--- title: "Three Squirrels' offline gamble" type: "Topics" locale: "zh-HK" url: "https://longbridge.com/zh-HK/topics/25042410.md" description: "Original @新熵 Author 丨 Xiao Yi Editor 丨 Jue Ying At the time of releasing the third-quarter financial report, Three Squirrels' business landscape has stirred up waves again, making several key moves. On October 28, Three Squirrels issued three documents in a row, announcing that the company would acquire three brands—AISNACKS, AIDISCOUNT, and ZHIYANG FOOD—for a total of no more than 360 million yuan, invest no more than 100 million yuan to incubate new sub-brands such as SUPERWAN and DRAGONFLY COACH, and invest no more than 200 million yuan to further improve and build supply chain intensive bases in Wuhu, Tianjin, and Jianyang. Among these series of actions, the news of Three Squirrels partnering with AISNACKS is particularly eye-catching..." datetime: "2024-11-04T09:24:06.000Z" locales: - [en](https://longbridge.com/en/topics/25042410.md) - [zh-CN](https://longbridge.com/zh-CN/topics/25042410.md) - [zh-HK](https://longbridge.com/zh-HK/topics/25042410.md) author: "[新熵](https://longbridge.com/zh-HK/profiles/10215178.md)" --- > 支持的語言: [English](https://longbridge.com/en/topics/25042410.md) | [简体中文](https://longbridge.com/zh-CN/topics/25042410.md) # Three Squirrels' offline gamble Original @新熵 Author 丨 Xiao Yi Editor 丨 Jue Ying As Three Squirrels (300783.SZ) released its Q3 earnings report, the company made several strategic moves in its business expansion. On October 28, Three Squirrels announced three major initiatives: acquiring three brands—Ai Snacks, Ai Discount, and Zhiyang Food—for up to 360 million yuan, incubating new sub-brands like Super Star and Dragonfly Coach with up to 100 million yuan, and investing up to 200 million yuan to enhance supply chain hubs in Wuhu, Tianjin, and Jianyang. Among these moves, the partnership with Ai Snacks drew particular attention. On one side is Three Squirrels, an established snack brand that rose from e-commerce but now faces pressure from offline discount retailers. On the other is Ai Snacks, a rising star with over 1,800 stores nationwide, ranking fifth in the industry. Their high-profile collaboration reveals ambitious plans. Three Squirrels CEO Zhang Liaoyuan posted videos teasing Ai Snacks founder Tang Guangliang as the "Monkey King"—skilled but lacking teamwork—and declared Ai Snacks and Ai Discount as "business partners" to promote healthy industry growth. Tang, meanwhile, proclaimed their alliance aims to "divide the market into three and lead the industry." This rhetoric sparked speculation. Why is Three Squirrels entering the fiercely competitive discount snack arena now? What’s the goal behind its supply chain investments? Will the industry shift from "two giants and many contenders" to a "tripartite balance"? ### **Bridging the Offline Gap** Expanding offline channels is likely Three Squirrels’ primary motive for acquiring Ai Snacks. Despite recent revenue recovery, Three Squirrels remains overly reliant on e-commerce, with offline sales contributing less than 1 billion yuan in H1 2024—just 20% of its 5.075 billion yuan total. Online sales, at 4.09 billion yuan, dominate. This imbalance is unsustainable. Though e-commerce fueled Three Squirrels’ early growth—propelling it past 10 billion yuan revenue in 2019—offline channels account for 82.6% of China’s snack sales (Euromonitor 2023). With online traffic peaking and marketing costs soaring, competitors like Bestore and Baicaowei are squeezing margins. E-commerce made Three Squirrels, but now it’s a liability. Four straight years of declining sales (2020–2023) pushed the company offline. Its 2019 "10,000 Stores Plan" aimed to open 10,000 outlets in five years, but by 2023, only 149 community stores and 266 legacy shops existed—far short of the target. Notably, Three Squirrels now targets 20 billion yuan revenue by 2026, split equally between online and offline. Analyst Zhu Danping attributes past struggles to an immature supply chain. Outsourced production saved costs but led to quality control and logistics challenges. Though self-built supply chains are progressing, they remain weak. Moreover, lacking offline experience, Three Squirrels’ store expansion and profitability lag rivals. Its discount brand "National Snack Store," launched in June 2023, had just 209 stores and 175 million yuan revenue by mid-2024—paltry compared to WanChen Group’s 66.38 billion yuan revenue and 6,638 stores. CEO Zhang admitted, "We were blindsided by discount snacks last year." Indeed, rivals like Snack Very Busy and Haoxiangni have eroded Three Squirrels’ market share. Experts note discount retail’s success hinges on rapid store scaling and efficient supply chains—precisely Three Squirrels’ weaknesses. Analyst Yang Huaiyu argues acquisitions are now essential to compete. As Zhang cryptically posted: "If you don’t understand, look at the whole picture!" ### **Discount Snack Shakeup** Three Squirrels isn’t alone in strategizing. Ai Snacks, founded in 2020, has aggressively expanded to 1,800+ stores across 13 provinces, ranking fifth nationally. But cutthroat competition is squeezing margins—founder Tang lamented that promotional days now barely boost sales amid rivals’ price wars. The sector has exploded from 2,500 stores in 2021 to 22,000 by October 2023. In Hunan’s capital Changsha, stores cluster so densely that "you’d think they’re the same chain until their discount battles," local shopper Wang Yan told New Entropy. After top players Snack Very Busy and Zhao Yiming merged in 2023, a "two giants, many contenders"格局 formed. For mid-tier Ai Snacks, partnering with Three Squirrels offers capital and supply chain support to survive consolidation. ### **Tripartite Ambitions** Though Three Squirrels calls the deals "preliminary," signs point to certainty. Ai Snacks’ 加盟 staff confirmed post-acquisition wholesale discounts, while both founders heavily promoted a November 10 integration event (delayed from earlier dates). Tang boldly declared intent to "claim one-third of the market," offering equity incentives to regional brands. Zhang’s subtler hint came via a "battle shirt" for the event, emblazoned with a poem: "Thunder at sea only lights the way / Eternal sailors alone deserve the ocean." ▲Image/Douyin screenshot Experts say a "tripartite" split is plausible given the two giants’ dominance and regional players’ fragmentation. Overseas markets also beckon. But success depends on post-merger integration—whether brands consolidate or diversify, and how supply chains merge. As the poem concludes: "Time will tell if eternal sailors prevail." ### 相關股票 - [Three Squirrels (300783.CN)](https://longbridge.com/zh-HK/quote/300783.CN.md)