---
title: "Under Cyclical Pressure, Bestore Defends and Attacks?"
description: "In an era of intense competition across all industries, no one can win easily. On the evening of April 25, leading snack company Bestore released its 2023 annual report: revenue of 8.046 billion yuan, net profit attributable to shareholders of 180 million yuan. Despite cyclical pressure, it stabilized its core business. Its 2024 Q1 report showed revenue back on a growth track, up 2.79% year-on-year to 2.451 billion yuan. Due to proactive price concessions, net profit attributable to shareholders fell 57.98% to 62.4828 million yuan."
author: "任建新"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-05-06"
language: "en"
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# Under Cyclical Pressure, Bestore Defends and Attacks?

> In an era of intense competition across all industries, no one can win easily. On the evening of April 25, leading snack company Bestore released its 2023 annual report: revenue of 8.046 billion yuan, net profit attributable to shareholders of 180 million yuan. Despite cyclical pressure, it stabilized its core business. Its 2024 Q1 report showed revenue back on a growth track, up 2.79% year-on-year to 2.451 billion yuan. Due to proactive price concessions, net profit attributable to shareholders fell 57.98% to 62.4828 million yuan.

In an era of intense competition across all industries, no one can win easily.
On the evening of April 25, leading snack company Bestore released its 2023 annual report: revenue of 8.046 billion yuan, net profit attributable to shareholders of 180 million yuan. **Despite cyclical pressure, it stabilized its core business.**
The 2024 Q1 report released the same day showed revenue back on a growth track, up 2.79% year-on-year to 2.451 billion yuan. Due to proactive price concessions at the terminal, net profit attributable to shareholders fell 57.98% to 62.4828 million yuan.
In the past two years, bulk snack stores have expanded aggressively, and terminal price wars have been fierce; online traffic has shifted, and a single trick no longer works; plus the return of rational consumption. All this forces snack players to re-examine themselves.
Bestore has not hidden its problems. It dares to face its own issues and has made targeted adjustments. **The company does not fight a single-dimensional price war; it insists on actively competing through innovation and differentiation, bringing business back to valuable growth.**
Do not underestimate the difficulties, nor the resilience of this 18-year-old leading snack company.
**Tearing off the bandage to heal**
The trillion-yuan snack market was not built in a day. Market participants should not only be KA, nor only brand operators like Bestore and Three Squirrels; bulk snack stores are not destined to be the end of the model.
Continuous innovation in models and channels can stimulate the entire industry's innovation vitality, and only by jointly expanding the market can users ultimately benefit.
As a leading company in the industry, Bestore (603719.SH) admits it is currently going through a relatively "painful" period. If it were just to give investors an explanation, it could attribute this to the impact of bulk snack stores.
But looking beyond the surface, Bestore deeply recognizes that the root cause of its current performance pressure is that the brand has not provided users with enough value. **Only by facing its own problems can it find targeted solutions.**
Having been in the snack industry for 18 years, Bestore knows well that blindly competing on price and engaging in price wars will only harm the industry's healthy development.
**Competition between enterprises is essentially competition in the supply chain.** Only through improving the quality and efficiency of the supply chain can truly high cost-performance products be provided to users.
Unlike the simple procurement relationship between bulk snack stores and suppliers, Bestore, as a brand operator, leads the entire industry chain, controlling the whole process from raw material planting and procurement, product R&D, to production and sales.
Therefore, bulk snack stores and Bestore have completely different pricing logic, and their methods of "squeezing water" from the supply chain are also different. For Bestore, "squeezing water" is by no means extreme squeezing of suppliers, but is achieved through lean management in cost control, production efficiency, and business efficiency. It allows every supplier in the industry chain to become a participant, contributor, and beneficiary of cost reduction and efficiency improvement.
Based on this, in November 2023, Bestore launched its largest price adjustment since its founding 17 years ago, **with over 300 products reduced by an average of 22%, and a maximum reduction of 45%.**
How can it reduce prices without reducing quality?
Take nuts as an example. In the past, Bestore purchased products of specified specifications, and high grades led to high raw material procurement costs. The company adjusted this by, on one hand, incorporating bulk nut raw material procurement into the supplier direct purchase system, and on the other hand, changing procurement strategy to classify raw materials after market-wide procurement.
For example, for macadamia nuts, the company built raw material bases and used domestic macadamia nuts to replace imported raw materials. At the same time, different specifications of raw materials are used to produce canned, bagged, and mixed nut products. Through maximizing raw material use, the price of each type of product dropped by 5 to 10 yuan.
Light sweet mango slices are a very popular Bestore product. In the past, the company purchased mangoes from abroad and processed them domestically, with fresh fruit crossing the ocean inevitably causing significant losses. In 2023, the company supported suppliers in building factories overseas, processing raw materials locally, thereby reducing total costs. As a result, the 112g light sweet mango slices dropped from 16.9 yuan to 8.9 yuan, equivalent to 39.7 yuan per jin, far lower than similar products in well-known supermarkets.
As Bestore deepens its supply chain transformation and innovation across product lines, and comprehensively improves operational efficiency, users will definitely have a more obvious perception of the terminal prices of products.
**Gathering advantages to seek growth**
**In the snack industry, Bestore is the brand with the most balanced online and offline development,** which is also its biggest difference and advantage in channels compared to competitors.
In 2023, Bestore opened 537 new stores in four core provinces, bringing the total number of offline stores to 3,293 at the end of the period, a net increase of 67 stores year-on-year. For the full year, offline channels achieved revenue of 4.294 billion yuan, up 4.02% year-on-year.
At Bestore's 2024 annual meeting, Chairman and General Manager Yang Yinfen emphasized that **stores are Bestore's most important channel and the main front for brand promotion.**
In the future, improving store management and efficiency, and updating and optimizing models, remain Bestore's top priorities. Yang Yinfen stressed that all channels should base their products and prices on those of stores, and all channels should align with store products and prices, resolutely preventing internal involution.
Many users who frequently visit Bestore have already seen obvious changes. With the introduction of new models and products, stores have become younger and more vibrant. For stores targeting specific scenarios, Bestore has introduced high-frequency consumer goods such as coffee and short-shelf-life products; seasonally, it launches innovative small categories like frozen foods, grilled sausages, and baked sweet potatoes, effectively increasing seasonal average transaction value and sales.
For online traffic operations, Bestore has moved away from the industry's single-minded cash-burning traffic acquisition, leveraging its offline store advantages to build diversified unique models such as "city matrix livestreaming," "influencer带货," and "official account livestreaming."
**Taking a different path**
**No industry can only have low-end and low-price products; that only brings "pathology," and ultimately users suffer.** Snacks are closely related to people's daily lives and health, and this is even more true.
Nowadays, users' consumption behavior is increasingly rational, and their requirements for snack products are more demanding: **they want "delicious," "healthy" (light burden), "cost-effective," and "emotional value."** Only brands and products that fully meet user needs have long-term survival value.
As a brand operator and industry chain leader, Bestore controls the entire chain of raw materials, product R&D, and production, giving it the advantage of meeting users' "both-and" needs.
As early as the second half of 2023, Bestore promoted product upgrades anchored on "good raw materials, good formulas, good taste." From wild bamboo shoots with reduced salt and no preservatives, non-fried crispy biscuits with zero trans fats, "nothing added" version 2.0 preserved plums, to bread with a 60-day shelf life and no preservatives, these seemingly subtle changes require long-term brand accumulation to find the optimal solution between taste and health.
As one of the drafting units of the "General Requirements for Healthy Snacks," Bestore advocates the "five reductions" concept (reduce salt, sugar, fat, oil, and food additives), focusing on two R&D directions: using pure natural healthy ingredients and reducing additives in production, making snack formulas simpler, lighter, and healthier.
Recently, Shanghai has taken the lead nationwide in piloting a "nutrition choice" grading label in the beverage industry. ABCD is clearly printed on beverage packaging, making it clear at a glance whether a product is healthy.
Once Shanghai's pilot is completed and experience is summarized, this model is sure to be promoted nationwide and eventually expanded to the entire food industry. This is both a consumer demand for healthy eating and a general trend.
In the face of major trends, only companies that prepare in advance can seize the opportunity.
Having been deeply involved in the snack industry for 18 years, Bestore has witnessed industry changes, weathered storms, and developed a constitution for differentiated competition.
In 2019, tired of the industry's endless price wars, the company decisively jumped out of the red ocean of low-quality, low-price competition, raised the banner of high-quality snacks, and carved out an independent path.
Now, despite cyclical pressure, the company remains steadfast in its high-end positioning. Returning to the original aspiration of **"conscientious quality, everyone's store,"** it wins users through "quality-price ratio" by improving its own efficiency. Ultimately, it will forge its own path.
**Recommended Reading**


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