Industrial: The fresh snack industry is growing rapidly, focusing on the expansion and attempts of large-scale retail companies.

Industrial report states that fresh snacks, as a high-growth emerging format, are attracting a group of consumers who are seeking "fresh/experiential" products after the systematic decline in traffic in traditional supermarkets. Currently, the top four players in the industry are expanding aggressively, with many brands experimenting with cross-border strategies. While the single store model is currently shining, the strategies and expansion paths are not yet determined. The challenge lies in the stability of the short-term supply chain and the uniqueness of individual products. In order to sustain business expansion, it is necessary to focus on refining the single store model and standardizing the supply chain. Key points from the Industrial report are as follows: - The systematic decline in traditional supermarkets is leading to traffic overflow, with some of the traffic from bulk retailers facing redistribution after a period of rapid expansion. - The emergence of fresh snacks is a response to the decline of traditional retail, with supermarkets experiencing a decrease in market share while fresh snack stores, offering experiential products, are attracting consumers seeking freshness and unique experiences. - The essence of the format is to provide an experiential shopping experience. Fresh snack stores have rapidly risen in popularity in shopping centers in first and second-tier cities in the past two years. These stores mainly offer short-term guarantee products, with a core focus on 24-48 hour freshness, visual appeal, and customization. The stores offer a variety of snacks, baked goods, beverages, freshly cooked foods, and fresh fruits, with an average store size of 200-400 square meters and an average customer spending of 45-60 RMB (approximately double the spending of traditional bulk snack retailers). The target demographic is primarily females aged 18-35. - While many players are making attempts in the market, the strategies for success are still uncertain. The top four players are expanding aggressively with plans to open more stores and explore new territories. The competition is heating up among regionally dominant players such as Black Classic, Nutco, Golden Granary, and Pumama, while other brands like Zhen Wei, You You, Shanghai Laiyifen, Cha Yan, and Haidilao are also venturing into the fresh snack market. - The profitability of single stores has proven impressive, but the strategies for expansion are still under development. The success of fresh snack stores relies heavily on an efficient and resilient supply chain, as well as the uniqueness of their products. The high demand for freshly made products and maintenance of freshness poses a challenge for supply chain logistics. The success of single store models and the standardization of supply chains are crucial for long-term success. - The potential growth for fresh snack stores is still uncertain compared to bulk retailers. The ability to expand rapidly and establish a large number of stores is limited by the high demands of fresh snack stores in terms of customer flow. The future success of the fresh snack market will depend on the optimization and success of single store models and the establishment of standardized supply chains. Risk factors include food safety risks associated with non-standard supply chains, as well as the potential risks of leveraging operations through franchising in brands with unstable single store models.