Jinzai food, which sells dried fish, makes $80 million a year, spends tens of millions on advertising, and its owner is worth $1.3 billion

2022-04-26 0 By

Snacks, as a solution to people’s appetite beyond three meals, have always been welcomed by the majority of residents.There is no denying the existence of snacks in our life. When a guest comes to the house, snacks can be used first. Children can also use snacks to supplement their hunger between two meals.It can be said that snacks have now become a necessary category in every household, and its appearance has also changed our dining mode.There are a variety of snacks on the market, and just because people have different preferences, all kinds of snack products naturally emerge in an endless stream.Over time, some businesses that rely on selling small snacks are now bigger and stronger.And this has a rely on selling fish dry annual income of 80 million, the hometown is now worth 1.3 billion, every year to spend 20 million advertising costs, it is jin Zai food.A, sell dried fish jin zai food to earn 80 million jin zai food as the leader of China’s fish snacks, its own development can be said to represent the development of China’s snack industry.As a well-known domestic traditional flavor snack food company, Jin Zai food is mainly based on the sales of research and development of fish snacks, the company’s “flavor small fish” product online sales perennial ranked the first in the industry.Statistics show that the sales of flavored small fish of Jin Zi Food exceeded 1 billion packages last year, ranking first in the industry.With the development of Internet sales, jin Zai food relies on the combination of Internet economy in sales to take online and offline sales.As a result, the traditional consumer industry represented by leisure food also began to enter the field of e-commerce, and the scale continues to expand.According to the data, the online and offline synchronous sales model of Jin Zai food has brought great performance, the overall sales volume is far more than 60% of the same category of goods, and the gross margin is maintained at more than 26%.This also makes the revenue of jin Zai food has been a huge increase, last year the profit of jin Zai food reached 80 million.A few days ago jin Zai food released the financial results of 2021, data show that the company’s revenue reached 1.111 billion yuan, a year-on-year growth of more than 22%, the overall net profit of more than 80 million yuan.However, this data does not represent the booming development of Jinzai food, on the contrary, the net profit decreased by 17.7% compared with last year, and the increase in revenue did not make the net profit rise.As the industry leader jin Zai food, perennial occupy the first position of the fish snack sales list, why will there be an increase in income does not increase profits?Jin zai food as the first industry are so, other snack enterprises life is good?Two, the advertising cost of 20 million, the boss worth 1.3 billion for jin son food, this March is not ordinary In March, but also jin son food ups and downs in March.On March 15, deng Lun, the spokesperson of Jinzai Food, was reported to have been fined by the national tax department for tax evasion. As jin Zai food clarified that the cooperation with Deng Lun had ended as early as last year.However, one wave has not been leveled yet, the CCTV 315 evening party on the same day once again exposed the “earth pit pickled cabbage”, and its production enterprise huaqi pickled cabbage factory is one of the suppliers of Jin Zai food.As can be seen from the annual report of jin Zai food, jin zai food in addition to reduce the cost, promotion of advertising is also very large.In 2021 jinzai food offline advertising expenditure reached 15 million yuan, online promotion is spent nearly 9 million.Combined, the two spent more than 20 million yuan on advertising alone, which was far too expensive compared to the net profit of 80 million yuan.In addition to the cost of marketing, the profit margin of jin Zai food itself has been compressed to the extreme.According to the data, the revenue of jin Zai food in recent years mostly depends on flavored dried fish, which is the core product of Jin Zai food.But the cost of fish products is increasing year by year, making the profit of jin Zai food is shrinking.Starting in 2018, Jinzai food’s gross margin began to decline, largely because the cost of fish products began to rise.Especially in the past few years, the major food in frequent price increases, jin Zai food still does not increase prices.Analysts say the price hike is aimed at capturing the market and protecting market share.But in fact, the gross margin of jin Zai food at that time is still very considerable, it is not necessary to increase the price, in case of a decline in market share, natural losses will outweigh the gains.According to the current stock price, the actual holding person of jin Son food Zhou Jinsong couple’s worth has exceeded 1.3 billion, as the leader of the snack category, so high achievement is beyond the hope of other enterprises.At the same time to the future development of strong food has a doubt, strong food will change in what direction.The main revenue of Jin Zai Food relies on dried fish. This kind of product has many competitors on the track in recent years, so that it is not as simple as imagined to continue to run on the track.In particular, today’s young people tend to buy low-sugar and low-fat food, and the greasy products such as dried fish are not suitable for the diet concept of modern young people.The most important thing is that dried fish is too substitutable and consumers’ stickiness is very low. There are many similar substitutes. Relying on advertising alone is not as effective as before, so how to build our own brand becomes a problem.And these two years jin zai food has been looking for upward breakthrough space, but according to the current grasp of information, jin Zai food idea is difficult to achieve.The income only depends on dried fish products, the development of Jinzai food in the track has not been diversified, and the product’s ability to update and iterate is also low.Compared to Weilong at the beginning of this only rely on latiao started, and now have latiao do diversified enterprises, the development and upgrading of jin Zai food is really too late.Since last year, jin Zai food wants to achieve a breakthrough on the road of snack youth, in many media and short video platforms can see the marketing content of Jin Zai food, which is why the marketing cost of jin Zai food is as high as 20 million.But according to the data obtained now, jin Zai food wants to develop on the road of youth, there is still a very long way to go in the future, and it is likely to be endless.Summary now in the snack market competition has reached a fever pitch, many large snack enterprises and jin zai products have great similarities, consumer choice will also begin to tend to have not tried the product.So no matter from the brand or category, jin Zai food to run further in this white-hot snack track, or more difficult.The glory of the past will not reappear, it is to see whether the future can bring more good products to consumers.Have you ever bought a snack from Jinzai Foods?How do you think jinzai food should develop on the road of youth?Disclaimer: if the content of the article involves the content of the works, copyright pictures or other problems, please contact the author within 30 days, if the reflection is true, we will delete the responsibility of the article at the first time.This article is for reference only and does not constitute any investment or application advice.