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Bestore at Douyin: Racing on a New Track of Marketing
This case narrates Bestore's initial success as a regional snack food brand and goes on to introduce its multiple channel innovations, i.e. from running 100% self-operated stores in central China to opening franchise stores all over the country, then to striking online-offline balance in revenue, and finally to finding ways to increase its presence in a rising channel, Douyin, also known as the Chinese version of TikTok, a globally popular short-video-themed social software on smart phones. As Bestore's founder, Yang Hongchun, observed that Douyin was attracting increasing user traffic, he decisively assembled a team to build business there. However, it seemed that the underlying logic between traditional e-commerce platforms and Douyin's e-commerce model was largely different. He needed to push for constant iterations on the part of the Douyin business team based on the data service and with the tools provided by the Douyin platform. In addition, the team also needed to grow its capabilities in many aspects to adapt to business on Douyin, such as having a familiar understanding of the new fads and creating contents that could resonate with Bestore's target customer groups. Bestore was just a small firm compared to western food conglomerates. As Bestore already had a complex online and offline channel system, was it worth the sweat to further invest in creating and running more Douyin accounts? -
Bestore Snack Food: Exploring an Omni-Channel Approach
In 2019, Bestore Co. Ltd. went public on the mainboard of China's Shanghai Stock Exchange. With the mission of bringing Chinese delicacies to the world, the RMB 6 billion-revenue company proposed an ambitious revenue goal of RMB 100 billion with the new financial resources acquired from the public offering. Bestore expanded from its base market, Wuhan city, in central China to southern and eastern parts of the country. It opened flagship stores on China's key e-commerce platforms with online revenue equal to offline. It continuously upgraded its brick-and-mortar stores and outlets to project a high-end brand image. These physical stores were also fulfillment centers for orders taken from online food ordering platforms. Maintaining an online-offline balanced revenue structure expanded the customer base and increased the brand awareness for Bestore, but also posed many unique challenges for its Board and executives.