Core Insights - The article highlights the significant challenges faced by the snack food industry, particularly the braised food segment, as consumer preferences shift and competition intensifies [1][3][20] Group 1: Industry Performance - The revenue of major braised food companies has declined, with companies like Juewei reporting a 13.84% drop in revenue to 6.257 billion yuan and a 34.04% decrease in net profit to 227 million yuan in 2024 [3][7] - The overall market is experiencing a downturn, with consumer traffic visibly decreasing and price sensitivity increasing among customers [3][4] - The number of stores for major brands has significantly reduced, with Juewei closing over 5,000 stores from 2024, marking a 32% decrease [9][11] Group 2: Cost and Competition - Rising operational costs, including rent and labor, have pressured profit margins, with average monthly profits for small store owners dropping to around 3,000 yuan [4][22] - Intense competition has led to price wars, with some stores offering discounts that smaller franchisees cannot match [6][22] - The industry is facing severe homogenization, with over 70% similarity in product offerings, leading to a decline in profit margins [22] Group 3: Consumer Behavior - Consumer preferences are shifting towards more affordable options, with nearly 60% of consumers indicating they would reduce their purchase frequency due to high prices [20][24] - The perception of braised food as overpriced has become prevalent, with social media discussions highlighting the lack of value for money [12][14] - The trend of DIY cooking at home is gaining traction, as consumers seek to save money and control flavors, further impacting traditional sales [22][24] Group 4: Strategic Adjustments - Industry experts suggest that companies need to refocus on value for money to regain consumer trust and market share [24] - There is a call for innovation in product offerings to meet the evolving tastes of younger consumers while maintaining classic product advantages [24] - The future of the industry may depend on how well companies can redefine their relationship with consumers in a changing market landscape [24]

Core Insights - The industry is facing significant challenges, with rising costs and decreasing consumer demand leading to reduced profits for operators and major brands alike [1][4][10] Group 1: Industry Performance - The revenue of major brands like Juewei, Zhou Hei Ya, and Huang Shang Huang has declined, with Juewei's revenue dropping by 13.84% to 6.257 billion yuan in 2024, and net profit down 34.04% to 227 million yuan [4][12] - The overall market is experiencing a downturn, with many small operators like Wang Lei reporting a significant drop in daily sales and profit margins [5][7] - The number of stores for major brands is decreasing sharply, with Juewei closing 5,112 stores, a 32% reduction from its peak [16][19] Group 2: Consumer Behavior - Consumers are increasingly sensitive to prices, with 47.2% indicating they would reduce purchases if prices rise by over 10% [25] - There is a shift in consumer preference towards purchasing ready-to-eat products from supermarkets, which offer lower prices and guaranteed quality [8][9] - The perception of high prices has led to a decline in consumer interest, with many referring to the brands as "expensive" and "not worth it" [23][24][29] Group 3: Competitive Landscape - The industry is experiencing severe homogenization, with over 70% similarity in product offerings among competitors, leading to price wars and reduced profit margins [42] - Major brands are opting for high pricing strategies to maintain profit margins rather than competing on volume, which is causing a loss of consumer loyalty [21][30] - The competitive environment is intensifying, with many new entrants and local shops contributing to market saturation [5][6][39] Group 4: Cost Pressures - Rising operational costs, including rent and labor, are putting additional pressure on profit margins, with costs increasing by 8% to 10% annually [41] - The cost structure of these businesses is heavily influenced by raw material prices, which account for 70% to 80% of total costs [28][29] Group 5: Future Outlook - The industry is at a critical juncture, with a need for brands to adapt to changing consumer preferences and market conditions [46][47] - There is a call for brands to return to a value-driven approach, focusing on quality and affordability to regain consumer trust [45][47] - The potential for innovation and new product development is highlighted as essential for survival in a rapidly changing market [45][46]