Summary of Key Points
The fresh snack market is rapidly expanding into first-tier cities, with four new snack stores set to open on the same floor at Heshenghui in Beijing: Dakou兽 (Dakou Shou), Qingshan Sen (Qingshan Sen), Yili (Yili), and Xueji Chaoguo (Xueji Chao Guo). Among them, Dakou兽 and Qingshan Sen have similar layouts, but their product offerings differ (Dakou兽 focuses on baked fresh foods, while Qingshan Sen emphasizes marinated snacks). Both adopt an "unconventional" expansion strategy: they start with flagship stores in core business districts of first-tier cities before planning to expand into county-level markets. The biggest challenge in the industry is managing the supply chain for perishable products (the production, distribution, and inventory coordination of goods with varying shelf lives), which also constitutes a significant barrier to long-term competition.
1. First-Tier City Stores: Similar in Appearance, but Different in Essence
At first glance, the two stores look like twins: they have similar decor (refrigerated cabinets, shelves, display stands), customized packaging, and some overlapping products (such as sesame cakes and shrimp chips), which has led customers to wonder if they are the same business. However, their product selection strategies are quite different:
- Dakou兽: Bringing bakery desserts to the snack space
The store focuses on short-shelf-life baked goods, such as pistachio puff pastries with a 3-day shelf life. Refrigerated cabinets account for a large portion of the store, and the concept is to offer instant gratification—products that customers can buy on the go. The product selection is inspired by popular items from Hema (Box馬) and Sam's Club, essentially bringing the trendy fresh foods from supermarkets into the snack category.
- Qingshan Sen: Selling marinated snacks as snacks
Qingshan Sen offers a wide range of marinated products, including duck tongues and chicken feet, priced between 9.8 and 28 yuan. The store has made local adjustments for the northern market, adding peach crisps, reducing the spiciness of Hunan-style marinades, and adding sesame paste to its konjac strips. It also emphasizes freshly prepared drinks, with all products sold on the same day. In short, one is a "snack version of a bakery," and the other is a "snack version of a marinated food store."
2. Unconventional Expansion: Building a Presence in First-Tier Cities Before Scaling to County-Level Markets
Typically, new brands would start by opening stores in specific regions (for example, Jinli Men initially focused on Hunan). However, Dakou兽 has chosen to enter the major cities of Beijing, Shanghai, Guangzhou, and Shenzhen immediately. Why?
- First-tier city stores as live advertisements: The fresh snack market in Beijing is still in its early stages, with few competitors. Opening a store in a core business district like Heshenghui easily attracts attention and helps establish the brand's image (it sends the message that "this is a quality brand").
- Preparing for franchising: Dakou兽 plans to expand through franchising, targeting county-level markets not covered by Hema and Sam's Club. The first-tier city stores serve as prototypes to prove the business model's feasibility. Using popular supermarket products (such as sesame cakes) makes it easier for franchisees to get started since local customers are familiar with them, reducing the risk of initial failures.
However, there is a challenge: while first-tier cities attract customers with their traffic and novelty, county-level markets rely on daily consumption and price sensitivity. Whether the success of the first-tier city model can be replicated at the county level depends on whether the supply chain can keep up (for example, managing the distribution and loss of perishable products).
3. The Crucial Challenge of Perishable Products: Managing the Supply Chain
The core of fresh snacks is their short shelf life (ranging from 3 days to 1 month), which poses a significant challenge for the supply chain:
- Each product has unique requirements: For instance, Qingshan Sen's marinated products with a 7-day shelf life must be transported from Changsha to Beijing (within 15 hours), while baked goods with a same-day shelf life need to be delivered by local factories daily, and non-perishable items with a 1-month shelf life require weekly deliveries. Managing multiple supply chains simultaneously is like taking care of children with different schedules.
- Inventory is a double-edged sword: Overstocking leads to discounts or waste (high losses), while understocking results in lost sales. Both stores have limited product ranges (Dakou兽 has 100 items, Qingshan Sen has 150) and focus on selling bestsellers, which helps customers make quick choices and reduces inventory pressure.
- Two types of supply chain models: Jinli Men owns its own factory, controlling quality and new product releases; Dakou兽 and Qingshan Sen collaborate with local suppliers and regional warehouses. The latter approach is more flexible but harder to coordinate, while the former is more stable but requires complex management.
4. Industry Competition: Imitation is Easy, but the Barrier Lies in the Invisible Details
The decor, packaging, and popular products (like sesame cakes) are easy to copy. However, long-term success depends on two key factors:
- Continuous product innovation: Selling the same products eventually becomes boring, so it's essential to constantly introduce new items. This involves finding manufacturers, designing packaging, calculating shelf lives, and coordinating deliveries—each step requires careful management of the supply chain.
- Supply chain compatibility: For example, for 3-day shelf-life pastries, should they be produced locally or delivered from a central warehouse? If the delivery time is too long, the products will go stale; if produced locally, new factories need to be found. This directly affects the store's profitability.
Conclusion
The fresh snack market seems promising, but behind the scenes, there is a fierce battle for supply chain efficiency. Establishing a presence in first-tier cities attracts attention, while expanding to county-level markets aims for scale. Whether this strategy will work depends on whether brands can effectively manage the production, distribution, and sales of perishable products—these are the true barriers to success.