Di Jie, founder and CEO of Qingquan
The front wave is photographed on the beach, and the back waves come one after another, playing the iterative March of China’s FMCG brands.
In 2020, Huiyuan Juice, which has been established for 28 years, will eventually be “Waterloo”. Zhu Xinli, 68, will come to an end with the label of “Lao Lai”, which is very sad. Many people trace its “decline” to the failure of Coca Cola’s merger and acquisition 12 years ago. However, as a beverage giant, its brand is seriously aging and its products are no longer in line with the taste of young people. A generation of beverage giants are aging, and a new generation of beverage giants are rising.
In 2019, Yuanqi forest, a new beverage brand, is rapidly becoming popular with its sugar free bubble and a wave of advertising campaigns.
In 2020, it completed a new round of financing, with a valuation of more than 10 billion yuan. More importantly, Yuanqi forest has opened a bubble water market of nearly 100 billion yuan.
Recently, blue shark has paid attention to a new beverage brand Qingquan. It was founded only two years ago, with a valuation of up to 200 million yuan. Wu Shichun, the founding partner of Meihua venture capital, has high hopes. Recently, blue shark has interviewed Di Jie and sun Daqiang, two founders of Qingquan Chushan. They can’t help but marvel at the professionalism of their team, the cleverness of brand marketing, and their bravery in fighting with their old owners Yuanqi forest in products and channels.
Sun Daqiang, co founder of Qingquan mountain
Qingquan came out of the mountain to make a figure, which started with the porcelain millet.
On April 4, 2019, a new drink named “millet Cola” was wildly circulated on the Internet. Many people even people in Xiaomi company thought it was Millet’s “ecological chain” product. But it turned out to be a wonderful misunderstanding. On the afternoon of the same day, a spokesman for Xiaomi company issued a clarification statement saying: “this product is neither a product of Xiaomi group nor a product authorized by Xiaomi. We reserve the right to investigate the relevant organizations, institutions and individuals through legal means for suspected malicious use, free riding, infringement of the trademark owned by Xiaomi group and seriously misleading consumers. “
In fact, “millet Cola” is a new type of cola beverage, which is made from millet through grain fermentation process. It is not a coke product developed by Xiaomi company. The company behind “millet Cola” is Qingquan.
The sales of “millet Cola” also inspired Qingquan. Sun Daqiang, co-founder of Qingquan Chushan, said that Xiaomi Cola sold more than 1600 bottles on the first day of its listing in 60 7-11 stores in Chongqing, setting a sales record on the first day of the new beverage market (in the convenience store system, it is normal to sell 0.5 bottles of drinks a day). It is Xiaomi Cola’s off-line stores selling well, which makes Xiaomi’s legal department see the “porcelain touching” millet cola.
“Entering the public’s view in such a way is a marketing plan we actively carry out,” Sun Daqiang told blue shark. Before Qingquan came out of the mountain, he had obtained investment in innovative workshops and made intelligent wearable devices, which ended in failure. Sun Daqiang has a set of logic for new brand building. “Most of the new brands are not well-known, so we must find ways to create some momentum. At that time, Xiaomi, as a popular mobile phone manufacturer, made many ecological chain products out of business, which inevitably caused illusion to many people. And our product is precisely the millet fermentation technology to create coke
Later, Xiaomi was sure to sue Qingquan out of the mountain. Now the lawsuit is still in trial. “This lawsuit is very helpful to highlight our brand.” Sun Daqiang said.
It can be seen that the high-profile entrepreneurship, touching porcelain millet, is a new brand of Qingquan out of the mountain, which has won the attention of capital and consumers. However, the breakthrough in many new beverage brands depends on the professionalism and innovation in the beverage industry. Its products can meet the needs of users in the new consumption era, and take appropriate promotion strategies for it.
In addition to touching porcelain millet brand awareness, Qingquan mountain also take advantage of the strength of the forest rise.
The spring coming out of the mountain has a deep origin with Yuanqi forest. Di Jie, founder and CEO, was responsible for the production of Coca Cola Shandong company before Qingquan was founded. He was a leader in the early R & D and supply chain management of Yuanqi forest products, and participated in the R & D and production of a series of products such as Yuanqi forest fruit tea, burning tea and bubble water.
Sun Daqiang is the early brand leader of Yuanqi forest.
Qingting, the second product of Qingquan, is the bubble water of Yuanqi forest. Yuanqi forest bubble water was launched in 2018 and sold rapidly, with a sales volume of about 200 million yuan in 2018.
In recent years, great changes have taken place in the concept of consumers. The requirements for the health attributes and functional attributes of leisure snacks and drinks are becoming higher and higher. People pay more and more attention to sugar free / low sugar, low calorie and rich nutrient elements. This is the opportunity of new beverage products and bubble water. Di Jie estimates that the market scale of sugar free bubble water is about 80 billion.
However, the threshold of bubble water is not high. Within the industry, it is not difficult to complete the formula of bubble water, so the same product can be developed soon; in various cities in China, there are also many OEM factories providing OEM production for brands. Therefore, nearly 200 bubble water brands have sprung up overnight. But even so, few bubble water brands can shake the leading position of Yuanqi forest. It may be an exception that the spring comes out of the mountain to know the root and the bottom of the forest.
Qingting bubble water developed by Qingquan is close to Yuanqi forest, and is distinguished from three aspects: first, consumer groups. Yuanqi forest focuses on urban white-collar workers aged 25-35, while Qingquan is targeting younger users aged 15-25, who are more likely to try new things. Second, the price band. The retail price of Yuanqi forest bubble water is 5.5 yuan and 6 yuan, and the price of Qingting bubble water is 5 yuan, and the price is adjusted according to the market feedback at any time, which will not damage the brand, but also ensure the most reasonable income. Third, functional attributes. At present, bubble water in the market mainly focuses on the concept of “sugar free”, while Qingting bubble water mainly focuses on “dietary fiber”. Starting from the functional attributes of regulating intestines and stomach, the product differentiation is realized. In fact, dietary fiber + is not Qingquan’s initiative. Sprite has already introduced the taste of fiber + and it has been selling well. The smart thing about Di Jie is that his Qingting not only absorbs the sugar free selling point of Yuanqi forest, but also combines the fiber + of Sprite, making it unique in the bubble water category.
Of course, from the packaging point of view, Qingting is also Japanese style. This is also a deliberate follow-up strategy.
After the bubble water of Yuanqi forest was sold in 2018, Yuanqi forest began to increase advertising and channel laying in 2019, and the scale of bubble water market grew rapidly. Qingquan just needs to do better in product “micro innovation” and share the dividend. Therefore, with the “follow” strategy, Qingquan will soon become a powerful player in the bubble water market, next only to Yuanqi forest, by targeting at more subdivided young consumers, from the aspects of price gap and differentiated functions.
For FMCG, “channel is king” is never out of date. Especially in the case of little difference in product and taste, who can control more channels and control more channels will be able to make a neutral battle in the market competition.
Previously, China’s FMCG giants, including Wahaha, mostly adopted the method of “rural encircling the city”, that is, the county market should be established first, and then the urban market. In the new era of consumption, many new brands do the opposite, creating heat online and opening markets offline through new channels such as convenience stores. The most prominent example is the vitality forest.
Qingting, which was marked by Yuanqi forest as soon as it was launched, adopted another set of tactics – “base area” high-density channel coverage strategy, that is, taking the model city as the base area, penetrating it deeply, and then expanding to other cities, forming an all-round multi-channel layout from point to surface.
In the model city, after careful consideration, the choice is Kunming in the southwest and Xi’an in the northwest, rather than the first tier cities in the north, Shanghai, Guangzhou, Shenzhen and so on. There are a large number of college students in Xi’an, which Qingting wants to cover. Although Kunming has a permanent resident population of only 3 million, this tourist city has a floating population of 7 million every year, which is very suitable for the promotion and diffusion of new beverage products.
Specific to each city, Qingquan always takes its product’s crowd positioning, that is, the range of activities of consumers aged 15-25 as the starting point, starts from the campus where they gather most often, and then expands to the surrounding convenience stores, KTV, bars, billiards courts, restaurants, small shops and other consumption scenes, realizing the high-density occupation of the core consumer groups. This kind of channel development method around a certain core city and a certain age group (occupation) is similar to Dongpeng teyin.
This method not only improves the channel depth and coverage density of Qingquan mountain, but also reduces the cost of supply chain, logistics and management, and becomes the magic weapon of Qingquan’s single point breakthrough.
In fact, for consumers, their loyalty to FMCG is not so high. In many cases, they can accept alternative brands of the same category. Especially compared with bubble water, a new beverage product, more intensive channels can cover more people, and the availability leads to the purchase rate.
For dealers and retailers, they usually like to introduce new products in order to replace the products with low gross profit, especially those new products which are hot in some fields, which means more sales and profits for them. Compared with Yuanqi forest bubble water, the cost of raw materials, bottles, packaging and logistics of Qingting bubble water is not much different. However, because there is no advertising, Qingting can still let dealers and retailers set aside more profit space when the price is lower than that of Yuanqi. They are willing to pay more attention to the product placement and consumer recommendation of Qingting.
High density channel, high channel profit, so that Qingquan mountain in Xi’an, Kunming sales volume, sales beyond the vitality of the forest. After Qingquan got financing quickly, Qingquan began to spread to more cities with this high density.
Li Yong, the manager of Qingquan Chushan’s Zhengzhou agent, told blue shark that it has goods. In Zhengzhou, Qingquan has developed five agents, covering universities, catering and other channels. The convenience stores and supermarkets he is responsible for can sell 5000 cases of Qingquan Chushan (Qingting bubble water + trapped tea) every month.
Spring comes out of the mountain
The micro invasive new products and the high-density channel operation in the base area complement each other, making Qingting bubble water, which is out of the mountain, quickly become the new gas bubble water brand second only to Yuanqi forest, with monthly sales peak of more than 300000 cases.
More importantly, the success of Qingting has laid a solid brand and channel foundation for follow-up products. In July 2020, Qingquan launched a new product – “trapped tea”. In the first month of marketing, the sales volume exceeded 900000 bottles, which seems to be the next popular product.
However, di Jie, who hopes to take Qingquan as his life-long career, is not satisfied. He often thinks unconsciously: why is Huiyuan juice brand in China destroyed in 28 years, while Coca Cola in the United States still stands after more than 130 years. Besides Cuba and North Korea, Coca Cola can be sold to more than 200 countries and regions in the world? Why can Coca Cola sell tens of billions of yuan in China after it has been sold for hundreds of years? Why can Coca Cola represent a national culture while other drinks can’t?
There are too many Coca Cola marks on di Jie. Up to now, Dijie is still using Coca Cola’s quality management system thinking to manage Qingquan’s coming out of the mountain: making plans – problems encountered in implementation – what goals have been achieved and which have not been completed – repeatedly checking which links have gone wrong – and re formulating plans. In a round of repeated deliberation and practice, we have promoted the R & D of Qingquan new products and orderly development of all kinds of work.
In terms of organization and management system, Qingquan also borrowed some ideas from coca cola. According to sun Daqiang, although sales is very important for FMCG, there is no unified general sales person in charge of Qingquan. Instead, the sales leaders in various regions are responsible for their own development, giving them sufficient initiative and salary.
In the future, with the development of Qingquan Chushan’s brand, the sales person in charge of each region can also become the general person in charge of a certain region, responsible for all aspects from product research and development, processing and production to marketing and sales, not just sales. This is similar to the organization and management mode of Coca Cola, in which the person in charge of each region takes charge of everything, starts from the factory, deeply ploughs into the local market, and does a thorough job. However, its highly standardized modules keep the products and prices of each region at the same level.
Although Qingquan chose “millet Cola” as the first product, there was a factor of “touching porcelain” millet, but it did not contain the ambition and dream of paying homage to Coca Cola and becoming a Chinese local company similar to Coca Cola with fine, orderly and lasting attitude. “Why is the spring so small that it can flow out of the mountains and stones?” Sun Daqiang said that the name of the company is “dripping water wears the stone”.
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