Core Insights - The article highlights the transition of the braised food industry from a focus on rapid expansion to a phase of contraction and optimization, indicating a shift away from prioritizing scale [1][23]. Industry Overview - The once-thriving "three giants" of the braised food industry—Juewei Foods, Zhou Hei Ya, and Huang Shang Huang—are now facing declining revenues and are closing stores as a unified strategy for self-rescue [2][9]. - The industry is experiencing a significant slowdown, with the market size projected to grow only 3.7% in 2024, a stark contrast to the previous average growth rate of over 15% before 2021 [18]. Company Performance - Juewei Foods reported a revenue of 28.2 billion yuan in the first half of the year, but this represented a decline of 15.57% [7]. - Zhou Hei Ya's revenue decreased by 2.93% to 12.23 billion yuan, while Huang Shang Huang's revenue fell by 7.19% to 9.84 billion yuan [7]. - Juewei Foods' net profit dropped by 40.71% to 1.75 billion yuan, while Zhou Hei Ya's net profit surged by 228% to 1.08 billion yuan [10]. Business Model Challenges - The franchise model that propelled Juewei Foods' rapid growth is now a source of crisis, as aggressive store closures have led to a significant drop in revenue [8][9]. - The average monthly sales per store for Juewei Foods have decreased from approximately 37,000 yuan in 2023 to about 21,000 yuan currently [21]. Competitive Landscape - New entrants like "Quzhou Duck Head" are gaining market share by offering lower prices and better value, highlighting a shift in consumer preferences towards cost-effective options [19][20]. - The traditional giants are struggling with high pricing strategies, which have alienated consumers and allowed competitors to thrive [13][15]. Strategic Shifts - Companies are exploring diversification and innovation to find new growth avenues, with Juewei Foods launching new product lines and Huang Shang Huang acquiring stakes in frozen food businesses [24][25]. - Zhou Hei Ya is adapting by introducing a mix of fresh and packaged products to cater to changing consumer demands [25]. Consumer Trends - The underlying demand for braised food remains focused on taste, affordability, and convenience, but the methods to meet these demands are evolving [26].

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]

Core Viewpoint - The three major players in the marinated food industry, including Juewei Foods, Zhou Hei Ya, and Huang Shang Huang, have all experienced declines in revenue and net profit, marking their worst performance since their peak periods [1][7]. Group 1: Financial Performance - In 2024, Juewei Foods reported revenue of approximately 6.257 billion yuan, a year-on-year decline of 13.84%, and a net profit of about 227 million yuan, down 34.04% [8]. - Huang Shang Huang achieved revenue of around 1.739 billion yuan, a decrease of 9.44%, with a net profit of approximately 40 million yuan, down 42.86% [10]. - Zhou Hei Ya's revenue was about 2.451 billion yuan, reflecting a 10.7% decline, and its net profit was around 98 million yuan, down 15% [12]. Group 2: Market Dynamics - The marinated food industry is facing intensified competition, changing consumer environments, and adjustments in store layouts, leading to a slowdown in market growth [3]. - The industry is transitioning from "scale expansion" to "quality competition," where supply chain integration, food safety management, and differentiated innovation are critical for companies to break through [3]. Group 3: Store Adjustments - In 2024, Huang Shang Huang and Zhou Hei Ya closed 700 to 800 stores, while Juewei Foods saw a more significant reduction, with store numbers dropping from 15,950 at the end of 2023 to 12,129 by April 2024 [2][17]. - Zhou Hei Ya's store count decreased from 3,816 at the end of 2023 to 3,031 by the end of 2024, indicating a strategic shift to eliminate low-quality stores [19][20]. - Juewei Foods reported a decline in store numbers, with a significant drop to 12,129 by April 2024, reflecting a shift from aggressive expansion to a focus on improving store performance [22][24]. Group 4: Cost and Profitability - Juewei Foods' sales expenses reached a record high of 667 million yuan in 2024, primarily due to increased advertising costs [28]. - Despite the decline in revenue, Juewei Foods managed to increase its gross margin by 5.94 percentage points to 30.79% due to a decrease in the cost of raw materials [25]. - Zhou Hei Ya's gross margin rose by 4.4 percentage points to 56.8% in 2024, attributed to supply chain improvements [25]. Group 5: Consumer Behavior - The average spending per order for Zhou Hei Ya decreased from 56.9 yuan in 2023 to 54.39 yuan in 2024, with sales volume dropping from 31,453 tons to 26,159 tons [31]. - The overall decline in consumer purchasing power and changing consumption scenarios have negatively impacted the marinated food sector [16].