China Food

Vitasoy CEO: looking forward to acceleration in post epidemic period

Recently, weita milk, whose mainland headquarters is located in Nansha, Guangzhou, is now rushing to prepare for the production of a new factory in Dongguan. For this soybean milk giant, China’s mainland business “a game of chess” is about to open a new situation.

Recently, Zhong Tingyi, CEO of Vitasoy milk Co., Ltd. (hereinafter referred to as Vitasoy), pointed out that the completion of Nansha headquarters is a landmark moment for the company, which means that Vitasoy has a complete organizational structure for the first time in China’s mainland market operation for many years. He also said that although this year’s epidemic has brought challenges and challenges to the whole industry, the company still sees development opportunities in some new trends.

“We have seen that many enterprises have come out after SARS, and we hope that we can become the ones that have come out in the post epidemic period.” Zhong Tingyi said.

A game of chess in the mainland

On June 22 this year, the mainland headquarters of Vitasoy was officially opened in Nansha, Guangzhou. In Zhong Tingyi’s view, this is a “historic node” completed after sorting out and consolidating the company’s business operations in the mainland in the past two years.

He told the food agency that in the past, the operation of Vitasoy in the mainland market was managed by different legal entities, and there was no entity under overall management. It was not until Nansha headquarters landed that the company really ushered in an overall planning and management operation entity.

“The new headquarters will not only enable Vitasoy to have a clearer idea on the operation and decision-making of its mainland business, but also see the market through a complete panorama. At the same time, the synergy efficiency among various regions will also be improved, so as to truly realize the” one game “of mainland business.” Zhong Tingyi said.

With the new “combat command”, heavy “ammunition” is also ready to go.

Xiaoshidai learned that the Dongguan factory of Vitasoy has entered the final stage of production recently. After the new factory with a total investment of more than 1 billion yuan is put into operation, the existing production capacity will be nearly doubled. Zhong said the new plant is expected to meet capacity growth demand for at least three years.

In fact, in recent years, the mainland market has been the main driving force to promote the overall performance growth of Vitasoy. According to the company’s financial performance report for the fiscal year 2019 / 2020 released in June, its mainland business remained its largest source of revenue in the 12 months to March 31. Despite the impact of the epidemic, Vitasoy milk has achieved a 1% growth in the mainland market, recording an income of 4.025 billion yuan.

Zhong Weiyi also said that he would introduce more products to meet the needs of the mainland market. Earlier this year, Vita milk launched a number of new products in the mainland market, including two dual flavor vegetable protein drinks in the healthy addition series, and new flavors of Vita lemon tea, such as ice cool and Ceylon black tea.

Full fire to promote growth

When talking about the performance of the first half of the year, Zhong Tingyi said that the period from January to March, the most serious epidemic in China, was the last quarter of the previous fiscal year. The Spring Festival during this period was one of the most important marketing peak seasons of the whole year. The growth of the first three quarters was almost offset by the last quarter. Fortunately, as the outbreak improved in April, the company’s performance gradually improved.

“The situation in the last three months is very happy. Compared with last year, we have begun to recover to positive growth from May to July this year, and gradually increase.” He described the company as satisfied with the current progress.

In fact, in order to seize this wave of growth opportunities, Vitasoy has been fully developed in terms of channel layout and other aspects.

After feeling the new trend of the epidemic home lifestyle promoting the rise of fresh e-commerce, Vitasoy has strengthened its cooperation with new retail platforms such as HEMA, daily Youxian and pinduoduo, focusing on expanding consumption scenarios such as home and office. Through the integration of channels, Vitasoy has achieved significant growth in many platforms since April.

In addition to the traditional Jingdong and Ali, Vitasoy has also focused on the regional o2o e-commerce platforms such as Hunan’s prosperity and optimization and Fujian’s pupu, seeking new growth space.

In addition, Vitasoy has also set up a professional catering team. Meanwhile, it has opened 2B business in e-commerce channel, comprehensively increasing the layout of b-end channel. In addition to providing soybean milk for Starbucks’ stores in mainland and Hong Kong for many years, the company also cooperates with famous coffee chain brands such as Pacific Coffee and Costa, as well as some newly rising online coffee brands to supply vegetable protein milk products such as soybean milk, oat milk and padanmu milk.

Zhong Tingyi disclosed that in the future, he hopes to work closely with b-end customers in the product development stage, and is still negotiating with TWG Jierong on strategic cooperation.

In recent years, the business of new tea is also a new channel of Vitasoy. At the end of last year, the company joined hands with Nai Xue’s tea to launch the Vita milk treasure tea series. Not long ago, the two sides cooperated again to launch a new product of “poopi lemon bubble tea”.

“We have developed a series of soymilk called” tea masters “for tea drinks. We asked them to make soymilk tea, which was just released in Shanghai last month.” Zhong Tingyi believes that these market opportunities are a very obvious consumption trend for Vitasoy, which is worth taking good advantage of.

Faster and more flexible

In the context of the epidemic, Zhong Tingyi also thought about the company’s overall operation and existing business model. He believes that the rapid recovery of Vitasoy’s performance in the mainland market in recent months is due to the company’s previous foundation in digital operation, and on the other hand, it is also driven by new teams and new working methods.

“Our group has established the goal of building a digital business since five years ago, and also determined to start from the mainland market of China, and comprehensively promote the internal process from the consumer operation end to the company.” Zhong Tingyi, for example, has introduced the research and analysis of consumer data in the front-end of research and development of many new products launched by Vitasoy, which also makes the new products finally launched more suitable for the market demand, “digitization in the future is still an important strategy to be promoted”.

In the post epidemic period, Vitasoy also saw some new consumption trends and market opportunities. Zhong Tingyi said that after experiencing the epidemic and living at home, consumers tend to choose ready to drink products with “multi package” and “large package”.

“In the past, people used to buy drinks on a real-time basis. Now it has become a planned consumption and like to buy them in boxes. Therefore, products with multiple packages are more popular.” He also said that the company has also observed a significant increase in the sales of large packaged soybean milk products in recent months. After analysis, it is believed that the reason may be that people eat breakfast at home more often during their home life, which also drives families to buy soybean milk in large packages.

In addition, Zhong Tingyi also gave his own judgment on several new business models emerging during the epidemic period, believing that “home scene” will become normal in the future, while community group buying and wechat group buying will continue to optimize business models in the future. He said that currently Vitasoy is closely observing various platforms and trying various ways of cooperation, hoping to achieve deep cooperation with the new head platform.

“There used to be a saying that pigs can fly on the wind, but I think it is only when it is most difficult for an enterprise to see the difference in its operation ability or internal core competence. “Zhong Tingyi also mentioned that although Vitasoy is an 80 year old company, the agility and flexibility of its operation have always been emphasized by the company.

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