The stock of material competition and the increment of evolution From Hot Pot

The following is the The stock of material competition and the increment of evolution From Hot Pot recommended by recordtrend.com. And this article belongs to the classification: Life data.

The power of evolution is the power to deal with complex natural selection with “massive” competition.

The Galapagos Islands, which inspired Darwin to put forward the theory of evolution, were later called “evolution island”. The most “famous” and tenacious species on the islands is not a powerful predator, but a bird that evolves according to environmental changes, also known as darwinfinch.

From the perspective of biological evolution, it is not the strongest or the smartest, but the most suitable to survive.

The same is true for hot pot consumption.

In a cycle, we have witnessed the demise of many chain brands and the decline of some strong flavor brands. A few years ago, we couldn’t even believe that giant “engines” such as Haidilao and Xiabu would idle;

On the contrary, subdivided hot pot has sprung up, and the concept hot pot is active. A dish may also become a hot pot, full of reverie.

What really makes people look forward to is which hot pot can cross the “Red Sea” to reach the “evolution island”, and who can become a chosen “darwenque”.

No.1. Stock “barrier”

Behind the hot red soup, everyone wants to come in and have a share.

Meituan data show that the number of online hotpot stores has increased year by year, with new stores accounting for 45% in the past two years, significantly higher than 36% of the overall online catering.

In the face of competition, the stock of brands will always try to establish an order “barrier”.

In traditional strategy, Porter’s five forces model (existing competitors, substitutes, customers, potential competitors and suppliers) is often regarded as a competitive analysis tool of industrial environment.

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From the perspective of the threat of substitutes, the main threat of hot pot comes from the service quality and taste audience among peers. At present, there is no obvious external substitute;

The upstream suppliers of hot pot industry are generally food material enterprises. Due to the rich upstream raw material resources, the bargaining power is weak;

The downstream is mainly consumers. Because there are many hot pot enterprises and consumers have many choices, they have strong bargaining power; In addition, due to the relatively low entry threshold of the hot pot industry and the stable growth trend of the market, there is a great threat of new entrants.

Of course, to gain competitive advantage, the essence is to obtain better profit growth.

Therefore, some strategic analysts believe that enterprises must be considered in the market. Profits should not only be based on their own business ability, but also balance the pressure of consumers and competitors.

Therefore, if we look at the five forces model again, we will find that, vertically, the competitive factor is the competitor competing for the market, and the focus of competition is market share; From a horizontal point of view, the competitive factor is the opponent who competes for money and profits, and its focus is the profits of the market.

Only by eliminating various forces can enterprises obtain more profit growth.

To establish a competitive advantage in the hot pot industry, I think it should be “eliminated” from three dimensions:

Hotpot brands should resolve the bargaining power of suppliers

On the one hand, the competition among suppliers is introduced to form a pricing advantage in the procurement process. On the other hand, the ability to build backward integration can be used as the price of negotiation.

The extreme of backward integration can be backward integration (which means that enterprises use their advantages in products to change the original outsourced raw materials into their own production strategy). In short, it is to build their own supply chain. Leading brands such as Dalong are focusing on this issue and can export production capacity to the industry in the future.

Resolve customers’ bargaining power

The core is to reduce the price sensitivity of customers. Strive to create added value of products, improve brand awareness, increase after-sales service, etc. Haidilao not only provides hot pot dishes, but also provides customers with meticulous humanized services to make customers feel value for money.

The concept of weakening can also be used to package the price. For example, the price of special dishes will be reduced, and the price of some dishes with high gross profit will be increased. If it is so balanced, consumers will feel the benefits.

Reduce the intensity of competition in the same industry

Vicious competition in the same industry is often the biggest problem. Where possible, hotpot brands should create a common growth competition model.

What the hot pot industry likes to talk about is the mutual support of three hot pot shops in a street of a business district in Chengdu. One focuses on raw tripe, and the other two are regional grids. They focus on mushroom pot and beef hot pot respectively. When a business is full, they will actively introduce customers to spend next door. As a result, the consumption of different tastes is satisfied, and the business of the whole street is doing more and more.

Of course, from the perspective of brand delineation, the brand can practice the multi product strategy and divide the price band. For example, imitating the happy tea in tea drinking, you can open happy small tea, from high dimension to low dimension, which is easier to sink; The upward logic can be to open a big store “Palace” brand to establish brand effect.

No.2. Variable surge

Looking around the whole hot pot industry, the overall situation is still “one super and many strong”. Haidilao, an industry leader, has shown strong competitive advantages in terms of business income, number of stores and customer unit price.

However, as strong as Haidilao, it also began to become weak.

Recently, Haidilao announced that it would close 300 stores during the year. In the past year, Haidilao has been crazy about opening stores, but it has the opposite effect: it has not only increased relevant expenses and decreased net profit, but also reduced the turnover rate again and again. In this year’s performance report, the turnover rate was dismal, only 3 times / day. In 2018 three years ago, this data was still 5 times / day.

According to the public financial report statistics, the profit margin of some head hot pot brands generally fell below 6%.

“Matthew effect” did not arrive as scheduled, but the split market gave a lot of possibilities.

Affected by the epidemic, the consumption boundary of hot pot has been further extended, and some in store consumption has been transformed into the scene of ordering takeout and buying hot pot ingredients at home.

Based on this, zihi pot, pot circle and food exchange began to involve self heating hot pot, hot pot bottom materials and convenient fast food, trying to develop the scene of hot pot infinitely and unify the upstream and downstream. The industrial chain formed around “hot pot” is constantly expanding its tentacles.

Since last year, hot pot shops, hot pot ingredients supermarkets, self heated hot pot and hot pot sauces have become popular investment and entrepreneurship tracks. According to incomplete sorting, nearly 3.5 billion yuan has poured into the hot pot industry in the past six months, and upstream and downstream enterprises have successively raised funds, becoming a hot spot second only to tea.

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According to the data given by the tide watching new consumption, elder martial brother Zhou and barnu have raised more than 100 million. In an interview with the media, Mr. Zhou, chairman of the board, said that he planned to impact the IPO within five years. Zhongbing banudu also said that he would consider listing.

There may also be “thunder” in the hidden corner. What is hot is that Laowang, a Cantonese hot pot brand focusing on “Pepper pig belly chicken”, recently submitted a prospectus. Compared with online popular brands such as Banu and brother Zhou, which have obtained new financing one after another, Laowang’s capital upgrading Road is quite low-key. According to tianyancha data, Laowang has no public financing record since its establishment.

Cross border has also become a manifestation of the hot pot market. Sanquan’s rinse and roast exchange, Gome’s pot Meiyou food, Mengniu’s ice cooler, and big brands accelerate the layout of the hot pot consumer market with the help of their own resource advantages.

From the perspective of the iterative actions of hotpot brands, there has also been a dimensional expansion around “online marketing”. In order to catch the stomach and eyes of young people, many brands have begun to make efforts in IP co branding, social platform marketing, membership system and so on.

Taking the above-mentioned Laowang as an example, the cross-border cooperation objects of Laowang include missing Tangyuan, master Gao beer, happy Mahua, Japanese fart taojun, Yuemu source, etc. from food and beverage, stage drama to cartoon image skin care products, all of them are the favorite elements of young people. At the same time, Laowang also launched the brand IP image “laoxiaocraftsman” and “laoxiaoai”, using the social platform marketing to build momentum.

Zhenghe fresh, a Chaoshan beef hot pot brand, has carried out the grafting of game resources in the IP station in the meituan food online column. Under this strategy, the repast rate of member users within 30 days reaches 13.6%. With the blessing of strong content marketing, the number of new member registrations has achieved rapid growth in the track record, and has continuously contributed more than 45% of the revenue.

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In addition, according to meituan’s observation, after the epidemic, hotpot merchants pay more and more attention to online channels, and online deal supply is generally overweight.

The data show that in the last year, the number of meituan online deals increased by 25% year-on-year; The number of stores providing deal online increased by 18.5% from mat2019 to mat2021; The number of online deals per store increased from 3.4 in mat2019 to 4.1 in mat2021, an increase of 17%.

No.3. Where is the increment?

For the future opportunities of hotpot brands, some insiders once said, “the catering industry is more of a rightful and surprising industry. That is to say, you have to hold most of the rightness, and then find a strange point.”

In my opinion, the surprising point of the integrity of the hot pot industry lies in the category segmentation, which can derive the concept of a seasoned hot pot, while the incremental space is widely distributed in the regional market.

What is “with materials”? That is, find inspiration from the advantages of traditional hotpot ingredients or local specialties. One ingredient or dish may become a hotpot subdivision.

From the online data of category segmentation, Sichuan Chongqing hotpot is still the king of hotpot industry, contributing 4 components of online hotpot market in total. Among the representatives with fast growth rate of share, seasoned hotpots such as pig belly chicken, side stove and local chicken nest hotpot are growing rapidly and have great potential.

Taking the local chicken nest as an example, a number of special hotpot brands have been born, such as local chicken, Lu Yuanwai, hanyechai Turkey, Baiwei chicken pot, Da’an emblem, xinzhaoxian, Hongmen Chai Turkey, and their biggest feature is high cost performance.

Data source: meituan data view

In addition to cost performance, from the main characteristics of representative brands, health preserving chicken soup, local chicken / local chicken, firewood / local pot are the selling points of local chicken nest hotpot.

As mentioned above, the hot pot transformation of local specialties has also become a way to innovate the hot pot track.

It is observed that the consumer penetration of pork tripe chicken hotpot is increasing year by year, and the number of players is increasing. It has become a subdivision track with a certain market foundation. Looking back to the source, pig belly chicken was originally a Hakka food in Guangdong. After it was upgraded to hot pot, its consumption was mainly concentrated in Guangdong and Guangdong. In the past two years, it has spread outward, made a breakthrough in Central China (two lakes + Henan) and gradually spread to the Yangtze River Delta.

Miao Xin pig belly chicken, Miao Fu pig belly chicken, Shunde boar belly chicken, Laoshen pot food and Laowang are the main players of this subdivision track.

In addition, focusing on the extension of hot pot of specialty dishes, Coconut Chicken, flower glue chicken, beef miscellaneous pot, etc. are the representatives of the category.

The development of incremental space is closely related to brand chain degree and expansion intention.

According to meituan data, the number of online chain hotpot brands is increasing, and the average number of stores per chain brand has risen to 17.5; From the changes of main hot pot brand stores, it can also be seen that most well-known brands still maintain the trend of rapid expansion.

So, how and where should the hot pot brand expand?

Combined with the data, the interesting point is that when the number of stores is less than 20, the expansion will be more cautious, while when there are more than 30, 88% of the brands will expand to 10 cities. Taking provinces as the segmentation unit, when the number of stores exceeds 40, more than half of the brands will open in more than 10 provinces.

From the perspective of regional market performance, East China and southwest China are the main regions of hot pot consumption; The proportion of hot pot orders in South China has increased for two consecutive years, and local consumers’ interest in hot pot has increased, with great potential.

The whole southwest region (except Tibet) deserves special attention; Due to the relatively slow growth rate of Henan Province, the share of central China has decreased, but the development of Hubei and Hunan provinces is relatively fast; The four provinces of min, Gan, Shanghai and Zhejiang in the south of the central part of East China develop relatively rapidly, and the provinces of Lu, Jiangsu and Anhui in the north are relatively stable.

Therefore, if Sichuan and Chongqing are taken as the center, the trend of hot pot moving eastward and southward is obvious. Of course, the theory of moving eastward and southward is centered on Sichuan and Chongqing. More accurately, it should blossom in many places, radiate and diffuse to the surrounding areas respectively, and collide and integrate with local tastes. For example, Chaoshan beef hotpot originated from Chaoshan, Guangdong, and first went north into Fujian, Zhejiang and Shanghai; Pork tripe chicken, the main front of Hakka cuisine, is still in Guangdong, but it has been loved by the people of neighboring Hunan Province; The number of mushroom hotpot is the most typical in Yunnan and radiates to Guizhou.

Conclusion:

Stock vs increment is the topic center under the environment of hot pot competition.

Earlier, there was a view that hot pot has entered the “second half”, that is, the market has entered the stock competition state, rather than the incremental state.

However, as we mentioned, the attention of capital, cross-border players and the whole industry to the hot pot track has not decreased. Before the epidemic, the growth rate of hot pot has outperformed the catering market for two consecutive years, making it the largest track in the catering industry.

If we are optimistic about the development of the catering industry, there is little reason to think that the hot pot track has stalled.

Subdivided categories, seasoned hot pot and characteristic consumption scenes all confirm our views one by one.

The evolving hot pot, whether stock or increment, will give you more expectations and surprises.

come from:   Read more about meituan’s data view: 36kr: 2019 hot pot industry research and Consumer Research Report (with download) NOAA: July 2019 was found to be the hottest month on record. National human resources and social security: 2019 national minimum wage standard and Shanghai’s highest financial news media & BBD: Yili consumption upgrading index report in May 2018 (with download) is in China, It’s not enough to focus on just one Quan Jian. WTW: 2017 survey report on the status of global welfare (with download) tuhu car raising: 2018 report on online maintenance behavior of Chinese automobile users yuanzhuo: insight into China’s daily chemical consumer goods industry (with download) international top publication PNAs: people who love to make friends, Research Institute for easier longevity and freedom: report on rental of graduates in 10 cities in 2021. The 60 square meter housing cost survey in cities around the world shows that 1 / 4 people suffer from “low power anxiety”. People’s Bank of China: questionnaire survey report on urban depositors in the first quarter of 2019. Ministry of Finance: national lottery sales in December 2020. Ministry of Finance: national lottery sales in November 2020

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