Cultivating the triple realm, how do the three squirrels knock on the door of high-quality development?

Image source @ Visual China

Text | Finance and economics are unscrupulous, and the author | Xiaotian

"Do you have any strategy in place?" When Jobs returned to Apple in 1998, Richard Rumelt, author of "Good Strategy, Bad Strategy," threw the question to him, to which Jobs replied, "I was waiting for an opportunity." ”

As a result, as we all know, Jobs' opportunity refers to the wave of the mobile era, Apple took advantage of the trend to launch the iPod and iPhone, and finally "the giant took off".

At present, China's economy is undergoing an unprecedented transformation of new and old kinetic energy, and shifting from high-speed growth to high-quality growth is the key construction period for development momentum in the next 10 years. Chinese companies have also reached a crossroads of strategic choice.

Whoever can grasp the trend change and follow the trend can transmute and enter a new stage. Apparently, there are a large number of Chinese entrepreneurs who have made the same decisions as Jobs.

Due to the impact of traffic differentiation and repeated epidemics, the entire leisure snack track is entering a critical adjustment period. As a leading nut company, the three squirrels have also ushered in the opportunity of strategic transformation.

On the evening of April 22, three squirrels (300783) released their 2021 annual financial reports. During the reporting period, the company's operating income was 9.770 billion yuan, and the net profit attributable to the parent company was 411 million yuan, an increase of 36.43% year-on-year. Profits have increased significantly, laying a solid foundation for future high-quality development.

At the same time, the three squirrels clearly put forward the new strategic direction of "focusing on the nut industry, creating a multi-brand model, and gradually moving towards health, digitalization and globalization" in the next decade, and took the first step in the strategic transformation of the industry.

Dismantling this strategic plan, the new upgrade of the three squirrels in the development concept, development path and development model coincides with the "triple realm" of Wang Guowei's overview in "Human Words". For enterprises, this is also the growth path of a good company.

Now it seems that the three squirrels that are constantly correcting, getting stronger and growing are knocking on the "door" of high-quality development of enterprises.

"Going up to the tall building alone" brings beauty to the living

In the first realm of "going up to the tall building alone, looking at the end of the world", Wang Guowei believes that those who become great causes must first have a persistent pursuit, ascend to the heights and look far, look at the path, and clarify the goals and directions.

At present, some subtle changes are taking place in China's food industry - the epidemic has brought not only the improvement of health awareness to the Chinese people, but also the further improvement of health attention and more refined.

In the past, perhaps maintaining the body in a non-sick state could be called healthy, so consumer goods that pursued the concept of 0 sugar, 0 calories, and 0 additives have achieved great growth. But today, this "extensive" concept of health may be outdated.

In addition to preventing "not getting sick", residential consumers have also begun to move towards a high-quality diet. People are more for good physical qualities and textures, that is, "delicate" health, which includes making the body stronger, more energetic, and even more attractive.

On the other hand, after 40 years of rapid growth, China's economy is entering a cycle of transformation. Chinese enterprises will adjust from the traditional development model and economic growth mode, that is, consolidate high-quality growth.

Under the trend of great health and high-quality development, for the leisure snack industry, the core of sustainable success of enterprises is to focus on creating value for customers. Further, how to better develop enterprises and promote high-quality development is fundamentally to focus on the original intention of life.

People are not consumers, they are living people. The essence of business is not to sell goods, but to provide a good life.

Today, Chinese consumption is entering an "intensive breeding era". Meticulous maintenance of the body has become the psychological consensus of almost every "living person", regardless of age, region, or circle.

In other words, nuts with nutritional and health attributes have gone beyond the category of "national snacks" and are entering the "national diet" system, which requires companies to reposition.

From the enterprise side, strategy is the effective allocation and combination of resources and capabilities in a given environment to achieve certain long-term goals. The minimalist framework of strategy is at the intersection of "want to do", "can do" and "can do" - should do.

As the "crown of sales" in the nut industry, the three squirrels "go up to the tall building and look far ahead", defining the company's mission as "making nuts and healthy food popular to the public". In terms of top-level strategic design, acting as an "evangelist" of the health industry is tantamount to sounding the rallying cry for national health.

Just as Mengniu proposed "one pound of milk a day, strong Chinese", the primary premise of high-quality development of enterprises is "standing", and the three squirrels not only pay attention to the rapid development of the enterprise itself, but also are committed to carrying the banner of national health, which undoubtedly finds the key to breaking the circle of the nut industry.

"The belt is gradually widening" to create a symbiotic value system

"The belt is getting wider and wider, and there is no regret." It means that the cause of becoming a big one is not easy, and it must be unswerving and diligent, until people are thin and bandwidthless and do not regret it.

The high-quality development of enterprises has a fundamental question that must be answered, how to create value for consumers. In layman's terms, it is to continue to provide good products. This is the foundation of the enterprise, but also the cornerstone of high-quality development.

In the past few decades, the mainland nut industry is more in the form of bulk goods, with small, scattered, chaotic characteristics, and since 2012, three squirrels choose to "stand with technology", to package nuts cut into the market, for many years ranked first in the domestic mainstream e-commerce channel snack category sales, for the nut industry to justify the name.

iFind data shows that from 2019 to 2021, the research and development expenses of the three squirrels are 50.22 million, 52.52 million and 57.5437 million yuan respectively, and the research and development investment has always been at the forefront of China's leisure food listed companies.

The emphasis on research and development has also allowed the three squirrels to build around the main brand nut mentality, continuously launching hundreds of millions of large products and billions of large products and quickly obtaining market response.

According to the financial report, in 2021, the three squirrels achieved a nut category revenue of 5.058 billion yuan, an increase of 4.33% year-on-year. With 39% of the nut mind share, it is the sum of the two or three or four in the industry.

But from the perspective of business logic, the enterprise is small is its own, and the enterprise is social. Enterprise development can not stop at its own profit, but also to create value for society.

In fact, although nuts have many benefits for the human body, but because the growth cycle of nuts is as long as ten years, for a long time in the past, nut raw materials mainly rely on imports, limited quantity and high price, to a certain extent, the enthusiasm of chinese people to buy, which is also the reason why the intake of nuts by mainland residents is much lower than the world average.

How to achieve "nut freedom" for the Chinese people? With the increasingly heavy status of the industry, the three squirrels began to create a value symbiosis system, and put forward the plan of "taking science and technology as the core, deeply cultivating products and industries, and promoting the deep integration of the first, second, and third industries".

On the other hand, driven by three squirrels, nut products from all over the world have gradually entered the public eye, and macadamia nuts and pecans originating in Australia, North America and other places have been planted on a large scale in China.

More critically, the deep cultivation of the three squirrels in the nut industry has also brought about a "win-win situation for all parties";

For farmers, the localization of nuts by the three squirrels has promoted rural revitalization and driven more farmers to common prosperity;

For the "living people", the price of nut raw materials is reduced, so that more people can buy cheaper nuts, "everyone can afford to eat, everywhere can buy."

The rise of a category often needs to be promoted by leading brands, and the development of an industry is also inseparable from the driving force of the leader. From this point of view, the high-quality development of the nut industry is inseparable from the help of head brands like Three Squirrels.

The essence of business is to bring a better life to human beings, not to create greater profit possibilities. Obviously, the three squirrels have seized the "key" of high-quality development.

From one to many, throughout every "bright spot"

Objectively speaking, thanks to past economic growth and Internet dividends, since its establishment, the three squirrels standing on the nut track have become the first brand of Internet nuts with high price products, and have also achieved the "first share of Internet leisure snacks".

However, the wave of new consumption is surging forward, the logic of the human goods yard has been completely reconstructed, the consumption trend is changing day by day, in the face of the new market environment, how will the track players move towards high-quality development?

Three squirrels

The answer is given in the transformation plan - from e-commerce to omni-channel, from single brand to multi-brand, reconstructing brand power, channel power and product power.

In fact, from high growth to high-quality development, behind this is also a change of thinking, there are sacrifices and gains, and the purposeful "sacrifice" is for better "gains".

At present, the three squirrels have completely suspended the expansion of stores, and vigorously shut down stores that do not conform to long-term positioning and poor performance, and the next step will focus on improving the profitability of single stores and focusing on the high-quality development of high-quality stores.

What is discarded is scale, what is obtained is solid business performance, and now it seems that its growth potential has also begun to appear.

In 2021, the three squirrels launched offline moderate distribution, based on the original online advantages, combined with the existing direct stores, alliance stores to establish a set of all-round, more diversified, multi-level, more refined three-dimensional network to reach consumers.

According to the financial report, in the omni-channel penetration in 2021, the new distribution business as a whole achieved revenue of 1.609 billion yuan, an increase of 38.16% year-on-year. During the 2021 New Year Festival, in more than 60% of the top 100 chain supermarkets, three squirrels ranked first in the sales volume of nuts in the New Year Festival.

At the same time, in addition to the vigorous entry into the omni-channel, the three squirrels will also focus more on the high-quality development of the category.

Since last year, the three squirrels have continued to reduce the SKU, and gradually stopped sales of many categories that do not meet brand recognition, insufficient scale of single products, weak profitability, and insufficient core competitiveness.

From this point of view, the willingness is "many and complete", but what is obtained is "refined and deep".

In other words, in the future, the three squirrels will give birth to more "fawn blue", and the growth disk will be more compact and stable.

In the view of Peter Drucker, the "father of modern management", we cannot influence change, but only go ahead of it. But every change will not happen overnight, and it will be accompanied by pain.

In 1996, when six renmin university professors and Ren Zhengfei were drafting the Huawei Basic Law, one of the core questions they debated was whether Huawei, which had proposed to become a world industry leader, was pursuing profit maximization or future market leadership.

Ren Zhengfei gave a sharp answer, strategic transformation is the driving force for enterprise expansion, and the cost rise and profit decline caused by this process are not a problem. Implicitly, temporary performance changes are for better and greater success.

We see that in the context of the high-quality development environment and background, the three squirrels that are at the forefront of industry transformation will also face the pain of strategic transformation. But after Nirvana, it is not only the mental cognition of "nuts", but also the dominance of the market and the leap from "online first" to "national first".

"Retreat is to better enter", whether it is channel upgrading, or multi-brand innovation, which is just as Wang Guowei mentioned the highest realm, three squirrels have walked on the road of every "bright light".