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“Many companies are eager to diversify, but companies do not have the ability to diversify. I am not optimistic about the diversification of the three squirrels.” Zhu Danpeng said.
Yuri, an analyst who specializes in the pet product industry, believes that the three squirrels entering the pet product market is not a good strategy. “Pet products seem to have a low threshold, but this is only the competitive level of low-priced products. There are already too many brands competing in this level of the market, and it is difficult for the three squirrels to fight for opportunities in this red sea. .“
In the high-end market, the OEM + OEM model of Three Squirrels is not mainstream. With the improvement of consumers’ quality requirements in the market, “the pet product companies with years of research and development capabilities have already formed a brand effect.”
But Daddy Squirrel is confident in diversity. A little squirrel revealed that at the internal meeting, Zhang Liaoyuan was very optimistic about the pet market, and even believed that the pet market and the three squirrel stores could be organically connected.
“Pickles, baby food supplies, pet supplies, and gifts are actually part of the store strategy.” Liu Bin, an analyst who has followed the three squirrels for many years,(pseudonym) visited Liangpin Store, Laiyifen and the stores of Three Squirrels after the epidemic.
“Snacks alone cannot support the profits of stores. Diversification and contextualization are the fundamental logic of the development of snack stores. Zhang Liaoyuan’s idea is actually very clear. He hopes to use offline expansion strategies. Activate three squirrels.“
From the perspective of the industry, the offline expansion logic of Three Squirrels may be based on scenario-based services. People are attracted to the store by cultural and entertainment items. The longer stay in the store increases the chance of buying snacks and supplies. As for infants, pets and other industries, it can increase the cultural connotation of the three squirrels, and even provide more scene services based on this. “But such a project requires more effort in the early stage.”
There is not much time left for Zhang Liaoyuan, the squirrel father. As the cost of e-commerce platforms further increases, if there is no greater business increment, the profits of the three squirrels will eventually be eaten up. In terms of the layout of offline stores, Liangpin Shop and Laiyifen under the first-mover advantage occupy advantageous positions in many cities.
But what worries Daddy Squirrel the most