China Food

Eager to get rid of the “net red” label of the vitality of the forest, will become the next farmer spring?


 

Taking advantage of the new consumption, we have witnessed the rise of many domestic brands, such as perfect diary, Yuanqi forest and santong.30. However, as far as the brand growth path is concerned, they are only in the first stage of “0 to 1”, and the next stage is the key to test whether the brand can be prosperous.


 

In the just concluded double eleven, the vitality forest, which has only been established for four years, is not at all “low-key”.

Not only won the champion of water and beverage sales of tmall Jingdong two platforms in one fell swoop. On tmall platform, the turnover of Yuanqi forest exceeded 1000W in 37 minutes, and exceeded the total sales volume of last year in 42 minutes, an overall increase of 344% over last year.

Since the beginning of this year, Yuanqi forest has been paid close attention. Recently, according to the enterprise check app, laomeng Beverage Co., Ltd., which is wholly owned by Yuanqi forest, was established. At the same time, Yuanqi forest also added a number of “you can really line” trademarks, including food, beer and beverage, etc.

Obviously, the rapid growth of the vitality of the forest does not seem to stick to the immediate achievements, began to plan for their own new development path.

Undeniably, as a new consumer brand, the first battle of Yuanqi forest is very beautiful. But if you want to gain a foothold in the competitive soft drink market, the vitality forest is still too young.

Eager to break away from the “net red” label of vitality forest, will it become the next farmer spring, or will it be replaced by another brand?

“Bubble water”
coming out of the new consumption tide

The success of Yuanqi forest is inseparable from two “accidents”.

The first is to catch up with the new wave of consumption. According to the data, the proportion of China’s consumption in GDP has increased from 35% 10 years ago to more than 55%. In the next decade, the proportion of consumption in GDP is estimated to reach about 70%.

For new brands like Yuanqi forest, it is undoubtedly catching up with the good times. This is also an important reason why, at the beginning of the year, when the epidemic market was cold, the national consumption enthusiasm remained unchanged, and many brands were able to maintain good sales.

In recent years, the generation Z represented by the post-95s and the post-00s has attracted the attention of the consumer market. Different from the previous consumer groups, generation Z with the label of “personality” and “minority” have greatly improved their demands for healthy life, and the brands of healthy tea drinks and nutrition substitute meals have ushered in a new “outlet”.

This is the second chance of Yuanqi forest. Relying on the concept of “sugar free + bubble”, it has successfully found a breakthrough in the competitive soft drink market.

The concept of sugar free is not new. In the past two years, Coca Cola and Sprite have launched sugar free series one after another. Although they do bring psychological comfort to some health seeking consumers, they are also condemned as “poor taste”.

As for bubble water, in terms of taste, it is actually similar to carbonated drinks, and there are more soft drink brands to make carbonated drinks, so it is more difficult to “get out of the circle”.

In order to meet the consumption concept of “healthy and low calorie” on the premise of ensuring taste, Yuanqi forest sugar free bubble water with 0 sugar, 0 fat and 0 calorie was born. Consumers can not only get the pleasure of carbonated drinks, but also do not have to bear the “fat crisis” brought by sugar, as well as fresh fruit flavors such as white peach and Carman orange.

It can be said that Yuanqi forest has found a most suitable product path for itself, and has successfully captured the hearts of a large number of consumers. In the flagship store of tmall in Yuanqi forest, according to the composite index, the top ones are almost bubble water except milk tea.

However, this does not mean that Yuanqi forest has established its foothold in the bubble water market, because there are not a few pursuers following it.

Some of them are big brands represented by Coca Cola. As early as 2017, Coca Cola bought the Mexican bubble water brand TOPO Chico from canning company Arca continental for $220 million. In March this year, Coca Cola officially launched its new brand aha, which focuses on low heat gas bubble water.

There are also a number of milk tea brands represented by Xi tea. Tea lovers have tried to blend the taste of soda into tea, but the taste is not good. While the newly launched “Xi Xiaoping” series selected to highlight the fruit flavor, it also reduced the sweetness, which was quickly recognized by some consumers.

Recently, in tiktok, Xiaohong book and other platforms, we have been able to see the promotion of “Hi bottle”.

There is no technical barrier for bubble water. Although Yuanqi forest has occupied the market earlier, it is still unknown whether it can maintain the sales growth in the face of many competitors.

The next farmer spring?

The development of explosive products is facing a threat. For Yuanqi forest, it may be time to think about new problems: will we continue to make explosives rapidly in the future, or will we turn to precipitation as a brand?

From the recent action of Yuanqi forest, it seems to have the intention of making a brand.

Recently, Yuanqi forest has upgraded its brand logo for the first time, changing the controversial word “気” into Chinese character “Qi”. The official said that the new logo will be applied to all product lines.

Because of the existence of the word “気” in the logo, Yuanqi forest was once labeled as “pseudo Japanese”. Now the word “気” has been replaced. It can be seen that it does not want to borrow the east wind of Japanese system, and wants to be a good local brand.

If you are a brand, you can’t avoid benchmarking with big brands. In part, the decision-making of Yuanqi forest seems to be drawing closer to Nongfu mountain spring.

The first is marketing. The “0 sugar, 0 calorie, 0 fat” advocated by Yuanqi forest and “a little sweet” advocated by Nongfu mountain spring are both a bit of “drilling holes” in concept. Erythritol, the sugar substitute used by the former, is actually not healthy for long-term consumption, while the latter is “a little sweet” which is difficult to be directly perceived from the taste.

The second is the production base. According to the official website of Nongfu Shanquan, 137 automatic production lines have been put into use, including 106 drinking water production lines and 31 beverage production lines.

As we all know, Yuanqi forest has been OEM under Jianlibao, the first brand of national beverage. In July this year, the first production base of Yuanqi forest was settled in Chuzhou, Anhui Province. The base has three production lines, and the annual output is expected to reach 450 million bottles after completion.

According to the relevant person in charge of Yuanqi forest, there are three self built factories to be built this year, namely, Chuzhou base phase II, Guangdong production base and Tianjin new factory.

It is not difficult to find that after the “pseudo Japanese system”, the “OEM brand” will become the next label to be torn off in Yuanqi forest.

Finally, in terms of brand marketing, the two focus on “public welfare activities”.

Nongfu mountain spring has started the “one cent project” since 2001. In 2017, Nongfu Shanquan and the famous British comedy Relief Foundation’s “red nose Festival” reached an IP cooperation, delivering 250000 free lunches for children in poor mountainous areas of China.

After the outbreak of the epidemic at the beginning of the year, Nongfu Shanquan actively participated in the volunteer work, donated and delivered packaged drinking water products to medical personnel, military police and relief agencies in major hospitals across the country.

In terms of Yuanqi forest, in mid June, the outbreak of Xinguan epidemic broke out again in Beijing. Yuanqi forest donated several boxes of drinks to the expatriate team set up by Beijing Anding Hospital.

On November 14, the “Yuanqi forest protecting beautiful countryside Photography Exhibition” was held at the xiezilong Image Art Museum in Changsha, Hunan Province. It is reported that since this year, Yuanqi forest has provided targeted protection and donation to 10 beautiful villages in Hunan and Xinjiang.

Of course, just based on these similarities, we can draw the conclusion that “Yuanqi forest is hopeful to become the next farmer spring” is somewhat reluctant. Compared with this beverage leading enterprise established in 1996, Yuanqi forest has more obvious disadvantages.

① The main products have no competitive advantage: the mineral water series of Nongfu mountain spring belongs to rigid demand, while several main products of Yuanqi forest are not, so it is difficult to gain advantages in the competition with the former;

② Production depends on big OEM: Although we are also setting up our own bases, it is almost impossible to catch up with Nongfu Shanquan in a short time;

③ Products have not yet formed a matrix: the existing popular “milk tea” and “bubble water” have no obvious technical barriers, which are easy to be reprinted or even surpassed by mature brands;

④ There are no big advantages in sales channels: Although Yuanqi forest, which comes out of convenience stores, has begun to enter the online market, it obviously has no great advantage compared with Nongfu mountain spring, which has been deeply cultivated for many years;

⑤ Brand voice is weak and negative: “pseudo Japanese”, “pseudo health”, “OEM brand” There are not many negative labels on the vitality forest whose brand volume is not large. It is estimated that it will not be so fast to tear off all the labels.

Obviously, compared with Nongfu mountain spring, the two are not of the same order of magnitude, and the vitality forest has a long way to go.

It’s hard to tear off the “net red” label,

Both popular products and brands have to pay attention to

Further, it seems that it is not so easy for Yuanqi forest to give up the identity of “online Red” to specialize in brand. After all, in terms of product sales, at this stage, we still have to rely on bubble water and milk tea to make money.

The growth of brand needs explosive products. For example, in addition to mineral water, Nongfu mountain spring also has many popular soft drinks such as Oriental leaves, tea π and vitamin water.

And we are familiar with the big brand drinks almost have not ignored the creation of “explosive products”. For example, Coca Cola’s once popular “queer”, Wahaha’s once sold out of stock nutrition express line, beer tea Shuang, etc.

But it’s hard to make a brand just by using popular products. Prince’s milk, which once occupied the leading position in China’s lactic acid bacteria industry, is a good example.

Prince’s milk was officially launched in 1997. At that time, China’s lactic acid bacteria market was not as saturated as it is today. With its sour and sweet taste, Prince’s milk lactic acid bacteria successfully won the favor of many consumers. In 2001, the revenue of Taizi milk was 50 million yuan. In 2007, it reached 2 billion yuan, a 40 fold increase.

However, this once so successful brand has almost disappeared. In April 2010, Taizi milk group declared bankruptcy. Although in recent years, it has been reported that new Hualian and Sanyuan Group will jointly participate in the “restructuring” of Taizi milk group, it is obvious that this is no way out for Prince milk.

There are many reasons for the decline of Prince milk: signing “high risk” gambling agreements, crazy expansion of production base But one reason must not be ignored – the single product line.

At its peak, Taizi milk group did not continue to change its products after “Prince milk”. Instead, it invested a large amount of money to build production bases, and at the same time, it continued to expand into food, children’s clothing, media, real estate and other fields.

Relying on the only “explosive products” to let the brand stand firm, Prince milk’s wishful thinking is obviously wrong. It can be said that its decline is inevitable.

The relationship between “explosive products” and “brands” is complementary to each other. No matter where the focus of enterprises inclines excessively, it may bring irreparable consequences.

Therefore, for Yuanqi forest, it is not so much to choose a road between “making explosives” and “making brands”, but to find a balance between the two.

Conclusion

Taking advantage of the new consumption, we have witnessed the rise of many domestic brands, such as perfect diary, Yuanqi forest and santong.30. However, as far as the brand growth path is concerned, they are only in the first stage of “0 to 1”, and the next stage is the key to test whether the brand can be prosperous.

Whether the vitality forest struggling between “explosive products” and “brands” can deliver a brilliant answer sheet, we can only wait and see.

*All the pictures in this article are from the Internet

Author: Tu Lin; source: tanglangfin, reprinted with authorization. Join the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). Who will be the next popular sugar free category of ? |Mintel Asia Pacific food and beverage industry trend plastic packaging position is not guaranteed, perfect substitute has emerged? Which potential stocks do Tesco and tmall look for? Daily product collection: Isee trends | editor’s | reader’s

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