Yanker Shop Food (002847.SZ) recently stated in a phone conference that the strategy for shelf e-commerce is to select products with the idea of "ultimate cost-effectiveness" and single high pricing items. In the future, more new products will be added to increase store traffic and strength. But because the company is a latecomer in the shelf e-commerce market, there is still ample room for development in the next 2-3 years.
Douyin is the company's key platform for e-commerce channel development. In the second quarter of 2023, the company's e-commerce on Douyin had a high growth rate. However, based on the branding and promotion of the "Big Devil" vegetarian tripe and "Egg Emperor" quail egg product categories, the company still achieved good revenue growth despite the high base number.
The e-commerce team is confident in the healthy development of the next half year and next year, with main initiatives including: (1) Channel: the sales trend on Douyin platform is good, the company has had an advantage with short video professionals in the past, and will continue to expand on live-streaming professionals for the future. (2) Category: The "Big Devil" vegetarian tripe and "Egg Emperor" quail egg are the key products for the company's brand category strategy. The e-commerce team has successfully developed the "Big Devil" vegetarian tripe in 5-6 months. The operating model of the popular "Big Devil" vegetarian tripe can be replicated for "Egg Emperor" and other key categories of the company. Overall, the future potential for the company's Douyin e-commerce is very large in terms of product and channel, coupled with the team's past advantages and ability to explore new things, breakthroughs will be made.