---
title: "BESTORE's New Chief Yang Yinfen: No Fire, Just Squeezing Out the Water"
description: "BESTORE's new chairman and general manager, Yang Yinfen, has initiated a major price reduction strategy, cutting prices on over 300 products by an average of 22%, with the highest reduction reaching 45%. The strategy focuses on squeezing out 'water' from the supply chain to lower costs while maintaining quality, as the company faces declining sales and increased competition from discount snack stores."
author: "FBIF"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2023-12-19"
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# BESTORE's New Chief Yang Yinfen: No Fire, Just Squeezing Out the Water

> BESTORE's new chairman and general manager, Yang Yinfen, has initiated a major price reduction strategy, cutting prices on over 300 products by an average of 22%, with the highest reduction reaching 45%. The strategy focuses on squeezing out 'water' from the supply chain to lower costs while maintaining quality, as the company faces declining sales and increased competition from discount snack stores.

“We have many products on sale recently. If you need anything, just call me.”
The staff at BESTORE's Yangshan Meihaohui store in Suzhou were busy changing price tags and stocking up for the New Year. When a customer walked in, they would immediately stop what they were doing and greet them.
At checkout, the staff would proactively explain, “The discounts are for members. If you don't have a membership card, you can get one.”
Photo of BESTORE's discount price tags. Source: FBIF
FBIF visited two BESTORE physical stores in Suzhou and learned from conversations with staff that since the price cuts, store sales have improved compared to before. However, staff cannot see monthly sales figures, so the exact increase is unknown.
Because the discounts require a membership card, the number of people signing up for memberships has also increased. Staff at both stores said that the number of membership cards issued daily has increased, with some stores seeing a rise of up to 50%.
A consumer applying for a BESTORE membership. Source: FBIF
FBIF randomly selected some snacks at each of the two stores. From the receipts, one receipt showed an original price of 127.72 yuan, with an actual payment of 90.91 yuan, a discount of 36.11 yuan. Of the 12 items, only three were at the original price. Another receipt showed an amount due of 42.72 yuan, with an actual payment of 33.56 yuan, a discount of 8.66 yuan. Of the nine items, five were at the original price.
The staff told the author that BESTORE currently has 75 “best-selling items,” of which nearly 80% have been discounted.
All of this is related to the price reduction strategy announced by BESTORE at the end of November. On November 27, BESTORE announced a change of leadership, with Yang Yinfen, one of the founders, taking over as chairman and general manager. The day after taking office, Yang announced the price reduction strategy: the membership prices of over 300 products with high repurchase rates in stores would be reduced by an average of 22%, with the highest reduction reaching 45%.
In addition, FBIF exclusively learned that after the “price reduction news” that shook the industry at the end of November, BESTORE is now exploring a second step: from the first wave of 300 discounted snacks, they will select five ultra-cost-effective signature products from core categories such as nuts, baked goods, meat, and vegetarian snacks, to continue offering “conscience prices.” It is reported that these five products are hand-shredded duck neck, pure nuts, konjac snacks, milk cloud cake, and sweet mango slices.
This is the first large-scale price reduction in BESTORE's 17-year history. The price cuts are for survival, as Yang Yinfen pointed out in an open letter released on November 29: “It's not just a matter of difficulty; it's a matter of survival.”
BESTORE is in a situation of internal and external troubles. On one hand, since 2022, BESTORE's revenue growth has slowed significantly. In the first three quarters of this year, both revenue and net profit saw double-digit declines. On the other hand, while online sales are sluggish, BESTORE's offline channels are being besieged by peers, with the rise of bulk snack stores, and there have even been instances of “bulk snack stores opening right at the doorstep of BESTORE's physical stores.”
BESTORE had to proactively change to survive the winter of 2023. With a change of leadership and price cuts, BESTORE has launched a bold reform.
How to cut prices? Yang Yinfen directly targeted the most critical link: the supply chain. “The core of price reduction is to integrate supply chain capabilities, squeeze out the 'water' in the supply chain, and lower prices while ensuring product quality. Be nicer to consumers,” Yang Yinfen said in an exclusive interview with FBIF. “I will emphasize to suppliers that all industries are changing, and we need to change too. If we don't, we'll die.”
Xiaomi faced a similar situation in 2016. At that time, Lei Jun also focused on supply chain reform. Through supply chain innovation, Xiaomi was revitalized. So what will BESTORE do? How is BESTORE squeezing out the “water” from its supply chain?
In this regard, FBIF exclusively interviewed Yang Yinfen, attempting to find a set of supply chain management methodologies from this veteran of the consumer track. After reading this article, you will understand:
1. Why is price reduction about squeezing out the “water” in the supply chain? 2. How is BESTORE squeezing out the “water” in the supply chain? 3. What is the core capability of BESTORE's supply chain?
**Yang Yidao's “Dismembering the Ox” of the Supply Chain**
Because of his decisive actions, Yang Yinfen is known as “Yang Yidao” (One Knife Yang) within BESTORE.
Every major reform at BESTORE has seen the presence of Yang Yidao. In 2014, when BESTORE embraced O2O, Yang Yidao's approach to the supply chain was “rough”: “Select the best raw materials from the source and establish rules and regulations in processing and logistics.”
In 2019, when BESTORE proposed its premiumization strategy, Yang Yinfen stated that they would not make generic products, but rather require all products to be better than others, making them healthier and more nutritious. [1] This corresponded to BESTORE's high requirements for raw materials, such as melon seeds needing to be uniform in length, not too long or too short.
In November 2023, when BESTORE cut prices, Yang Yinfen said that consumers would not notice a reduction of less than 20%, so the average reduction was 22%, with the highest at 45%. This “water” of up to 45% would be squeezed out of the supply chain.
How to squeeze?
Take BESTORE's Frandi strawberry slices as an example. The price of Frandi strawberry slices was reduced by 41%, from 84.9 yuan/500g to 49.9 yuan/500g, a reduction of 35 yuan. FBIF purchased a pack of Frandi strawberry slices, and the price dropped from 10.53 yuan to 6.19 yuan.
BESTORE Frandi strawberry slices. Source: FBIF
Such a significant price reduction was achieved by BESTORE “cultivating” raw material suppliers into manufacturers, moving production directly to the raw material origin, reducing intermediate links, and optimizing costs.
Yang Yinfen told FBIF that previously, BESTORE's supplier purchased strawberry raw materials in Huize, Yunnan, and transported them to Fujian for processing. In 2021, BESTORE provided technical empowerment to the raw material supplier in Huize, Yunnan, helping it transition from a raw material supplier to a direct partner. After two years of effort, this product is now processed directly at the raw material origin, and after cost optimization, the terminal price has been significantly reduced.
It is understood that Huize County is one of the main production bases for summer strawberries. In 2022, the county's strawberry planting area reached 81,000 mu, with a production of 120,000 tons and an output value of 1.4 billion yuan. Strawberry planting is mainly distributed in towns such as Daibu, Jiache, Daqiao, Yulu, Luna, Xinjie, and Laochang in Huize County, with Daibu Town being the core production area for summer strawberries, with a planting area of 50,000 mu, accounting for 62% of the county's total. [2]
FBIF found the corresponding manufacturer. Previously, the manufacturer of BESTORE's Frandi strawberry slices was Fujian Hailitian Food Co., Ltd., located in Zhangzhou, Fujian. Now, the manufacturer has changed to Yunnan Yuancheng Food Co., Ltd., located in Daibu Town, Huize County, Qujing City, Yunnan Province.
Manufacturer of Frandi strawberry slices: Yunnan Yuancheng Food Co., Ltd. Source: FBIF
Tianyancha shows that Yunnan Yuancheng Food Co., Ltd. was established only one year ago, with food processing as its main business. Yunnan Yuancheng Agricultural Development Co., Ltd., which focuses on agricultural planting, holds 100% of Yuancheng Food.
Fujian Hailitian Food Co., Ltd. mainly focuses on food manufacturing. Currently, the company is still the manufacturer of BESTORE's thick meat strawberry slices. In this price reduction, the price of 112g/bag thick meat strawberry slices was reduced from 19.9 yuan to 13.9 yuan, i.e., from about 89 yuan/500g to about 62 yuan/500g. Before the price reduction, the prices of Frandi strawberry slices and thick meat strawberry slices were similar. Now, the price of Frandi strawberry slices is 12 yuan/500g lower than that of thick meat strawberry slices.
This is “squeezing water” from raw material transportation costs. FBIF randomly asked a truck owner about transportation prices, and he said that the freight for a refrigerated truck over 2,000 kilometers is about 13,000 yuan, but this is only a reference price, and the specific charge will be determined based on actual conditions. According to Amap, the distance from Qujing to Zhangzhou is more than 1,800 kilometers.
In addition, strawberries are perishable and require cold chain transportation. Coupled with strawberry loss, costs naturally rise significantly. By processing directly at the raw material origin, Frandi strawberry slices reduce raw material transportation costs while effectively improving the freshness and quality of raw materials and simplifying the supply chain process.
Processing directly at the raw material origin is a common practice, especially in the agricultural product processing, wine-making, and dairy industries. For example, companies like Yili, Mengniu, Danone, and Abbott set up dairy processing plants near pastures to ensure fresh, high-quality milk.
This is just one of Yang Yinfen's methods to squeeze out the “water” in the supply chain.
**The Art of the Supply Chain by “Yang Yidao”**
The core of the supply chain has three parts: planning, procurement, and logistics. To squeeze water out of the supply chain, you have to “operate” on these three parts.
According to CPIM, the core of the supply chain is to minimize total cost, using physical flow, information flow, and capital flow to drive precise planning, low-cost procurement, and low-cost logistics to build a supply chain with the lowest total cost.
Yang Yinfen applies these three points to BESTORE as operational control capability, raw material capability, and upstream capability. This price reduction by BESTORE, squeezing out the “water” in the supply chain, starts from these three points. The case of Frandi strawberry slices mentioned above is about reducing logistics costs and starting from the upstream direction.
Supply chain management has always been an art: while “squeezing water,” it is also necessary to ensure the stability of product quality.
Since 2020, BESTORE has been focusing on refined supply chain management. That year, BESTORE's strategic goal was to make a breakthrough in cost auditing. Through 12 dimensions such as work standardization, automation, and continuous flow operations, they helped suppliers improve lean management capabilities. Based on this, BESTORE established a digital cost management system for the supply chain.
Previously, BESTORE's support for suppliers was “nanny-style.” Yang Yinfen explained that, for example, at the product development level, the company had a heavy layout in R&D, procurement, and factory quality management. In the past, if a factory needed rectification, our team would go to the site to help.
Now, with clear processes, what the factory should do is done by the factory, and what BESTORE should do is done by BESTORE, reducing unnecessary waste of manpower and financial resources. But this does not mean that BESTORE will not help manufacturers; instead, it empowers manufacturers through lean management tools such as digital tools, thereby improving supply chain efficiency.
Take BESTORE's best-selling product, spiced braised iron eggs, as an example. BESTORE optimized production equipment, changed the egg peeling method, improved packaging technology, and introduced color sorters to replace manual selection of “flower eggs.” This set of production methodologies was passed on to the manufacturer of spiced braised iron eggs, saving 1.05 million yuan in costs per year. On the consumer side, the price per jin of BESTORE's spiced braised iron eggs was reduced by 23% to 39.9 yuan.
At the raw material level, BESTORE has put a lot of effort into “squeezing” prices.
Previously, BESTORE required suppliers to purchase raw materials of specified specifications on the market, and the “harsh” requirements for raw materials kept procurement costs high.
Now, BESTORE integrates supply chain resources and shifts from entrusting factories to purchase raw materials to a model of joint procurement with factories. For example, in the procurement of sweet chestnuts, BESTORE will work with manufacturers to compare the characteristics of chestnuts from Qianxi, Zunhua, Qinglong, Huairou, and other regions, and determine differentiated procurement models for different raw material production areas.
In the meat and nut categories, BESTORE works with core suppliers to lock in quantities and prices in advance for bulk procurement, reducing raw material costs. At the same time, BESTORE has changed its raw material procurement strategy, using market-wide procurement to grade raw materials and use different types and grades of raw materials for different types of products. [3]
In this regard, Yang Yinfen cited this year's best-selling new product, purple-coated cashews, as an example. BESTORE provides funds for suppliers to buy raw materials, and suppliers only charge processing fees. This gives BESTORE more room for price reductions. Currently, the membership price for 500g of purple-coated cashews is 49.9 yuan per can, a reduction of 10 yuan. It is reported that this product became the top-selling item in the cashew category in its first month on the market.
BESTORE purple-coated cashews. Source: FBIF
**Change is for Survival**
“The fundamental reason BESTORE is still alive is its supply chain integration capability and store opening capability,” Yang Yinfen told FBIF.
Currently, BESTORE has about 1,600 SKUs, and offline stores carry about 600 categories. This time, BESTORE has reduced prices on 300 products, with reductions ranging from 20% to 45%.
This is a bold and significant decision. BESTORE's price reduction is like a butterfly flapping its wings in the Amazon rainforest, causing considerable industry shock and triggering a series of butterfly effects. Four days after BESTORE announced its price reduction strategy, the founder of Three Squirrels posted on his social media that the company had implemented a “high-end cost-performance” strategy a year ago.
Source: Zhang Liaoyuan's social media
For old snack giants like BESTORE and Three Squirrels, the task now is to “survive the winter.”
In 2022, BESTORE's revenue growth slowed significantly, and Three Squirrels saw double-digit declines in both revenue and net profit. In 2023, BESTORE and Three Squirrels continued to see declines in revenue and net profit.
In his open letter, Yang Yinfen pointed out that BESTORE's development has stagnated, with declining scale and profitability. Looking inward, the reason is that the 17-year-old BESTORE has become bloated internally, with bureaucracy and departmentalism gradually emerging.
On the other hand, the consumer market is also changing. The trend of consumption stratification and grading is obvious, with different groups of people having more differentiated and distinct consumption levels. At the same time, consumers are becoming more cautious with spending and value for money. [4] Against this backdrop, bulk snack stores have risen abruptly, and their store locations have even been chosen right next to BESTORE stores. “Bulk snack stores have opened at BESTORE's doorstep,” which has had a significant impact on BESTORE's offline channels.
This is why Yang Yinfen wrote in his open letter: “Now BESTORE is not just having difficulty surviving; it's a question of whether it can survive at all.”
Squeezing water out of the supply chain is an important part of BESTORE's quest for change.
Yang Yinfen told FBIF that there are two directions for price reduction: one is to move toward the front-end supply chain, and the other is to improve internal operational efficiency. Improving internal operational efficiency involves reforming the company's strategy and personnel management to eliminate the “common diseases” of large enterprises. In store operations, it means differentiated store management, including products, decoration, and size.
In the interview, Yang Yinfen admitted that in the early days, supply chain management was heavily influenced by personal relationships. “I used to be a big spender in business. I would directly ask suppliers to make products according to my requirements first, and the price could be discussed later.”
BESTORE's past pursuit of quality was from an enterprise perspective, not a consumer perspective, which led BESTORE to possibly make innovations and quality controls that consumers didn't care about. [5] For example, melon seeds had to be uniform in length, and walnut kernels had to be complete halves with the brown skin intact.
In addition, at the raw material level, BESTORE once had the slogan “Good raw materials make good taste.” Around 2019, when BESTORE proposed its premiumization strategy, it had been promoting the concept of “global sourcing,” such as macadamia nuts from South Africa and Australia, and pistachios imported from California, USA.
Is this really what consumers demand for good quality? In the context of consumption stratification, consumers are more pursuing cost-effectiveness. Yang Yinfen reflected on this and squeezed out this part of the “water” in the supply chain, giving BESTORE room for price reductions.
BESTORE's nut products are the main force of price reductions. Source: FBIF
In addition to squeezing out the “water” in the supply chain, there is also learning: learning from the supply chain model of bulk snack stores that consumers recognize and that have recently become popular. Make the supply chain market-oriented. Marketization is the most powerful resource allocation method, which means using price comparison to purchase raw materials and squeezing out the previous “water.” The underlying logic of bulk snack stores lies in this.
BESTORE also wants to make suppliers rule-based and market-oriented. Yang Yinfen gave an example: BESTORE initially used pistachios from the United States, but now, as long as it's the new crop of the year and the taste is not much different, they can compare prices on the market and purchase, squeezing out the original “water” and thus lowering product prices.
However, Yang Yinfen emphasized that BESTORE cannot completely let the supply chain be market-oriented. Although this can bring greater price advantages, the consequence is uneven product quality.
The reform starts from the supply chain. The step BESTORE is taking now is very similar to what Xiaomi did in the past. In 2016, Xiaomi's growth slowed to 2.4%, and it faced a dire situation. Lei Jun resolutely chose to personally take over the supply chain, starting from the supply chain to reduce costs and pursue extreme cost-effectiveness. Lei Jun did this, and Apple's Tim Cook also did this. Both started to reflect and innovate from the supply chain at the most critical moment for the company. Today, Yang Yinfen and BESTORE are doing the same.
“The current snack industry has a certain capital bubble. A county has 18 snack brands. Did Chinese consumers suddenly increase their enthusiasm for snacks by four or five times? The snack industry earns hard money. Low prices without profit support cannot be replicated or sustained. The next phase will be a period of elimination and calm.”
Yang Yinfen emphasized that when an industry moves from immaturity to maturity, if someone makes money, capital will inevitably come in. The competition is about who has the best system, which is an inevitable path for the industry. In this process, the development opportunity for enterprises is still about what problems products and services solve, and the core is still the business logic.
References:
[1] BESTORE Yang Yinfen: Choosing “High-end” and “Down-market” Eras Are Not Contradictory, November 2019, Cailian Press
[2] Huize County Summer Strawberry Industry: From a Small Village to a National Model, March 2023
[3] BESTORE Stirs Up the Snack Industry with a Supply Chain Revolution, December 2023, Zhidian Finance
[4] Jiuding Investment: How to Understand Today's Consumer Market and Opportunities? December 2023, Shenxiang
[5] BESTORE Cuts Prices to Survive, December 2023, Huxiu APP


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