Good shops promote the high-quality development of snack industry by optimizing "three chains isomorphism" with quality, diversification and intelligence.
This year, the war in the discount snack industry is still escalating wildly, and the tactics of merger, expansion and poaching are endless, just like Lian Heng in the Warring States Period. The "Hays Incident" before the "Double Eleven" also tore a hole in the fig leaf of "price control right": "predatory pricing" with the top-stream anchor as the core is extremely squeezing the interest chain of the supply chain, and the contradictions among all parties in the market are becoming more and more fierce. However, business rules have never been "low price is king", and excessive "involution" may not necessarily win the market, and may even make competitors in the industry get lost in low cost performance. As one of the practitioners in the snack industry, Yang Yinfen, the chairman and general manager of Liangpin Store, is also thinking: Is the pattern of "involution" really beneficial to consumers? The answer is no. He believes that if the industry wants to make a profit and enter a positive cycle, it needs to invest in research and development and equipment renewal. Simply low prices are actually unsustainable. So, what is the strategy of the good shop? Yang Yinfen gave the answer: close to consumers, optimize from three links: industrial chain, supply chain and value chain, so that upstream and downstream industries and consumer terminals can benefit. Under the idea of building a modern industrial system, the good shop of the chain owner enterprise regards itself as the value hub of the whole industrial chain.Output standards in every link of the link, and control the quality from raw material procurement to rough and finish machining. At the same time, the product system is constantly enriched by using the digital intelligence means of insight into consumers, and the ecological high-quality development of the snack industry is continuously promoted, and a road of "three chains isomorphism" of quality, diversification and digital intelligence is created. Whether the strategy of good shops can stand the market test, let us wait and see.
(1)Strive for resilient growth with "quality"
To carry out "three-chain isomorphism", enterprises should first answer, what are the core and support points of three-chain isomorphism? In Yang Yinfen’s mind, "quality" is the absolute "C position". From the beginning of its establishment, the good shop has been "dead" in quality. This is also the most important gene in a good shop. Based on this, Liangpin Shop laid out the whole supply chain, not only established a high-quality supplier system, but also established a series of product and raw material standards, defined high-quality snacks with high-quality standards, and improved the quality of the entire chain of industrial chain, supply chain and value chain. Looking back, in 2020, Liangpin Store established the "Supply Chain High Quality Development Committee", which made it clear that when there was a product quality dispute internally, the quality department had a veto power, and the "three-chain isomorphism" was put at an unprecedented height with quality construction. This year, the "think tank team" was once again introduced into the good shop, and the enterprise was placed under the third-party "magnifying glass". From the introduction, withdrawal, empowerment and acceptance mechanism of suppliers, it was repeatedly established, examined, re-evaluated and reconstructed, which set off a "quality revolution" in the supply chain and industrial chain of the good shop.
Caption: Liangpin Shop Crispy Pancake Production Line
Today, among the suppliers of good shops, 148 suppliers are in the TOP5 in China, and the average years of core suppliers engaged in food processing are more than 20 years. With a high-quality supplier system, there will be a "gatekeeper" of high-quality snacks. The huge supplier system is like a "safety production network", which constantly examines and checks all steps of snack production in good shops. Taking "good raw materials make good taste" as the product development concept, the good shop leads suppliers to go deep into the fields and go north and south of the river, constantly selecting high-quality producing areas, and by establishing exclusive planting and breeding bases, selecting good raw materials to ensure stable product quality. At present, good shops have signed 12 high-quality raw material bases across the country. In April this year, in the core producing area of cashew raw materials in Pingfu province, Vietnam, the good shop drove the supplier to build a modern first-class factory with a daily output of over 100 tons. The factory has built a high-standard clean workshop in strict accordance with international standards, and set up a standardized production process from raw material planting, harvesting, drying, shelling, processing, packaging, transportation and other links to ensure the provision of high-quality and fresher cashew products to consumers. Nowadays, the "quality consortium" set up by good shops has successfully promoted the quality improvement of the first, second and third industries and built a "The higher the quality-the more satisfied the consumers-the higher the factory income-the continuous upgrading of factory production-providing more high-quality products.
(B) Diversified products to enhance the consumption value chain
Compared with other industries, the leisure snack industry is a special industry with raw materials as the core of competition, and the quality and richness of raw materials directly affect the niche of snack enterprises in the value chain. "In the past, snacks were only scattered in shopping malls, circulation markets and residential shops, and it was not a big industry. The first one to extend snacks into a figurative track is a good shop. " Cheng Hong, president of the Institute of Quality Development Strategy of Wuhan University, believes that China needs entrepreneurs to stimulate new consumption and produce diversified and rich products with high quality, which can better stimulate consumer demand and truly realize domestic demand to boost the economy. Open the "world menu" of the good shop, and you can see the pecan fruit from the North American continent and the cashew nut from Vietnam … … Across the geographical barrier, Liangpin Shop has brought good raw materials and good scenery to China, becoming a snack brand with the most complete product system, the widest geographical range and the most detailed derivative processing in the industry. By the end of 2022, Liangpin Store has 17 categories, including meat snacks, seafood snacks and nuts roasted seeds and nuts, and 1655 SKUs (the smallest inventory unit). Its rich product lines meet the needs of consumers of different ages, different scenes and different levels, including children’s snack sub-brand "Xiaoshixian", the brand of incubating fitness meal replacement snacks "Control Multi-Card" and the snack for diabetics "Relieve Tang Worry".Wait for multiple brand sequences.
With the help of all-category reservoirs, good shops are constantly incubating one big single product and explosive product after another, making it the most prominent power engine for performance growth. In 2022, the new SKU 600+ was launched in all channels in the good shops, creating 17 explosive products with sales exceeding 10 million, represented by Chiaya seed whole wheat toast, hand-torn meat jerky, crispy pork jerky, and 0-added sucrose yellow peach jerky. It can be seen that the value chain promotion path of good shops is completely different from the current growth flywheel of discount snacks. Good shops provide innovative snack items to different consumer groups through a rich product structure, creating new consumption value, effectively solving the pain points of consumption, and realizing the interaction between products and consumers, rather than simply filling existing and repeated consumption needs. Liu Ling, vice president of the supply chain of Liangpin Store, believes that behind the rich products, there is no simple stacking of goods, but the wisdom of a more complex industrial chain system is needed. From the perspective of "three-chain construction", the good shop takes "selecting the best raw materials in the world" as the selection standard, which shows the ability of the good shop to allocate the best raw materials resources in the world and confirms its strong and rich supply chain support system. With diversified products as the starting point, good shops are also constantly extending the boundaries of the industrial chain. Good shops know that a product represents an industrial chain, and an industrial chain can connect an industrial area in series. Through strong market observation, good shops export their digital intelligence ability to the relevant subjects in the first and second industries on the link.It can promote the upgrading of industrial areas behind products, realize high-quality coordinated development, and continuously improve the construction of modern industrial system in China. It is also in the context of the deep integration of various links that good shops have the strong strength to optimize the supply chain, which can turn the accumulation in the supply chain into self-innovation resources. Under the background of the current economic environment and changes in consumer demand, good shops dare to ask for benefits from lean management, "squeeze water" in the supply chain, and finally adjust the product price to a gear that is more in line with consumer expectations and more competitive.
(C) Full link number intelligence to improve efficiency
In the past two years, the plate of China snack market is expanding, but the channel reform is fierce, and more and more discount snack shops are attacking the city, which has become a subject that the industry has to face. So, will "low-end subversion" happen in the snack circle? Yang Yinfen believes that low prices without profit support cannot be replicated and sustained. When the capital bubble bursts, the industry will naturally enter the elimination period. Starting from the needs of consumers, taking digital intelligence as the engine, comprehensively optimizing and innovating the supply chain and industrial chain is the correct answer to the problem of this industry. On the one hand, digital intelligence can optimize the tedious links in the supply chain and greatly improve the efficiency of production, processing and logistics. After the efficiency is improved, "benefiting the people" is a natural thing. On the other hand, digital intelligence can help enterprises gain insight into consumers’ needs and make judgments with the most market value. "The current consumption is not a real downgrade, but a stratification." Yang Yinfen believes that through the path of digital intelligence, enterprises can accurately find consumers after stratification and provide corresponding accurate services. To this end, in the second half of 2020, Liangpin Store established a new department — — Digital management department of supply chain. This department tries to solve two key pain points: one is the supplier management system (SRM system); The second is the store automatic replenishment system. After the two problems are solved, the management cost will be greatly reduced, thus optimizing the terminal price. At that time, the challenge for good shops was,Different suppliers have different purchase prices, so how to allocate them. For example, the same white sugar, some suppliers purchase cost of 2.5 yuan/kg, while others purchase cost of 2.8 yuan/kg. Through the SRM system, the relevant teams of the good shop disassemble the process cost of each product, and realize "comparability and analysis" through the precipitation of cost data. On the bulk raw material side, the mode of "optimizing purchasing source and supplying separately" is realized to solve the price fluctuation, and the system finds the most cost-effective bulk raw material supplier, and then supplies it to different suppliers respectively. At the same time, the number of smart stores in good shops is also being updated simultaneously. By embedding data modeling in the store system, enterprises can automatically place orders in the "master warehouse" for store sales, and the store manager is no longer responsible for the goods reporting link. After half a year’s trial operation, this model has become the standard of all stores in good shops, forming an "intelligent replenishment system" on the online platform. Nowadays, good shops not only have a well-balanced and highly integrated omni-channel sales network, but also establish multiple contacts with users by taking channel construction as the engine, realizing the ability to respond to consumers’ needs in time.
Caption: Liangpin Puzi Logistics Smart Warehouse
Next-generation information technologies such as artificial intelligence and big data are also providing continuous support for improving the quality and efficiency of the food industry. Good shops have been tried in the field of "AI+ food industry". In August this year, Liangpin Store became one of more than 40 intelligent manufacturing benchmark enterprises released by CCTV’s large-scale documentary "Making China Smart" because of its smart logistics system. From the documentary video, we can see that the automation of goods selection is solved by the robot rocker arm that has solved the problem of the global visual industry, and with the &hellip of automatic guided transport vehicles, sorting machines, three-dimensional warehouses and other automatic equipment, after receiving the order, the intelligent logistics system takes only 30 minutes from sorting, boxing, packaging, labeling to parcel delivery and delivery to the cargo compartment, and the goods can reach consumers in 12 hours at the earliest, and the daily delivery capacity has increased from the previous 80,000 to 200,000 & … For good shops, the digital intelligent supply chain is not only an organization mode of production and logistics, but also a strategic choice facing the future and advancing with the times. Nowadays, the market is changing rapidly. Under the increasingly fierce competition pattern, all industries are faced with the big task of reducing costs and increasing efficiency and optimizing supply chain. Homogeneous competition is a fatal injury to the "low gross profit, high turnover and large scale" discount snack model. In the long run, the snack discount track will eventually move from rapid expansion to stable layout. With the help of the formed "three-chain isomorphism" of quality, diversification and number intelligencePath, good shops have enough strength to cross the cycle, build competitive barriers through differentiated innovation, offset the "uncertainty risk" of the industry, and truly let consumers feel that good shops are "delicious and not expensive".