Three Squirrels' 2024 semi annual report has been released, with a revenue of 5.075 billion yuan in the first half of the year, a year-on-year increase of 75.39%. The annual goal of "returning to 10 billion yuan" has successfully passed halfway.
But this' billion 'is not that' billion '.
The revenue structure of Three Squirrels has undergone significant changes compared to five years ago. On the one hand, the online revenue of the three squirrels accounted for 81%, of which Tiktok contributed 1.224 billion yuan, up 180.73% year on year; On the other hand, Three Squirrels intends to strengthen omnichannel collaboration, focus on offline distribution and store layout, and achieve a year-on-year growth of over 100% in distribution revenue and a 50% increase in the number of offline stores, reaching 300.
As the "first snack on the Internet", the three squirrels are born with a sense of network, IP and traffic. On the road of "returning to 10 billion yuan", the three squirrels who worked closely with Tiktok not only focused on topic traffic and online sales, but also opened up new business positions around the offline stores' entry into Tiktok's life services, bringing new growth to the offline scene with online traffic and transformation, and then fed back the circular path of global business with strong offline near field performance capability.
The three squirrels who have experienced ups and downs need to become the "champion of a single event" and also gather the power of multiple gameplay to become the "hexagonal warrior".
  01
Boss walked into the live broadcast room

Soon after the release of the semi annual report, its three squirrels came to Tiktok again, which was different from the group purchase live broadcast.

On September 9, three squirrels joined hands with the activity of Tiktok Life Service "Boss's Price Arrives" to launch the special live broadcast of the Mid Autumn Festival. The General Manager of the Three Squirrels Store Business Unit appeared in the live broadcast room and distributed a welfare of 10000 yuan within 30 minutes, quickly attracting the attention of the audience. The interactive data during the viewing was higher than the average.
From "321 Link" to "321 Boss", more and more enterprise managers are entering live streaming rooms to interact with users at zero distance.
I think the boss's presence in this live broadcast room or in a marketing scene is ultimately an endorsement of authenticity and trust. The head of online channel marketing for the Three Squirrels store business unit believes that the boss entering the live broadcast room is a way for the brand and consumers to establish trust through dialogue. "The boss's price up to 'activity is very useful for verifying brand momentum and sales from a data perspective
It can amplify the "boss's stubbornness", use a big hand to sprinkle discounts, and strengthen the three squirrels' mentality of "high quality, high price, low"; It can also highlight the "boss's nature", based on the boss's more professional and detailed understanding of the product, establish a trust relationship different from that of celebrities and anchors, and consolidate the brand advantage of Three Squirrels.
At this moment, the down-to-earth image of the boss helped Three Squirrels break through the online and offline traffic barriers more effectively. Whether it is through discounts on popular products that promote online instant orders, or through universal vouchers that drive in store verification, transactions continue to occur.
The three squirrels of 'returning to billions' clearly know that in order to increase traffic, it is more important to increase it, and in order to grow, it is more important to achieve global growth.
  02
Enable stores to increase customer traffic and maintenance
In April 2023, 10 packs of macadamia nuts priced at 19.9 yuan achieved over 1 billion yuan in exposure and sales exceeding 100 million yuan. Not only Xiaweiyiguo, but also three squirrels gave birth to several hundred million level single products in Tiktok. The field of retail e-commerce continues to advance rapidly, and Three Squirrels is also exploring new business growth spaces and models simultaneously. Squirrel Dad once said that the company is currently worth billions. If 20 billion depends on distribution, then 30 billion depends on offline stores
On the basis of meeting the needs of a large number of users, doing a good job in offline community stores is currently the offline battlefield that Three Squirrels is constantly exploring. In June 2023, Three Squirrels landed 10 self owned brand community snack stores in Anhui and Jiangsu provinces. As of August 24, the community snack shops have expanded to over 254.
From the perspective of user consumption habits, "returning to offline", "nearby economy", and "community-based consumption" have become trends. Starting from the overall "D+N" strategy of the brand, the surge of billion dollar large orders online reflects the demand trend, and Three Squirrels can more targetedly drive supply chain reform, restructuring, and quickly upgrade store product strength. When the billion level bulk products that are popular all over the internet enter the terminal market with more suitable specifications and prices, they can not only serve as native signs to attract users to purchase in store, but also provide accurate supply for offline stores, optimizing profit margins.
And now, there is another new way of writing about passenger flow.

The three squirrels put store vouchers and single item group vouchers on the shelves of Tiktok Life Service. After users bought them, they went to the community store downstairs for verification. While online traffic locked the source of customers, they fed back the flow of customers in offline stores. Compared with one-way online shopping, consumers came offline with a richer shopping experience and a stronger perception of the brand. "If you had a store with three squirrels downstairs, would you still only buy them online? Sell snacks group coupons in Tiktok, helping the store lock in customers in advance. At the same time, traditional offline stores can radiate up to 0-2km of customers around. Now, the community store is moved to Tiktok, which has a wider range of radiation and brings more customers.".

In addition to more pre locking and wider customer base, the relevant person in charge of Three Squirrels stated that through the setting of large value vouchers for products, online group coupons, and store verification methods, the store has also gained traffic maintenance - consumers are more proactive in coming to the store, which invisibly increases the store's average customer value. At the same time, through offline scanning of codes, reviews, and other methods, offline customer traffic can be fed back to the online market, turning into online assets and promoting sustained brand exposure.
With the deepening coordination of online and offline activities, the number of Three Squirrels members increased by 31% month on month, and the membership value increased by 38% month on month. The three squirrels have found a more suitable sales model at this stage through the linkage of Tiktok life services, so that online operations can drive offline operations.
  03
Douyin+N omnichannel collaboration
Zhang Liaoyuan, the founder of Three Squirrels, has clearly stated the direction of his efforts in multiple public occasions to establish a 'Douyin+N' omnichannel collaborative system.
When the "Shake+N" strategy was first proposed, the three squirrels wanted to rely on the Tiktok ability to build new engines and explosive manufacturing machines, and promote the establishment of product awareness through all channels through content and explosion; Now, Tiktok online feeds back the flow cycle of offline store business, and the blue ocean of offline business also brings endless incremental possibilities to the brand.

Our advantage lies in having our own brand and supply chain in community stores, as well as our advantage in online stores. We are polishing a development model that is more suitable for both online and offline stores, and conducting different store type tests. Lightweight and steady development are the key to expanding our stores at present. At present, Three Squirrels has laid out more than 200 stores and plans to expand their stores in a lightweight and steady manner. By the end of the year, they will open 500 stores, and within three years, they will open 2000 stores in the Yangtze River Delta region, further feeding back their strong offline fulfillment capabilities to their overall operations.

According to 23 years of data, as a trillion dollar industry, the proportion of online channels for snacks is only about 15.5%. It can be seen that even after undergoing multiple rounds of channel changes such as "large circulation - supermarkets - specialty stores - e-commerce - mass sales", offline is still the most important consumer channel.
In the future, our corporate structure must be consistent with the industry in order to conform to market rules, "said Squirrel Dad Zhang Liaoyuan, emphasizing that offline stores are the protective moat held by the company itself. The three squirrels are emphasizing the landing of the "shake+N" omni channel system system, and online business has become a key link to strengthen offline business: incubate new categories and large single products in Tiktok, continue to expand online traffic and sales openings, divert to offline scenes and activate the supply chain, grasp the offline near field performance ability, feed back global business, and build a positive growth cycle path.
In addition to "returning to billions" in revenue, Three Squirrels has also set the offline goal of "millions of terminals, billions of distribution", exploring the mobilization of more "online offline online" business vitality, and looking forward to achieving the goal of increasing the number of market terminals from 100000 to 1 million and the scale of distribution business from 2 billion to 10 billion.
The business landscape is still expanding, and the three squirrels are still running.