Jia Guolong, JiangnanChun, Song forward, beam from Xuan four people chatted together how to make "hard money"
Sort out the . . Ma Mujie and Chai Jiayin
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On June 10-12, 2020, the 14th Annual China Investment Conference and Annual Summit, co-sponsored by China Investment Information and China Investment Network, was held in Shanghai.China's innovation forces are surging, fighting for Kyushua, the summit with the theme of "Kyuszhou Wind and Thunder", bringing together top investment institutions at home and abroad, well-known economists and innovative economic leaders, to build a new map of the industry, explore new opportunities.
Jiahua Capital Founding Partner/Chairman Song Forward, Focus Media Founder/Chairman Jiang Nanchun, Inner Mongolia Xibei Restaurant Group Founder Jia Guolong, Laoxiang Chicken Group Chairman/Founder Beam From Xuan in the "war epidemic-generated consumption of new variables" super-dialogue, said that although the outbreak has had a huge impact on the catering business, but also the industry upgrade the survival of the fittest opportunity, for the head of enterprises is a growing process of brand concentration.
Food and beverage industry is the entrance of the industry, catering industry is diligent, good people to do business era has come. At the same time, in the post-epidemic era, catering enterprises should also change their development ideas in time to cope with the new competitive normal.
The following is a transcript of the super-dialogue on "New Variables of Consumption Caused by the War Epidemic" at the 14th Annual China Investment Conference and Annual Summit, compiled by the Investment Network. The meeting was presided over by Song Forward, founding partner/chairman of Jiahua Capital.
Epidemic shuffle catering, head enterprise brand concentration continues to strengthen
Song Forward:Hello everyone, before this link began to thank the investment network, February 1 this year invited several food and beverage founders to do a special online live broadcast, and then the consumer service industry on the hot search, the follow-up country also introduced the consumer service industry tertiary industry to help the policy. Today around the outbreak and the changes in the consumer services industry after the outbreak, especially the catering industry to do some discussion. Because Jiang always serves a lot of well-known domestic consumer brands, first of all, I would like to ask Jiang to talk about the impact of this outbreak on domestic consumer brands and future changes.
Jiangnan Chun:I think the domestic epidemic has a great impact on everyone's business, but I think it is a brand concentration for the head of the enterprise to strengthen the process. So this time from the point of view of the number of store closures, may be to a quarter, a fifth, and even some places reached a third, but overall, such as Sibei, fellow chicken and other leading brands, industry leaders, I think the short-term impact, long-term brand concentration must be higher. China I think is a brand over-dispersed market, and ultimately the big brand strong Hengqiang, strong stronger process. So this outbreak is instead the process of cleaning up the market, for the head brand in the long run must be a huge beneficial process.
Secondly, I think from the point of view of market recovery, there is still some impact on the mass market. But I think the pace of recovery will get faster and faster in the second half of the year for middle-class markets. Throughout the second half of the year, the release of middle-class consumption I think can be expected. So in the second half of this year, including in the catering industry, there will be a release of consumption. I think people always can't keep up, in general, the time is running out.
Song Forward:Yes, everyone is looking forward to it. During the outbreak, two leading enterprises in the catering industry performed very well, especially Jia Guolong's voice during the outbreak brought a lot of benefits to the industry, so that people pay attention to the fact that even enterprises such as Sibei and laoxiang chicken, but also face a lot of problems. Thanks to Jia Guolong always voice, but also ask you to explain why during the outbreak for the industry, while Xibei's current situation and the future development of the entire Chinese catering industry, listen to your views and opinions.
Jia Guolong:I think a lot of things are coincidences, it happens to be a week of total closure, it's a period of anxiety. Because we have more than 20,000 employees, more than 10,000 home, more than 10,000 still in the dormitory, we took stock of the state of the staff after the discovery of the safety of employees well, eat and control well also to take care of the mood is really difficult, but also inventory how much money on the account, how much bank credit, the judgment of the outbreak estimated how long to last and so on, these are uncertain, are in a very anxious, even anxious period.
In the course of the interview, in fact, are the expression of natural emotions, did not expect to cause such a big response. Subsequently the state's rescue measures are particularly timely, the bank followed up particularly fast, policy adjustment is also particularly fast, in general, we sounded at work, put our many contradictions slowed down, and now also resumed work, but also recovered well, is alive. Special thanks to the investment network, but also special thanks to Jiahua Capital Song general matchmaking.
Song Forward:The outbreak is sudden, a systemic risk to humanity, and has a long-term and profound impact on the lives of ordinary people. In this process, we see some changes in the head of enterprises, in the past, the catering industry is a high turnover cash flow industry, it seems not easy to think of the path of capital markets. After the outbreak, the media also noticed that many investment institutions asked me, Jia Guolong always on the capital market this thing has changed some changes, it seems that as a head of enterprises also more positive attitude to embrace the capital, this matter Jia Guolong can always talk about your views?
Jia Guolong:Yes, it's true that there was a lot of reflection during the outbreak. After counting our abilities, we find that our abilities are still fragile. The real situation at that time, is that the money on our account plus the bank's credit can only pay 3 months of wages, because we are cash flow industry, do not do too much cash reserves, we are full of positions before the New Year, ready to do a big job, we have more than 20,000 employees did not rest, all in the post, the New Year is the traditional peak season, but the outbreak occurred in some areas of the store all closed, this is not thought of at all. Wait until the inventory is counted, only to find that in fact their own enterprises to resist the big crisis capacity is not enough. Originally I also said, Sibe will never be listed, this time think of their own words right? It was at that moment that I changed my mind, and I changed my mind. If there is a capital injection, companies may be more resilient to risk, just from this point of view.
Song Forward:So in the face of the outbreak also let a lot of entrepreneurs to review the situation. The outbreak is also a big test, but also many enterprises to anti-vulnerability capacity has been enhanced. In this process through the outbreak of enterprises have, can not walk out of the outbreak of enterprises also have, the outbreak is also the industry to upgrade the survival of the fittest opportunity, in this process, the villager chicken performance is very good, because the fellow chicken is also our investment enterprise, beam from Xuan always is now also the standard net red, we also ask the bundle from Xuan always talk, the old chicken as the head of Chinese fast food enterprises, the outbreak brought what thinking, training what capacity, the future development of the village chicken head enterprise what kind of planning?
Beam from Xuan:Or very grateful to the cast network at that time let me and Lao Jia have a speech on this, but also because this activity so that we have the support of netizens, this outbreak brought us the impact and reflection is still relatively large. From the present point of view, the entire catering industry has been a great recovery, some can reach 80%, 70%, 60%. But we can see that when we get back to this point, it's basically stalled and doesn't go up any more, creating the new normal of revenue during the post-epidemic period.
Maybe we have businesses still there looking forward to, can some time will not be better? From the present point of view, or in a certain period of time is still relatively difficult. In addition from the consumer side there are some changes, online purchase, online ordering more meals. The requirements for safety and health have increased, or a lot of changes have taken place, this time to our entire catering people put forward new requirements, so this outbreak for us is indeed a big test. From our fellow chickens, like many catering companies, are now trying to find out how to address the new changes during the post-epidemic period.
Song Forward:Thank you from Xuan general, after the outbreak period of catering enterprises also have some changes in thinking. Just mentioned, Jiang also said that the outbreak is also the head of the accelerated concentration of enterprises, Matthew effect is becoming more and more apparent period, but also any country's industrial development of the inevitable law. Today invited are head enterprises, Canada Capital year-on-year attention to investment in consumer services, there are some observations and laws.
Next, please discuss, in the industry gradually to the head of the development process, in the competition for the new normal, the post-epidemic era of the world can no longer go back to the past, think 100% short-term recovery is not so easy. Such an environment, the special background of the times, per capita income is not so high, 600 million people monthly income of less than 1000 yuan, in such an era under the foot of the note, Jiang always you think the head brand's future competitive strategy has what kind of changes and characteristics?
Jiangnan Chun:Thank you Song general problem, I feel that these years to serve a lot of well-known enterprises, I think the successful enterprises have about 4 characteristics.
The first point is basically the process of upgrading consumption. Fast food has fast food consumption upgrade, we have eaten the hometown chicken can realize that is the fast food industry is very important consumption upgrade is the whole quality and taste, not just eat enough on it, is very good happy fast food experience. Xibei everyone often go to eat, I and Jia Guolong always on WeChat, I add people concerned about Xibei WeChat public number, even my WeChat friends have more than 1500 people concerned about Xibei's public number, it can be seen that Xibei in China's high-end population formed a very high coverage rate.
All successful head enterprises are in their own field of consumer upgrading, to their own field of high-end. The rise of head enterprises are consumption upgrading and the rise of the middle and high end.
The second point is to take the brand curve. China's traffic dividend disappeared, business is not good to do is a fact, most brands towards the promotion curve flow curve, but this does not solve the fundamental problem of business. The core question is what unique value does a brand provide to consumers? Is there a unique understanding in the consumer mind? Head brand they must have a reason for consumers to choose you do not choose other, take the brand curve after jumping over the inflection point continued to rise is certain, no uncertainty.
Thirdly, I think it must be the channel dividend and the media bonus. Channel dividends such as Sibei into the mall, you can find that every step of the development process is the entrepreneur's forward-looking vision of the right direction, including media dividends, each era has every era of the media dividends and each era of the channel dividends, good at discovering these dividends, the development of enterprises faster, to seize a greater opportunity.
The fourth point is the bottom logic of business, the product end to the unique value of consumers, into the consumer mind can be relatively open prices, in this industry to achieve a relatively good price positioning, whether in the field of fast food or dinner, can be products, quality, innovation, and employee welfare to do better, forming a positive cycle. I think the positive cycle of business is very important, if you rely on continuous promotion, so that interest parties have no money to earn, business will be negative cycle. So I personally think that the business to the positive cycle of the company will achieve better growth, thank you!
The catering industry is "hard-working", "good people do business" era is coming
Song Forward:Where exactly is the core competitiveness of the head enterprise? Jia Guolong always you talk about your views.
Jia Guolong:Do head enterprises have core competitiveness? I think it's been a long time. We have worked for 32 years, these 32 is hard work, dirty work has been accumulated, not a little slacson. I think the catering industry is diligent, hundred-year-old shop a hundred years busy, a little slack on the side, I think the core competitiveness is not slack, 20,000 people are not slack, a year, ten years, thirty years not slack to form a core competitiveness, as long as the strength of a loose, immediately down, not slack is the core competitiveness.
Song Forward:Yes, the catering industry is the import of the industry, just Jiang always said to create value for consumers, do not eat their own do not do to others, decades adhere to quality, conscience products rest assured consumption concept is very important, this is engaged in the tertiary industry is very high standards. Also want to listen to the bundle from Xuan always talk, in the catering industry, fast food emphasis on supply chain management, standard store management more complex operating systems, as a head enterprise you think the villager chicken in the past did the right thing, what way to go in the future?
Beam from Xuan:We do chain catering, that is, you open a shop than the previous store opened better, this is what we have to pursue. As for the supply chain this piece, of course, is more important, from the current point of view of the information highway, cold chain technology and so on, there are many professional companies in this piece of power, for our behind the chain operation really paved the way, than in the past relatively easy. From our most concern is to do a good job of each dish, open a shop better than before, this is my basic understanding.
Song Forward:Yes, during the outbreak of the catering industry after a baptism, the catering industry quickly entered the brand era, the big wave of sand survival.
At the same time, it is also clear that the quality of consumption era has come, good products behind is actually the entrepreneur's character, I believe that the villager chicken can become the industry's leading re-purchase rate is so high, Xibei as the creator of northwest cuisine leader, Chinese food and beverage national runner-up, not only to get the past traffic dividend opportunities, not only Jiang always said the past commercial real estate rise, more importantly, the quality of the era came, to provide good products to consumers.
We used to make a point that China has now reached the point where good people do business and that hard work should be respected.
Jiangnan Chun:Businesses are constantly being driven away. Bundle has just said a question, can your next store open better than the previous store, just want to do every year in the end? Has there been any improvement in value for the market? As I said at my 2015 annual meeting, our growth in 2003-2015 is essentially passive growth, market-driven growth, not active growth. The road ahead is getting harder and harder, and the wind of passive growth is gone, requiring each of us to grow actively.
Do customers want ads? What the customer wants is the result of the brand being promoted. To be responsible for the results, spend a lot of time to study how to help customers with content positioning, etc. , jointly more positioning research companies to help this enterprise, otherwise even if the enterprise finds good media, without the right content and positioning can not play a role.
The second is how to distribute it accurately in the digital world. For example, this outbreak, if we are not in the first two years to make online distribution, that community, office buildings can not get in and hang up. The changes made two years ago have caused the epidemic to rise, advertising has not fallen, and the recovery in the second quarter is already growing. The important problem is that through digital change, it has changed the way it is transported, and instead it has brought down costs and increased its anti-vulnerability capabilities.
How to distribute accurately, to each community used to be just advertising, but what is the data behind each community? We now have about 200 dimensions to study what a community has bought in Ali's background, what categories and brands he likes. What have you searched for? What kind of business district is this neighborhood, what is the property price, and what type of people are there? These analyses are essentially what we started doing a few years ago, and today, in the face of weak markets, how can you guarantee that you will continue to grow? This is really a hard job. In a word, the good days are over, the days of slowly climbing on their own, thank you!
Jia Guolong:Dining is actually a matter of eating, because it is too frequent, three meals a day, a month to eat more than 90 meals, a year to eat more than 1000 meals, the rate of eating out is relatively high. Now is also a lot of supply, restaurants more brands, consumers on the choice of restaurants is hello I will come again, not good will not come.
You do it seriously, with good raw materials, do it with your heart, serve with your heart, do a good job of customer experience, cost-effective, your business will get better and better, in fact, it is feedback. Like we have tasted the sweetness of positive feedback, as long as you do a good job, customers will come again, your business can be steadily increased. One is that you open a new store and a source of customers, the second old store increase can also cover the normal annual increase in rigid costs, for example, the annual rigid increase in personnel, you increase the flow of passengers to cover this cost. There is also normal inflation, so the growth of our single store is a hard indicator, the other is that you open a good after the new market can open a shop, these are all as long as do a good job, can cycle, when to do a bad slack, this year did not grasp the fundamentals of the passenger flow immediately fell, very obvious.
Because we are after all 32 years of enterprise, these positive feedback constantly strengthened, you can only do a good job can not do bad, this is always said that good people do business era. In fact, the era of good people to earn money, although the new brand will continue to kill, but it is also very fast, good customers will reward you, your business will certainly continue.
Beam from Xuan:Like us as the founders of catering, in fact, our greatest sense of accomplishment is not in which platform to give me what awards, what awards, or which leadership to give me praise and affirmation, in fact, our greatest sense of achievement, the most satisfied with what? Is that we go to the restaurant to see, that customer in our restaurant to eat a special fragrance, can order his dishes to eat light, eat in it is particularly happy, this is our greatest sense of achievement.
Now the pace of life is so fast, you want to make a meal at home, from buying food to washing to cutting cooking, after eating to wash, 2-3 hours there is no. So our positioning is the family kitchen, more people from cooking at home between the liberation, this is our greatest achievement, thank you!
Song Forward:We do not know that the food and beverage industry's annual GDP is about 4.7 trillion, and solved nearly 50 million people's employment, if you add the size of the wife shop or unspo billed part, I personally feel far greater than 5-6 trillion. Probably in 2025, the next five years of development, the development of the catering industry 8-10 trillion, to solve the 80 million people employment of the largest pillar of the national economy, which is the adjustment and upgrading of the economic structure, the consumer welfare of ordinary people is very important.
We also look at a data, to discuss with you, the U.S. food and beverage industry is now worth 6.2 trillion, the U.S. only 700,000 stores less than, China 4.75 trillion, there are 9.91 million stores. Obviously, in countries with a population of 1.4 billion and 300 million, the gap in the number of our stores is very, very large, indicating that China's restaurants are still developing in a very low industry trend, gradually moving towards chaining, branding and digitization, which is the result of our investment over the years.
We would also like to know that this outbreak because the traditional industries have been hit relatively large, and now the service industry and the tertiary industry digital business online and organization online put forward higher requirements, we would also like to hear some of your views on this aspect. How can China's traditional industries complete the process of digital transformation and chain modernization?
Jiangnan Chun:Thank you Song general, catering because I do not know, did not carry out internal operations, digital waiting for two entrepreneurs can say, offline media industry many people think it is just an advertisement, in fact, offline media industry in the first two or three years has been very digital, this includes 4 aspects.
1) It can be distributed online, and most of all advertisements are distributed online.
2) Delivery can be accurate. For example, Sibei launched when 200 stores around these launches, may be business circles, such as Sibe takeaway trustworthy and so on, so in the process we are a very accurate delivery.
3) Data can not be returned is very important, you put the data we hit an advertisement, such as a fly crane milk powder advertising, which consumers have seen someone know? We stream this data back to Tmall data backstage to tell you who's seen the ad and is chasing it on your phone.
4) The effect can be assessed, Tmall Data Bank is divided into AIPL (awareness, interest, purchance, loyalty), the real development of no digital is like 20 years ago IBM ads, either no business, or e-commerce, thank you.
Jia Guolong:In fact, the catering industry is not half a false industry, hello customers with money to vote, not good to vote with their feet. The past 32 years of experience a lot of lessons, when proud, do not do well, your food quality is not good, high prices, poor service, passenger flow immediately fell.
Do a sensitive catering person, should immediately catch, in fact, your fundamentals go wrong, not to say that competitors are more powerful, or you are weak, when you return to the fundamentals, grasp your food quality, grasp the service and environment, the flow of passengers is back. So this industry is not to be half false, can only be serious really do, continue to recognize seriously really do.
At the same time, you open more stores, use more and more people, this group of people can and you think the same, up and down the same heart. Sibe after this outbreak is back to basics, I believe we are still very serious about the future to do better, to provide consumers with better service, better delicious.
Song Forward:Sibei is the emphasis on closing the eyes, tao is delicious, but also the creator of northwest Chinese cuisine and value leader. We can see today, Jia Guolong always for the enterprise's values and corporate vision combing is very correct, but also can lead Xibei to today, I believe that the beam is always the same, as the leader of Chinese fast food, you have a deeper thinking on this issue?
Beam from Xuan:Now the data is indeed relatively hot, I think there is also a need to be able to empower us, this is still to be done in moderation. For a catering company, I still feel that I can not put more money into the data, the data itself still can not produce delicious, we still have to focus on the dishes, put more resources to spend money on cooking. Make the dish well, and the flowers naturally have bees. I can't overuse my money elsewhere, that's my opinion.
Song Forward:Thank you three, our discussion today is here, but also wish our enterprises can successfully cross the epidemic, to provide consumers with better products and services!
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