Which brands can outperform the economic counter-cyclical?
Consumers make retaliatory deposits. Which brands can still "dig for gold" from their pockets?
Let’s first look at a set of data: From January to April this year, my country’s total retail sales of consumer goods showed a cliff-like decline . Among them, catering, gold and silver jewelry, clothing, shoes and hats, home appliances, furniture, etc. dropped by more than 20% .
◎Data source: National Bureau of Statistics
Under the ravages of the epidemic, the phenomenon of "bulk buying" has become rare. Rational consumption and reducing the consumption of non-necessities have become the consensus of most consumers. should eliminate excessive use, abandonment, and extreme consumption. Minimalism becomes the new way of life .
In order to stimulate consumption, even the "street stall economy", which has been marginalized for a long time, has begun to make a comeback. In a turbulent environment, some entities are on the verge of bankruptcy, while others are thriving. Which types of resilient brands can outperform the economic counter-cyclical?
The consumer economy has experienced a major reversal
Data from the National Bureau of Statistics show that the GDP in the first quarter of 2020 fell by 6.8% year-on-year, the first negative growth in 28 years. The decline in economic growth will shrink the income of most ordinary people.
Central Bank data shows that household deposits increased by 6.47 trillion yuan in the first quarter of 2020, which is equivalent to more than 70 billion deposits flowing into banks every day. Retaliatory consumption did not come as expected, but 's retaliatory savings came to first.
Young people are burdened with credit card debt, and the middle class are burdened with mortgage loans, car loans, education, medical care, etc. Faced with declining incomes, "moonlight" is too insecure, and they have to consume prudently and save money to maintain a balance in life.
Recently, "Director Lin Chao", the UP owner of Station B, released his work "The New World after the Epidemic", which triggered heated discussions. "Director Lin Chao" judged: The epidemic has led to excessive consumption of , anti-consumerism, anti-IQ tax, party membership, cost-effectiveness, separation, and minimalism all have similar meanings.
◎Product performance exceeds consumer demand, resulting in excessive performance, which is also the scientific principle of the consumption IQ tax.
The de-excessiveization is mainly reflected in three aspects: large-amount and large-ticket consumption is reduced ; social catering is reduced, and takeout is reduced , food, semi-processing and other industries have benefited; the rise of cost-effective domestic brands.
According to the National Bureau of Statistics, from January to April this year, the total retail sales of consumer goods fell by 16.2% year-on-year. Among them, catering revenue was 833.3 billion yuan, a year-on-year decrease of 41.2%; retail sales of merchandise was 9,842.5 billion yuan, a decrease of 13.1% , among which was most affected by the gold and silver jewelry category, with a decrease of 32.5% .
◎Data source: National Bureau of Statistics
For more and more Chinese people whose economy has been hit, the consumer economy has begun to reverse.
Consumers will think twice before spending money, and they will begin to reflect on what is truly "rigidly needed" and what is unnecessary "redundant". White-collar workers who used to treat themselves to a lot of food and drinks at least every week began to practice cooking skills and eat at home; "fashion trendsetters" who used to buy limited editions began to sell the trophies of impulse purchases on Xianyu. The consumption characteristics of
are quite similar to Japan’s “Fourth Consumption Era”.
In the fourth consumption era (2005 to the present), Japan's economy is in a sluggish state, residents' income growth is zero, the aging problem is becoming increasingly serious, and the proportion of the working population is declining. The people have begun to pursue the simple style of "returning to nature", and consumption has shown a socialized, Trends such as localization, simplicity, and environmental protection are leading the way by downplaying brands and emphasizing cost-effective products.
◎Conspicuous consumption is declining, and the "new poor" who are rich but not well-off pay more attention to the use value of goods rather than brand logos.Brand companies such as MUJI and Uniqlo have begun to rise. Image source: hunandv.com
◎ "Offline version of Pinduoduo" Don Quijote, 100-yen store DAISO, etc., target the low-end market, with a wide range of product categories, becoming retail dark horse image source ：otashift-tokyo.com
Drawing on Japan’s development experience, in the future more and more Chinese consumers will also start to downplay the brand of and pursue high cost performance. They realize that comparison is worthless and less is more, and then they will spend their original consumption on materials. Invest time and money in accumulating life experience and rich feelings, and gain spiritual enrichment .
In this context, brands that are cost-effective and can bring "little luck" to people are facing unprecedented development opportunities.
Which brands may become mainstream consumers?
➤ Popular national clothing brands
With the improvement of quality, cost-effectiveness and design capabilities made in China, as well as the improvement of national self-confidence, a group of national clothing brands that have been established for a long time and are familiar to consumers are returning to the fashion stage in a new way and winning over young consumers. readers love it; new brands are springing up like mushrooms after a rain and growing rapidly.
Under the general trend of de-overdication, these popular national clothing brands will accelerate to usher in a "second take-off". Typical brands such as: Li Ning borrowed the national trend sub-brand "China Lining" to become popular and counterattack, Semir captured consumers with the new brand concept of "quality in daily life", Lilang opened the era of "new business", Peacebird continued Discover new products through IP cooperation to achieve "reverse growth"...
Semir
comprehensively reshapes the brand image and interprets "quality in daily life"
Semir is a domestic popular casual clothing brand. In 2017, we started channel transformation and upgrading, and in 2018 we launched five new plans: starting from the store terminal image, we continued to make changes in five aspects: product line, new launch speed, marketing activities, and channels.
In 2019, Semir launched a new brand concept, advocating "quality in daily life", so that the real touch in life can be connected with the inner feelings. The brand-new lifestyle experience flagship store focuses on high-quality, good-looking, and friendly products and services. The store design forms a youthful and fashionable collection store model to create a situational shopping space.
◎Five quality moments of daily life in the video of Semir's "Quality in Everyday" brand concept
In addition, Semir has also cooperated with well-known young designers, and its products have appeared in New York Fashion Week and Milan Fashion Week, heading towards globalization.
As of the end of 2019, Semir has established 10,257 offline stores across the country and overseas, with shopping center stores accounting for 30%.
As a typical representative of Made in China, Semir has a professional supply chain and excellent product quality. I believe that after this transformation, the brand will take off again.
◎ Semir lifestyle experience flagship store store map
Lilang
Accelerates rejuvenation and opens the era of "new business"
Lilang is a powerful Chinese men's clothing brand with a history of more than 30 years. In recent years, it has continuously strengthened the original design and cost-effectiveness of its products. In the execution While "providing value-for-money products" strategy, we moderately strengthen the fashionability of light business series, improve pricing capabilities and profitability, and achieve steady performance growth.
◎Lilanz new image store map
In 2020, Lilanx launched a co-branded model with "China Daily" and released the concept of "New Business, Upward Power", showing the image of new business people full of cultural confidence and international vision, tailoring a new generation of Fashion role model.
◎2020 LILANZ Cooperate with the industry to accelerate brand renewal and upgrade, and capture the young market with diversified and cutting-edge fashion.
➤ “Small but beautiful” snack and fast food brand
The "China Catering Report 2019" released by Meituan Dianping and Catering Boss Internal Reference shows that in the 4.2 trillion yuan catering market, snacks and fast food account for 44.3% of the number of stores in various catering categories. China continues to rank first.
Under the new situation where consumers are reducing optional consumption expenditures and minimizing gatherings, the “rigorously needed” snack and fast food segment is experiencing a boom in development. For example, Haidilao has low-key launched new brands "Shibabo" and "Laopai Youmianer", with per capita consumption of less than 20 yuan; Xibei also said that it is preparing a new fast food brand "Gong Changzhang" to position itself as a national canteen, focusing on 33 Tao now stir-fries the food.
◎Picture source: Data Park, Catering O2O, Brand Marketing Report
From a business perspective, snacks and fast food are flexible in operation, highly standardized, easy to develop retail, and have strong profitability; from a consumer perspective, snacks and fast food consumption It is reasonable, and it is up to the people to be rich and thrifty, and it will not bring any consumption burden.
In the future, the "Matthew Effect" of snacks and fast food will be more obvious. "Small but beautiful" brands with reliable endorsements, food safety and supply chain guarantees will accelerate the rise, eliminating small shops with worrying food safety.
Shanghai He Yong Group
From a small street shop to an aircraft carrier-level catering group
Axiang Rice Noodles focuses on the single product of rice noodles and has developed into a single category champion brand in 20 years. It not only has strong product innovation and research and development capabilities, but also meets the diverse needs of young people. In order to meet the needs of consumers, we also pay attention to the creation of store image and brand culture to create a unique dining atmosphere for consumers.
With the success of Asxiang rice noodles, since 2017, He Yong Group has also successfully hatched distinctive brands such as Duoduo rice noodles, Jianhua Niangzi, Zhangzhaicun, Jili Chicken Steak, and Zhuitian Malatang, and has become a group-style The company has made great strides, with nearly 1,000 stores across the country.
Doduo Rice Noodles has just upgraded its store image to version 3.0 this year. The minimalist wood color is clean and clear, which enhances the overall style of the restaurant; Zhang Zhaicun and Jianhua Niangzi use a fully transparent kitchen design to show the production process of authentic Shaanxi noodles. Presented directly in front of consumers, greatly enhancing the store experience.
◎ He Yong Group has 6 brands, and every family is busy. Picture source: Red Meal Network
➤ A lifestyle grocery brand that brings "little luck"
As consumers pursue a more cautious consumption attitude, large-ticket and large-ticket consumption has decreased significantly. , but human nature itself still pursues happiness and a better life. Facing the pressure and hardships of life, people's souls need comfort and their emotions need some sustenance.
At this time, groceries that have both design and practicality and are within the price range expected by most people can more easily become the materialized carrier of people's moods. They can bring "little luck" to consumers, bringing material sophistication and emotional pleasure.
KKV
Exquisite "container grocery store"
KKV, a lifestyle collection store brand under the KK Group, uses a container-shaped interior design style and bright yellow to create high recognition. In 2019, it quickly expanded into Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan and other cities, becoming a phenomenally popular new species.
◎KKV store map picture source: Livin Guangzhou
KKV focuses on the exquisite lifestyle of Generation Z and selects 20,000+ popular SKUs, covering DTC clothing, fast fashion accessories, imported beauty, global snacks, maternal and infant products, pet products, There are 14 theme categories including flowers and green plants, with unit prices ranging from 87.6 to 132.7 yuan.
◎KKV store map Image source: KKV
Although the industry is currently at a trough, KKV can still recover quickly, expand steadily, and has strong risk resistance. On March 1 this year, KKV Chengdu Chunxi Road flagship store opened. Although affected by the epidemic, its average daily customer flow during weekends reached 29,200, and daily sales exceeded 200,000. The store's overall revenue in March exceeded 5 million. Yuan.
◎KKV store map picture source: Yingshang.com
➤ Data from the "2020 China Fresh Snacks White Paper" released by the snack brand
html billion euro think tank shows that snacks are becoming more and more important in the hearts of consumers, and 71% of consumers believe that Snacks are as important as their physical and mental health and have become an essential "necessity" in life.As the epidemic becomes normalized and de-excessive, consumers will try to reduce unnecessary social consumption and spend more time at home. Out of the psychology of compensatory consumption and stress relief, the home consumption scene of snacks has been strengthened.In addition, in the fast-paced life, there are more scenes of working meals or dining alone, and the trend of "snacks as meal replacements and dinners as snacks" is constantly strengthening.
a1 Snack Research Institute
Snack innovative brand
Domestic snack brand "a1 Snack Research Institute" (hereinafter referred to as a1) received nearly 200 million yuan in Series B+ financing in April this year. a1 was founded in the second half of 2016 and has completed three rounds of financing so far, with a total financing amount of 350 million yuan.
a1 is product-driven and prioritizes products in the categories of "food-friendly, meal-replacement properties, and high repurchase frequency" as part of the company's strategy, and has created two popular products, egg yolk puff pastry and cloud cake. Annual sales maintain a growth rate of 300% and are expected to exceed 1 billion yuan in 2020.
◎a1 Snack Research Institute offline stores Image source: FBIF Food and Beverage Innovation
a1 has opened up the closed loop of online and offline traffic, launched the "COSTCO" model where the supply chain reaches consumers directly, and improved product quality and price. In the store, there is a huge tasting table, which adheres to "price transparency". The cost structure of the product will be displayed on each price tag, and the membership price is only slightly higher than the cost price.
◎Disclosure of costs of R&D, raw materials, production, warehousing, operations, etc. Picture source: FBIF Food and Beverage Innovation
- Conclusion -
De-excessive consumption does not mean downgrading consumption and buying defective products at low prices, but based on one's own inner needs Let’s start by re-examining the “sense of gain” that money can buy, rationally control quantity consumption, and focus on improving quality. It can be said that what is downgraded is price and consumption desire, while what is upgraded is quality and consumption concept.
With the development of the times, material satisfaction is no longer the highest expression of happiness. People are pursuing simplicity themselves more and enjoying spiritual pleasure. , a consumption model of free choice of happiness, is the true meaning of the fourth era of consumption .
Material source: Winshang Cloud Think Tank
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