Jue Wei Vs Zhou Black Duck

After the epidemic, the rise of community group buying and network live broadcasting forced the leisure halogen track to further sink. Leisure stewed food takes the opportunity to reach new customers, accelerate industry reshuffle, eliminate individual stores and small and medium-sized brand chains with poor supply capacity.

Zi Meng, an analyst at Guotai Junan, pointed out that it is expected that the industry will maintain double-digit growth in the next three years, leading enterprises may accelerate the expansion, and branding will promote the industry concentration. Juewei, Huangshanghuang and zhouheiya will achieve self breakthrough under their respective "organizational renewal + incentive optimization".

Zhou Heiya, who is in the key stage of the transformation to the franchise mode, is active in the current community group purchase channel competition, and is expected to improve the omni channel layout through this new mode.

At present, Zhouhei duck is mainly distributed directly by the production center in the community group purchase mode. It cooperates with the fresh group purchase platform and supplies directly into the channel warehouse or front-end warehouse. "Community group buying is a good supplement and growth for existing stores." On January 19, Zhou Heiya, the relevant person in charge of Zhou Heiya, said in an interview with the reporter of 21st century economic report, "there are now two group buying modes. One is that the head of the own community digs users through the wechat Mall (youzan community group buying) plug-in. The self built group leader recruited the community, and only the amount of participation in the group in Wuhan was more than one million. The other is based on the orders brought by all the leaders of the platform. In 2021, the fresh community market will be actively arranged, and more in-depth cooperation will be reached with community platforms such as buy more vegetables, choose orange heart, and prosper

Behind this channel expansion is the optimistic expectation of capital for the future expansion of the leisure bittern market. According to Frost & Sullivan data, the compound growth rate of China's leisure halogen products industry from 2015 to 2018 is 20%. Combined with the composite growth rate of 8% predicted by China Food Industry Association for the whole leisure food industry in the next five years, it is estimated that the market scale of leisure halogen products will reach 227.5 billion in 2025.

In Zi Meng's opinion, the expansion of industry scale stems from the dual growth of market demand and supply. Behind the former is the increase of per capita consumption expenditure and the increase of urbanization rate; behind the latter is the enhancement of brand market concentration and the strengthening of Dialogue right of leading enterprises and the consolidation of market access threshold.

Jue Wei and Zhou Heiya are both interested in the new outlet of community group buying. IC photo

Channel layout differences

In fact, Juewei and Zhou Heiya, the old rivals, have been concerned and compared by the market due to their different initial layout ideas.

In the initial layout, Juewei paid more attention to community stores and street stores, while Zhou Heiya paid more attention to high-speed rail, airport and complex. This essentially reflects the difference in the initial product positioning of the two companies, that is, Jue Wei focuses on leisure stewed food, while Zhou Heiya pays more attention to gift and high-grade leisure stewed flavor. According to the public data, by the end of 2019, Juewei stores are mainly community street stores, accounting for 60-70%; zhouheiya high potential stores (airport, high-speed rail, transportation hub, etc.) account for about 30%.

Differentiated product positioning creates different brand image and business model. As of the first half of 2020, there are only 121 franchise stores in zhouheiya, accounting for about 8% of the total. Juewei duck neck semi annual report points out that as of June 30, 2020, Juewei has 12058 stores nationwide, which is more than 12 times the number of zhouheiya stores. The rapid expansion has brought Juewei a greater market share of stewed food.

In contrast, the business model with direct sales as the main body has good product quality control, high gross profit, and high implementation efficiency of strategic stores at the group level, but at the same time, capital and human resources investment make it easy for stores to expand and lack of stamina. The business model with franchise as the main body has light assets, easy to copy and can gather high-quality franchisee resources, but it also has a long management radius, which makes it difficult to control products and transfer part of the revenue to channels.

Affected by the epidemic situation, Zhou Hei duck's financial report in the first half of 2020 showed that Zhou Hei duck's revenue in the first half of 2020 was 903 million yuan, a decrease of 44.4% over the same period of last year, and its gross profit was 493 million yuan, a year-on-year decrease of 45.8%. The slowdown in revenue growth also makes Zhou black duck "itchy" to increase market share. In June 2020, Zhou Heiya officially launched franchising. One is to act as a regional agent for the blank market, and the other is to select authorized dealers with influence and resources in the existing store area, and upgrade the company model to "direct marketing + franchise" in order to combat the surge of other companies.

At present, facing the blowout development of community group buying, Zhou Heiya is also actively stuck. "The community group buying fresh food market has differentiated and complementary layout for franchising and other businesses. Self run stores and franchises are more window hubs and commercial centers. Fresh group buying mainly focuses on the community market and is relatively differentiated and complementary."

Juewei duck neck has chosen another way - Taking the direct chain as the guide, the franchise chain as the main body, and adopting the "1 + n" marketing idea, that is to develop internet intelligent platforms such as takeout, o2o, wechat, platform live broadcast, unmanned retail and community e-commerce on the basis of one store, increase voice channels and continuously spread brand communication. According to the data, Juewei duck neck has about 12000 stores by the first half of 2020. In terms of layout cities, the number of stores in first and second tier cities accounts for 50%. In terms of per capita store ownership, the company still has more than 60% exhibition space in the sinking space of net population inflow cities and low-level cities. It is estimated that 20000 main businesses will be opened in 2025, with an annual growth rate of 10%. It is estimated that the total number of incubated enterprises will reach about 30000.

From the perspective of community group purchase supply, Juewei logistics distribution is to make use of the original scale advantages, daily distribution to the store, establish user consumption scenarios through various platforms, and pay more attention to the cultivation of user stickiness and consumption habits. It is mainly distributed by more than 11000 stores across the country, and is operated by the exclusive supply chain to reduce the logistics distribution time.

Some analysts believe that Juewei duck neck's "1 + n model" in community group buying seems to be more in line with its open and win-win corporate culture. Online 1 + n is more suitable for franchised stores to be responsible for their own profits and losses. It intends to open up new channels to open its own market management mode and add strong driving force. "At ordinary times, the number of online orders and group buying orders is pretty good. The products from manufacturers are sold out to our own profit, which is equivalent to a part of the income." Yijue flavor duck neck franchise store owner said.

Quality control and consumption experience

Due to the different path selection in the early stage of development, it also directly led to the difference in quality control between Juewei and Zhouhei duck.

With franchisees as the main body, Juewei duck neck is the main income from wholesale duck neck to franchisee and the annual franchise management fee of 3000-4000 yuan is collected to make profits. The direct sales do not need to consider the sales situation of franchise stores. The franchisee owns the ownership and profit right of the franchise store, carries out independent accounting and is responsible for its own profits and losses. The situation of "high mountains and distant Emperors" makes it difficult to control the quality of products. Due to the imperfect regulatory mechanism, enterprises do not have a good way to restrict the quality of food materials. At the same time, the management cost is not small.

For zhouheiya Direct stores, each store has its corresponding management and monitoring mode, and is more cautious in product quality control. The revenue, profit and market share obtained through rapid expansion, even the share price dividend obtained in a short period of time are amazing, but in the long run, the franchise mode will leave the company with the risk of brand damage.

In the process of promoting community group buying, due to the distrust of online shopping users and the uncertainty of low price promotion products, the franchise mode increases the risk of brand image damage, and it is more difficult to trace the source of problem products.

In order to control the product quality, Zhou Hei duck adopts the method of regional production center distribution under the condition that the current community group purchase share is not too large. "At present, the main mode of cooperation is the direct distribution of production centers. Cooperate with the fresh group purchase platform, and supply directly into the channel warehouse or front-end warehouse. " The person in charge explained.

From the perspective of supply, Juewei's supply chain is produced by production base and determined by franchisee's order quantity, which dilutes the logistics cost and increases the supply efficiency. The scattered and wide location of stores make Juewei duck neck's franchise mode more convenient in the supply of community group purchase.

Zhou Hei duck adopts centralized production mode to ensure the unity of quality. However, the scarcity of stores will inevitably increase the logistics cost in the community group purchase. However, Zhou Heiya remains optimistic about this: "at present, group buying business is growing rapidly. In traditional online e-commerce, express cold chain distribution accounts for a high proportion, but bulk group purchase will reduce this cost, and the overall gross profit margin will be increased. "

In terms of consumption experience, Juewei duck neck's offline franchise store sales "routine" has always been criticized by consumers, and the public comments on the consumer's bad comments are quite a lot: "deliberately increase the amount, half a kilogram of duck neck, 20 pieces of duck wings and 40 pieces of duck wings." "the ingredients are not fresh, the lotus root is moldy, and the duck neck has a bad smell." It can be seen that the scale of Juewei duck neck is indeed the biggest advantage of its pressure on other brands, but the problem of uneven quality does exist.

In contrast, many of Zhou Hei duck's products have won the reputation of consumers. "At present, the sales of lock fresh products are slightly higher. In view of the group purchase market, the main products are xiaokezhong, so as to reduce the threshold for customers to purchase and try Zhouhei duck products. The follow-up will enrich the product type and taste, so that users can also experience the delicious Zhou black duck in the community group purchase. " The person in charge said.

The growth of per capita consumption and the expansion of the market make the market count backward, which also makes the leisure bittern market face more opportunities. However, product quality assurance is always the management problem of franchise mode. If we want to spread the "cake" of leisure bittern into a big and thick one, we still need two major leaders to make timely response and adjust their strategies to supplement the weakness.

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