China Food

One month after the launch, the sales exceeded 3 million yuan, with an estimated value of several hundred million yuan. Buffx, a new brand of functional soft candy, is killing chickens with “ox knife”

the only way to kill a chicken is to use an ox knife. Only in this way can we kill it faster.
From 3C products to fashion trends, from Internet technology to daily consumption, new domestic brands are emerging irresistibly. Tiktok and Kwai are also becoming the main competitive positions of new brands along with the rise of live marketing. This new platform is forming a tacit strategic alliance with new brands.
So, what will happen if people who come from new platforms start their own businesses and become new brands? Recently, blue shark has an exclusive interview with Kang Le, the founder of buffx. Kang Le himself has been involved in tens of billions of projects in Netease, byte beat and other Internet companies. The new brand of functional soft candy, buffx, which has not been launched online, has obtained two rounds of tens of millions of financing. One month after the launch of the product, the sales volume has rapidly exceeded 3 million, and the third round of financing has been obtained quickly. The valuation has risen to hundreds of millions Yuan has become the target of many functional foods.
As the leader of functional food category, how does Kangle, the founder of buffx, view the new brand wave, why he chose the category of health care products, and how did he make buffx a popular brand? Blue shark is in stock, trying to solve the mystery one by one in this article.
Kang Le, founder of buffx
no data, no business
“Many people have asked me why I want to start a new brand, and my answer makes many people feel embarrassed, because my starting a business is not driven by a dream like” let there be no difficult business in the world “, but a rational choice brought about by sufficient data,” Kang Yue said frankly.
Tiktok became the leader of BrandStudio’s voice after the NetEase resigned, and tiktok became the new Department of the new brand of BrandStudio. In the process of taking the post, Kang Le saw such a trend – information equality, which is very beneficial to the rise of new brands.
“For the post-80s generation, people who live in Lhasa and Beijing get different information. As mobile phone and B tiktok rise, a mobile phone can understand all the same information through video. This generation’s cognition, aesthetics, preferences and other aspects tend to be consistent, and China is about to usher in an era of national brands. “
Tiktok tiktok Kwai Kwai and other platform information, the more precise algorithm, the more thorough understanding of young people’s consumption behavior, so that the platform of shaking, fast and so on in the new brand hatching to start God mode. According to the internal data of jitter, tiktok believes that the two categories are the most important.
First, wine. Young people choose more foreign brands, and the sales growth rate of foreign brands is far faster than that of domestic brands. The reason is very simple, young people do not agree with the traditional Chinese wine culture. As long as there is a new liquor brand to change this culture, it may become the next Maotai in China.
Second, health products. Chinese health products do not have the ability to communicate with Chinese young people. In young people’s view, Chinese health products are often inseparable from pyramid marketing, and there is an over marketing problem. In recent years, Chinese young people are crazy to buy foreign health care brands. In fact, many foreign brands are “bathing foreign brands”. Swisse, the most famous health care brand in Australia, was founded by Chinese students in Australia. Its raw materials are 100% from Anji, Zhejiang Province, but it is just to transport the powder to Australia to be pressed into pieces. Chinese young people would like to have their own brand of health care products.
Tiktok tiktok saw the opportunity of new brand incubation, but it was not suitable for the interior of the jitter.
Very simply, the revenue from advertising in 2017, 2018 and 2019 is about 12 billion yuan, 50 billion yuan and over 100 billion yuan respectively. Kangle’s new brand incubation department, with a 120 member team, can achieve only 50-60 million yuan per year. The profit margin of advertising business is more than 70%, and the profit margin of new brand incubation is only about 20%. As a company that believes in algorithms, it is difficult for new brands incubated internally to get traffic tilt.
To this end, Kangle gave up its stock valued at tens of thousands of yuan and joined in new brand entrepreneurship.
opportunities for new brand development of functional food
“Why not choose wine? This category is very difficult to do. Kaishan and jiangxiaobai have already done it, but they haven’t come out until now. The reason why we choose functional food as the subdivision track of health care products is that there is a huge information gap in this category, and the ROI is also very high, “Kang Le told blue shark,” we can earn 3 million yuan by investing 1 million yuan. “
In fact, the profit margin of health care products is extremely high. Kang Le revealed that unlimited profit margin as high as 95%. Of course, a considerable part of this is used for profit sharing at all levels of channels. Kang Le believes that the “long board” of this sales model of health care products conceals its potential risks.
On the one hand, under the layer by layer distribution mode, the publicity of each level is magnified, resulting in over marketing, “the initial function of the product is to nourish the brain, and it may become a cancer treatment in the end”; on the other hand, the high profit also makes the brand easy to be lazy and unwilling to invest a lot of money in R & D.
Kang Le believes that compared with the original health care brand, the new brand has no historical burden and is more likely to win the trust of consumers. Focusing on the original brand of health care products “long board”, it is easier to make a differentiated new brand, and it is a new brand which is quite different in product, marketing, channel and so on.
In fact, Kang Le’s idea of brand building stems from his experience as brand director of Netease. Why can Netease yanxuan rise under the omnipotent Taobao? Taobao has a long “long board” – omnipotent mode. There are too many products that make consumers fussy. Only through search can they find them. Netease’s strict selection is contrary to its practice: there are not many choices, the quality is not bad, and the price is not expensive, which immediately attracts the attention of the majority of consumers.
In the health care industry, there is also a huge information gap. Consumers generally believe that the products purchased overseas are better than those purchased at home.
“China is the best place for health products.” Kang Le told blue shark that melatonin is available. Taking melatonin as an example, this kind of raw material that helps consumers sleep quickly is a kind of hormone with strong drug resistance. Overdose will cause the human body to no longer secrete melatonin during sleep. In China, melatonin can not be added at will, and the upper limit should not exceed 50 mg. However, in the United States, the melatonin content of some health products is 10 times higher than that of similar products in China.
The supply chain of health care products in China is leading in the world. Vitafusion, the first brand of American adult nutrition candy, 60% of its products are produced by a health technology company named xianle in Shantou, Guangdong Province.
AB test: strategy throughout
There are many kinds of health care products. Which one? Kangle takes a very “byte beating” way to make decisions – AB test.
“Which one are we going to do? Swallowing, fudge, or compression, effervescent tablets? We don’t know and we don’t draw conclusions easily. The answer to this question is “let’s just believe that we are beating.” Kang Le told blue shark that it was in stock, “we used 12 versions of the product to do research.”
Kangle first found more than 50 young people to come to the company and put 12 different products in front of them, saying that they could chat while eating. In fact, Kang Le’s interest is not in the questions answered by the testers, but in the process of eating and chatting with them, observing which product they subconsciously take.
Kangle then found a convenient store with good relationship in Zhengzhou and asked the staff to promote the 12 kinds of products for consumers, and clearly told the consumers that they were health products with the function of helping sleep or protecting eyes, so as to see which one they would choose to buy.
After these two tests, the data tells Kang Le to make soft candy.
After the category is determined, Kangle divides the products into two levels: one is useful, the other is delicious. On the useful level, shaking data show that the most searched words are sleep, eye protection, Yang strengthening, immunity and health. This makes Buff X soft sweets subdivided into different categories: BUFF X EAT (healthy diet), BUFF X SLEEP (pressure and sleep), BUFF X EYES (eye care eye), X (male boost), and tiktok (daily immunity). Just recently, buffx also launched its latest refreshing new product, buff x energy.
The process of product R & D is extremely complex. The R & D personnel of buffx and the scientists of a pharmaceutical factory jointly test it repeatedly. Taking the aphrodisiac functional soft candy as an example, they conducted repeated screening in more than 4000 raw materials, and finally determined the ratio of black ginger as the main material and other materials as auxiliary materials, and condensed it into soft candy with better taste through advanced manufacturing technology at appropriate temperature.
Buffx took half a year from ab test to product development.
Tiktok, NetEase, has been selected by the NetEase, which has been chosen by Yan Qiang and NetEase. The BuffX has completed the investment of thousands of Yuan China’s angel capital with the investment of Sequoia China. Four months later, buffx received tens of millions of yuan of pre-A round financing from GGV Jiyuan capital, Sequoia China and meihua venture capital. However, buffx’s delay in launching its products has really confused investors. But under the group inspection, found that Kang music is busy with testing and research and development, so rest assured.
However, what really gives investors a reassurance is the big sale of buffx products: after the launch of functional soft candy, the monthly sales exceeded 3 million yuan.
Kangle’s founding team is also excited by another data: three days after the launch of the product, buffx got tmall’s natural search traffic, especially the three big words of sleep aid, sleeping candy and functional candy.
In Kang Le’s impression, he has done hundreds of tmall stores before, but there has never been such a precedent. He believes that this is mainly due to the previous six months of testing, the final choice of the track is very clear, and in the new brand development node.
The AB test logic of buffx also extends to the following links such as traffic operation.
Take short video marketing as an example, they will conduct repeated rounds of testing. For example, in the first round, they will first make 30 scripts to provide some basic information they want to convey, such as sugar free fudge is delicious, so that 30 Kocs can make short videos and distribute them at the same time. In the second round, they will see which short video content runs well. They will take it to outline it. With the support of stars and other assistance, they will form the best content direction. Then they will give 700 Kocs, and let each Koc create its own content and distribute it. In the third round, the Koc video with the highest ROI among these short video content will be put on 1000 more Kocs. In round after round of testing, consumers have actually picked their favorite short videos for buffx.
to kill chicken
Many start-up companies, due to the lack of ability of the founding team members, or the founding team due to interest disputes and half die, not a few, Kang Le is also deeply aware of this. In the founding team of buffx, a large number of excellent people gathered:
The founder of tiktok was the head of the Brand studio department and the NetEase’s brand director. BuffX also has NetEase’s original selection of supply chain leaders, the original director of the tiktok market, and the original marketing cooperation manager, and the marketing team from NetEase, Ali and other Internet giants.
The reason why the team is so well equipped is that Zhang Yiming, the founder of Kangle group, repeatedly said: “the talent density of a company must be higher than the business complexity of a company.”. He understood it as, “to kill a chicken is to use an ox knife. Only in this way can we kill it faster.” Each member of the founding team of Kangle has worked on major projects worth more than 10 billion yuan.
How to avoid internal friction caused by inconsistent ideas when so many people get together? Kangle has considered this situation from the beginning, and carefully designed the partnership plan: three limited partnership companies were established, and then the three companies controlled buffx. The actual controller of each limited partnership company is Kangle, and other partners can obtain relatively more equity through this design. Therefore, Kangle gets the actual control of buffx and controls the direction of buffx. This equity distribution scheme ensures the stability of the company and is also a structure that investors are very happy to see.
According to Kang Le’s disclosure to blue shark, there are already investment institutions competing for the third round, and the company’s valuation has risen to several hundred million yuan, which is only more than 40 days since the official launch of buffx products.
Is it Kangle who chose functional fudge or functional fudge who chose Kangle? In Kangle, the answer doesn’t matter. He is the representative of rational entrepreneurship – entrepreneurship is not an impulse for the ideal, but a decision based on enough information.
“In fact, my aesthetic is that Netease chooses that style strictly. Until now, I don’t think I would buy a consumer product with such a beautiful package. In my aesthetics, I don’t quite accept this package, but why don’t I change it? Because this is the result of consumer data information feedback, my personal aesthetic is not important, “Kang Le told blue shark that it was in stock. Before the product was made, buffx put different packaging products on tmall through train to let consumers Click to see which packaging they like best.
Author: Chen Shifeng; source: blue shark in stock (ID: lanshayouhuo), reprint authorized. Joining the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). How to make yoghurt in 2020? Daily new products: Isee trends | editor’s | reader’s

Read the original

Similar Posts

Leave a Reply

Your email address will not be published.