The "How Fast to Save" snack collection store model has emerged

With the accelerated development of the domestic trillion-yuan snack market, snack sales channels are also expanding, from mom-and-pop stores, traditional supermarkets, convenience stores to snack brand franchise stores, member warehouse stores, and now snack collection stores, etc.
, the channels have become more segmented and diversified
.
Snack collection stores are springing up more and more
.
Following the advent food store, snack collection stores are favored by many consumers due to their favorable prices, rich categories, and high frequency of innovation
.
At present, a number of food companies have actively adopted the snack collection store model, and Ganyuan Food, Yanjin Shop, Jinzai Food, etc.
have announced that they have reached cooperation with a number of snack collection store brands, and snack collection stores have become one of the
new highlights of snack sales channels.

Capital favors industry embrace

A collection store is a store that brings together a certain type of goods, while a snack collection store mainly focuses on the zero food category
.
In addition, the "fast saving" of preferential prices, a wide range of categories, and new and fast is also an important label
.

In several snack collection stores in Chengdu High-tech Zone, Sichuan Province, these stores are basically yellow or orange eye-catching signs, the store area ranges from tens of square meters to more than 100 square meters, the store is eye-catching with well-known brands at low prices, the goods include food purchased and weighed by the piece, and the variety of goods is relatively rich
.
According to official information, the SKUs of a single store such as Snack Youming, Snack Mohua, and Snack Very Busy all exceed 1,000, and the overall price of goods is about 70%-80% of that of supermarkets, and Snack Mohua can be new 15% of items every month
.

Since 2021, snack collection store brands have continued to emerge, among which snack Youming, snack is busy, snack girl, etc.
have obtained financing
.

Perhaps seeing the potential advantages of snack collection stores, various food companies have also actively entered the track, and Ganyuan Food, Yanjin Shop, Jinzai Food, etc.
have said that they will "embrace the snack store channel and continue to enjoy the channel expansion dividend"
.

Lai Yang, president of Beijing Jingshang Strategic Research Institute, said that due to the development of consumption from necessities to enjoyment-oriented consumption, snack consumption is increasing, snack quality and taste are constantly upgraded, and snack collection stores have also benefited
.
In addition, snacks are an industry that relies on impulse consumption, and although there are many types of snacks on the e-commerce platform, there is a lack of impulse consumption scenes, which is also the reason for
the rapid development of some distinctive snack collection stores.

The broad market space has created conditions
for the development of snack collection stores.
Relevant data show that from the perspective of channel division, offline channels are still the main channel for domestic leisure snack sales, accounting for about 80%
of the total.

The open source securities research report pointed out that the leisure food industry track is large, the competition pattern is relatively scattered, and the dependence of snack companies on channels is more obvious
.
Under the macro background of consumption grading, channel reform continues to accelerate, although the overall proportion of traditional supermarkets is still large, the growth rate has slowed down significantly in recent years, and the snack collection store channel with cost-effective advantages has achieved rapid development
.

In addition, the rise of snack collection stores is also inseparable from the demand of
the upstream market.
In the vast snack market, there are many small and medium-sized food brands, insufficient popularity and limited marketing budget, which requires low-cost and efficient sales channels, which also promotes the development of
snack collection stores.

Low gross margin, fast expansion

At present, snack collection stores have two significant characteristics: first, low gross profit, and second, many brands accelerate the pace
of expansion through open franchise.

Unlike the previous generation of snack channels with high gross margins, snack collection stores have significantly lower prices
than other channels.
Guosheng Securities analyzed that the gross profit margin of snack collection stores is about 20%, compressing channel space to benefit consumers, so it can expand
rapidly with cost-effective advantages.
At the same time, the payback period is controlled within
2 years.

Wen Zhihong, partner and head of chain operation of Hejun Consulting, said that on the one hand, some snack collection stores are accelerating their nationwide expansion, and under the scale advantage, they have room for bargaining; On the other hand, the location of such stores is often in the community environment or sinking market, and the rental pressure is low, which saves certain costs
.

Regarding how to create a low-price advantage, Mr.
Liu, an entrepreneur in the snack industry, revealed that the most important cost of this industry lies in the cost of supply, and some well-developed enterprises have sufficient funds in addition to their scale advantages, and the account period is shorter than that of traditional supermarket channels, so the price of goods is lower
.

Industry insiders said that snack products entering Snack Mohua will not incur costs such as entry fees, shelf fees, and promotion fees, and the price of goods will be 25% lower than that of supermarkets, convenience stores and other channels, and the gross profit margin of products will reach 28%.

The 7-10 days of commodity turnover is only half of
the industry.

Snack collection stores generally attach importance to the integration of the supply chain, and each company has its own purchase channels
.
For example, snacks are very busy signing exclusive production OEM cooperation with many domestic food processing enterprises to maintain the low price strategy of goods; Snack Mohua cooperates with many first-line brand agents, which can reduce intermediate costs
.

However, snack collection stores are not full of products with very low gross margins, and attracting customers to consume products with higher gross margins is also a secret to increasing their profits
.
"Generally, well-known brands and Internet celebrity brands will be sold at low prices as drainage products, and some loose snacks can be appropriately raised in price to earn profits
.
" Mr.
Liu said
.

From the public data, even if the strategy of small profits and quick sales is adopted, the revenue data of snack collection stores is still considerable
.
According to the sales data of snack busy stores, the unit price of customers is about 28 yuan, and its average daily sales in a single store exceed 13,000 yuan
.
According to interface news reports, the average daily sales of snack Mohua stores are more than 8,000 yuan, and the maximum can reach 20,000 yuan
.

Open up to join and open the sinking market

After the single-store profit model ran through, snack collection stores began to become chained, and many companies have accelerated the speed
of horse racing through the open franchise model.

According to the official website of various companies, the expansion of snack collection stores is fast, and they are all aiming at the sinking market
.
Snacks is busy, saying that the number of stores has exceeded 2,000 in the five years since its establishment, and it is growing at the rate of opening 4 new stores every day"
.
According to data from Snack Youming, as of December 2022, the number of its stores exceeded 1,000, and it maintained a rapid
growth rate of more than 100 stores per month.
In terms of sinking market, snacks are busy and snack girls have revealed that they want to focus on lower-tier cities and counties
.

Lai Yang believes that the market of lower-tier cities is broad, and targeting the development of lower-tier cities is also more in line with
their low-price advantages.
In addition, there are not many small and medium-sized operators in lower-tier cities, because there are not many market opportunities for traditional entrepreneurial projects, they cannot find good opportunities to invest in entrepreneurship, and snack collection stores claim that low investment and high return have greater attractiveness
.

In Wen Zhihong's view, the key to further opening up the sinking market lies in the supply chain, management capabilities and expansion capabilities
.
"Some enterprises expand through franchising, and they must do a good job in quality control of franchised stores to ensure the establishment
of brand power.
" In addition, a strong supply chain is key
to supporting expansion.
”

At present, some leading enterprises have made efforts in supply chain, digitalization, logistics and warehousing construction
.
According to official sources, Snack Mohua combines digital procurement with category strategies to meet the needs of refined operations and achieve higher supply chain efficiency; snacks are very busy, and 60,000 square meters of modern logistics warehouse have been built; Snack Youming announced that the funds will be used for supply chain upgrades and digital IT construction after completing the financing
.

In fact, the threshold for joining snack collection stores is not low
.
Public information shows that the franchise requirements of Good Shop and Laiyifen are to have more than 600,000 yuan of investment funds + 1 million yuan of working capital, and have more than 500,000-1 million yuan of own funds; The cost of deposit, decoration, first batch of stocking, and various equipment for joining snacks requires a total of about 460,000 yuan; Snacks are very busy, about 500,000 yuan
.

Lai Yang pointed out that whether it can make a long-term profit is a test
for the future of the collection store.
Collection stores need to have strong buyer ability and brand management ability
.
The cost of offline stores is higher than that of online, and whether it is rapid expansion or joining, you need to think
rationally.
In addition, to continuously improve product structure, research and development capabilities, product innovation, etc.
, it is best to form a private brand series or exclusive cooperation products
.

Various leading snack brands are also deeply cultivating offline channels
.
At present, the franchised stores of Baicao Wei have covered 16 provinces and cities
.
As of the end of September 2022, the number of good shop stores reached 3,163, and in a recent survey by institutions, it said that the company will quickly penetrate
into second- and third-tier cities in the future.

Bao Yuezhong, a new retail expert, said that the core of establishing a corporate moat is commodity power, one of which is to create differentiated advantages; The second is to understand how to achieve enterprise growth by creating customer value, both of which are the directions
that snack collection stores need to consider.

"For snack collection stores, the most important thing to establish competitive barriers is quality, differentiation and efficiency
.
" Wen Zhihong said, "In addition, the location of stores and efficient product selection will also affect the turnover rate and the ultimate benefit
.

(Yan Na, Dang Peng)

China Food News(2023.
01.
03.
07)

(Responsible editor: Zhu Meiqiao)