The taste of the sea is known after sleep
The author | jiao gu days Haitian flavor industry is under attack, both ends prices are hard to save his life.In 2021, haitian-flavor’s revenue and net profit grew only 9.71% and 4.18% year on year, both setting the lowest record in ten years.On the one hand, rising prices cannot cover rising costs. On the other hand, the recession of the catering industry under the epidemic has caused a great impact on upstream condiment companies.It is imperative to seek new growth points.Recently, zhang Xin, secretary of the board of directors, said at the performance conference that the field of prepared dishes and condiments related to a higher degree, the company is actively investigating.That could mean a big player in the $100 billion market for prepared meals.The current pattern of prepared dishes is mainly divided into a number of factions, to haidilao “Shu Hai”, Xibei “Jia Guolong Kung Fu dishes” led by the catering business incubation companies;Independent prepared food companies, such as Weizhixiang, Qianwei Yang Chef, etc.;As well as quick-frozen rice noodles bibcock sanquan, miss and so on.If Haitian enters the company, will the condiment industry companies become a major faction in the field of prepared dishes?With both b-end customer accumulation and C-end brand holding, can Haitian taste give full play to its advantages on the new track?From October 25, 2021, Haitian Flavor will adjust the ex-factory prices of some products such as soy sauce, oyster sauce and sauces by 3%-7%.The last time it raised prices was five years ago.Even so, haitien’s gross margin fell to 38.66% in 2021 from 42.17% in 2020, the lowest since 2013.Prices of upstream raw materials such as soybeans and packaging materials have risen, leading to an 18.17% increase in “direct materials” and a 16.3% year-on-year increase in operating costs, far exceeding the price increase.For Haitian flavor industry, the weakness of the demand side is the most noteworthy, especially its catering channel accounts for a higher proportion than the family channel, which is more affected by the downturn of catering, which makes it difficult to pass the upstream price increase to the downstream.Therefore, the pressure from both ends of the upstream and downstream is Haitian flavor industry.Compared with the offline catering, online channel sales are very hot.In 2021, haitian-flavor’s online channel revenue increased by 85% year on year. Can it become a new growth pole?It cannot be denied that the growth of online channels is faster, which can bring some increment to Haitian flavor industry. However, it should be noted that such channel reform is more for “defense”, so as to reduce the impact of e-commerce platform on offline, and the real performance improvement space is limited.First of all, the revenue of online channels is only 700 million yuan, accounting for less than 3% of the total revenue. Even if it keeps doubling every year, its contribution to the increase of revenue will be limited.In addition, the gross profit margin of online channels was 37.31%, down about 13 percentage points compared with the previous year, lower than the offline gross profit margin of 39.86%. In order to gain more income online, it is necessary to increase the release, while the cost of online traffic competition is higher, even if the online revenue increases significantly, the company’s comprehensive gross profit margin will be reduced.However, Haitian will have to enter new areas and develop new products if it wants to regain its past high growth.Take Haitian’s oyster products for example. Before 2016, the revenue of its oyster and sauce products kept a similar growth rate, but since 2017, the revenue of oyster products has gradually opened a gap with that of sauce products. In 5 years, the revenue increased from 1.863 billion to 4.532 billion, with a compound growth rate of 19%.Sauce revenue only increased from 1.814 billion to 2.666 billion, a five-year compound growth rate of 8 percent.Under the condition that the unit price does not change significantly, oyster sauce products can stand out from the others and bring a relatively large revenue growth to Haitian, which shows the importance of “selection”.Is the king of the condiment channel for prepared dishes acclimatized?At this year’s performance presentation, Haitian flavor industry said that it would gradually make efforts in cross-border products such as rice, flour, grain and oil, hot pot base materials, and the company is also actively investigating the field of prepared dishes.Among them, “prepared food” has been gradually recognized by the public with the rise of consumption patterns such as takeout, e-commerce platforms and community group buying, and has become a hot concept in the capital market in the past two years.As a matter of fact, we are no strangers to prepared dishes. The earliest and most familiar prepared dishes are rice and noodle products such as frozen dumplings and dumplings. Later, there are various kinds of chilled marinated dishes, cooked food and fried chicken pieces.Narrow prefabricated food is considered to be finished or semi-finished dishes, this kind of precast dishes in order to adapt to the B side is the earliest appear more kitchen needs, cost reduction and efficiency of industrialization now C the lifestyle changes and added put fire to it, the more appeal to people to reduce household labor time, the prefabricated food more welcome.According to the 2021 China Chain Restaurant Industry Report, the market size of China’s prepared dishes industry is about 210 billion yuan at present and is expected to grow to about 600 billion yuan by 2025.Some research reports even point out that in the next 6-7 years, the scale of China’s prepared dishes industry is expected to reach about 3 trillion yuan, becoming the next trillion restaurant market, with a compound annual growth rate of 20%.That does appeal to the slowing Haitian flavor industry.At present, the pattern of ready-made frozen rice and noodles is relatively stable, with Sanquan and Yearning occupying the leading position. However, in the narrow sense, the field of ready-made dishes is still a chaotic and fragmented situation, and there are no leading enterprises and the pattern has not been solidified, which can be said to be a good battlefield for outsiders to enter.These prepared food companies can be divided into three types according to their different backgrounds. One is catering school, which is represented by “Shuhai” of Haidilao and “Jia Guolong Kung Fu Dish” of Xibei, with supply chain and brand advantages.Second, independent groups, such as Mizhixiang and Qianwei Yang Chef, are not involved in downstream catering and operate flexibly;Third, the new retail group, represented by Hema’s “Hema Workshop” and Meituan’s “Like Chef”, has the advantage of platform flow.Generally speaking, most of the prepared dishes enterprises do not have the channel construction ability to promote nationwide, and they have not established the brand reputation in the B-end, especially in the C-end. Therefore, for Haitian flavor industry, solid downstream channels and reputation may become its advantages in the field of prepared dishes.However, Haitian flavor also has disadvantages, supply chain and research and development will be the two major challenges.The supply chain is difficult because of the rich and diverse ingredients used in prepared dishes, which are more complex than soy sauce and oyster sauce, etc., which puts forward new requirements for upstream procurement and storage. However, Haitian flavor industry does not have a ready-made upstream channel, team and management system.In terms of research and development, the core focus of prepared dishes is “taste good” and “standardization.”And there is a view that the more difficult the ingredients or the more demanding the cooking skills are, the more suitable it is for prepared dishes, such as Guangzhou Restaurant and Jia Guolong Kung Fu Dishes.Factors such as heat, collocation and preservation are different from condiments, which is more difficult for Haitian flavor industry to develop.Therefore, how to make the best of the advantages and avoid the disadvantages, will be Haitian flavor industry to enter the prepared food to figure out things.