main consumer group.
Whether it is the application of technology or the surrounding distribution power, these two years have been greatly improved, and all infrastructure is already very clear in 2020. Another key point is the opening of the supply chain. It turns out that the supply chains of all traditional catering companies are closed, which forces various companies to build their own central kitchens, but this consumes manpower, money, and effort. If your store development does not meet expectations, you The central kitchen will be a huge drag. But all todayThe central kitchen and supply chain are all open to the outside world, so I say that this is the first year of new retail.
However, the supply chain has only begun to open up to the outside world in the past two years. Many of the businesses undertaken by the supply chain are basically from large enterprises with large orders, and the demand for small batches cannot be met well. So the current test of the supply chain is on the one hand whether you can quickly achieve the quality required by the other party after the formula is given by the company, and at the same time, you can help the other party to produce in smaller batches and smaller batches, and reduce the logistics cost to lower The logistics fee is still high. But within the next two to three years, the supply chain will become more mature and the cost structure will become more and more reasonable.
The phenomenon of new retail trends accelerating corporate reshuffle has not been fully highlighted because the critical point of a thing is not so fast, it is not that if you do not do new retail and layout, you will die immediately After the epidemic, almost all catering brands were revolutionized once and forced to take out food. So they will definitely think about the takeaway next, which has actually entered the new retail.
Of course, the elimination is continuing, but it has little to do with the epidemic. The elimination rate of catering is now close to 100%. In 2019, 46,000 catering companies were added to Hangzhou ’s industrial and commercial registration, and 43,000 were cancelled that year. This does not include “certificate transfer certificate”. Hangzhou’s current catering approval is particularly difficult. Some companies will transfer the certificate to allow new companies to continue to use it.
So the reshuffle is actually happening all the time. It does n’t have much to do with whether the new retail is coming or not. Enterprises that do a good job in new retailing only make the company more valuable and more moist.
Do n’t have too much hope for retaliatory consumption
I think that a large probability of retaliatory consumption will not come after the epidemic. I judged this way: First, the impact of the epidemic on China ’s real economy, including all walks of life, is huge. Most companies have no way to raise wages as they did before, and at the same time have done some layoffs, salary reductions and other actions. This year, the employment problem of 8.4 million college students has also become a problem. As a result, most consumers’ expenditures such as housing loans, car loans, and flowers have not decreased, but their incomes are declining. In the future, after experiencing the epidemic, many people will pay more attention to the importance of saving and be more cautious about consumption.
On the other hand, retaliatory consumption in the food and beverage industry is actually a bit against the user ’s consumption habits, such as eating hot pot. I used to go to Haidilao twice in January, twice in February, and twice in March, but you You ca n’t arrive in June, and you can eat 10 times a month. It may change from 2 consumptions to 3 consumptions at most. It turns out that catering companies that have done a good job with their brand power may have some people gather there. Carrying out the so-called consumption rebound, it may rise slightly compared to the previous year, but there will not be a large-scale rebound.
And this rebound is only for companies with brand power, many companies may not be able to survive in JuneThen, in April, the industry will experience a wave of natural elimination, and many companies can’t hold on until the consumption rebound. I think that after June, some of the original consumption scenarios will return with a high probability, and consumption will recover. There is no major problem in the general direction of China ’s economy, and the government ’s ability to control and control is also very strong, but there is so-called retaliatory consumption. I think it is still Relatively dangling.
In this case, I have some suggestions for companies that have the opportunity to survive:
1. At this stage, companies just have the opportunity to sort out their internal systems. They really have time to learn and reorganize their brands. For example, those who are not going to take out food can now make some adjustments to the category and learn more about food delivery operations Rules, communicate and discuss with peers.
2. You can think deeply about your business model, for example, is it possible to adjust the original cost structure, make the model large store more flexible, or originally only direct sales, is it possible to do some franchising, Through integration, let franchisees take some risks and pressure for you.
3. Make full preparations for marketing, whether it is media marketing or community marketing, at this stage, you must keep your company in a state of exposure and keep yourself in the impression of consumers. Use new media methods to maintain interaction with users through live broadcast and vibrato. For example, your chef can teach everyone to cook and build brand trust. Since March, I have done no less than 15 live broadcasts. , The purpose is to let more people understand my brand, let interested franchisees inspect our company through live video, and let consumers deepen their impression of our brand. This is also a way to respond to change and maintain innovation.
Community marketing is a must-have skill for businesses in the future, and the value of private domain traffic must be considered. This is like many people looked down on takeaway 10 years ago. Today, many people do n’t even know that private domain traffic and social marketing are so important. It is a new traffic channel other than dine-in and takeout plus retail. This channel can do many things.
Stars have their own fans; Xiaomi sells Xiaomi mobile phones through trial operation; Apple sells Apple through fans, and this will also happen in the catering industry. You turn your customers into your private domain traffic, and by interacting with them, they will continue to deepen their brand awareness. In private domain traffic, you can do takeaways or sell your specialty products. For example, there is a dish called dried duck dried bamboo shoot soup in your restaurant, then your dried bamboo shoots can be sold in private retail traffic through new retail methods.
After the new crown epidemic, there will be business model upgrades in the catering industry. It turns out that everyone only considered a single business model. After the outbreak, many people realized that a single self-operated large store system or a single dine-in model system could not be eaten this time. There are several cases of model changes. First, the big stores go smallAs the store model changes, the store will become very reasonable and flexible in the future, and the area of the store will not be thousands of squares as before. Second, the transformation of direct operation to franchise operation model. Third, the new retail mode will be transformed from dine-in to dine-in + take-out + take-out + private domain traffic, and the sales method will be richer and more integrated, with online and offline integration. Fourth, the marketing methods, sales channels, and product structure will also change, and the product SKU will become less, just like the old duck set, a store only makes old duck plus 3-5 dishes, driven by a burst Store sales, core products may account for more than 50% of restaurant sales.
On the other hand, The literacy, learning and digital capabilities of catering practitioners will be greatly improved in the future. After 2020, we will also accelerate the elimination of a group of companies with weak brand power, innovative capabilities, insufficient product power, and singles. The trend of branding and chaining will become more and more obvious.
Recommended reading:
How was the grandma ’s family saved by a “duck”? | Super opinion
The “Super Views” section now launches the “Special Observers” program, inviting entrepreneurs from various tracks, business leaders of large companies and other front-line business practitioners to share your entrepreneurial experience, dry goods, and methodology , Your industry insight, trend judgment, and look forward to hearing your voice from the forefront.
Welcome to contact us, WeChat: cuiyandong66; Email: guanchayuan@36kr.com.