On April 28, the snack food head enterprise Good Product Shop (603719. SH) released its first quarter 2022 earnings report. During the reporting period, the company achieved revenue of 2.942 billion yuan, an increase of 14.3% year-on-year; and achieved a net profit attributable to the mother of 93.0611 million yuan.
During the reporting period, the company's online and offline channel sales have increased, and the company's various market segments have maintained growth.
Industry insiders believe that 2022 will be a year to test the adjustment and improvement results of leisure snack companies, as a head enterprise with core competitive barriers, good shops are expected to usher in a new round of growth.
Offline stores have increased to 3,007
In the first quarter of 2022, the sales of the good shop online and offline have achieved considerable growth.
According to the financial report, online channel sales were 1.785 billion yuan, an increase of 20% year-on-year, and offline channel sales were 1.489 billion yuan, an increase of 13% year-on-year.
Taking online channels as an example, in January this year, Tmall platform sales increased by 94.1% year-on-year during the Tmall Super Product Day event. At the same time, the company accelerated the layout of new traffic channels such as social networking and community group buying, and the Douyin platform maintained rapid growth year-on-year.
For offline channels, the company implements refined store management, user fine operation, and the growth rate of emerging regional stores is obvious. At the end of the first quarter, the number of offline stores of The Good Shop has increased to 3,007, a net increase of 33 over the end of the previous year, and the sales in the southwest and east China regions increased by 21.55% and 8.38% respectively; central China maintained steady growth, with sales increasing by 5.89% year-on-year.
Industry insiders believe that from the perspective of the development of the leisure snack industry, the omni-channel model has stronger anti-risk ability, and online and offline channels have their own advantages and can complement each other. Offline is affected by uncertainties such as the epidemic, while online channels are seriously involved. In the face of multiple external complex environments, Liangpin Shop continues to deepen the omni-channel layout, and through multiple channels such as store retail, platform e-commerce, social e-commerce, group buying, community e-commerce, circulation, etc., it has built a full range of user interaction contacts and improved its ability to resist risks.
Guosheng Securities said in a research report that offline, in the first quarter of the epidemic disturbance in some areas of the store expansion has been adjusted, it is expected that the epidemic ease and the continuous development of the departure business is expected to improve quarter by quarter; online e-commerce channels from traffic operations to intensive farming, the fourth quarter of 2021 one-time online fee investment is expected to release omni-channel dividends, it is expected that this year in the product structure continues to optimize, cost pressure improvement and omni-channel advantages continue to show, revenue and profit double increase can be expected.
The "14th Five-Year Plan" also proposes to encourage the innovation of commercial circulation formats and models, promote digital intelligent transformation and cross-border integration, and meet consumer demand through online and offline omni-channels.
Increase investment in research and development for 4 consecutive years
Snacks have a variety of attributes such as social and entertainment, which are in line with the lifestyles needed by young people in the current fragmented background of time, and have gradually become an important channel for emotional expression and a tool for social interaction, with the characteristics of high penetration, high impulse and high frequency.
At present, the market size of leisure snacks is still expanding. According to the statistics of Ai Media Data Center, from 2010 to 2020, the market size of the mainland snack food industry continued to grow, from 0.41 trillion yuan to 1.12 trillion yuan. It is expected to grow by 7.2% by 2022, and the market size will reach 1.24 trillion yuan.
To become a winning general in the snack track, continuous product innovation is required, and innovation is inseparable from strong research and development capabilities.
In 2021, the R&D investment of the good shop was 39.67 million yuan, an increase of 17.64% year-on-year, and the R&D investment was increased for four consecutive years, with an annual compound growth rate of 18.46%.
In 2022, the good shop will continue to increase investment in product research and development, the first quarter of R & D investment increased by 23.98%, the company through R & D technology breakthroughs, for the segmentation of the needs of in-depth research and development and innovation, to further enhance product strength, build a barrier to differentiated advantages. In addition, The shop also optimizes the business organization, optimizes the product matrix around user needs, promotes in-depth supply chain collaboration, opens up gtm processes, and continuously improves product operation efficiency.
The good shop has never stopped innovating and exploring in the subdivision track, and the strong research and development strength has given good support to the good shop. During the reporting period, the market segments of the good shop maintained growth, and the expansion of categories and large items performed brightly, building barriers to differentiated advantages.
At the beginning of 2019, after focusing on high-end snacks, it was clear that in the future, it will target the different needs of pregnant women, pregnant women, children, silver-haired people, fitness families and other sub-groups, and is committed to providing consumers with high-quality, high-value, high-experience, healthy and nutritious products to meet the segmentation needs of different groups of people and different scenes.
Based on the personalized needs of different consumer groups, Liangpin Shop has successively launched the children's snack sub-brand "Small Food Fairy", the fitness meal replacement snack sub-brand "Liangpin Feiyang", the tea break brand "T-break", and the middle-aged and elderly (diabetes) low-GI snack series.
As the initiating member of the Food Education Alliance and the first children's snack group standard setter in China, Liangpin Shop continues to promote and popularize China's children's food education, and promotes the industry to establish a safer, more nutritious and more meticulous children's snack group standard system for three consecutive years.
Food industry analysts told the first financial reporter: "Since the second half of 2021, affected by raw materials, food and beverage brands have successively raised prices, catalyzing the optimization of the competitive landscape, and head brands with scale advantages are more likely to lock in lower raw material prices in advance, and can digest costs through price increases, scale effects, etc." Looking forward to the whole year of 20202, the impact of factors such as repeated epidemics, channel changes, and fluctuations in raw material prices is still in place, and 2022 will be a year to test the adjustment and improvement results of leisure snack companies. ”
For the planning of 2022, Liangpin Shop mentioned in the 2021 annual report that it will continue to develop the balanced layout of omni-channel, strengthen product innovation capabilities, and achieve two-wheel drive of products and channels. And increase investment in product research and development, create industry competition barriers, promote in-depth supply chain coordination, and create the core competitiveness of the supply chain.