In the first 10 months of 2021, the average daily discount store in the Beijing market is at least one discount store, at present, the expansion of convenience stores has slowed down, and the temporary food discount store has become the hottest offline retail format at present, and now the head brands have Hi Special Purchase HitGOO, Prosperity Market, Love Discount, and HotMaxx, which have reached the range of 100 stores.
At present, the capital tycoons who have always had a very sensitive sense of smell have already sprinkled heavy money, according to a friend in the industry revealed to our super supply warehouse platform, "Only this year (2021) mid-year, the valuation of the head brand in the temporary food discount industry has reached 500 million US dollars"
<h1 class="pgc-h-arrow-right" data-track="3" > store, or store</h1>
It is understood that a netizen who lives in Beijing's West Third Ring Road revealed that he often goes to the community supermarket not far away to open a new Hi special purchase, although he has bought the goods he needs in the supermarket, but still into the Hi special purchase this discount store to visit a circle, after coming out, found himself carrying a large bag of snacks out, "really the discount is too low, really can't control themselves, can't help but chop their hands"
This discount store has always declared "global procurement, ultra-low discount", we can see everywhere in their stores, you can see two or three dollars can buy a pack of potato chips or brine snacks, nine cents can buy a bottle of mineral water, "cheaper than online shopping, do not buy feel the loss, snacks and drinks bought a lot, only spent more than 40 yuan." ”
We took this netizen home as a dot to draw a circle, found that in these months, in the vicinity of their home 800m, 1km, 1.7km, 1.9km, 2.5km found a total of 5 Hi specials and good sale, and there is not a chain of temporary food discount stores, this is just in an ordinary community, if we are in Beijing Chaoyang District Shuangjing such a business circle, we will find that in its 3km range to open a temporary food discount store, just Hi special purchase and good sale opened 6, If you count the discount stores that are not chains, there are as many as a dozen.
Advent food outlets, like Western-style fast food outlets in KFC and McDonald's, whether you're in a shopping mall or around a residential neighborhood, we can always see mushrooms everywhere.
In Beijing, the first Hi special sale discount store opened in Wangjing Soho at the beginning of March this year, in just 7 months, the newly opened discount store has exceeded 100, and the good sale from Shanghai, in November 2020 in Beijing opened the first discount store, so far less than a year, also opened nearly 100 discount stores, this is still in Beijing alone, has not yet calculated the headquarters base of the sale in Shanghai.
Whether in Beijing, we found that in Shanghai, Shijiazhuang, Tianjin, Chengdu, Nanjing and other areas, there are also many temporary food discount stores surrounded by many consumers, and the above-mentioned good sale and prosperity market BBM has expanded rapidly in Shanghai, and the little elephant life in Nanjing has also opened stores everywhere.
Now, capital has long been concerned about this outlet, in March this year, love discount (formerly known as food Huibang) completed tens of millions of yuan of angel round financing, led by the only capital, Zhong Ding Capital followed. This company is a franchise store opened by a penny temporary warehouse in Wuqing District, Tianjin, and the query code on our "super supply warehouse" temporary discount supply chain platform is "33".
At the same time, Shanghai's Prosperity Market has also completed tens of millions of yuan of Pre-A round financing, which was exclusively invested by Challenger Capital.
In April, The Little Elephant Life, with Nanjing as the main battlefield, also completed an angel round of financing of tens of millions of yuan, led by Joy Capital and followed by Angel Bay Venture Capital. However, recently there are small elephant life netizens to the "super supply warehouse" platform reflected that at the beginning of the franchise will give some first-line brand goods, in the back of the time, due to insufficient supply, many franchise stores began to lean towards the third and fourth line brands.
Since June, Hi Special Purchase, which has only been established for 3 months, has completed equity financing, and the investors include Jianfeng K2VC, StarVC, angel investor Wang Gang, Gao Rong Capital, etc. And began a large-scale siege of the city, opening up discount stores everywhere.
In August, Haote Sold completed the B round of financing, led by Wuyuan Capital, followed by Jiayuan Capital and Yunjiu Capital. Since obtaining angel round financing in 2019, Haote has received five rounds of financing.
<h1 class="pgc-h-arrow-right" data-track="16" > where do discounted items come from? </h1>
Previously, the early gimmicks of these discount stores were based on temporary food as the entry point, and the ultra-low discount would attract many people to come in and shop.
However, we in accordance with the FMCG circulation rules, from the factory out to the circulation of the entire channel, for example, in the supermarket, on the mandatory need for goods in the shelf life at least one-third of the time to be on the shelves to sell, a supermarket owner explained, if the manufacturer goods dealers sent over the goods exceeded one-third of the shelf life, the general supermarket warehouse can be rejected, if the supermarket warehouse to the store of the shelf life of the goods is only one-third of the shelf life, the store can also be rejected.
Therefore, in general, in this case, the pre-packaged food will be sold at a discount when the shelf life is close to one-third, and when the expiration date is over, the store will do scrap treatment, but if it comes to the scrap treatment, it means that the supermarket will increase more loss.
Most savvy supermarkets will not wait until the goods are about to expire before processing, if the shelf life is more than half, the goods are still not sold, they must be dealt with immediately, take the initiative to contact dealers, manufacturers to pull away, or start to reduce prices through promotions to deal with.
Then, dealers and manufacturers after these goods with a shelf life of more than half of the shelf life, how to deal with it, everyone was not familiar with it before, but now, especially after the temporary period industry is well known, we will know that these dealers and manufacturers, when these goods are still in the shelf life, if there is no problem with the quality, they will generally pull these goods to the wholesale market and sell them at a very low price. Well, we know that most of the goods in these wholesale markets go to traditional mom-and-pop shops or online channels.
But now, the emergence of discount stores, to undertake this function, for example, in the discount store, the Oreo produced in May this year, only need 4 yuan to buy a box, Evian mineral water only need more than 2 yuan to buy a bottle, Japan and South Korea mask is only a few cents a piece, is not very cost-effective.
Before the Pinduoduo and community group buying, has redefined the concept of consumption of young people, they like better products, but refuse to be charged IQ tax by merchants, we search for food-related videos and articles in Douyin and Xiaohongshu, there are about 10w+ notes and videos, and now young people are planted by discount stores has become the norm and has become a new trend.
However, at present, these discount goods are not enough to make these young people crazy chop, the goods in the discount store are generally divided into imported food and domestic Internet red food, the ultra-low discount price of these goods is lower than the price of live streaming, creating a "Taobao" atmosphere, and more discount stores are directly "selling the world" and "treasure bazaar" Propaganda posters directly hung in all corners of the store, to stimulate the curiosity of these young consumers, and finally pull these young people back from the online back to the offline store, The hypermarket's unsuccessful approach for many years made it easy for the discount store.
<h1 class="pgc-h-arrow-right" Data-track="25" > how big is the discount market? </h1>
According to the statistics of Ai Media Consulting's "2020 China Temporary Food Industry Market Analysis and Consumer Research Report", the market size of China's snack industry will reach 3 trillion yuan in 2020, and the market size is huge. From the supply side, a large number of products will flow into the temporary food industry every year, even if calculated by 1% inventory precipitation, the temporary food will become a "10 billion market".
However, industry insiders do not agree with the statement that the market space of tens of billions of dollars. "From the perspective of supply chain turnover, the general proportion at the end is 1 to 3 percentage points, and the scale is 30 billion to 100 billion yuan."
Here Xiaobian would like to say that in the "strict sense, this model is actually not a temporary discount store, but a collection store of discounts." According to a discount store industry practitioner to the "super supply warehouse" platform, although there are also temporary goods in his store, but now the proportion has been very low, the shelf life of most of the goods is actually similar to the shelf life of the supermarket, however, the advantage of the discount store is that the goods within the same shelf life are much lower than the price of the same category of goods in the supermarket, so the type of discount store is actually starting to be more like a collection store of multi-brand discounts. So we can see from the description of this discount store industry practitioner that the current discount store model is actually more like the Dollar Tree in the United States.
Dollar Tree is a "dollar store" in the United States that specializes in selling cheap goods, and the prices of their goods are all starting at $1. The Fortune 500 company already has more than 13,000 stores across the Country. On the one hand, his goods are cheap enough, on the other hand, with a minimum price of $1, the goods in the store can be unimaginably rich, he not only has food, cosmetics, tools, decorations and various household items, but also books, studies, electronics and car supplies.
Some insiders have also compared such discount stores to Japan's Don Quijote.
In terms of the decoration of the good store, our domestic discount store is very similar to the Japanese Don Quixote Donki, such as goods piled up in the store, simple metal shelves, handwritten promotional posters and promotional discounts, the store environment is general, and the exquisite is completely incompatible, but the traffic is crowded. In Japan, don Quixote Donki's popularity everyone has been to Japan knows, which is also the small editor every time to travel to Japan must take the sweeping place, don Quijote Donki's biggest reason for success is that his goods are cheap enough, the price of goods are super low, and they will be on the signboard of each store, how big font "Ji'an Hall", that is, super cheap place.
According to media reports, since the opening of the first don Quijote Donki in 1989, it has been maintaining turnover and profit growth for more than 30 consecutive years, and directly to the financial report of june last year, the net profit of don Quijote Donki has reached 36.4 billion yen (about $325 million), and in this year's financial report, don Quijote Donki's sales are expected to reach 1.37 trillion yen (about $12 billion).
If our discount stores now jump out of the concept of "interim" and target Don Quixote Donki and Dollar Treewei, when China's discount stores have just broken through the scale of 100, with more than one billion people in China, this is just the beginning, and the scale war will be on the verge of breaking out in the near future.