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The core of the rise of
Yuanqi forest comes from the emphasis on data and the ability to use data.
Even those who have no sense of the new brand are hard to escape from the vitality forest arranged by Zhang Yuqi in the elevator room.
Yuanqi forest, a brand born only four years ago, now has a sense of existence in both the consumer market and the capital market: in the first half of this year, the sales volume of Yuanqi forest exceeded 800 million, close to the level of last year, and its rapid growth quickly attracted the favor of capital. A few days ago, it was reported that Yuanqi forest was about to complete a new round of financing, with a post investment valuation of US $2 billion, equivalent to 3.5 times of the previous round.
Zhang Yuqi speaks for Yuanqi forest
In the “cold market winter” in which the epidemic has not yet dissipated, the above achievements are enough to attract attention. However, as with all the popular stories, the vitality of the forest is becoming more and more powerful, and at the same time, there are also disputes.
“Pseudo Japanese system”, fried “0 sugar” concept, OEM products without threshold As an online brand, the image of Yuanqi forest in the questioning voice is very similar to the negative impression of public opinion on “Internet red” — only hype, but not business.
So, is Yuanqi forest a brand black horse or an illusion? Answering questions requires clearing the fog.
From the surface phenomenon, Yuanqi forest’s success stories and questioned points are not its original creation: “pseudo Japanese system” is not the original creation of Yuanqi forest, bubble water and sugar free tea are not fresh products. Marketing with money and OEM production are more common in the field of consumption. If we just rely on these not new ways of playing in the industry, we may not be able to stand out in the competition.
So, what is the basis of the logic supporting the rise of Yuanqi forest and the sharp rise in valuation?
According to the recent research of “Shenxiang”, in addition to seizing the dividend of the new consumption wave, Yuanqi forest’s approach is the science students’ Thinking: it attaches great importance to data feedback, and relies on efficient feedback and error correction mechanism as well as capital advantages to rapidly iterate products and open up markets.
Compared with traditional consumer goods companies, Yuanqi forest is very “Internet”. It is more like an app factory. All the Internet elements are closely related to the background of Tang Binsen’s science students and game entrepreneurs.
Before learning how to play Yuanqi forest, it is necessary to introduce Tang Binsen’s experience.
Born in 82, Tang Binsen is a Xueba. He has both bachelor’s degree and master’s degree in the computer department of Beijing University of Aeronautics and Astronautics. At the age of 22, he won the gold medal in the international programming competition. In 2008, Tang Binsen founded a game company called zhimingtong. The most classic case is to promote happy farm to more than 20 countries around the world, affecting 500 million people overseas.
In 2014, smart star was acquired by Chinese media at a price of 2.66 billion. The following year, smart star launched the game “the dispute between kings”, which soon sold well in North America and Europe.
In the days when he sold the company, Tang Binsen remained as a professional manager as CEO of smart star, but he also began to enter the consumer industry. In June this year, Tang Binsen resigned as CEO of zhimingtong. In the outside world, this means that he is ready to devote himself to the development of Yuanqi forest.
Science students learn to bully, game industry veteran, consumer field rookie, which is closely related to Tang Binsen label.
Interestingly, although the Internet industry and the consumer industry seem to have a large span, Tang Binsen’s cross-border thinking has a clear continuity, the most significant of which is the emphasis on data.
In the game industry and the Internet industry, data is an important indicator to guide decision-making, APP background is a variety of subdivision data and relative proportion, and the breadth and granularity of data, data update frequency, have a considerable impact on product operation decision-making.
Although brands in the consumer industry also value data, compared with online data Kanban, offline retail data are usually scattered in department stores, small and medium-sized supermarkets and even husband and wife shops in residential areas, so it is very difficult to collect them. However, in the retail chain, it is more difficult for the brand to know the real sales situation of the products in the channel terminal in time.
In order to solve the problem of offline data acquisition, the current practice of brand manufacturers is to purchase the data services of market monitoring and data analysis companies, and formulate the next strategy based on monthly or quarterly reports. But for gamers who monitor data in real time every day, that feedback is too slow.
According to “deep sound”, Yuanqi forest is a rare consumer goods player who attaches great importance to data feedback. While building its own digital team, it also actively introduces external data services. A typical example is the win-win cooperation with data service providers.
Code win is a fast consumer goods industry big data company, business mainly for retailers and brands. Specifically, code win establishes the largest retail big data alliance with large, medium and small chain stores and single stores across the country to obtain the full purchase, sales and inventory data of terminal stores in real time. After real-time cleaning and desensitizing the data, it provides market research services such as market share, change trend, shopping basket analysis, etc. for FMCG brand manufacturers.
In a more straightforward language, the idea of winning on the code is: whether the goods sell well, the cash register in the store is the most clear. Code winning is equivalent to a “data radar” all over the country. Through the relevant data, the brand can directly perceive the “sales force” of products in different places.
Don Binsen clearly understands the value of the data.
When talking about the cooperation with Yuanqi forest, Wang Jieqi, founder and CEO of code win, said that Tang Binsen understood their business as soon as they understood it. When the layout of code win was relatively small, Tang Binsen took the initiative to buy their data services.
“At that time, he (Tang Binsen) told several of his directors that this data must be bought, and only this one is useful.” Wang Jieqi told Shenxiang.
Tang Binsen’s decisiveness is not difficult to understand. Yuanqi forest’s products are unfamiliar in the market, and empiricism is no longer applicable. Therefore, timely data feedback has a great impact on decision-making and error correction. However, the speed and depth of the old methods such as human visit can not compare with the technical strength.
Similar to the “app factory” of the Internet industry, data orientation is reflected in Yuanqi forest’s product idea: concentrate resources and push when you do the right thing. If the feedback is lower than expected, you must make changes quickly or withdraw completely. According to Shenxiang, Yuanqi forest launched a product in Northeast China last year, but stopped the product immediately after finding problems. A series of decisions were completed within a quarter.
“The SKU of Yuanqi forest is very long, we only see those explosive ones,” says Wang Jieqi.
Data oriented competitive advantage
It is worth noting that the advantages of data feedback can not only bring higher product iteration efficiency, but also have outstanding value in competition.
In the business world, players from all walks of life attach importance to data not only for their own products, but also for competitive products. In this context, data is intelligence, and decision-making requires intelligence, and error correction also requires intelligence. Players who have more information will undoubtedly have more initiative.
As “disruptive innovation” is rare. Most of the time, industry players compete in the same category, and product differences are just so-called “micro innovation”. Therefore, whoever takes the lead in expanding the market can seize the consumers’ mind. Even if the experience of the latter is not inferior, it is easy to be regarded as a “Shanzhai”.
In the field of consumer goods, as Yuanqi forest can understand the industry data more frequently and timely, it can also judge the “explosive products” and the market, so as to grasp the promotion opportunity and distribution strength more accurately. The reason why Yuanqi forest started to build its own factory is to obtain a higher reaction speed than the OEM mode.
In other words, the player who can occupy the market is often the player who is aware of the “explosive” potential of the product and delivers the product to the consumer at the fastest speed, not necessarily the original developer of the product. This idea has something in common with Tencent’s new concept of minimally invasive.
Tang Binsen is no stranger to the above ideas. He has taken actions to seize the market in the era of smart star.
In 2008, the social game “happy farm” became popular in China. Tang Binsen also launched his own version of “happy farm”, and took the lead in promoting it overseas, becoming a phenomenal game in overseas markets. Although the domestic version of “happy farm” appeared earlier and became popular earlier, the overseas market has been occupied, making it more difficult to go to sea.
Tang Binsen likes to refer to the “geo arbitrage” theory of Alexander Tamas, a former partner of DST, that is, the world has never and will never reach the so-called “flat state”, while the so-called successful businessman is the one who can take the lead in making use of the information gap to make profits.
It is obvious that even if we switch to the consumer track, the playing methods that worked well in the happy farm period will be reused. Whether it is games or drinks, the basis for players to seize the opportunity in the competition is data and the corresponding decision-making mechanism.
In Wang Jieqi’s view, there are mainly two ways to play in the consumer industry, one is to attach importance to sales, the other is to attach importance to marketing. There are few “science students” thinking based on data such as Yuanqi forest. Enterprises need to pay attention to the data based on the rapid decision-making mechanism, the most important of which is error correction mechanism to form a closed-loop.
“Capital is food and grass, marketing is attack, but more important is the decision-making mechanism. People like to talk about food, grass and ammunition, because it’s more convenient to use it than to change the decision-making mechanism, establish the feedback mechanism, and lay out the intelligence system, “Wang told Shenxiang.
It is undeniable that Yuanqi forest is rich in funds because of its founder Tang Binsen’s status as an angel investor and with financing. Capital advantage can help Yuanqi forest enlarge its voice and expand its market. In a similar business model, it can undoubtedly make Yuanqi forest run faster.
However, the consumer industry is not a simple money burning competition. The role of capital is more of a booster and amplifier. If the company’s product direction is wrong or there is a strategy problem, throwing money is not the solution, but will make the situation more embarrassing. Similar “rollover” cases are not uncommon in the industry.
Like countries that rely too much on resources, enterprises that only focus on capital capacity often fall into the “resource curse”. To regard the rise of Yuanqi forest as the success of marketing is to put the capital in a high position and ignore the logic at the lower level.
For players with plenty of food and plenty of armaments, it is better to strike the right target at the right time point to determine the direction of the war. The core of the rise of Yuanqi forest comes from the emphasis on data and the ability to use data.
To put it in a big way, the trend of the times is a stronger driving force for the growth of Yuanqi forest.
New problems of wave Chasers
The popularity of any product can not be separated from the general trend of the times. From the content of Tang Binsen’s speech, he is a faithful believer that “choice is more important than effort”.
In the open course of Innovation workshop entrepreneurship in 2015, Tang Binsen said bluntly, “in a good industry, you have been ranked 100, 10 and 20, which is better than being the first in a bad industry.”. He also used the phrase “don’t read on the New York subway” to emphasize the importance of finding the right trend, because most passengers on the New York subway have low incomes and should quickly switch to airlines.
So, is the consumption field of Yuanqi forest a good industry? The answer is yes, especially in recent years.
Zhong Xue Gao, San Dun ban, Yuan Qi forest rising in the new consumption wave
At last month’s xiaohongshu “future brand conference”, diaoye, who once proposed that “every consumer product is worth doing again”, said that the reason for the rise of new brands is that “parents” have changed, so the way of playing has changed.
The so-called “parents” refers to the channel and marketing of the brand. In the past, the channels of consumer goods were offline shopping malls, and marketing was put to TV stations. But with the continuous rise of online shopping and the rapid development of tiktok and jitter, new channels and marketing scenes became more and more powerful.
In addition to the changes in channels and marketing, the mature domestic supply chain and excess capacity also greatly reduce the threshold of entrepreneurship. New consumer entrepreneurs can successfully find the first-line OEM enterprises to cooperate, and they are only responsible for brand operation and strategy formulation. In addition, the new generation of consumers have more segmentation needs, so the consumer goods market which looks like “Red Sea” has become a fertile land of opportunity.
At the same time, the tide of listing in recent years has added a fire to new consumption.
Due to the continuous IPO of TMT and consumer industry in recent years, a number of wealth free people have emerged in the market. Due to the sensitivity to opportunities, capital, Internet and consumption quickly come together, and the high salary and equity of start-up companies also show their attraction, especially for the practitioners in the consumer industry.
Gao Yang, executive director and President of Guangkong Zhongying capital, once described the salary level of talents in the consumer industry. If the monthly salary reaches 20000 or 30000, a very excellent channel manager can be found, but game engineers can’t be found.
The above changes are the background of the rise of new consumption. Specific to the business model, all new brands play the same way: looking for supply chain OEM products, borrowing content marketing to complete “take-off” on the new platform.
In the new consumption boom, with the help of data-based decision-making mechanism and capital advantages, Yuanqi forest is a faster player. From the perspective of the growth trend of soda bubble aquatic products, it has made achievements in the integration of Internet and consumer industry logic, and formed its own “explosive” methodology.
With the right track, abundant funds and efficient decision-making mechanism based on data, the rapid growth of vitality forest can be traced, but even the top students have to face new problems in the new stage.
In the external battlefield, as the main product of Yuanqi forest, soda bubble water is booming, and competitors such as Coca Cola, Xicha and nongnongnongshan spring are also entering the local gas bubble water market. These are players with obvious advantages in capital and channels. Internally, Yuanqi forest needs to create new explosive products outside the bubble water category to support the next step of growth. In addition, the difference between “explosive products” and “brands” is often discussed in the industry, and the current vitality forest seems to belong to the former.
For Yuanqi forest, its idea of building products with the thinking of science students has been proved by sales volume. However, whether it can break through the encirclement in the attack of consumer goods giants and realize the leap from “Internet red” to brand, I am afraid it still needs to return to the traditional logic to accept the review of time.
Author: Hong Jian; source: ID: deep echo, reprint has been authorized.
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food people are “watching”
- To regard the rise of Yuanqi forest as the victory of marketing is to put the capital in a high position.
- Due to the background of science students and game entrepreneurship experience, Tang Binsen attaches great importance to the value of data. Yuanqi forest’s advantage in data feedback is directly reflected in the product iteration efficiency and competition.
- Yuanqi forest is more like an app factory. With its capital advantages and data-based decision-making mechanism, Yuanqi forest has formed its unique explosive product method.
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