Did you buy online Red snacks in the live broadcasting room on double 11 this year? I make complaints about the three Wang Yibo, a hot runner who sold in Tmall, and the hot shop that was caught up in the hot program of "silent truth" and "brother who has been beheaded brother". This year, the main broadcast live room, or it didn't show up at all, or only one or two products. Open pineapple finance and economics to look at the double 11 live broadcast room of Weiya and Li Jiaqi. It is found that Weiya only has two products with three squirrels, and Li Jiaqi has a preserved pork from laiyifen and a dried mango from liangpin store (the price is still 0.1 yuan per second). This is really not in line with the identity of the three online red snack brands. Time goes back to 2020. During the non promotion period, liangpin store spared no effort to cooperate with Luo Yonghao and Chen he. Three squirrels cooperated with viya and other anchors for more than 50 live broadcasts. Now, who still remembers the names of Laifen, the "first stock of leisure snacks", three squirrels, and the "first stock of high-end snacks"? Yes, the three online Red snacks were listed in 2016, 2019 and 2020 respectively, and they all have the identity of "the first share of snacks". But just after 2020, the negative effect of the disappearance of dividends on traditional e-commerce platforms appeared. In addition, offline stores were affected by the epidemic, and the market share of the three online red snack brands was diluted, making life difficult. Tiktok Kwai, look at fiercely as a tiger does not only have a good track, but also a new net of red snacks, such as Wang Xiaolu and shark fitt, who are crazy about planting grass, such as shark, fast, little red book and B station, and turn to the big anchor by using the big anchor. "Yanjin" The share prices and market values of the three companies have also been in trouble together, falling endlessly: compared with their respective share prices, the three squirrels have fallen by 55%, the liangpin store has fallen by 50%, and Laifen has directly fallen by as much as 80%. As of press time, the market values of the three companies are 16.73 billion, 17.596 billion and 4.129 billion respectively. The tiktok brand group of three nets has finally passed away. The latest report released in the first three quarters of 2021 shows that three companies have improved their performance. But there are also the same worries: the effect of increasing income on the basis of shaking and fast hand is not obvious. The new brand of betting is still in the investment period, and the community group purchase that has been invested in has a risk of "unauthorized price"; and the Kwai Chung brand is still a new product with a strong reputation. The three new products are still in the investment period. While supporting the rapid growth of sub brands, can the main brand withstand the pressure of revenue and stabilize the market share? Weak revenue and difficult to increase profits After the epidemic, profitability is the most rigid indicator for the company to fight risks. Let's take a look at the operation of the three companies in the first three quarters of this year. Specifically, although the three squirrels led with a revenue of 7.07 billion yuan, they decreased by 2.23% over the same period last year; Liangpin shop bite very tight, with a revenue of 6.569 billion yuan, an increase of 18.78% over the same period last year; Laiyifen had the lowest revenue, with a revenue of 3.05 billion yuan, almost the same as that of the same period last year, with a slight increase of 1.71%. But only in the third quarter, the revenue of liangpin store was 2.148 billion yuan, an increase of 11.89% year-on-year, with the best performance; The revenue of the three squirrels was 1.809 billion yuan, a year-on-year decrease of 8.59%; Laiyifen's revenue increased by 10.19% year-on-year. Although it achieved positive growth, its revenue level was low, only 951 million yuan. In this regard, Zhuang Shuai, founder of Bailian think tank, explained that because laiyifen and liangpin shops were mainly offline in the past, they are now working in online and offline composite channels, reducing their dependence on a single channel, and their revenue has increased to a certain extent. Drawing / Pineapple opening Laifen fell into a strange circle of "increasing revenue without increasing profit", with a slight increase in revenue and a sharp decline in net profit. The net profit attributable to shareholders of Listed Companies in the third quarter was -95.53 million, a year-on-year decrease of 91.34%. Fortunately, due to the profit in the first half of the year, the overall profit in the first three quarters was 12.785 million, a year-on-year increase of 134.02%. It is worth noting that Laifen's overall profitability is the credit of financial products. In the first half of the year, the income from financial products and equity transfer was 68.0368 million yuan, accounting for 62.81% of the net profit. In contrast, the three squirrels and liangpin shop showed better anti risk ability. The net profit of liangpin store in the third quarter was 123 million yuan, a year-on-year increase of 20.01%, and the overall net profit in the first three quarters was 315 million yuan, a year-on-year increase of 19.57%; The three squirrels were relatively stable. Although affected by the loss of the new brand, the net profit performance in the third quarter was slightly lower than that of liangpin store, which was 90.429 million yuan, with a year-on-year increase of 18.29%, the overall net profit in the first three quarters was 442 million yuan, with a year-on-year increase of 67.35%, bringing back the first round. Drawing / Pineapple opening Generally speaking, the performance of the three snack brands has improved in the first three quarters of 2021, but there are also hidden worries: the overall revenue growth of liangpin store is weak, the net profit level is pressed, the three squirrels do not increase their revenue, the new brand lags behind, Laifen does not increase their revenue, and the overall revenue level needs to be improved. However, in the first three quarters, the three brands showed that the net profit accounted for only a fraction of the operating revenue. The reason may be related to the low gross profit margin. Due to the dependence on online channels from the beginning, the gross profit margin of the three squirrels has always been low. According to the semi annual report of three squirrels, the comprehensive operating gross profit margin is 36.26%, of which the main nut category has a gross profit margin of 31.70%, which is lower than that of similar leisure and snack listed companies - in the first half of 2021, the main business gross profit margin of liangpin shop is 32.46%, and that of Laifen is 44.59%. Another reason behind the difficult increase in profits is the increase in marketing expenses. In the past two years, the traffic cost of e-commerce platforms has become higher and higher. Snack brands need to spend more marketing costs if they want to maintain their exposure and conversion rate. According to the financial reports of the three companies in the first three quarters of this year, Laifen, which is rooted in offline stores, has a sales cost of up to 1.034 billion yuan, accounting for one third of the total revenue; The sales cost of liangpin shop is as high as 1.252 billion yuan, accounting for nearly one fifth of the total revenue; The sales cost of three squirrels is as high as 1.466 billion yuan, accounting for one fifth of the total revenue. The marketing investment of the three companies has increased compared with last year, but the burning of money has not resulted in a significant increase in revenue. It is necessary to occupy the market by discarding stage profits. Song Fei, an investor in the consumer industry, told kaipineapple finance, "only with a high market share can we get user stickiness and brand premium. However, with the rise of new e-commerce platforms and the emergence of new brands with more network sense, the era of blindly throwing money in exchange for traffic has passed, and the low-cost and efficient marketing has become one of the comprehensive strengths of brands." Online annotation and self broadcasting, offline switching to community group buying "Tmall and JD have made all the money," many investors once commented. "Burning money for traffic and promotion for growth" is indeed one of the reasons for betting that online snack brands "increase revenue but not profit". "Most of the profits of snack brands are still contributed by offline. Offline can achieve regional monopoly by virtue of poor information, but online, as long as there is no investment, it will be difficult to grow and unsustainable, and the market will eventually be taken away by competitors." Gao Lin consulting experts said. Song Fei concluded that in addition to Lai Yifen's roots offline, 10% of them are online and 90% of them are offline (more than 87%). The three squirrels are online and offline. Liangpin shop belongs to "balanced development" and online and offline are 50% and 50% respectively. "The two brands don't put their eggs in one basket now, and try to balance their online and offline revenue." Kaipineapple finance found that with the significant increase of online marketing expenses and customer acquisition costs, the three snack manufacturers reached a certain consensus: the online channel shifted its focus from the traditional e-commerce platform to e-commerce live broadcast; Offline channels accelerate the layout of franchise stores and carry out community e-commerce. In terms of online ecology, online business accounts for only 10% of laiyifen. It is the only one that has not made efforts to broadcast live. At present, it still focuses on the member operation of tmall flagship store, and the other two have arranged brand self broadcasting. In 2020, the three squirrels cooperated with viya and other big anchors for more than 50 live broadcasts, but this year, they pay more attention to self broadcasting. By the year 618, the proportion of its own voice broadcast tiktok has reached 60%. Liangpin store has also built its own live broadcasting base. The importance of offline channels has also been gradually seen. According to Sullivan's prediction, in China's leisure and snack industry in 2022, the traditional offline channels still occupy a dominant position. In the overall retail volume of about 1.56 trillion yuan, more than 80% of the retail volume comes from offline. The offline stores of the three brands are mainly divided into direct stores and franchise stores. At present, they all focus on franchise stores, and their operating revenue has increased rapidly year-on-year. Source / pexels By comparing the number of the three stores, as of the first half of this year, liangpin store > Laifen > three squirrels. There are 163 squirrel feeding stores and 941 alliance stores; The number of stores in Laifen has expanded to 2726, including 148 new franchise stores; Liangpin store has nearly 3000 offline stores, with 492 franchise stores added year-on-year. In addition, the three companies began to take advantage of community group buying last year to try to alleviate the negative impact of the epidemic. From the performance in the first half of this year, this part of business has been greatly improved. Among them, laiyifen community business (Group shopping + 30 minute takeout home) increased by 80% year-on-year, achieving a performance of 160 million yuan; The revenue of group purchase channel of liangpin store increased by 263.58% over the same period; The community group purchase revenue of the three squirrels increased by more than 300% year-on-year. However, Gao Lin consulting experts pointed out that in the second half of last year, some snack brands could also take the ride of community group buying. However, as the community group buying industry began to shuffle, the value that can be brought to snack brands has become limited. Zhu danpeng, an analyst of China's food industry, is also worried that because the price of community group purchase is relatively low, it will disrupt the original price system. Unless different product matrices and price systems are set up for different channels, disorderly prices can be avoided, otherwise it will be more harmful. Online traffic is becoming more and more expensive. At the same time, the operating costs of offline stores are rising and there is uncertainty in community group buying. Each family can only work together online and offline. Experts at Kwai Lin tiktok predict that the biggest growth potential this year is likely to come from shaking, fast acting and spelling. The main brand is "old" and the sub brand is still small Reviewing the development history of domestic professional snack brands in recent 20 years, it is not difficult to find that in the early stage, thanks to the rise of e-commerce and consumption upgrading, snack brands grabbed market share in their respective tracks. The three squirrels take nuts as the core, liangpin store adheres to the high-end route, and Laifen makes a fortune in meat snacks. These three companies have a relatively complete product matrix so far. The realization occurred in recent two years. Pacific Securities analyzed in the research report that at present, the concentration of the leisure and snack industry has declined, mainly due to the rise of marketing modes such as live broadcasting and goods, the reduction of entry threshold and the rise of new brands. Facing the dilemma of gradual disappearance of e-commerce channel dividends and product homogenization, the old online red snack brand has to find another way. With the increase of domestic two child families and the liberalization of the three child policy, the market demand for baby food has gradually increased. At the same time, the post-90s and post-95s parents' love for domestic brands has increased, giving new brand opportunities. Liangpin shop and three squirrels successively launched children's snack brands: xiaoshixian and Xiaolu blue in May and June 2020. Three squirrels are in the financial report