On August 10, Cha Cha released its 2020 semi annual report. The data showed that the company realized 2.3 billion yuan (about 331 million U.S. dollars) from January to June, with a year-on-year increase of 15%, and a net profit of 300 million yuan, a year-on-year increase of 34%. Among them, the income from sales of sunflower seeds was $242 million.
Cha Cha is a Chinese enterprise mainly engaged in sunflower seed snacks and is the leading enterprise in the industry at present. Sunflower seed is a traditional snack with a long history, loved by the Chinese people, with a good flavor and suitable for killing time.
Industry insiders believe that Cha Cha ‘s good performance in the first half of the year is mainly due to the quarantine policy caused by covid-19. Consumers’ demand for snacks to kill time has increased significantly, which makes the sales of sunflower seeds with this function grow rapidly.
In addition, in the first half of the year, Cha Cha’s overseas revenue reached 200 million yuan, an increase of 50% over the previous period. Some comments collected from Amazon show that consumers from other parts of the world are gradually falling in love with the fun of “eating” sunflower seeds.
However, as an “old brand” in Chinese snack industry, Cha Cha, like other old brands, is facing the problem of brand aging. Although the company also sells common nuts in addition to sunflower seeds, its growth rate and revenue are lower than that of core products, which leads to the single revenue structure of Cha Cha.
In order to solve the current predicament, Cha Cha is also making new attempts. For example, in the first half of 2020, Cha Cha food launched two innovative products, namely Lactobacillus nuts and innovative taste nuts that jointly sighed with designer toy brand Rico. From the perspective of trend, the continuous introduction of creative new products is also the main brand strategy and product planning of Cha Cha in the future.