Half the price for the same taste

Where is the snack foundry attacking the market?

  Intern reporter Yang Tianyue

  It's no surprise that an iPhone comes from the Foxconn factory assembly line, but what many consumers haven't noticed is that many "net red" snacks also have large-scale foundries. Nowadays, there are more and more self-manufactured products on the major online shopping platforms. The same snacks, the same craftsmanship, taste and taste, but the price is much cheaper than the big brands. Will the foundry's attack from "behind the scenes" to "in front of the stage" make the casual snack market that is already a red sea make waves again?

Grab business? Fine-tune the formula to sell at a low price

  A few years ago, three "net red" brands, such as the three squirrels, Liangpinzi, and Baicaowei, all started by means of OEM. Now, the foundries behind these brands have also begun to reach out to the consumer.

  The shredded bread is a very popular single product of three squirrels. The reporter noticed in the Tmall flagship store that the price of 1 kg of net content was 29.9 yuan during the “6.18” event-many fans watched it Here, this is much more affordable than the original price of 75 yuan. However, if you look closely at the ingredients list on the back of this snack package, you can find that the six "entrusted units" and corresponding addresses are densely listed on the right side of the package, distributed in Hubei, Fujian, and Anhui-they are the products that produce this snack. Foundry.

  In one of the Taobao shops named "Le Jinji", the same kind of three squirrels sells a box of 3 pounds of bread for only 34.8 yuan-the price is nearly 30% lower. Although the column of the ingredients table shows that the main raw materials of the two products are ordinary wheat flour and special wheat flour, and the three squirrels have added food additives such as vitamin C, but from the evaluation of netizens, the taste and taste of the two breads are not the same There is not much difference.

  For many consumers who pursue cost-effectiveness, the snack products produced by these foundries can fully meet their needs. In order to buy cheap snacks, many netizens also collected information on the foundries of various brands and sorted out "money-saving strategies" containing dozens of common snacks. It can be seen that most of the products of the "net red" brand adopt this OEM production method, and the price difference is as low as 20% to 30%, and more can reach more than half.

Foundry shifted from behind the scenes to the battlefield

  In fact, the industrial model of OEM is very common in industrial products. As a typical Internet snack platform that has risen rapidly in recent years, the three squirrels, baicao, and Liangpin shops all started from e-commerce. The IP image is a big asset of the brand, and marketing and advertising are its important development strategies. -This is completely different from the traditional manufacturer's way of focusing on product production, and the cooperation between the two parties will come naturally.

  It is understood that many Da Ling food brands have their own production plants that are generally small in size, and do not even have their own production plants. Using the OEM model can reduce the risk of uncertainty caused by the new production line, shorten the production cycle, and build your own brand without huge investment. Since 2017, the OEM production method has begun to be sought after by many emerging brands, many of which have gradually established a foothold in the industry by virtue of this method.

  For the foundry, its own processing technology is mature and has the advantages of large-scale production. As long as you can receive a steady stream of orders from the brand, you can ensure a certain scale of production and long-term profits, forming a win-win situation. Many manufacturers are also happy to carry out OEM production for the brand.

  However, with the fierce competition and the rapid decline in the threshold of e-commerce, many manufacturers are no longer satisfied with pure OEM, and have begun to quietly transform. Through personally opening online stores and marketing, from behind the scenes to "fight" the stage, Le Jinji, Liuhexin, Zhiweixuan and other hidden manufacturers behind the "net red" brands such as three squirrels, good shops, and baicaowei It began to surface and was well known by consumers.

  The reporter found that many common foundry shop fans are already on the order of 100,000. Although there is still a large gap with the number of tens of millions of genuine fans, they are still very impressive compared to ordinary snack shops. Under the effect of the "reduce goods" effect of the net red brand, the snack foundry economy is booming. Zhancui Food Company, which is a OEM for cartoon characters such as Peggy and Frozen, has sprinted on the road to IPO.

  Disruption or mutual benefit?

  Despite frequent attempts to reach the consumer side, according to the financial data disclosed in the Zhancui Food Prospectus, foundry is still its pillar business. At the same time, the foundry's development strategy of fine-tuning the formulation of similar products and taking the low-cost route to occupy the market has infringed on the legal rights of the brand side, which has also caused many doubts in the industry.

  In fact, the reporter learned that at this stage, the foundry manufacturers are no longer just mere agent production, and their research and development capabilities are also gradually improving. There is also a certain degree of production process and formula sharing between big brands and big manufacturers. For many foundry manufacturers, opening an online store to make a name for themselves and earning applause are more important demands than profit growth. "Co-branded OEM production is still the core pillar business." A person in charge of an OEM who asked not to be named said bluntly.

  At present, the competition in the casual snack market is becoming more and more fierce. In addition to the three squirrels of the earlier "casual snack session BAT", I miss you and the good shop, there are many other casual snack brands such as Laiyifen, Yanjin Shop, and Taste Food. Giants gather in the A-share market. "As the industry dividend gradually subsides and OEMs enter the market, a new round of reshuffle may occur." An industry insider said.