China Food

52%! Xiangpiaopiao this sales record high, also said that “Naixue” rise is a good thing

Recently, the impact of Naixue’s tea IPO will push the business of milk tea into the spotlight again. So, when the new tea is booming in the capital market, how is the life of traditional brewing milk tea represented by fragrance?


On this issue, xiaoshidai recently had an exclusive communication with Elsa, the youngest senior executive of xiangpiaopiao and the general manager of its Internet business unit. She pointed out to xiaoshidai that with the rise of new tea, what the company felt was not pressure, but more dividend opportunities.


In the past not long new year, Xiangpiao Piao has made a good start. Xiaoshidai learned from xiangpiaopiao that the company’s sales in 2021 tmall New Year’s festival reached a new high, with a year-on-year growth of 52%. In the above exchange, Elsa, general manager of xiangpiaopiao Internet business unit, revealed that the company launched a number of new products for the new year’s festival and launched a large number of communication resources online.


In addition, she also talked about the opportunities of brewing milk tea, her views on new tea drinks, and rejuvenation. Today, let’s listen to what the post-90s executive said.


Sustained growth


With the explosive growth of new tea drinks in recent years, some outside voices think that this has impacted the traditional brewing milk tea to a certain extent. However, in the latter’s representative player Xiang Piaopiao’s view, this is not the case.


“I think the outbreak of new tea is a very good thing, because it actually makes the cake of the whole milk tea market bigger.” Elsa told xiaoshidai, “when the cake is bigger, the market demand for milk tea is expanding.”


She said that as milk tea has been given birth to greater demand and more popular tastes, it has also brought certain benefits to xiangpiaopiao. “What we can optimize is to put some fashionable tastes into products, so that people can drink their favorite tastes more conveniently.” Elsa revealed that xiangpiaopiao’s Taro Shuangpin and soybean milk Shuangpin launched last year are to cater to the new trend of taste and also help attract new consumers.


However, Elsa also pointed out that Xiangpiao Piao and new tea are not on the same track. Because in terms of pricing, there is a certain distance between the two products. In addition, in the consumption scene, Xiangpiao Piao has a stronger recognition in the home scene, while new tea drinks are more dominant in the social scenes such as shopping.


“If you’re alone at home, it’s difficult even to order milk tea to take out, because you can’t afford to deliver it.” Elsa told xiaoshidai that xiangpiaopiao’s differentiation advantage is that it is more convenient and fast, and its basic plate for brewing milk tea is also very stable and growing.


Xiaoshidai noticed that Haitong International’s research report released in early February said that thanks to the rich product matrix and sinking channels, xiangpiaopiao’s brewing milk tea revenue grew steadily from 2017 to 2019, with a compound annual growth rate of about 10.8%. As a major domestic cup milk tea business enterprise, xiangpiaopiao maintains the first market share for 8 consecutive years from 2012 to 2019, with a market share of 63.1% in 2019.


At present, xiangpiaopiao operates three brands: Xiangpiao, lanfangyuan and MECO, covering brewing milk tea, juice tea, liquid milk tea and other categories.

The consumer groups targeted by the above brands are different. Elsa told xiaoshidai that the main users of xiangpiaopiao brand are office workers and student party members, aged between 18 and 35. Lanfangyuan, which is more high-end, aims at white-collar workers and college students in first and second tier cities. The core target group of MECO is generation Z, mainly women aged 15 to 25.


Against the backdrop of last year’s COVID-19, the company’s operating income and net profit fell sharply in the first quarter of 2020. In order to meet the challenges, the company actively adjusts its business strategy, focuses on key products and channels, and optimizes the investment of resources and expenses. By the fourth quarter of last year, the operating performance had increased significantly.


Xiang Piaopiao pointed out in the latest performance forecast for 2020 that it is expected to achieve an overall operating revenue of about 3.772 billion yuan last year, a decrease of about 206 million yuan compared with the same period of last year, a year-on-year decrease of about 5%; it is expected to achieve a net profit attributable to shareholders of listed companies of about 355 million yuan last year, an increase of about 08 million yuan compared with the same period of last year, a year-on-year increase of about 2%.

Entering the new year, xiangpiaopiao has begun to lay out its future growth. Turning to the opportunity point, Elsa pointed out to xiaoshidai that, on the one hand, fragrance depends on the product drive, through which more consumption scenarios can be cut to bring new value to consumers. Interestingly, compared with other topics, the post-90s Xiangpiao executive seems to pay close attention to “product drive”, and repeatedly stressed that this is the key to obtain consumers and business increment.


On the other hand, Elsa also believes that it is necessary to cultivate new consumers while seizing the existing customers. For example, during the e-commerce peak season of this year’s new year’s festival, the Internet business unit under its leadership has listed the recruitment of members as one of the key tasks, hoping to attract more generation Z, cutting-edge white-collar workers and exquisite mothers aged 15-25.


“Our investment in online marketing resources has increased, including some (advertising) of precise touch users, and attracting young consumers to our stores through new products such as milk tea self heating pot.” She said.


be younger


As an old brand of China’s cup milk tea, Xiang Piaopiao has made a lot of efforts in the transformation of youth, and the Internet business unit established in 2018 is one of the examples.


Elsa revealed to xiaoshidai that xiangpiaopiao had two original intentions to set up the Internet business unit. First, we hope to communicate with consumers more closely through the Internet, so as to timely understand the changes in demand. Second, we want to grasp the young group of the original generation of the Internet, and use their familiar products, marketing methods and channels to obtain such consumers. “Brand rejuvenation is very important, because you always hope to seize the next generation, so that you can continue to have vitality.” She said.


Previously, Xiang Piao Piao Chairman Jiang Jianqi also told xiaoshidai that he hoped that the Internet business unit would gradually change the company’s original feeling of being a traditional enterprise. “I personally spend a lot of energy, but I mainly listen, speak less and listen more, because we have to trust young people.” He said.

Qi (information picture)


In the recent exchange, Elsa said that xiangpiaopiao Internet division is mainly responsible for e-commerce business, user growth and product incubation. In the Kwai tiktok business, the Department has been running mainstream platforms such as Tmall and Jingdong, as well as new platforms such as Xiao Hong, jitter, and fast shop. Xiaoshidai introduced that the company’s e-commerce revenue in 2019 has exceeded 100 million yuan, and Jiang Jianqi once said that he is very confident in the growth target of e-commerce in 2020.


In terms of user growth, this business unit is responsible for insight into user needs and accumulation of AIPL population. It is reported that by the end of 2020, the number of fragrant AIPL people has reached 212 million. (Note: the four letters of AIPL represent brand cognition group, brand interest group, brand purchase group and brand loyalty group respectively)


In terms of product incubation, the Internet business unit is mainly responsible for new products for new white-collar workers and Z generation, and trial sales through online channels. For example, in this year’s new year’s festival, xiangpiaopiao launched a number of new products for young people, including “sugar controlled milk tea” with zero sucrose addition, self heating pot with card ventilation packaging and more ritual during brewing.


It is reported that the inspiration of the above two new products comes from the employees of xiangpiaopiao Internet business department, whose average age is about 26 years old. “We think it’s very important for young people to make products for their peers. It’s very difficult for a person over 50 to fully understand the life of an 18-year-old. Then we will try our best to involve more young people to make products that are more suitable for their age group. ” Elsa said.


Interestingly, she also told xiaoshidai that an important principle for her to enter the Department is that she likes to drink milk tea, and she would ask the interviewers what they usually like to drink and how to evaluate the brand of milk tea. “I think food producers, in particular, must love what they want to do in order to make good things.”.


“It’s the most important thing for us (Department) this year to get more Z generation and new white-collar users through product driving.” Elsa said.


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