2020 may be a new era in the beverage market. Our company has already taken over three beverage projects, and more beverage brands come to consult. Half of the beverage entrepreneurs who come to consult have never had any experience in the beverage industry. I think it’s dangerous to start a business as soon as possible. So I’d like to remind you.
1. The beverage market is very huge, which may be one of the few trillion level markets in China. It is not only a huge market volume, but also has no oligopoly situation. It is not subject to special policy control like liquor and cigarettes.
Nongfu, liangle, Tongyi, Master Kang, Wahaha, six walnuts, Wang Laoji, red bull, etc. are all brands with sales of over 10 billion yuan. In this huge market, you can toss around freely, and it may have a scale of several billion yuan. So first of all, beverage is a good industry.
2. It looks very nice, but there are barriers in every industry, otherwise the industry would have been scattered.
For example, most industries can start with e-commerce. In this way, there is no pressure to open physical stores, nor will it involve the development of offline channels. However, drinks are quite special. Because the price quality ratio of this industry is too low (Rolex, for example, the price quality ratio is very high, so Switzerland, a mountainous country, has to manufacture this kind of products), which is not suitable for long-distance and separate transportation Beverage is also one of the most reluctant items for express delivery companies, so it is difficult to make drinks online.
You will see that the price of some beverage brands is higher than that of convenience stores because of the high cost of express delivery. But the construction of offline channels is also very difficult, not only are you familiar with the problem, but also the high cost of entering the store.
For example, for convenience store brands in South China, the single store entrance fee for a bar code is 50 yuan a month. Meiyijia, the largest convenience store brand in Guangdong, has 20000 stores. If you only use Meiyijia as a convenience store channel, it will cost about 1 million yuan per month. This is the cost regardless of whether you can sell or not, or just one barcode.
The display space of e-commerce is unlimited, but the display location of convenience stores is particularly limited. I think there are only three vertical refrigerators in 711 near the company. If one drink goes in, it means another drink will be out. So even if you spend money on the shelf, if you can’t sell it, it won’t last long. In addition, sometimes you may not be able to put money on the shelf. This is the distributor barrier in Michael Porter’s competitive strategy.
3. When many entrepreneurs came to us, he said that he had found a drink formula and decided to use this formula to start a business. What I’m going to say is that this idea is very dangerous. If you want to make a drink with only one flavor formula, the probability of success is too low. Even if it is like the vigorous forest, there are many flavors and formulas buried in the early stage. The popularity of beverage taste needs not only the strength of research and development, but also the element of luck.
The Assam milk tea launched by uni president in 2009 can be regarded as a super large single product in the past ten years. However, there is no guarantee that the single product of ice pear and sugar can be unified after 2009. In order to create super beverage products, the newly established start-up company must prepare a large number of flavors for continuous listing and testing. It is unrealistic to expect a single taste to become popular.
4. The battlefield of drinks is offline, and the conversion of offline shelf sales and online pull flow is very different. If you are familiar with e-commerce, the offline courses need to be supplemented, which is a different sales logic.
For example, packaging, online packaging display can be shot from various angles, with various backgrounds and models. But offline shelves you can only passively show customers one side, there is not much space.
5. You are unlikely to find a large factory to help you with the early small batch production of drinks. However, the production line and quality control of small generation factories are very difficult to do. You should pay special attention to the quality problems. There are many holes in this.
6. In early sales, offline distribution is more important than advertising, because even if you have done advertising promotion or content like planting grass in little red book, customers can’t buy it. Therefore, we should first lay channels to see how the natural turnover and repurchase rate are. If the dynamic sales is very fast, then first a certain type of channels through, not greedy for more.
For example, if you want to be a first tier city first, then you should do a thorough job in the first tier cities, including convenience stores, supermarkets, universities and restaurants. It is not to say that if we think Beijing is good, we will directly spread Hebei and Henan, which may waste a lot of resources in this respect.
7. The transportation radius of beverage is not large, generally about 200 km. It is very difficult to consider the quality assurance of normal temperature drinks, especially if there are carbohydrates and preservatives, which depends on the filling process and production environment. So most of the normal temperature drinks are based on essence instead of genuine fruit juice, not because the brand does not want to do so, but because it is a big problem.
If you want low-temperature drinks, the low-temperature transportation and shelf life should be considered more. If not sold, there will be a lot of waste.
8. Packaging design should consider not only the easy identification and unique bottle shape in marketing, but also the actual transportation and storage. For example, the height of general shelf storage is limited, and the width of packaging in convenience stores is also limited. If it is an aerated beverage, the pressure problem should be considered. Many packaging shapes are not suitable for making aerated drinks.
Some brands have designed a unique thin and high package, but they can’t put it in the convenience store. This is a real problem.
9. If you see a hot drink, you can copy it on the package and taste. There is no future. From the start, show your ignorance of the industry and your ability to be flawed.
In short, a seemingly simple industry, in fact, there are many big holes you don’t know. If you’re a new entrant, it’s better to have some awe.
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