Early planning or panic?
Editor’s note: This article comes from WeChat public account “Quick Consumer” (ID: fbc180)
Author: Qiao Feng
Edit: Oranges
Three squirrels in a listed company want to tell a more beautiful story.
On April 23, three squirrels issued an announcement, based on strategic development needs, it is planned to establish 9 wholly-owned subsidiaries, and the three squirrel supply chain management companies after the establishment will establish a wholly-owned subsidiary Three squirrels East China Supply Chain Management Company, a wholly-owned Sun company.
In more than half a month, 10 companies were established, involving more than 300 million yuan in funds, covering several fields such as international trade, sales, technology, baby food, and pet food.
This is the first time that the net profit of the three squirrels has dropped by 17.80% in the first year of listing.
For Zhang Liaoyuan, the founder of the three squirrels, after “7 years of itch”, what other story can we tell next?
01 Bushing to the “first share of national snacks”
Zhang Liaoyuan, the founder of the three squirrels, introduced Weibo: 18-year-old dreams, 19-year-old self-study marketing, set up a stall, opened a shop, worked part-time iron rice bowl, failed all the way! 27-year-old eyes open, 31-year-old summary: perseverance! 35-year-old summary: willing! The future: do a good job!
Like everyone who was born in Anhui, Zhang Liaoyuan grew up listening to the story of the “Anhui Roasted Goods Gang”. “China’s No. 1 Vendor” is a fool, melon seed, Guangnian Nianjiu, contact melon seed Chen Xianbao …
Listening to the story is one thing, starting a business is another. Zhang Liaoyuan has been moving around in Anhui until he started working in the e-commerce industry in Zhan ’s pecans in Ningguo, Anhui. After the brand “Shell Shell Fruit” did not develop significantly, he decided to resign.
In 2012, Zhang Liaoyuan founded three squirrels in Wuhu City.
At that time, leisure snack food brands such as Liangpinzi, Baicaowei and Laiyifen have been fighting for many years and are in a critical period of transition from offline to online.
In order to highlight the encirclement, Zhang Liaoyuan abandoned the development model of traditional Hui-style roasted goods and decidedSeize the traffic bonus period, create a pure online brand, and use the “moe culture” to capture the hearts of young people.
Into the Internet, with ideas, to succeed quickly, the next step is to burn money.
In March 2012, IDG Capital received US $ 1.5 million in Series A investment, followed by US $ 6 million in Series B financing, 120 million yuan in Series C financing, and 300 million yuan in Series D financing …
With the help of capital, the three squirrels got on the “rocket” and achieved annual sales of more than 5 billion yuan in 2017. The sales performance increased by 166.6 times compared with 5 years ago, and the revenue easily exceeded ten years of struggle Years of Qiaqia Sunflower Seeds.
Next, the three squirrels must complete the biggest mission entrusted by capital-IPO.
As early as 2015, three squirrels completed the registration of the counseling record. Two years later, they submitted the prospectus to the SFC and began to sprint the IPO. But the dangerous process is a legendary IPO blockbuster. First, the “signing lawyer resigned” took the initiative to “suspend the review”, and the review was cancelled due to anonymous mail. It did not really enter the queuing stage until June 2018.
On July 12, 2019, three squirrels were listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, with an issue price of 14.68 yuan per share. At the close of the day, it was 44.01% higher than the issue price, and the total market value reached 8.477 billion yuan.
After successful listing, Zhang Liaoyuan said in an interview, “Listing has never been my dream. My dream is to create a unique world of squirrels.”
But the world of squirrels is also full of unknowns and problems.
02 For the fourth consecutive year, net profit has declined for four consecutive years
The three squirrel Tmall flagship store launched the slogan of the highest sales of nut snacks in the whole network for seven consecutive years.
On December 3, 2019, the turnover of the three squirrels exceeded the 10 billion mark, becoming the first enterprise in China’s snack food industry to exceed 10 billion in turnover.
However, the increase in revenue cannot hide the embarrassment of the three squirrels’ declining profits year after year.
The performance report released by the three squirrels shows that in 2019, the three squirrels achieved operating income of 10.194 billion yuan, an increase of 45.61% over the same period of the previous year; and the net profit of 250 million yuan, a decrease of 17.80% over the same period of the previous year.
The decline in net profit not only occurred in 2019.
The prospectus of the three squirrels shows that from 2016 to 2018, the net profits of the three squirrels were 237 million yuan, 302 million yuan and 304 million yuan, an increase of 253.544%, 27.7% and 0.61% respectively.
From 2016 to 2019, three squirrels showed a gradual decline in profitability.
The reason for this situation is that the over-reliance on online e-commerce platforms has high operating costs; the second is that the OEM model causes product quality problems.
As early as the three squirrels were “random” for the listing, the Internet traffic dividend began to slowly ebb. As online celebrities, the online sales of the three squirrels accounted for more than 80% of all sales, and they were all concentrated on Tmall and JD.com.
In recent years, as the sales of major e-commerce platforms have continued to increase, the sales of e-commerce celebrity brands have also increased, but the ensuing platform operating expenses have also continued to rise. “If you want to maintain brand exposure Rate, you must increase investment in advertising, participate in various activities of the platform, and the commission of the platform also increases every year. “
The three squirrels are no exception. According to reports, in the first half of 2018 and 2019, the operating expenses of the three squirrels increased by 60% and 75% respectively, while the operating income of the three squirrels increased by 26% respectively And 39%.
“Loss of money to make money” became the norm of the three squirrels.
The OEM model helped three squirrels to achieve amazing growth in a short period of time, but it also laid a hidden danger for its future.
In simple terms, the three squirrels do not produce snack foods, they are just porters of snack foods.
It develops products through consumer data, and then produces them through foundries, pastes three squirrels and sells them online.
The fatal flaw of this model is that the product quality is difficult to control, causing the three squirrels to be on the “blacklist” of food safety quality more than once, fined by the regulatory authorities, and brought by the consumer to the court, even because of product quality problems IPO process.
Rome was not built in a day, but it only takes one ant den to destroy the Roman walls …
03 Seeking to change the offline store-making IP
Online, then go offline.
Unlike Liangpin Shop and Laiyifen, which developed from offline to online, the three squirrels, as a pure online brand, moved offline, not only to face completely different markets but also to face Consumer groups.
As early as 2016, three squirrels opened their first offline food store, trying to integrate online and offline users, and make double-line adjustments through data feedback.
After years of development, the three squirrel offline stores now operate in two modes: feedingStore direct mode, the small shop adopts IP alliance mode.
For the offline model, Zhang Liaoyuan had had enough confidence: By 2020, three squirrels will open 1,000 offline stores, and 10,000 offline stores will be opened within 5 years. But at present, there are only more than 100 offline stores of the three squirrels, which is far from the goal.
The three squirrels revealed that the current average annual sales of alliance stores are 1.5-1.6 million yuan, and the annual sales of top 10 stores can reach 3-4 million yuan.
It is worth mentioning that the offline stores of the three squirrels are almost the same as the offline stores of Liangpin Shop, Yanjin Shop and other brands. Japanese simple style “.
Although it is still unknown how much profit the offline stores can bring to the three squirrels, Zhang Liaoyuan has full confidence in the offline. “Although our online business is very big right now, it will be the decisive factor for our future billions of scales. We must invest more resources offline.”
In addition to the offline layout, the three squirrels have always hoped to create their own brand IP like Disney. To this end, the company has set up an IP strategic development business center. It must adhere to the IP and brand strategy, set up a film company, shoot micro movies with TFboys, and produced cartoons with the same name, but the response was flat.
Throughout the IP process of domestic brands, the only brand that can be remembered by an animation is Haier Brothers.
The three squirrels are obviously not the second.
04 Future family scene consumer brand
At present, in the snack industry, homogenization is serious, there is no technical barrier, and the price advantage has almost disappeared. To continue to be the industry’s first, there must be more stories to tell.
In Zhang Liaoyuan’s view, among the elements of “new retail”, the IP-based gameplay with its own traffic is the core, and diversified high-quality goods and services that provide emotional needs are indispensable.
For this reason, three squirrels set up international trading companies and supply chain management companies, establish planting bases overseas, deploy supply chains through technological cooperation, research and develop products, enter the global raw material market, and expand overseas markets.
Into infant food and pet food, in order to enrich the three squirrels, gradually get rid of nutsThe impression of casual snack food brand, to create a consumer brand of family scene.
Imagine the future three squirrel feeding shops: parents bring their children in, not only can buy their favorite snacks, but also buy healthy food suitable for children, and easily buy some dog food for the dogs at home, One-stop solution to the problem of all family members eating, this is a warm and beautiful story.
In Zhang Liaoyuan ’s view, it takes at least 15 years to create a unique world of squirrels. “I think that any company that can survive for a long time must be a different business model, and something that no one has done. Although difficult but worth it. “
No matter whether the fairy tale of this squirrel can be realized, nowadays, Zhang Liaoyuan needs to tell the story well, and the capital behind him that has not yet cashed out needs more.
The three squirrel Tmall flagship store launched the slogan of the highest sales of nut snacks in the whole network for seven consecutive years.
On December 3, 2019, the turnover of the three squirrels exceeded the 10 billion mark, becoming the first enterprise in China’s snack food industry to exceed 10 billion in turnover.
However, the increase in revenue cannot hide the embarrassment of the three squirrels’ declining profits year after year.
The performance report released by the three squirrels shows that in 2019, the three squirrels achieved operating income of 10.194 billion yuan, an increase of 45.61% over the same period of the previous year; and the net profit of 250 million yuan, a decrease of 17.80% over the same period of the previous year.
The decline in net profit not only occurred in 2019.
The prospectus of the three squirrels shows that from 2016 to 2018, the net profits of the three squirrels were 237 million yuan, 302 million yuan and 304 million yuan, an increase of 253.544%, 27.7% and 0.61% respectively.
From 2016 to 2019, three squirrels showed a gradual decline in profitability.
The reason for this situation is that the over-reliance on online e-commerce platforms has high operating costs; the second is that the OEM model causes product quality problems.
As early as the three squirrels were “random” for the listing, the Internet traffic dividend began to slowly ebb. As online celebrities, the online sales of the three squirrels accounted for more than 80% of all sales, and they were all concentrated on Tmall and JD.com.
In recent years, as the sales of major e-commerce platforms have continued to increase, the sales of e-commerce celebrity brands have also increased, but the ensuing platform operating expenses have also continued to rise. “If you want to maintain brand exposure Rate, you must increase investment in advertising, participate in various activities of the platform, and the commission of the platform also increases every year. “
The three squirrels are no exception. According to reports, in the first half of 2018 and 2019, the operating expenses of the three squirrels increased by 60% and 75% respectively, while the operating income of the three squirrels increased by 26% respectively And 39%.
“Loss of money to make money” became the norm of the three squirrels.
The OEM model helped three squirrels to achieve amazing growth in a short period of time, but it also laid a hidden danger for its future.
In simple terms, the three squirrels do not produce snack foods, they are just porters of snack foods.
It develops products through consumer data, and then produces them through foundries, pastes three squirrels and sells them online.
The fatal flaw of this model is that the product quality is difficult to control, causing the three squirrels to be on the “blacklist” of food safety quality more than once, fined by the regulatory authorities, and brought by the consumer to the court, even because of product quality problems IPO process.
Rome was not built in a day, but it only takes one ant den to destroy the Roman walls …
03 Seeking to change the offline store-making IP
Online, then go offline.
Unlike Liangpin Shop and Laiyifen, which developed from offline to online, the three squirrels, as a pure online brand, moved offline, not only to face completely different markets but also to face Consumer groups.
As early as 2016, three squirrels opened their first offline food store, trying to integrate online and offline users, and make double-line adjustments through data feedback.
After years of development, the three squirrel offline stores now operate in two modes: feedingStore direct mode, the small shop adopts IP alliance mode.
For the offline model, Zhang Liaoyuan had had enough confidence: By 2020, three squirrels will open 1,000 offline stores, and 10,000 offline stores will be opened within 5 years. But at present, there are only more than 100 offline stores of the three squirrels, which is far from the goal.
The three squirrels revealed that the current average annual sales of alliance stores are 1.5-1.6 million yuan, and the annual sales of top 10 stores can reach 3-4 million yuan.
It is worth mentioning that the offline stores of the three squirrels are almost the same as the offline stores of Liangpin Shop, Yanjin Shop and other brands. Japanese simple style “.
Although it is still unknown how much profit the offline stores can bring to the three squirrels, Zhang Liaoyuan has full confidence in the offline. “Although our online business is very big right now, it will be the decisive factor for our future billions of scales. We must invest more resources offline.”
In addition to the offline layout, the three squirrels have always hoped to create their own brand IP like Disney. To this end, the company has set up an IP strategic development business center. It must adhere to the IP and brand strategy, set up a film company, shoot micro movies with TFboys, and produced cartoons with the same name, but the response was flat.
Throughout the IP process of domestic brands, the only brand that can be remembered by an animation is Haier Brothers.
The three squirrels are obviously not the second.
04 Future family scene consumer brand
At present, in the snack industry, homogenization is serious, there is no technical barrier, and the price advantage has almost disappeared. To continue to be the industry’s first, there must be more stories to tell.
In Zhang Liaoyuan’s view, among the elements of “new retail”, the IP-based gameplay with its own traffic is the core, and diversified high-quality goods and services that provide emotional needs are indispensable.
For this reason, three squirrels set up international trading companies and supply chain management companies, establish planting bases overseas, deploy supply chains through technological cooperation, research and develop products, enter the global raw material market, and expand overseas markets.
Into infant food and pet food, in order to enrich the three squirrels, gradually get rid of nutsThe impression of casual snack food brand, to create a consumer brand of family scene.
Imagine the future three squirrel feeding shops: parents bring their children in, not only can buy their favorite snacks, but also buy healthy food suitable for children, and easily buy some dog food for the dogs at home, One-stop solution to the problem of all family members eating, this is a warm and beautiful story.
In Zhang Liaoyuan ’s view, it takes at least 15 years to create a unique world of squirrels. “I think that any company that can survive for a long time must be a different business model, and something that no one has done. Although difficult but worth it. “
No matter whether the fairy tale of this squirrel can be realized, nowadays, Zhang Liaoyuan needs to tell the story well, and the capital behind him that has not yet cashed out needs more.
At present, in the snack industry, homogenization is serious, there is no technical barrier, and the price advantage has almost disappeared. To continue to be the industry’s first, there must be more stories to tell.
In Zhang Liaoyuan’s view, among the elements of “new retail”, the IP-based gameplay with its own traffic is the core, and diversified high-quality goods and services that provide emotional needs are indispensable.
For this reason, three squirrels set up international trading companies and supply chain management companies, establish planting bases overseas, deploy supply chains through technological cooperation, research and develop products, enter the global raw material market, and expand overseas markets.
Into infant food and pet food, in order to enrich the three squirrels, gradually get rid of nutsThe impression of casual snack food brand, to create a consumer brand of family scene.
Imagine the future three squirrel feeding shops: parents bring their children in, not only can buy their favorite snacks, but also buy healthy food suitable for children, and easily buy some dog food for the dogs at home, One-stop solution to the problem of all family members eating, this is a warm and beautiful story.
In Zhang Liaoyuan ’s view, it takes at least 15 years to create a unique world of squirrels. “I think that any company that can survive for a long time must be a different business model, and something that no one has done. Although difficult but worth it. “
No matter whether the fairy tale of this squirrel can be realized, nowadays, Zhang Liaoyuan needs to tell the story well, and the capital behind him that has not yet cashed out needs more.