The 2019 Double 11 Shopping Festival ended in the hustle and bustle, and hundreds of millions of buyers around the world continued to make their own contributions to the sales of the Double Eleven in the contradiction between “hands-on” and “buy and buy”. The official data of the Tmall platform shows that the double 11 turnover was 38.27 billion dollars, a new high.
This “E-commerce Olympics” has also become a racetrack for the world’s major e-commerce platforms, including a number of representative brands. The Three Squirrels, which was crowned “the first national snacks” by the mainstream media in China, used a “master” to “scream” the Chinese miracle of 150 million US dollars turnover during the double 11 period, achieving 137 times growth in eight years. It is the “top spot” in the Chinese snack industry. Its development process has also brought new thinking to local brands entering the Chinese market.
According to Adobe data, in 2018, online shopping expenses of US consumers on Thanksgiving Day reached 3.7 billion US dollars, an increase of 27.9%. The double-digit growth reflects the continued rise in US consumer power. In China, the Double 11 Shopping Festival has also become an important node to test consumption growth. In the 2018 double 11, only the Tmall platform turnover reached 30.66 billion dollars, more than eight times the Thanksgiving turnover.
What is revealed behind the data is the continuous expansion of China’s consumer market. According to the “Commodity Development Report on the Background of Consumption Upgrade” issued by the Ministry of Commerce of China in December 2018, the total output value of the Chinese snack industry has increased from 54.30 billion US dollars in 2006 to 320.64 billion US dollars in 2016, the compound annual growth rate reached 17.98%. At the same time, this report predicts that by 2020, the total output value of the snack industry will have reached 428.43 billion US dollars.
The continuous expansion of the consumer market and the rising national confidence have not only greatly stimulated domestic demand, but also spawned some representative national brands, and Three Squirrels Inc. is the typical representative of the rise of the Chinese snack industry.
According to data released by the China Tmall platform, the three squirrels ranked first in the TOP10 category of this year’s double 11 food category, and in this TOP10 list, Chinese local brands accounted for 80%, far exceeding foreign brands. This phenomenon coincides with a survey conducted by AlixPartners, a consulting company recently – most Chinese consumers (About 61%) seem to prefer local brands rather than foreign brands.
At the beginning of the 21st century, resources were relatively scarce, and consumers’ choices were very limited. Many foreign products became household names through the large-scale launch of traditional advertisements.However, with the changes in the consumer market and marketing channels, traditional advertising can produce a market-oriented brand, but it does not reveal the brand in the consumer’s mind. Three Squirrels has an insight into the trend of consumption upgrading and Internetization. They are active, healthy and happy. The three squirrel characters, “Squirrel Cool”, “Squirrel Xiaomei” and “Squirrel Xiaojian” are the brand image. Its personality characteristics, while impressing consumers, also quickly captured the minds of consumers, and took the user experience as the starting point to achieve the brand building in the Internet era.
Of course, the establishment of the brand is not a one-off event, but a dynamic process of constantly breaking the boundaries in light of market changes. In China, snacks have become the “fourth meal” and continue to shift to “third meal”, and the trend of meal replacement, health and personalization is very obvious. Three Squirrels launched this year’s innovative “confession box” series, which is the rapid response of the supply chain and reverse customization capabilities to meet the individual needs of consumers. At the same time, the daily nut with very healthy attributes is in the double 11, realizing the turnover of 5.26 million US dollar of Tmall single store for one hour, and this volume even exceeds the sales of some similar products for a whole year. Although it was only established for more than seven years, Three Squirrels has developed a set of their own product models, with 40 days of user insight to the new speed of the product, even the shortest can be 35 days, and thus built a full-scale product system with more than 500 SKUs.
If brand power, product power, and innovation are the key factors for the rapid growth of Three Squirrels in the Chinese market, then exploration is the root cause of the continued rapid growth of Three Squirrels. Compared with retail enterprises,Three Squirrels is more like a digital supply chain enterprise, and has created a “big league” business model that integrates manufacturing, warehouse, and TOC logistics, with the alliance factory as the starting point. Using digital and online tools as tools to achieve the integration of retail and manufacturing, shortening the distance between products and consumers, and ultimately forming a true industrial community.
The entrepreneurial story of Three Squirrels continues. As the rise of China’s zero-food brand, its business model and marketing concept have also brought new thinking to local brands who want to enter the Chinese market.