Click the image for details On February 21, Youyou Foods disclosed its 2016 annual report. During the reporting period, Youyou Foods achieved revenue of 827 million yuan, a year-on-year increase of 10.04%, of which pickled pepper chicken feet products generated 630 million yuan, accounting for 76.11%; net profit attributable to shareholders of the listed company was 122 million yuan, a year-on-year increase of 13.56%; basic earnings per share were 0.54 yuan, up 12.50% year-on-year. Youyou Foods stated that the year-on-year growth in revenue and net profit was mainly due to the addition of new market sales personnel and the adoption of various measures to strengthen marketing efforts in major regional markets, as well as increased participation in terminal sales channels such as hypermarkets and chain supermarkets; the launch of a variety of new products that received good market response; and increased investment in e-commerce, with online flagship stores or sales platforms already opened on multiple network platforms. In recent years, snack brands such as Zhou Hei Ya, Lai Yifen, and Yanjin Puzi have successively pursued IPOs, with impressive performance. Why can low-priced snacks achieve such great success? Brand deeply rooted in consumers' minds Founded in 1997, Youyou Foods' main business is the R&D, production, and sales of pickled and braised leisure foods. Its main products include pickled pepper chicken feet, braised turkey wings, soy products, peanuts, and bamboo shoots, among which pickled pepper chicken feet are particularly well-known. In the Sichuan and Chongqing area, Youyou Foods is almost synonymous with pickled pepper chicken feet. Youyou pickled pepper chicken feet have formed a strong brand barrier, occupying the main market share of chicken feet, and consumers have a relatively high awareness of the brand. Secondly, compared with nuts, dried tofu, and other snacks, pickled pepper chicken feet are a relatively niche snack, making it easier to firmly capture consumers through brand influence. Differentiation of chicken feet compared to other snacks From the perspective of consumption scenarios, more and more people like to drink alcohol while eating chicken feet. Pickled pepper chicken feet were originally popular in Sichuan and Chongqing, but now with the rise of e-commerce and Youyou Foods' offline layout, they have gradually entered the national market. Chicken feet are similar to duck necks; many women buy some to enjoy while watching TV series or movies. Men watching ball games also like to eat them. Therefore, from the perspective of consumption scenarios, chicken feet in China are similar to potato chips in the United States, serving as a snack accompaniment for visual enjoyment by both men and women, thus gaining popularity among people of all ages and genders nationwide. Chicken feet have the characteristic of taste differentiation compared to other snacks. First, other snacks like nuts, although there are young brands such as Three Squirrels and Baicaowei, the taste differences between products are not significant. However, with chicken feet, different brands can clearly have different tastes. The longer the time, the higher the user's loyalty to a certain taste, which is also the main reason why no other brand can compete with Youyou. Continuous development of new products Pickled pepper chicken feet are not just one flavor; Youyou pickled pepper chicken feet mainly come in three flavors: wild pepper, pickled cabbage, and pepper aroma. The wild pepper flavor is relatively mild, suitable as a casual snack; the pepper aroma flavor is spicy and numbing, with a refreshing taste and bright color, more suitable as a companion to alcohol; the pickled cabbage flavor has a stronger taste and is delicious when paired with rice. The pickled cabbage and pepper aroma flavors are both new products launched by Youyou. Compared to a single chicken feet variety, they provide consumers with more choices for different scenarios, thus receiving a good market response. -END-