Original title; Well-known brands suddenly withdraw from cabinets and close stores?
Latest response: The news is not true!
Recently, it has been reported that Hershey (HSY.US) has withdrawn and closed its stores in China.
Tianyancha shows that the company has been liquidated. In addition, it has more than ten related lawsuits involving sales contract disputes and sales agency contract disputes.
On February 10, the Red Star Capital Bureau found that Taobao could not search the official flagship store of Hershey Chocolate.
At the same time, some products in the flagship store of Hershey JD.com were out of stock.
According to the Hershey JD flagship store.
In this regard, the Red Star Capital Bureau contacted the relevant person in charge of Hershey, and Hershey replied that the information on the withdrawal and closing of stores in many places is not true.
At the same time, it was stated that the shortage of stock in Hershey JD’s self-operated stores was due to the surge in sales of Hershey products during the Spring Festival, resulting in a shortage of supply.
Hershey is working with dealers to solve supply problems. With the end of the Spring Festival and the supply of new dealers, follow-up products will follow.
Regarding the termination of the operation of the online flagship store, Hershey said that the Tmall flagship store is being renovated, and the launch of the new official flagship store is expected to be at the end of February.
According to public information, Hershey HERSHEY is a manufacturer of chocolate and chocolate confectionery in North America. The company is located in Pennsylvania. It is a time-honored company with a history of 105 years. It entered the Chinese market in 1995.
This candy company, which has been in China for 27 years, has frequently heard news of "withdrawing" from the Chinese market in the past two years.
The financial report data shows that Hershey China's performance has declined for many years in a row.
In 2020, Hershey's sales in China fell 46% year-on-year, nearly halving.
According to the financial report, in 2020, Hershey's global net sales will be nearly 8.15 billion US dollars, a year-on-year increase of 2%, and organic constant currency net sales will also increase by 2% year-on-year.
However, sales in the Chinese market fell by 46%, including an 82.2% decline in the fourth quarter.
While performance declined, Hershey China's market share was also challenged.
According to Euromonitor's market data, in the Chinese chocolate market in 2020, Hershey's market share is only 3.2%, far lower than Mars' 32.8%, Ferrero 22.3%, Nestle 8.3%, and Pladis 3.5%, ranking fifth. .
In fact, as early as 2020, Hershey began to adjust its business in the Chinese market.
At the same time, according to media reports, Hershey's internal employees revealed that in early 2021, Hershey began to lay off employees on a large scale. At that time, many employees received notices of termination of labor relations from the company.
According to the notice, the shareholders of Hershey (China) Investment Management Co., Ltd. and the headquarters of Hershey Group have decided to make comprehensive adjustments to the current operating entities, business methods, and organizational structures of Hershey Group in China, change the business model, and cancel the organizational structure. , and eventually liquidate to deregister the company.
However, it is understood that due to disputes over employee resignation compensation, many employees were dissatisfied, and many employees refused to sign the agreement.
Hershey had disputes with a number of agents and distributors in China over the handling of channel issues.
In January 2022, the WeChat subscription account of the "Hershey Dessert Concept Store" (the main account of which is "Shenzhen United Sky Catering Management Co., Ltd.") issued an article stating that the Hershey Company requested to terminate the cooperative relationship between the two parties without any reason or warning notice. .
At the same time, he issued an article on January 25, 2022, saying, please treat dealers well.
It is worth mentioning that Tianyancha shows that Hershey (China) Investment Management Co., Ltd. has been liquidated in November 2021.
Risk information shows that the company is associated with more than ten lawsuits, involving sales contract disputes, sales agency contract disputes, etc.
Are you going to withdraw from the Chinese market in the future?
On February 10, the relevant person in charge of Hershey China told the Red Star Capital Bureau that China has always been one of the important markets for Hershey Company, and Hershey Company will continue to invest in the Chinese market and lead distributors to continue their business in China.
In the future, Hershey will adopt a new business model to better and more flexibly serve the needs of Chinese consumers.
On the production side, Hershey will switch from domestic production to imported production.
In terms of channel expansion and distribution model, Hershey will deepen the close cooperation with hundreds of dealers, consolidate offline channels and expand new growth points of e-commerce platforms.
At the same time, the Hershey Company said that in the future, it will expand the market of baking and snacks, and conduct in-depth cooperation with emerging catering channels to meet the localized needs of Chinese consumers.
Red Star News reporter Yu Yaoshen Mengyun