Core Viewpoint - Baiguoyuan is facing criticism for high fruit prices, with Chairman Yu Huiyong defending the company's commitment to high-quality products and consumer education, rather than catering to price sensitivity [3][4]. Financial Performance - Baiguoyuan's gross profit margin has been low, with figures of 9.8% in 2019, 9.1% in 2020, and around 11% from 2021 to 2023, but dropping to 7.44% in 2024. The company attributes this decline to the need for optimizing low-margin products to meet consumer demand for quality and value [5][6]. - In 2024, Baiguoyuan reported a net loss of 386 million yuan, with revenues of 10.273 billion yuan, a year-on-year decrease of 9.8%. The loss was attributed to property sales and impairments [5][6]. Store Operations - The number of retail stores decreased by 966 in 2024, leaving a total of 5,127 stores. This reduction is due to a strategy encouraging franchisees to relocate to more sustainable locations with lower rent-to-revenue ratios [6][7]. Business Model and Market Positioning - Baiguoyuan's revenue is heavily reliant on fruit sales, with 97.1% coming from this segment. The low gross margin is linked to the nature of the fruit business, which faces challenges such as high transportation costs and low standardization [7]. - Experts suggest that Baiguoyuan's high pricing strategy could find a market among middle-income families willing to pay for quality. However, the brand must ensure that its high prices are matched by perceived quality and service to avoid negative consumer sentiment [8]. Strategic Recommendations - It is recommended that Baiguoyuan optimize store locations in affluent areas and consider a dual pricing strategy to cater to both high-end and price-sensitive consumers, rather than solely focusing on high pricing [8].
百果园董事长回应“水果太贵”引争议，去年门店净减近千家，亏损近4亿元，