According to professional data show that in recent years, with the popularity of mobile Internet, online channels to capture the new flow of dividends, different development model and niche online shopping platform is becoming more and more social electricity, electricity content rise, and well fit the needs of health care products consumers long tail, to a certain extent caused the consumption, It poses new challenges to the online channel layout of enterprises, and the channel share is flowing to non-direct selling or e-commerce channels.
Look at the development of an industry, we must take the head of the enterprise as a reference, in order to more comprehensively see the current situation and the future. Here we take Tomson Bejian as an epitome to see how channel marketing affects enterprise development and industry pattern.
First, focus on traditional channels, Tomson Behealth rapid development
Looking back on the development process of Tomson Behealth, it is one of the few health food companies in China that has been focusing on the development of drugstore channels.
In the process of enjoying economic upside dividend and brand effect, the company has become the industry leader step by step. From 350 million revenue and 90 million net profit when listed in 2010 to 7.43 billion revenue and 1.754 billion net profit in 2021. Profits have increased nearly 20-fold in 10 years. Although the competition in the industry is intensifying, the company's profitability is relatively stable in the ten years since it went public, and the gross profit margin on sales has remained above 60%.
So, what is the reason for its brilliance?
After a detailed analysis of the development model and statements of Tomson Bejian, it can be seen that the accounts receivable and inventory of Tomson Bejian are very small, accounting for only 2.51% and 7.18% of the total assets respectively, which shows the company's strong bargaining power for channels.
Of course, another secret of Tomson Behealth's success lies in the high gross margin channel sales, that is, fully catering to the strong demand for high gross margin products in the drugstore channel, stimulate the store and expansion of the drugstore channel, which leads to its rapid growth. According to the financial report, the number of drugstore terminals of the company increased from nearly 3,500 in 2007 to nearly 20,000 in 2014, and the company took the lead in the industry in the channel network of non-direct selling field.
Second, improve online channels to promote marketing transformation, Tomson Bejian's next topic
But nothing escapes the law of periodicity.
In the period of rising and breaking out of an enterprise, it is natural that "the time comes and the sky is the same", but once it enters the period of growth bottleneck, it is inevitable that "transported heroes are not free". only Tomson Bejian of The Times, not Tomson Bejian of The Times, the over-reliance on the physical channel path will sooner or later lead Tomson Bejian into unpredictable risks at some point.
With the advent of the Internet consumption era, people's consumption habits have changed, and the advantages of offline channels are no longer obvious. In 2015, after encountering the "black swan" event boycotted by chain channels, traditional medicine terminals were also crowded by e-commerce to varying degrees. In 2016, the e-commerce channel of the whole industry surpassed pharmacies to become the second largest sales channel of dietary nutritional supplements.
It is conceivable that with the changes in industry regulation, shopping channels and other aspects, in the turning year of 2016, the advantages accumulated by Tomson Behealth through building channels and brand barriers over the years are gradually disappearing. Is the so-called, into the channel, also lost channel. In the face of drastic market changes, the company has to make active adjustment to the channel structure.
Reform is imperative.
Since 2017, Tomson Behealth has made an attempt to change and continued to increase its investment in online channels, not only inviting traffic stars to speak for us, but also creating an exclusive online brand matrix for young people and carrying out precision marketing. It has also opened flagship stores in major domestic e-commerce platforms such as Jingdong and Tmall to increase brand promotion efforts. The strategy adjustment of innovation and change ushered in the first wave of performance in 2020 and 2021 -- Tomson Behealth's online channel revenue increased by 62.77% and 45.88%, respectively.
The strength of online channels and the reshaping of offline channels seem to be helping Tomson Behealth build new brand influence. However, a careful analysis of the financial results reveals that the truth behind the figures is not so simple.
From the cost of sales growth and revenue growth can see, the revenue accounted for about 30% of sales costs eat into the online channel to bring new profits, electricity, the brand strategy of real gold and silver into is not a high conversion rate of profit, tomson times the healthy revenue growth is almost of the under the sales cost escalation of commitment. The company's strategic layout and the actual effect may appear some imbalance.
Therefore, the next task in front of Tomson Bejian should be how to optimize and improve the online channel, so as to effectively convert sales expenses into net profits. It is certainly the trend of The Times to pay attention to online channels. The key is to give online channels a clearer strategic positioning, combine the e-commerce model with the characteristics of the industry, find user needs more accurately, and reduce marketing costs to the maximum.
Third, summary
According to statistics from Euromonitor, the size of China's health food market was 216.765 billion yuan in 2021, with a year-on-year growth of 7.39%, and is expected to reach 232.47 billion yuan in 2022. By 2025, The scale of China's consumer health products industry is expected to reach $62.401 billion and maintain an industry growth level of over 6%. With the improvement of young consumers' awareness of health care, their demand for other food industries will continue to rise. With the normalization of epidemic prevention and control, consumers will be deeply aware of the importance of health.
Are expanding the market space and young groups demand factors, under the stimulus of rare outbreak of superposition of the new champions this "black swans" for health food industry development has brought the huge impact, from the Angle of industry trends, pharmacies and shopping channels share proportion, electricity relative advantage of the pharmacy is expected to expand further, This will also promote the development of differentiated large single products in the overall health food industry. However, the epidemic has gradually transformed customers who originally belonged to the mode of shopping malls and pharmacies into online customers, which has brought more customer flow to the e-commerce mode.
Therefore, we can also foresee that the evolution of the channel structure will cause new changes in the industry competition pattern, and will also drive the further improvement and optimization of the channel strategy of Tomson Behealth.