NO.565
Author: Observer-kun
Proofreading: Cheng Cheng / Editor: Zhizhi
The anchor complained about the three squirrels and directly received a lawyer's letter from the three squirrels. Recently, some Kuaishou anchors have complained many times about the three squirrels "blistered in salt water", "half a bag of maggots" and "eating urine". The three squirrels publicly released a lawyer's letter, expressing their deep grievances, anxiety and panic, and at the same time sent a letter to the Kuaishou platform, asking for a clean and upright business environment, which sparked heated discussions on the Internet. 2023 is the first year for the three squirrels to implement the "high-end cost-effective" strategy, and the three squirrels have finally stopped the decline in revenue after offering "cost-effective" tricks through e-commerce and channels. However, the negative impact of the price reduction strategy is gradually emerging, and the three squirrels are about to fall into the trouble of "sinking".
On January 25, the three squirrels released a statement about the inappropriate remarks of the Kuaishou platform anchor "Taiyuan Lao Ge". The statement said that the Kuaishou platform anchor "Taiyuan Lao Ge" and its associated accounts have repeatedly made inappropriate remarks in live broadcasts and videos, such as "Send three squirrel nut gift boxes to the children's teachers, and the children have to sit in the last row", "The three squirrels are blistered in salt water" and so on. For this kind of bottomless and frequently hyped remarks, the three squirrels "feel deeply aggrieved, anxious, and panicked".
The three squirrels said that they had sent a lawyer's letter to "Taiyuan Lao Ge" and notified the Kuaishou platform, but there was still no response, which was a deep regret.
The three squirrels also called on everyone to put aside their prejudices and take the initiative to take action, and ask the regulatory authorities and businesses to work together to create a benign competitive environment that meets the interests of consumers and thrives.
The statement also mentioned that the cooperation between the three squirrels and Simba Xinxuan is a normal business practice.
Some media contacted "Taiyuan Lao Ge" for his views on this matter, but has not yet received a response. "Taiyuan Lao Ge" brings goods on Douyin and Kuaishou at the same time, and currently has more than 300 items in the window, most of which are snacks, basically a competitor of the three squirrels. Its "evaluation" of the three squirrels in the live broadcast and video is basically a subjective assertion, without citing factual evidence.
Although there is no list of facts, many comments from netizens are criticizing the quality of the three squirrels.
The statement of the three squirrels mentions "Taiyuan Laoge", Xinxuan and Kuaishou platforms, and the reason may involve commercial competition issues within the platform.
It is understandable that the remarks of "Taiyuan Lao Ge" made the three squirrels feel aggrieved, anxious and panicked, after all, this is the first time that the three squirrels have been involved in entanglements with the anchor of the short video platform, and there may be many similar incidents in the future.
Since the end of 2022, Three Squirrels has implemented the "high-end cost-effective" strategy, and Three Squirrels has drastically adjusted its sales channels, in addition to traditional offline stores and distribution channels, Three Squirrels no longer relies entirely on online platforms such as Taobao and JD.com, but almost studs live broadcast to bring goods.
At the beginning of 2023, Three Squirrels launched a large discount of 19.9 yuan for 10 packs, and within a few weeks, sales exceeded one million. This made the three squirrels suddenly find the inspiration for live streaming.
Three Squirrels has signed more than 6,000 food anchors on Douyin, almost half of the video anchors. In 2023, Three Squirrels' sales on Douyin will increase by 5 times, reaching 108 million during Double 11 alone. Since the launch of Douyin in April 2023 to the end of 2023, the cumulative sales of Three Squirrels on Douyin have exceeded 95 million yuan.
According to the 2023 performance forecast released by Three Squirrels on January 15, Three Squirrels is expected to make a profit of 200 million yuan to 220 million yuan in 2023, a year-on-year increase of 54.97%-70.47%. The three squirrels finally stopped the trend of declining revenue that began in 2020. In this, betting on live e-commerce has made a lot of efforts.
The "high-end cost-effective" strategy proposed by the three squirrels a year ago has begun to bear fruit. However, the risks for the three squirrels are also increasing by the day.
The so-called high-end cost-effective strategy, the founder of Three Squirrels once explained in detail in the circle of friends, but it was very tongue-twisting. Observer thinks that in the final analysis, it is to reduce the price and sink, change the high-price route in the past, save costs in circulation, production and other links, and bring down their own prices, exchange price for quantity, and first increase sales.
Under this strategy, it is indeed possible to increase revenue and solve the data problem first. But it also poses two fatal problems.
First, the sharp increase in sales brought about by the price reduction strategy has brought a huge quality control test to the three squirrels. The ability of the three squirrels to control the quality of the product and the production capacity of the supply chain determines the viability of the three squirrels. Increased sales mean more exposure and more customer complaints. In particular, food safety issues can easily give food companies a fatal blow.
Second, in addition to the three squirrels, snack brands such as BESTORE are also implementing price reduction strategies, and they will fall into vicious competition with snack brands in the sinking market, and the battle for survival in the snack industry will also begin.
2024 is destined to be the year of involution of the snack track, and the snack industry will usher in greater integration. Greater anxiety and panic are yet to come.