Summary of Conference Call Records Industry Overview - The conference call discusses the performance of various food and beverage brands within the membership store channel, particularly focusing on snacks, dairy products, and health supplements [1][2][3]. Key Points and Arguments Sales Performance - **Youyou Duck Feet**: Sales increased from 27 million yuan in March to 28 million yuan in May, indicating strong market demand and growth potential [1][4]. - **Qing Tian Shi**: Initial sales of 2.2 million yuan in April rose to 6.95 million yuan in May due to improved raw material supply, highlighting market potential but also emphasizing supply chain stability as a risk factor [1][2][4]. - **Egg Yolk Quail Eggs**: Sales dropped to 15 million yuan in May from 17 million yuan in March and April, affected by seasonal fluctuations and negative news, indicating market volatility risks [1][4]. - **Zhou Hei Ya Classic Dipping Sauce**: Sales grew from 1.85 million yuan in April to over 3.4 million yuan in May, suggesting high acceptance of new products but potential cannibalization of existing products [1][6]. - **Tiramisu**: Sales remained stable between 9.5 million to 10 million yuan, but short shelf life and complex supply chain management pose risks [1][7]. Market Trends - The health supplement sector is experiencing a slowdown, with expected growth rates of 5%-8% for 2024-2025, lower than other categories like beverages and electronics, necessitating a reassessment of market strategies [3][9]. - The overall food category in membership stores includes approximately 1,200 SKUs, with a significant focus on rice, oil, nuts, and frozen foods [3][10]. Product Innovation and Development - Many small food and dairy companies are leveraging brand and product innovation to drive performance, as seen with Youyou Duck Feet and Qing Tian Shi [2]. - New product launches, such as the Frankie TT Cotto beef jerky and probiotics electrolyte powder, are currently in single-channel sales stages, with data expected by the end of July [5]. SKU Management and Consumer Feedback - The membership store collects around 20,000 member feedback entries daily to inform new product development and SKU optimization, ensuring alignment with market demand [3][14][15]. - New products undergo a protection period of three to six months, during which performance is evaluated before broader distribution [16]. Localization Strategy - The membership store has successfully implemented a localization strategy, enhancing its ability to discover and cater to local tastes, which has led to significant revenue growth [21][22]. Additional Important Insights - The sales data for various products indicate a trend of fluctuating performance, emphasizing the need for effective crisis management and quality control [1][4]. - The competitive landscape shows that the membership store's localized approach has outperformed competitors like Costco, which lacks a similar strategy [21][22].