In recent years, my country's snack food industry has developed rapidly. With the expansion of the industry, the reshuffle among industries has also been refreshing the brands of snack foods. The variety of snack foods is dazzling. When you walk into a supermarket, you will see snack foods such as potato chips, French fries, shrimp crackers, snow cakes, preserved fruits, tamarind cakes, plums, peanuts, pine nuts, almonds, pistachios, fish fillets, dried meat, spiced fried meat, etc. Various snack food brands have also emerged in an endless stream in recent years. In addition to the well-known Want Want snow cakes, Orion chocolate pie, and Qia Qia melon seeds, foods produced by companies such as Three Squirrels, Be & Cheery, and Bestore have emerged in recent years, such as small twists, nuts, pork jerky, etc., which have firmly grasped people's taste buds.

1. The current situation of my country's snack food industry

First, the industry homogeneity phenomenon is relatively serious. Because the capital and technical barriers to entry of snack foods are not high, enterprises have relatively little investment, and a large amount of capital has poured into this industry. The industry competition has increased dramatically, the price war phenomenon is serious, and brand integration and communication methods are emerging in an endless stream. The reduction of corporate profits is not conducive to the long-term development of enterprises. The types of snack foods are becoming more and more abundant, and the consumer groups are constantly being segmented, which has intensified the competitive pressure on snack food companies and brought more challenges.

Second, the rise in raw material prices has added cost pressure to companies and reduced corporate profits. Large companies are in a worse situation, and small and medium-sized companies are even more competitive and are barely surviving.

2. The scale of my country's leisure food industry

Data shows that the annual output value of my country's leisure food industry has increased from 401.4 billion yuan in 2010 to 919.1 billion yuan in 2017, with an average annual compound growth rate of 12.56%, and it is expected to maintain rapid growth from 2018 to 2020, from 1029.7 billion yuan in 2018 to 1298.4 billion yuan in 2020, with an average annual compound growth rate of 12.29%. In recent years, many leisure food brands have rushed to the market, from Laiyifen, to Liangpin Shop, to the newly listed Three Squirrels. The huge market space makes the leisure food industry a worthy choice. However, the leisure food industry has been plagued by product homogeneity and ultra-low profit margins.

3. Emerging leisure food companies

Small snacks, big market. A bag of melon seeds can make a listed company, such as Qia Qia; a duck neck can make a listed company, such as Juewei Food; a nut can also make a company, such as Three Squirrels.

The openness and directness of the Internet have further hit consumers' consumption desires, and snack brands that have stepped on the e-commerce trend have also jumped up. It is in such an environment that Internet brands such as Three Squirrels and Be & Cheery were born.

Data shows that Three Squirrels achieved a revenue of 7 billion in 7 years, and its growth amount in the single 11th increased from 36 million yuan in 2013 to 451 million yuan in 2018, with an annual compound growth rate of 65.8%. In addition, Be & Cheery's performance has also increased from 23 million yuan to 5 billion yuan in 10 years, and most of the performance income of these two companies comes from e-commerce platforms.

With the rise of the new retail trend in 2016, various brands are also increasing their offline operations. For example, Three Squirrels has currently created a "zero distance" with consumers by opening offline experience stores. So far, it has opened 53 offline experience stores in Anhui Province, Jiangsu Province, Shaanxi Province and other places. In 2018, the total operating income of these 53 experience stores exceeded 200 million yuan.

As for Be & Cheery, it originated offline, but later seized the dividends of e-commerce, cut offline in 2010, focused on online, and then formed a "three-strong competition" situation in market share with Three Squirrels and Bestore. But when the online dividends began to fade, it began to re-layout offline and opened its first offline store in Hangzhou - "Be & Cheery Snacks Selection".

Compared with Three Squirrels and Bestore's reliance on online, Bestore does both online and offline. It is understood that in the first half of 2018, Bestore's turnover was 3 billion yuan, of which online and offline accounted for 44.85% and 55.15% respectively, and the income structure gradually tended to be balanced.

4. The industry concentration is still low and the competition is fierce

Due to the large number of categories and enterprises included in casual snacks, the industry concentration is low. Suning Research Institute believes that the current industry concentration of the top ten domestic snack food companies is only 30%, while the corresponding industry concentration CR10 in the United States and the United Kingdom is as high as more than 60%. There is a large space for industry integration, but competition will also be extremely fierce.

Brand upgrading requires higher marketing investment, so the competition in snacks will be in a red ocean state in the next few years, and more capital support will be needed.

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