Core Viewpoint - The future direction of Haotemai will be determined by its ability to maintain its "low-price" advantage while pursuing diversification in its product offerings [4][15][25]. Group 1: Product Expansion - Haotemai has shifted from a focus on soft discounting with a primary emphasis on department stores and snacks to a greater inclusion of beauty products, which now account for 14% of SKUs and 15% of revenue, up from 10% and 11% respectively from 2020 to 2024 [6][9]. - The beauty products offered are often not market bestsellers, with many being lesser-known items that brands are unable to sell through mainstream channels [8][9]. - The company is also exploring new categories such as apparel and anime merchandise, with plans to open a large outlet store in Nanjing selling brands like Adidas and Nike [11][19]. Group 2: Strategic Adjustments - The shift in strategy is driven by the limitations of the expiring product model, which has faced challenges in supply stability and market competition [15][17]. - Haotemai aims to broaden its target audience from just bargain hunters to a wider demographic seeking high cost-performance products [19]. - The company is also looking to improve profitability by introducing new categories with higher margins compared to traditional expiring products [19]. Group 3: Challenges Ahead - The transition to new product categories introduces significant supply chain complexities, which may challenge Haotemai's existing operational capabilities [21][23]. - The risk of diluting brand identity arises from expanding into diverse product lines, potentially confusing consumers about Haotemai's core value proposition [24]. - Increased operational management complexity and inventory risks are anticipated as the company expands its product offerings, which could strain cash flow and operational efficiency [24][25].

Core Insights - The article discusses the transformation of Haotemai, which is shifting from a focus on food and snacks to a broader range of products, particularly in the beauty and fashion sectors [1][8][9] - The beauty segment has seen an increase in SKU share from 10% to 14% and revenue share from 11% to 15% between 2020 and 2024, indicating that beauty products are becoming a new growth engine for the company [3][9] - However, the beauty products offered are often not popular items, as they are typically clearance or less sought-after products, leading to consumer dissatisfaction [3][6][13] Product Strategy - Haotemai's current product selection includes many low-demand beauty items, which are often not the best sellers in the market [3][4] - The company is also expanding into other categories such as anime merchandise and clothing, with plans to open a large outlet store in Nanjing selling brands like Adidas and Nike [8][9] - The core strategy remains focused on low prices, targeting price-sensitive consumers while attempting to diversify product offerings [8][9] Market Dynamics - The shift in strategy is driven by the limitations of the previous clearance model, which has faced challenges in sourcing stable inventory and maintaining growth [9][11] - Increased competition in the discount retail space has pressured Haotemai to differentiate itself by expanding its product categories [13][14] - The company is facing challenges in maintaining its brand identity as it diversifies its offerings, which could dilute its core value proposition [16][18] Operational Challenges - The complexity of supply chains for new product categories like beauty and fashion poses significant challenges for Haotemai, which has historically focused on fast-moving consumer goods [14][16] - The expansion into multiple categories increases operational complexity, requiring more specialized management and marketing strategies [16][18] - There are concerns about inventory risks and cash flow pressures associated with introducing new product lines, which could impact the company's financial stability [18]