A few years ago, small hot pot used to be a very popular catering category in the market, and Xiabu Xiabu was listed with the help of the trend at that time and became the first hot pot company to be listed, but just recently, the news of Xiabu Xiabu's comprehensive price reduction came, is it really useful for small hot pot to compromise and reduce prices?
First, Xiabu Xiabu has a comprehensive price reduction?
According to a report by the China Times, Xiabu Xiabu can't bear the pressure. According to the new menu announced by the company, the prices of Xiabu Xiabu single and double packages have been fully adjusted, and the average price of a single meal is 58 yuan, which is at least 12 yuan less than before; The average price of a meal for two is 130 yuan, and the average unit price does not exceed 60 yuan. The day after this news appeared, Xiabu Xiabu rose by more than 8.37% intraday, and finally closed at HK$2.24 per share on the same day, up 4.19%.
The price reduction of the Xiabu Xiabu brand this time is not small. The "China Times" reporter learned from Xiabu Xiabu that the price of Xiabu Xiabu Xiabu single package saved at least 12 yuan, and in the single package, in addition to lamb, other packages were less than 60 yuan, of which the price of the snowflake tender fish roll package was 50 yuan, and it was only 48.5 yuan after using the all-you-can-eat card member discount. In addition, you can also enjoy the benefits of "Purchase at Extra Price" and "Redemption" for any package in the à la carte menu. On January 11, the reporter of this newspaper learned from the Wanda Xiabu Xiabu hot pot restaurant in Chaoyang District that the price of its single package is basically between 63 yuan and 71 yuan.
Xiabu Xiabu mainly has three brands, Xiabu Xiabu, Xiabu Xiabu and Zhan Yao, of which Xiabu Xiabu brand is one of its main brands, with a revenue of 3.024 billion yuan in 2023, accounting for 51% of Xiabu Xiabu's total revenue. Although the Xiabu Xiabu brand has always been positioned as a cost-effective route. But it is undeniable that after years of development, the price of the brand has also risen as a whole, from the previous per capita of thirty or forty yuan to sixty or seventy yuan. According to the annual report, in 2013, the per capita consumption of its customers was only 40.8 yuan, and then rose year after year, breaking through the 50 yuan and 60 yuan mark in 2018 and 2020 respectively, rising to 63.9 yuan in 2022 and falling back to 62.2 yuan in 2023.
Second, is it really useful to compromise and reduce the price of small hot pot?
In the fierce competition in the catering industry, hot pot, as a popular form of food, has always been a must for businesses from all walks of life. As one of the representatives of the domestic small hot pot brand, every action of Xiabu Xiabu has attracted much attention. Recently, the news of Xiabu Xiabu's announcement of a comprehensive price cut has once again pushed it to the forefront of public opinion. Behind this move, there is a deep meaning of brand strategy adjustment, and it also reflects the subtle changes in the trend of the catering market.
First of all, since its establishment, Xiabu Xiabu has quickly occupied a place in the market with its unique "one person, one pot" dining model and cost-effective dishes. However, with the continuous development of the market, consumers' consumption concept of hot pot is also changing. Originally, Xiabu Xiabu won the love of many consumers with its small hot pot of thirty or forty yuan per capita. However, in the years of pursuing high-end, the brand price of Xiabu Xiabu has also been rising, and it has gradually detached itself from the scope of mass consumption. By 2022, the per capita consumer price has risen to more than 60 yuan. Such a price is obviously beyond the scope of acceptance for the average consumer.
Secondly, with the evolution of the trend of consumption upgrading and the change of market competition pattern, starting in 2022, Xiabu Xiabu's per capita consumption has shown signs of decline, and its original development strategy has encountered a bottleneck. On the one hand, the continuous rise in the cost of raw materials has squeezed the profit margins of the catering industry; On the other hand, consumers' increased price sensitivity has made high-price strategies less attractive than they used to be. Especially when the uncertainty of the economic environment increases, mass consumption tends to be rational, and the pursuit of high cost performance has become the mainstream trend, the original high-end route of brands has to re-examine their market positioning.
Third, in the face of market changes, Xiabu Xiabu has made an important decision - to reduce prices across the board, in response to consumers' desire for cost performance. According to the latest official announcement, the average price of its single and double packages has been reduced to 58 yuan and 130 yuan respectively, a price reduction of more than 10%. This is not only to regain lost customers, but also to regain a foothold in the highly competitive F&B market. Behind the price reduction is Xiabu Xiabu's deep insight into market trends. With the change of mass consumption habits, the once marginalized affordable small hot pot of about 40 yuan has become a hot spot in the market again, which prompts the return of consumers' demand for affordable and convenient meals. Therefore, through price reduction, Xiabu Xiabu can not only attract price-sensitive customers, but also form a significant price gradient with its high-end brands to meet the needs of different consumption levels and build a broader customer base.
Fourth, the price reduction strategy will undoubtedly bring a wave of traffic dividends to Xiabu Xiabu. The immediate reaction of the company's share price after the price reduction announcement is a strong proof that the market is positive about this strategy. Price reduction can not only attract customers to return and increase the turnover rate, but also further dilute costs and improve operational efficiency through scale effects. More importantly, it sends a signal that Xiabu Xiabu is willing to listen to the market and proactively adjust its strategy to meet consumer needs, which helps to reshape the brand image and strengthen customer loyalty.
Therefore, Xiabu Xiabu's comprehensive price reduction strategy is a wise move to actively seek changes in the face of market changes and conform to consumer trends. Not only can it stimulate sales in the short term, but it is also a key step in the brand's strategic adjustment, aiming to reactivate the market through price leverage, consolidate and expand market share. However, price reduction is only a means, not the end, Xiabu Xiabu wants to be invincible in the fiercely competitive catering market, but also needs to work hard in quality, service, innovation and other aspects, and truly return to the "customer-centric" business essence, in order to win the first opportunity in the future competition. #记录我的2024#