Group 1: Industry Overview - Konjac, known as "human cat strips," is becoming a phenomenon in the snack food market, attracting significant attention from various companies [1][5] - The konjac food industry has experienced a compound annual growth rate of 20% over the past decade, with the market size expected to reach 26.9 billion yuan in 2024 [5] - Major snack companies are increasingly entering the konjac segment, including Salted Fish Pouch, Wei Long, and Qiaqia Food, among others [1][6][7] Group 2: Company Performance - Salted Fish Pouch reported a revenue of 29.41 billion yuan in the first half of 2025, a year-on-year increase of 19.58%, with konjac snacks contributing 7.91 billion yuan, up 155.10% [6][7] - Wei Long's revenue reached 34.83 billion yuan in the first half of 2025, growing 18.5%, with konjac products driving a 44.3% increase in the vegetable product segment [5][6] - Qiaqia Food's revenue declined by 5.05% to 27.52 billion yuan in the first half of 2025, despite launching new konjac products [8] Group 3: Market Competition - The competition among snack companies is intensifying, with the number of stores for the "Ming Ming Very Busy" group surpassing 20,000 nationwide [3][10] - Companies are focusing on expanding their presence in snack retail channels, with Salted Fish Pouch emphasizing a strategy shift towards channel dominance [11][12] - Three Squirrels is also exploring opportunities in the konjac segment while investing in community snack stores to enhance competition [8][12][13]

Core Viewpoint - The rapid expansion of snack wholesale stores is driven by unique business models and changing consumer preferences, with significant market consolidation expected in the coming years [2][3][11]. Group 1: Rapid Expansion of Snack Wholesale Stores - The snack market has seen a transformation since 2021, with a surge in consumer demand for diverse options beyond traditional channels. Capital investment has accelerated the growth of snack wholesale stores, increasing from approximately 2,500 stores at the end of 2023 to an estimated 35,000-40,000 by the end of 2024, corresponding to a retail market size of nearly 140 billion yuan [3][4]. - Major brands are consolidating through strategic mergers, such as the merger between "Snack Busy" and "Zhao Yiming" announced in November 2023, which is indicative of the competitive landscape [3][4]. Group 2: Unique Business Model - Snack wholesale stores operate with a "multi-fast-good-cheap" model, featuring over 1,500 SKUs per store, primarily focusing on bulk products. These stores are strategically located in communities and commercial areas, covering a radius of 1-1.5 km, offering prices 20%-40% lower than traditional supermarkets [5][9]. - The average transaction value per customer is typically between 30-40 yuan, and stores introduce over 100 new products monthly while phasing out low-repurchase items to maintain consumer interest [5][9]. Group 3: Future Outlook - The long-term potential for snack wholesale stores is substantial, with estimates suggesting a market capacity of nearly 70,000 stores based on existing market density and purchasing power. The penetration rate of discount formats in China is projected to reach 15%-20% in the long run, aligning with trends observed in developed markets [11][12]. - Innovations in the discount retail sector are emerging, with stores expanding their product categories to include essential goods, thereby enhancing consumer experience and meeting diverse needs [12][13].