Core Viewpoint - The article discusses the decline of the once-prominent snack brand, Good Products (良品铺子), highlighting its struggles against the rising trend of low-cost snack brands and the implications of a potential change in control among its major shareholders [4][6][33]. Company Overview - Good Products, once hailed as the "first high-end snack stock," is facing a significant downturn, with its market value plummeting over 80% from its peak of over 300 billion to 55 billion [4][10]. - The company announced a suspension of trading due to major shareholder Ningbo Hanyi's plans to change control, which has raised concerns about its future [4][6]. Financial Performance - In 2023, Good Products reported a revenue of 8.046 billion, a year-on-year decline of 14.77%, and a net profit of 180 million, down 46.27% [10]. - The situation worsened in 2024, with revenue dropping to 7.159 billion and a net loss of 46.1 million, marking the first annual loss since its listing [11]. - The first quarter of 2024 showed continued decline, with revenue of 1.732 billion, down 29.34%, and a net loss of 40.18 million, a 173.21% decrease year-on-year [11]. Shareholder Actions - Major investors, including Today's Capital and Hillhouse Capital, have been reducing their stakes in Good Products, indicating a lack of confidence in the company's future [13][14]. - The controlling shareholder, Ningbo Hanyi, has also been selling shares, further signaling potential distress within the company [13][14]. Market Dynamics - The rise of low-cost snack brands has significantly impacted Good Products, as these brands offer competitive pricing that appeals to consumers, undermining the high-end positioning of Good Products [17][21]. - The low-cost snack market has seen rapid growth, with brands like "Snack Busy" and "Zhao Yiming" gaining substantial market share by offering products at significantly lower prices [17][21]. Strategic Shifts - In response to market pressures, Good Products has initiated a large-scale price reduction strategy, with over 300 core products seeing an average price drop of 22% [14][18]. - The company has also attempted to invest in emerging low-cost brands, although this has not yielded the desired results, leading to legal disputes over its investments [23][24]. Industry Challenges - The snack industry is facing a fundamental challenge of low brand loyalty among consumers, leading to intense competition and price wars [30]. - The article suggests that the snack industry is entering a new phase where efficiency and pricing will be the key competitive factors, moving away from the previously successful high-end marketing strategies [33].