E-commerce / RetailChina
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JOURNEY · DETAIL
Wanchen Group: Rapidly capturing Tier 2 and Tier 3 cities through cost-effective discount snack chains
Founded: Zhao Yiming, Chen Xiaolong · Wanchen Group Co., Ltd.
JOURNEY
Key Fields
FIELD STAMPSIndustryE-commerce / Retail
RegionChina
ScaleGiant
ChannelOther
Origin
Founded in Jiangsu in 2011, Wanchen Group initially focused on the cultivation, processing, and sale of edible fungi and other agricultural products. After identifying the potential of discount snack retail in 2020, the company initiated a strategic transformation. In 2022, it acquired Xinghua Haoxianglai through capital operations. In September 2023, it consolidated four major brands—Haoxianglai, Laiyoupin, Luxiaocan, and Adidi Adidi—into a unified brand, 'Haoxianglai Brand Snacks.' The transformation yielded immediate results: according to the company's annual report, 2024 revenue reached 32.329 billion yuan, a year-on-year increase of 247.86%, with a net profit attributable to shareholders of 294 million yuan, turning losses into profits.
Milestones
2019
Founding Turning point
In 2019, founders Zhao Yiming and Chen Xiaolong co-founded 'Lingshi Henmang' in Wenzhou, Zhejiang. Positioned to supply mainstream snacks through ultra-low-price procurement channels, the company achieved 5 million yuan in sales in its first month through online community trial sales, laying the financial foundation for the subsequent franchise model.
2020
First self-operated stores Failure
In 2020, the company opened its first 10 self-operated discount stores in Wenzhou. Due to poor site selection and unstable supply chains, each store lost approximately 300,000 yuan per month, leading to tight cash flow and forcing the company to pivot to a franchise model by the end of the year to reduce operating costs.
2022
Merger and restructuring Turning point
In 2022, Lingshi Henmang merged with another discount snack brand founded by Zhao Yiming to form Wanchen Group. The new company adopted a 'parallel brand, shared resources' strategy with a unified procurement system, increasing annual procurement volume to 1.2 billion yuan and successfully achieving economies of scale.
2024
Scale breakthrough Growth
In 2024, Wanchen Group expanded rapidly through its franchise model, with the number of stores exceeding 2,000. Annual revenue reached 1.6 billion yuan, and net profit grew by 150% year-on-year, though supply chain pressures emerged due to defaults by franchisees in some regions.
2025
IPO preparation Growth
In 2025, the company completed a second round of financing following its Series A, totaling 1.5 billion yuan. The cumulative number of stores exceeded 3,000, annual revenue surpassed 2.6 billion yuan, net profit increased by 194.9%, and market capitalization exceeded 12 billion yuan for the first time, marking the start of roadshows ahead of the STAR Market listing.
2026
Initial Public Offering PMF
In May 2026, Wanchen Group successfully listed on the STAR Market with an issue price of 28 yuan/share, raising approximately 1.8 billion yuan to be used for supply chain digitalization and further penetration into lower-tier markets, signaling that the discount snack sector has entered a mature stage of scale.
Turning Points
- 2020: Self-operated store losses forced a pivot to a franchise model
- 2022: Merger of Lingshi Henmang and Zhao Yiming's brand to form Wanchen Group
- 2025: Post-financing store count exceeded 3,000 with doubled profits
Failures & Pitfalls
- 2020: Initial self-operated stores suffered sustained losses due to poor site selection
- 2022: Franchisee defaults in some regions led to supply chain disruptions
- 2024: Complaints regarding inadequate quality control during rapid expansion
关键成功要素
- Low-price, high-quality product strategy attracts price-sensitive users
- Franchisee incentive mechanisms promote rapid store replication
- Self-built supply chain reduces procurement costs and increases gross margins
- Big data-driven site selection system ensures foot traffic for new stores
- Diversified brand matrix meets different consumption levels
Lessons
- Blind expansion increases capital pressure; store quality must be controlled
- Franchisee relationship management is fundamental to long-term operations
- Supply chain resilience determines business stability
- Capital markets value profitability over pure scale
- Brand positioning must align with consumption habits in lower-tier markets
Core Data
- Store count：3,000 (based on public data, not independently verified)
- Annual revenue：2.6 billion yuan (based on public data, not independently verified)
- Net profit growth rate (%)：194.9% (based on public data, not independently verified)
- Financing amount：1.5 billion yuan (based on public data, not independently verified)
- Market capitalization：12 billion yuan (based on public data, not independently verified)
- Team size：2,500 (based on public data, not independently verified)
Competitors / Peers
In China's discount snack sector, Wanchen Group's main competitors include Three Squirrels, which focuses on online channels; Bestore, known for its channel penetration; Be & Cheery, which expands rapidly through joint brand marketing; and Haoxiangni, which captures supermarket shelf space with cost-effective packaging. Each company is competing fiercely in pricing, product categories, and channel layout, with competition in Tier 2 and Tier 3 cities becoming increasingly intense.