The store was closed and the shelves were removed, and the operation was changed. What happened to Orion, which has been in China for 27 years?

On December 24, orion Orion’s Tmall flagship store page released a store closure announcement, saying that the orion Orion flagship store will suspend operations on December 24, and all products in the store will be removed from the store on the 23rd. Previous production orders continue to be shipped, but the timeliness cannot be guaranteed. Consumers are advised to refund. If you need a refund, please contact customer service before mid-January. At present, all products in the store have been removed from the shelves.

On December 24, Orion responded to this by saying that the suspension of operations was mainly to better serve consumers and improve the operation of e-commerce channels. It decided to replace the operator of Tmall’s “orion Flagship Store”. open.

In this regard, a reporter from the Beijing Business Daily called the official website of Haoliyou, but the customer service has not yet responded because it is not within working hours. The customer service of Tmall orion flagship store told the reporter, “As for the re-opening time of the store, please pay attention to the store in the future.” Orion customer service told the media that because of the epidemic, there is not enough manpower, and the express delivery time limit is uncertain. In addition, the products are all pre-sold, and the orders that have been placed are “not sure about the specific delivery time.”

The Beijing Business Daily reporter noticed that Orion’s other sales platforms have not closed stores. Orion’s flagship store on JD.com and JD.com’s self-operated stores are still operating normally. The customer service of JD.

Xu Xiongjun, an expert in strategic positioning and founder of Jiude Positioning Consulting Company, believes that it is a normal choice for Orion to change operators. The epidemic has had an impact on snack foods that rely on offline retail channels and supermarket channels. It is necessary to strengthen the operation of Internet e-commerce channels, but this is not the strong point of foreign brands like Orion, so they will find suitable operators to cooperate again.

According to Zhang Xiaoyan, Director of Orion’s Public Affairs Department, to the media, the Orion Group has factories in China, Russia, Vietnam, India, and South Korea. The companies in each country operate independently, and the cost changes and price adjustment cycles are different.

It is worth noting that at the beginning of this year, Orion was caught in a storm of different price increases at home and abroad and “double standards” for raw materials. In March, some netizens broke the news that Orion only raised prices in China and other markets, and Orion Pai used cocoa butter as raw material for Chinese products, and cocoa powder for Korean products. That night, the topic of “Orion price increase” became popular on Weibo. Search first.

In this regard, Orion’s official Weibo responded at the time that the domestic prices of Orion products have remained stable in recent years, and only in September 2021 will the price of some pie products be adjusted; the main ingredients of Orion Pai are the same globally, and the cocoa butter substitute used in Chinese products It is the same substance as the vegetable oil in the Korean product formula, and the dispute over the “double standard” of raw materials is caused by the translation software’s inaccurate expression when translating the ingredient list of overseas products.

According to the data, the Orion Group was established in 1956, and it belongs to the four major food companies in Korea along with Lotte, Nongshim and CJ (CJ). In December 1995, Haoliyou Food Co., Ltd. was registered and established in Langfang Economic and Technological Development Zone. In 1997, Haoliyou Pai was officially produced and put into the Chinese market. Since then, it has been launched one after another! Nearly 30 varieties such as potatoes, potato wishes, good friend fun, and many fish Products, seven categories.

It is understood that the Chinese market is currently Orion’s largest market, but its revenue in China is turning from previous growth to a downward trend. According to public data, Orion’s revenue in 2021 will be approximately 12.116 billion yuan, of which the Chinese market’s revenue will be 6.25 billion yuan, accounting for the largest proportion, but compared with the 7 billion yuan revenue in the Chinese market in 2020, it has declined. Among the four major business segments in China, in 2021, the puffing business revenue will be 2.62 billion yuan, the pie business revenue will be 2.3 billion yuan, the biscuit business revenue will be 900 million yuan, and the chewing gum + candy business will be 410 million yuan.

According to the previous official announcement of Orion, the price of Orion’s raw and auxiliary materials has risen sharply, so the prices of some products in the pie category that are more affected have been fine-tuned. A reporter from Beijing Business Daily found that since the price increase was announced in 2021, the price of 30-piece chocolate pies in Orion’s Tmall flagship store has risen from 33.9 yuan to 34.9 yuan.

Xu Xiongjun said that Orion’s current problem is “press the gourd and pick up the scoop”. Cost pressure, performance decline, price increase, “double standard” incidents, etc. all have an impact on its development in China. Essentially, it is because of the emergence of Orion’s overall strategy. A relatively large problem needs to be innovated and rectified.

Beijing Business Daily reporter Guo Xiujuan Zhang Han