Under the background of the further expansion of the scope of the epidemic, the decline of passenger traffic in the transportation industry by 14.1%, and the continuous pressure on the cost of raw materials, the leisure brine brand Zhou Black Duck withstood the pressure of all parties and handed over a bright 2021 annual report card.
On the evening of March 30, Zhou Black Duck released the 2021 annual performance report, saying that during the reporting period, the group's total revenue was 2.870 billion yuan (RMB, the same below), an increase of 31.6% year-on-year; net profit was 342 million yuan, an increase of 126.4% year-on-year.
Among them, the franchise business contributed 592 million yuan in revenue, accounting for 20.6%. The number of franchised stores has increased to 1535, and the total number of directly operated and licensed stores has reached 2781, and it has been stationed in 267 cities across the country. The Internet O&O business contributed 920 million yuan in revenue, an increase of 23.5% year-on-year. New products contributed more than 500 million yuan to the group's revenue, accounting for 18%; supply chain capacity optimization drove gross profit margin to increase by 2.3 percentage points year-on-year.
Since 2022, the scope of the epidemic has further expanded, and the situation has become more and more severe. Continued inflationary pressures and the remaining pressure on raw material costs are the long-term pressures and challenges that consumer goods retail companies will face.
Zhou Black Duck said that in the post-epidemic era, it will uphold the consumer-centered business philosophy, comprehensively promote the operation strategy of diversified reach, continuously improve supply chain management capabilities while accelerating store expansion, do a good job in flexible and accurate cost control, strengthen organizational capacity building, and promote the company to achieve long-term sustainable development.
Stores continue to be encrypted in 267 cities
In order to cope with changes in the consumption environment, Zhou Black Duck continues to promote the "direct operation + franchise" business model. In terms of direct business, Zhou Black Duck actively adjusts its strategy, accurately and dynamically optimizes the commercial resources of stores, creates brand benchmarks, enhances anti-risk ability and brand influence; in terms of franchising, Zhou Black Duck continues to promote the "Community of Destiny" plan, relying on the single-store hosting + urban development franchise model, continuously encrypting the market and improving brand visibility.
In 2021, the new crown epidemic is still not over, especially in the second half of the year, the new crown virus mutation strains Delta and Aumi kerong multi-point outbreak, intermittent closed control has become the new normal, offline consumption is facing the impact of consumption habits, consumption scene changes. Consumers stay at home longer, the radius of activities shortened, community consumption developed rapidly, Zhou Black Duck followed the consumption trend and gradually laid out community scenes to cope with the risk of the epidemic, community stores achieved good results in Wuhan, and began to launch pilots in some cities in central and southern China.
Despite the severe epidemic situation and the recovery of passenger flow less than expected, Zhou Black Duck still maintained a relatively fast pace of store expansion throughout last year: in 2021, the Group received nearly 16,000 franchisees, the number of franchised stores increased to 1535, and the total number of directly operated + franchised stores increased from 1,755 to 2,781 in the previous year, and the store structure underwent fundamental changes; in 2021, 116 new cities were covered, covering 267 cities in total, and the distribution of stores nationwide was more even.
Omni-channel diversification reaches consumers with precision
Under the epidemic, social distancing has shifted the consumption scene to online, so Zhou Black Duck has laid out diversified consumer access channels. In terms of takeaway, we actively explore brand joint marketing, create brine festivals with takeaway platforms, enrich consumption scenarios, and increase the acquisition of resources in the station through accurate delivery and drainage, improve customer acquisition rate, and the exposure rate on the Meituan takeaway and Ele.me takeaway platforms reached 840 million times, and the number of new takeaway customers increased by 81.2% year-on-year. In the short video and online live broadcast business, the two-wheel drive of KOL live broadcast and self-operated store live broadcast was built, with more than 3,000 live broadcasts in the whole year, 1.5 billion views, and 168 million yuan in tax-inclusive sales, achieving a double growth of brand promotion + sales scale. In terms of near-field retail, it has settled in seven major fresh platforms such as Dingdong, Pupu and Hema, covering more than 80 cities across the country, more than 3,000 front-end warehouses, and the annual revenue has exceeded 100 million yuan, with a gratifying growth momentum. In 2021, Zhou Black Duck O&O business contributed revenue of 920 million yuan.
At the same time, in order to cater to the consumption trend, Zhou Black Duck increased the research and development of new products, added vegetarian dishes, aquatic products, chicken accessories and other products during the reporting period, and focused on the taste of the head, creating a new generation of explosive large items such as "spiced duck neck", "spicy shrimp ball", "tiger skin phoenix claw", etc., of which the monthly sales of shrimp balls and spiced duck neck exceeded 10 million.
In addition, Zhou Black Duck has also launched products of different specifications and price points, expanding the low price band to meet more consumer demand. During the reporting period, zhou black duck's various new products contributed more than 500 million yuan to the group's revenue, accounting for 18%.
Optimize the supply chain to adjust the investment policy to resist pressure
In 2021, affected by the epidemic, a global supply chain crisis broke out, and the cost of raw material procurement caused by high inflation increased, and the cost pressure of enterprises was significant. Under the impact of multiple external crises, Zhou Black Duck established an integrated supply chain center, introduced an OCM cost control refined management system, and comprehensively promoted the control of the whole chain supply chain. By building a volume and price prediction model, accurately formulating procurement plans, realizing the forward-looking of raw material reserves, effectively hedging the rise in raw material costs, and carrying out all-round collaborative management of production, logistics and other links, continuously improving the efficiency of the whole chain. During the reporting period, the optimization of the Group's supply chain capabilities led to a year-on-year increase in gross profit margin of 2.3 percentage points.
At the beginning of 2021, the Zhou Black Duck East China Plant was put into operation, further improving the delivery timeliness of the front-end business. In the future, with the operation of the Zhouheid duck Huaxi factory and the completion of the layout of the five major production centers, it can be more flexible to allocate production capacity and achieve efficient collaboration.
Since 2022, the scope of the epidemic has further expanded, and the situation has become more and more severe. Coupled with the continuous increase in imported inflation pressures and the remaining pressure on raw material costs, consumer goods retail enterprises will face long-term pressures and challenges. In this regard, Zhou Black Duck flexibly adjusted the investment policy, took the form of margin reduction, royalty fee installment, increase the proportion of share and other ways to overcome the difficulties with the franchise partners, and at the same time gave the franchise partners from site selection, training, construction, IT, to logistics, operation, marketing, takeaway and other full links and all-round support, and strive to open 1,000 new direct + franchise stores this year.
Zhou Black Duck said that in the post-epidemic era, Zhou Black Duck will uphold the consumer-centric business philosophy, comprehensively promote the operation strategy of diversified access, continuously improve supply chain management capabilities while accelerating store expansion, do a good job in flexible and accurate cost control, strengthen organizational capacity building, and promote the company to achieve long-term sustainable development.