Addictive food is undoubtedly one of the best tracks.
Recently, Shanghai Ziyan Foods Co., Ltd., the parent company of Ziyan Baiwei Chicken, submitted its main board IPO prospectus. Following Juewei, Zhou Heiya and Huang Shanghuang , the stewed products industry will usher in the fourth listed company.
This seemingly inconspicuous industry, in fact, the market size has exceeded 300 billion, ran out of the delicious food with a market value of more than 40 billion and 10 times in 4 years.
How attractive is this 100 billion-level halogen products industry?
1 The heroes compete for “halogen”
Lo Wei has a history of 2000 years in China, and it can be traced back to the Warring States Period. It has a profound cultural heritage and is even called “the most representative taste of China” by many netizens.
Duck neck, duck feet, rattan pepper chicken, husband and wife lung slices… a wide range of stewed products are not only refreshing dishes to accompany meals, but also delicious snacks when you are greedy.
In 2020, the scale of China’s braised products market will exceed 300 billion, with a compound growth rate of 15% in the past five years, of which retail sales of casual braised products will reach 123.5 billion, with a compound growth rate of more than 20% in the past five years, which is the fastest growth in the food and beverage industry. High subdivision track.
▲ Picture source: 2021 halogen products industry consumption trend report
In the “2020 ranking Chinese snacks”, the lo food accounted for half, Zhou black duck must taste duck neck, on-aa breakdown 1,3,4 position, Dragon claw claws and Liao mind Bang Bang chicken were ranked 5 , 10 digits.
▲2020 Chinese specialty snack rankings
Source: Meituan Dianping “2020 Chinese Specialty Snacks Ranking List”
IiMedia’s consulting report shows that compared with other snack foods, halogen products have the characteristics of impulsive consumption and addictiveness, and they are typical high-frequency consumer products that are just needed. The upgrading of technology and channels, the rise of new and cutting-edge brands, and the extension of consumption scenarios have given the industry a considerable room for imagination in the future development.
The market predicts that by 2025, the scale of China’s leisure halogen products market will reach 227.5 billion yuan, and the compound growth rate in the next five years will still exceed 13%.
While the scale of the industry has expanded, the production and consumption of halogen products has gradually developed from small workshops and roadside stalls to branded chain stores. Leading companies have gradually become bigger and stronger, and more capital has begun to pay attention to this high-quality competition that was neglected in the past. road.
According to the company’s data, in the first half of 2021, there were 75 financing incidents related to the catering industry, and there were 7 financing information on Lowei Track. Among them, Tencent led the investment in ” Sheng Xiang Ting ” (a financing amount approaching 100 million yuan), Sequoia China invested in “Hot Boil Time” (Angel Wheel), and Wanwu Capital led the investment in “Chrysanthemum Kai”. In addition, “Weiyuan Hongfang”, “Beijing Style Fresh Bittern”, and “Wuxiangju Holdings” have also attracted capital rushing into the game.
Earlier, regional lomei brands such as “Lion Head Brand Lomei Research Institute” and “Wuzhilugoose” were also blessed by capital.
2 four leading
In China’s marinated products industry, the undisputed four leading companies are Juewei Food and Huangshanghuang, which are already listed on the A-share market, Zhou Heiya, which is listed on the Hong Kong stock market, and Ziyan Baiwei Chicken, which is impacting the A-share market. The first three companies were from Changsha, Hunan, Nanchang, Jiangxi, and Wuhan, Hubei. Ziyan Baiwei Chicken originated from Leshan, Sichuan, established its brand in Nanjing, and later developed its headquarters in Shanghai to the whole country. Southerners are good at food, which can be seen in the development of the stewed products industry.
In terms of performance scale, Juewei Food’s revenue in 2020 is 5.2 billion, and its net profit is 700 million, ranking first in the industry; followed by Ziyan Baiwei Chicken, with revenue of 2.613 billion yuan and net profit of 388 million yuan; Huangshanghuang’s revenue 2.436 billion yuan, with a net profit of 282 million yuan; Zhou Heiya’s revenue was 2.182 billion yuan, with a net profit of 151 million yuan.
In terms of the number of stores, according to incomplete statistics, in 2020, the listed companies Juewei Duck Neck, Huangshanghuang, Ziyan Baiwei Chicken and Zhou Hei Ya will open more than 1,400, 1,200, 1,000 and 400 new stores, respectively. As of the end of 2020, the number of Juewei Duck Neck stores has reached more than 12,000, Ziyan Baiwei Chicken has 4,760, Huangshanghuang has more than 4,600, and Zhou Hei Ya has more than 1,700.
Among the four giants, Juewei, Huangshanghuang and Ziyan Baiwei Chicken are all based on franchise stores, while Zhou Hei Ya has always adhered to the direct business model and did not open regional franchising until November 2019. It will be released in June 2020. Franchise franchise of single store.
Obviously, Zhou Hei Ya’s change came from the pressure of performance and industry competition. In a fast-growing market, compared to the marketing model of franchise chains that is commonly used in the industry, although direct chains can control quality, they have to bear all costs before and after the store opens. The asset model is very heavy, which is not conducive to gaining market share. The scale of sales can even affect profits.
Since 2017, Zhou Hei Ya’s revenue has dropped from 3.249 billion to 2.18 billion, and its net profit has plummeted from 760 million to 150 million.
▲ Source of Zhou Heiya’s performance: Flush iFinD
The performance of several companies that follow the franchise chain model has increased significantly. Among them, Juewei Food’s revenue has increased from 3.85 billion to 52.7, and its profit has increased from 500 million to 700 million. Huangshanghuang’s revenue has increased from 1.47 billion in 2017. Increased to 2.43 billion, and net profit increased from 140 million to 280 million.
The different performance trends of direct sales and franchise models made Zhou Heiya have to make some changes.
From the perspective of customer unit price and gross profit margin, Ziyan Foods is the lowest, 29.7 yuan per person, with a gross profit margin of 30.4%; Zhou Hei Ya has the highest price, 38.13 yuan per person, with a gross margin of 55.4%; the unit prices of Juewei and Huangshanghuang are 32.03 yuan and respectively 32.63 yuan, gross profit margins were 36.3% and 37.8%.
The reason behind this is that in terms of product positioning , Ziyan Baiwei Chicken is different from the casual lo-mei which is biased towards Juewei, Zhou Hei Ya and Huangshanghuang. The main focus is on marinated foods. There are more low-priced vegetarian dishes in its products, and the product types and price areas are relatively larger. The home consumption scene and more rational consumer groups also make it more affordable than casual lo-mei in terms of pricing.
In addition to the lower gross profit margin, the growth of the table marinated products industry is also worse than that of casual marinated products, because in the fast-paced social environment, young people seem to be less and less likely to cook or even eat at home.
Of course, the marinade products industry may be more beneficial to leading companies, because the market is larger, the industry concentration is lower, and the competition within the industry has to be relatively relaxed. The vast majority of participants are mainly small and micro home workshops. Enterprises, leading enterprises have obvious advantages.
From this perspective, as the No. 1 brand in the field of marinated marinated products , Ziyan Baiwei Chicken will have a larger market share in this segment of the track in the future than the other top three in the fiercely competitive casual marinated products track. .
Whether it can increase profitability through scale effects is a key factor for Ziyan Baiweiji to win the favor of more investors in the capital market in the future.
3 Space Survival
The stewed products have grown into a huge market with a scale of 300 billion yuan, but the total market share of the four “giants” of Juewei Food, Zhou Hei Ya, Huang Shanghuang and Ziyan Baiwei Chicken, even in the subdivided leisure In the product track, it is only about 10%, leaving a lot of market space for new brands.
More importantly, braised products, especially leisure braised flavors, will continue to maintain a relatively fast industry growth in the future, with market dividends still in place, and a blue ocean ahead.
At present, emerging brands on the market include ” Wang Xiaolu “, “Luwei Awakening”, ” Haobashi “, ” Jiujiuya “, and “Yanlutang”. Compared with traditional brands such as Juewei and Zhou Hei Ya, many new brands are taking a distinctly differentiated route. Fashion, high-end, and online channels have become the most important competitive labels.
For example, “Shengxiangting”, “Yanlutang” and other fresh brine brands, the dinning environment is more sophisticated, there are more choices of dishes, and the production links full of smoke and safety are shown to users, through the high-end brand image To attract young people.
▲ Shengxiangting Store
Another example is “Wang Xiaolu”, which has emerged in recent years, focusing on chicken feet and taking a relatively high-priced and high-end route. It uses large-scale items as a breakthrough point. It has now covered more than 2,000 convenience stores in Beijing, with brand recognition and Sales have achieved explosive growth.
There are also some new brands, which are mainly involved in the halogen products industry through innovative online gameplay. The rise of live e-commerce, social media, KOL/KOC delivery, and online social media platforms such as Weibo and Xiaohongshu have all made new The brand was able to avoid the offline channel advantages of traditional leaders and tap new consumer demands.
Objectively speaking, with the huge market size and growth rate of the halogen products industry, the industry leader has a relatively large growth certainty in the future performance. The younger, fashionable and highly personalized demand of lowei makes it difficult for the industry to become one of a kind, and there is still room for new brands to survive and counterattack.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/attractive-brine-industry/
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