For Zhou Heiya, this may be the worst financial report since its listing on 20 16. According to the data, in the first half of 20 19, the revenue of Zhou Heiya increased by less than 2%, the net profit decreased by more than 30%, and the number of closed stores reached 1 17, which was the first time that there was a negative growth in stores. In the same period, the year-on-year growth rate of net profit of Huanghe Juewei Food exceeded 20%.
Some market voices believe that Zhou Heiya's "falling behind" stems from its consistent direct selling model. Compared with the franchise model, direct stores need more asset investment and the expansion speed is slow. Zhou Heiya also said that in the future, franchise development model will be adopted to explore diversified distribution channels.
Some insiders said that the main competitive pressure of the "Luwei Big Three" in the future may not come from each other, but from other upstarts who may jump up.
Are all "direct" pots?
Why does the "Big Three of Louvre" have performance differentiation? Some market voices believe that this is related to the fact that Zhou Heiya has adopted a different sales model from glamorous and tasteless food.
Generally speaking, retailers' sales models are mainly direct sales and joining. Zhou Heiya adopts the sales mode of direct stores. According to the semi-annual report, the revenue of direct stores in Zhou Heiya in the first half of the year was 654.38+40.3 million yuan, accounting for 86.3% of the total revenue. Different from Zhou Heiya, tasteless food mainly adopts the sales model of "direct chain as the guide and franchise chain as the main body", and more than 90% of its main business income comes from franchise channels; Huang's main business model covers three business models: direct chain, franchise chain and distributor.
The difference of sales model is intuitively reflected in the data of the size of the store. According to the data of Zhou Heiya semi-annual report, the latest number of stores is 1255. The number of shops with gorgeous and tasteless food is much higher than that in Zhou Heiya. By June 30th, 20 19, there were 10598 stores in China (excluding Hong Kong, Macao and Taiwan), an increase of 683 stores compared with the beginning of the year. Huang predicts that the number of stores will reach about 4,000 by the end of 2065, 438+09, and 436 new stores will be opened in the first half of the year.
Generally speaking, the direct operation mode belongs to heavy assets, with long input-output period and far less expansion speed than the joining mode. On the other hand, the advantage of direct selling mode is that it can maintain a good unified brand image, and it can get higher premium and gross profit without franchisees sharing profits. The data shows that in the first half of this year, the gross profit margin was 55.9%, lower than the same period last year, but also higher than tasteless food (34.23%) and yellow (37.32%).
According to the research report of Guo Sheng Securities, there are advantages and disadvantages of direct sales and franchise sales, and the key to determine the effective way of brand expansion lies in the difference of business nature and brand attributes.
For the future development, Zhou Heiya said that the business strategy will focus on using the franchise model to further penetrate the existing market, and strategically expand into new areas, explore diversified distribution channels, and strengthen product innovation.
It will take time to test whether Zhou Heiya, which plans to break the single sales model, can break through the current development predicament.