China Food

Ruixing coffee hit the bottom and rebounded: the story of self redemption, the deepest interpretation of the whole network


 

如果说中国市场谁有机会超过星巴克、先开到一万家店恐怕仅此“瑞幸”。

 


Ruixing has never lacked topics since its birth. Whether from the perspective of consumers or investors, he always looks different. He can always bring people imagination and surprise.

Under Ruixing, there are countless Keywords: coffee, new consumption, capital, Internet, marketing, private domain, explosive products, delisting, counterfeiting, growth, rebirth

If I need a complete story, I think of “Monkey King”. Gifted, learn from teachers, violate the rules of heaven, take scriptures from the west, eliminate demons and subdue demons, and achieve positive results.

The story is to connect many focuses of Ruixing and restore a three-dimensional Ruixing. If you don’t know his past, how can you understand his present and see his future

The high-level founding team has built the underlying framework of Ruixing. Based on Internet thinking, online runs through the user side and supply side, and the thinking from flow realization to product realization is upgraded. It has the characteristics of rapid scale and diminishing marginal cost. In terms of tactics based on strategy, marketing, products and supply cooperate with each other, forming a good cooperation, laying the foundation for Ruixing’s “rebirth journey”.

Ruixing’s fast pace, whether it is the problem of capital chain or the expansion of ambition, makes it go on a road of no return and operate fraud. As a result, Ruixing has entered a dilemma at home and abroad. There are contradictions and conflicts between counterfeiters and investors, various lawsuits and delisting, and the stock price plummeted. Ruixing in the wind and rain, bankruptcy rumors and models are not questioned.

In the internal struggle, the counterfeiters were washed out. The investor supported Guo Jinyi as the chairman. The new board of directors and new management were ordered in the face of danger, and xinruixing was born. On the one hand, deal with the aftermath of the capital layer, on the other hand, adjust the strategy of the management layer. The capital layer reaches a settlement with the SEC, obtains new financing, and carries out financial restructuring through bankruptcy protection; The management emphasizes the profitability of single store, the transformation of marketing to private domain, the diversified development of product line and the formation of explosive product building ability. Over the past year, xinruixing stores have recovered their growth trend and ushered in profits as a whole.

A story of bottom rebound has just begun. In the near future, xinruixing will successfully restructure, withdraw from bankruptcy protection, return to the capital market and accelerate its expansion. If China’s coffee market, who has the opportunity to surpass Starbucks and who can open 10000 stores first, I’m afraid it’s only “Ruixing”.

Ruixing was born

——Born in nobles, don’t compete with civilians

Most brands grow from small to large, like tea, Starbucks and manner. Starting from the thatched cottage, he has no ambition to seize the world. Follow the trend and have the heart to fight for fame. Behind it is a pile of white bones, which can be described as “one will succeed and ten thousand bones wither”.

Ruixing started with a golden spoon. Lu Zhengyao, chairman of the board of directors of Shenzhou, took his own army to start a fight to form a “combat iron triangle”, and introduced foreign aid Li Hui (founder of Dazheng capital) and Liu Erhai (founder of pleasure capital) to form a “logistics iron triangle”.

The luxurious lineup has established Ruixing’s visionary business form and strategy in the early stage, so that when we look at it a few years later, this model structure is still leading, which is the inherent advantage of few brands.

Two iron triangle

The two triangles started in June 2017 and June 2018 respectively, just one year before and after.

In June 2017, Ruixing coffee was established. In October of the same year, the first store, Galaxy SOHO, opened. With new Internet retail, low-cost and high-quality coffee began to enter the domestic coffee market. Ruixing was born.

Wangjing SOHO store map

In June 2018, Ruixing obtained round a financing from Dazheng capital and pleasure capital. But in fact, a year ago, Li Hui and Lu Zhengyao were planning Ruixing project. This time, it was a fair entry. After gathering grain and grass and replenishing ammunition, Ruixing coffee began to accelerate financing and expansion. Ruixing broke the circle and became famous.

Number of Ruixing early stores

Ruixing’s appearance is not accidental. The story of his founders is the prequel of Ruixing’s story.

Lu Zhengyao, Li Hui and Liu Erhai were once known as the “iron triangle” of the Shenzhou system. In 2005, Liu Erhai invested in Lu Zhengyao’s entrepreneurial project – United Automobile Club; In 2010, Lu Zhengyao met Li Hui, who was the head of Huaping Capital China in the process of financing. Li and Liu also participated in the Shenzhou car rental and Shenzhou excellent car after Lu Zhengyao. Ruixing is no exception this time.

Qian Zhiya and Liu Jian are both generals trained by Lu Zhengyao, which can be called the “battle iron triangle”. Qian Zhiya started as an administrator, and Liu Jian joined Shenzhou after graduation and helped him all the way to Ruixing CEO and coo.

The two iron triangles form a good complementary model. Almost from the beginning, they made an overall plan, from business model, brand positioning, financing and listing. It is also their most commonly used model and familiar formula: fast forward, occupy the mind and market, and enter the door of listing.

The operation mode is fixed. Why did you choose to make coffee? This has to talk about China’s coffee market and the change of business format at that time. Judging from the coffee financing case in 2021, it must be said that Ruixing had enough foresight to choose the coffee track four years ago.

The coffee market is growing fast and the market is large. According to the data of China Merchants Securities in 2017, the annual growth rate of Chinese coffee is about 10%, much higher than the growth rate of 2% in the global market; China’s market size is about 102.4 billion yuan, far lower than the annual coffee consumption market size of about 3 trillion yuan in the United States.

The rise of new retail / consumption concepts. In 2016, mobile Internet traffic has peaked, and short videos and various communities have become popular, becoming a grass planter for consumer brands. The big discussion on “people and goods yard”, now the hot new consumer brands have appeared or entered the vision of investors at that time.

According to Ruixing’s original design, the product market has potential and the business model has a future. Whether it’s a coffee story, a consumption story, or an Internet story, it’s worth the founders to see the prospect and investors to see the return.

Apprenticeship

——Hold high and hit hard. Practice basic skills secretly

What made Ruixing famous in the early stage was not coffee, but the viral fission relying on “advertising and subsidies”. People were curious about this model and doubted its vitality. However, behind Ruixing’s fierce fight, Ruixing has continuously strengthened its product and supply side and done a good job in undertaking viral fission.

two point one   Marketing side –   High density and multi-dimensional coverage, hard made brand

If we look back on the phenomenal brands in 2018 and 2019, Ruixing should be among the best and quickly occupy the white-collar population in the first and second tier cities at an amazing speed.

Ruixing’s essence is to rely on capital and use systematic marketing strategy to build Johnson & Johnson brand. In this context, Ruixing has formed its own system through continuous practice. Although Ruixing is now much more low-key in marketing, its previous cases are still circulating in the market. Of course, one person must be mentioned behind Ruixing marketing: Yang Fei, CMO of Ruixing coffee and the author of flow pool.

Ruixing early activity Poster

Ruixing’s marketing seems to be advertising + issuing coupons, giving people a feeling of nouveau riche. But in fact, behind it is multi scenario marketing coverage, high-density and rapid occupation of users’ minds, high subsidies and high conversion rate.

Most brands penetrate into the hearts of users with the advantage of time through “constant dripping through the stone”. However, Ruixing is a “high-pressure water gun”, which uses density and strength to penetrate directly into the hearts of users.

Ruixing does marketing promotion in almost conceivable channels, and accurately covers the target user group in multiple scenarios and dimensions. This kind of marketing gives people the first impression of burning money, but Ruixing’s marketing team has inherited China’s relevant marketing experience and channel resource advantages, and achieved high ROI through high-precision and efficient delivery strategies.

Under this marketing network, it is almost difficult to miss the net. For example, white-collar user a saw Ruixing’s Tang Wei poster in the office elevator; When I returned to the station, I brushed the information flow and saw Ruixing’s exposure; The official account of Ctrip, Kindle and 36Kr has been promoted. I went home to watch the game in the evening and heard Ruixing’s name; Then before going to bed, see microblog hot search; The next day, I ordered a glass of Ruixing, because “little blue cup, who doesn’t love, don’t be white, don’t”.

Ruixing’s early marketing channels

two point two   Product end  — Internet based, minimalist products

Ruixing’s product end can be divided into “Internet products” and “consumer products”. Ruixing broke into the consumer market with internet thinking. In the process of integration, develop strengths and avoid weaknesses, focus on online and simplify products.

Ruixing’s internet capability is embodied in digitization. Users’ purchase and payment links are unified and online, which can not only improve the standardization of offline personnel, reduce training costs and facilitate replication; Avoid order queuing and take care of the user experience; More importantly, all user data are online. Through the underlying data, we can track the multi-dimensional data such as customers’ basic information, consumption behavior and preferences, so as to continuously improve the user portrait, and refine marketing, product iteration, supply chain adjustment, store location, etc.

Ruixing applet

The more precipitated this data is, the more valuable it is. This ability is almost impossible and dare not be achieved by many new consumers and even new tea brands.

Ruixing’s consumer products are naturally coffee, which belongs to the catering industry. It is a comprehensive consumption of scene + service + quality + taste.

Starbucks took the lead in introducing the concept of the third space into the coffee shop to bind coffee consumption and space consumption for a long time. Costa, man coffee, island coffee, Pacific Coffee and so on all emphasize scene consumption in product attributes. Space consumption has indicators such as traffic and table turnover rate. At the same time, there is a risk of poor evaluation in scenes and service links. The simpler the product meets the demand elements, the better. Ruixing coffee cuts down the consumption expectation of the third space and takes quality and taste as the consumption core. This cognition has hit the user’s brand cognition from the beginning. It tears open cracks in the existing market and finds differentiated scenes.

How about Ruixing’s service? This is the most common question of other catering brands, but few people will ask Ruixing like this. Ruixing is only responsible for performing the contract offline. It has little contact with the waiters, whether it is delivery or pick-up at the store. Ruixing is like a convenience store, but the production workshop is in front, which may be no move.

Quality is a consumption factor pursued by consumers at present. Naixue and Xi tea are the representatives of the quality of new tea. For tea, the material is the key to determine the quality. Coffee is even more so. Each different combination of coffee bean quality, grinder, coffee machine, milk, other ingredients and barista will produce a magical chemical reaction.

The raw beans used in Ruixing coffee are high-quality Arabica beans (generally speaking, Arabica is mainly used in single or boutique coffee, and robusta is used to make instant coffee). It is baked by a world-famous baking company and uses a full-automatic Italian coffee machine. The powder thickness and extraction time are fixed parameters, which is less dependent on the Barista.

Ruixing workshop  

Ruixing’s milk is basically from farms in Australia or New Zealand. Syrup uses world-famous syrup, one of which also manufactures syrup for Starbucks.

The final foothold of catering consumption is naturally taste. Ruixing’s product team introduced many WBC (world coffee competition) champions to jointly develop Ruixing coffee. The impact on taste also includes the maintenance of coffee equipment and the adjustment of regular parameters. Ruixing integrates all coffee machines into the monitoring system, which can automatically monitor the performance of coffee machines and timely report any repair and maintenance requirements, digitally manage the national equipment and ensure the stability of taste. With good raw materials / equipment and top baristas, the final presentation is the “little blue cup, who doesn’t love” in the hands of consumers. In fact, we can get a glimpse of the overall reputation through some blind tests in the market and the evaluation of consumers on social media.

Previously, the blind test of coffee taste organized by Guosheng securities concluded: “Ruixing coffee is not difficult to drink. Even compared with Starbucks coffee, which is more expensive, its taste still has certain advantages. Ruixing has fulfilled its commitment to the high standard quality of coffee. It is a “delicious” coffee. “

Blind test of Guosheng securities

In December 2019, Shenzhen news network and China Quality Wanli Bank jointly invited 20 coffee lovers to conduct blind tests on the four mainstream coffee brands in the market – Starbucks, Ruixing, Pacific and Costa. Adhering to the fairness and impartiality of the evaluation, the evaluation team started from the five dimensions of coffee delivery time, cost index, appearance performance, taste blind test and comprehensive index, Conduct a comprehensive blind coffee test. Ruixing comes first.

Blind measurement of quality in China

By cutting off the elements of scene + service demand, Ruixing can focus on quality and taste, which is easier to standardize and replicate. So as to meet the ability to undertake online marketing, and through the consumer product itself has a certain reputation fission ability, coupled with marketing stimulation, there is a real foundation for rapid expansion.

two point three    Supply side  —  Carry the leader and build it yourself to stabilize the source

For chain brands, the invisible battlefield is often at the back end. Supply chain is not only the foundation, but also the existence of ceiling restricting development. From the development strategy of Ruixing’s supply side, we can see its ambition. The supply side here generally refers to all links and processes before product delivery.

On the supply side of Ruixing, the upstream of raw materials has developed from multi well-known brand cooperation to self built supply chain, and the quality stability is better guaranteed; The management ability of midstream platform relies on Digitization and efficient operation, opening the ceiling of rapid expansion; Downstream distribution, through density radiation, high-quality distribution service.

Ruixing launched the “blue Partner Program”. Most of the equipment and materials are the top 10 suppliers in the world, and nearly 200 partners have obtained the “Ruixing coffee global blue partner certificate”. The procurement concept is to use both good and expensive products. The world’s top coffee machine manufacturers, Swiss Shelley and franca company, the world century old syrup brand Fabry company, the world’s largest dairy enterprise Fonterra group, Mitsui products, the world’s top three raw coffee bean traders, taiwanyuanyou, one of the largest professional coffee baking factories in Asia, and so on.

Ruixing “blue companion program”

Ruixing not only cooperates with global famous brands, but also sets up factories in joint ventures with famous brands. Ruixing coffee and LDC signed a strategic cooperation agreement in Singapore. The two sides will build a joint venture to develop high-quality fruit juice joint brand business in China. On January 7, 2020, the foundation of Ruixing coffee baking base in Xiamen was officially laid in Tong’an Light Industry Food Park. The total investment in phase I is 300 million yuan, and it is expected to produce 30000 tons of coffee beans per year.

The management ability of midstream platform, Ruixing’s innovation in the chain market is also reflected in store operation. Based on digital operation, Ruixing has achieved good replication ability. Similarly, the intelligent operation driven by technology makes the store operation very simple. From order circulation, to product production, to raw material supply, to equipment management and then to personnel management, Ruixing is realized through digital system to minimize human interference factors.

Users purchase online through app; The store manager does not need to manage inventory and shift scheduling, and the system completes it automatically according to the data; The equipment (coffee machine and refrigerator) has corresponding sensing equipment, and the data of all machines are uploaded to the cloud and monitored through the background system; There is no human factor in ordering. The system automatically orders and counts every day; Most of the personnel management processes are online and so on. In the whole system, many functions of stores and employees are stripped, reducing the large-scale industrialized digital assembly line to a small store.

It is such a high degree of fine operation and systematization that the ultimate cost control is realized. Ruixing’s labor cost and consumption are much lower than Starbucks.

In the downstream distribution link, Ruixing cooperates with SF. SF’s own advantage is quality and speed, which is in line with Ruixing’s product positioning. At the time of delivery, consumers can hear the courier say “Hello, your coffee”, and the sense of brand coherence becomes a school of its own. Huang Yun, Assistant CEO of SF group, once said: “Ruixing’s average delivery time is 16 minutes, and customer satisfaction reaches 99.7%.”

two point four    list  — I watched him put on a banquet

On January 7, 2019, Ruixing coffee announced the appointment of reinout schakel as the company’s chief financial officer and Chief Strategic Officer (the former executive director of Standard Chartered Bank of Hong Kong) to report to CEO Qian Zhiya. Ruixing coffee may pave the way for its future listing. Sure enough, only three months later, on April 22, 2019, Ruixing coffee officially submitted its prospectus to the securities and Exchange Commission in the United States.

On May 17, 2019, Ruixing coffee was successfully listed on NASDAQ on Friday, with the securities code of “LK”.

Ruixing coffee on the market

From its establishment to IPO, Ruixing coffee took only 17 months, which has also become the world’s fastest IPO company. Perhaps everyone at moment is shocked by speed of the Ruixing’s listing, and they don’t know that there are more shocking things in future.

two point five   business model  — Flowers are becoming more and more attractive

Early doubts about Ruixing were heard everywhere“ The happiness from burning money doesn’t last long “,” take away coffee doesn’t have a moat “and” in fact, Chinese people don’t like coffee so much “. We always look at new things and new models from the old perspective, relying on the success or failure of similar models. So is Ruixing ofo or didi? The key to the money burning mode of the Internet is the marginal trend of expenditure and income in the middle and later period.

From the qualitative point of view, Ruixing did not follow the traditional consumer brand model and developed slowly through word-of-mouth. Instead, it follows the Internet model, relying on the diminishing marginal cost of scale expansion under informatization and the exponential growth of income brought by growth, so as to realize profit at a certain node. A key point here is that the selected consumer goods have high-frequency and growth attributes, and there is no doubt that coffee does.

Through this set of digital mode, middle platform mode and front-end performance mode, Ruixing can reduce store costs, customer acquisition costs, personnel costs and raw material costs, reduce the comprehensive advantages formed by the price at hand, and improve the overall profit.

Ruixing’s early marketing investment accounts for the majority. First, with high-precision investment experience and resource advantages, its own cost is lower than that of many enterprises. Secondly, Ruixing’s early-stage marketing, with the increase of the number of users, the cost of obtaining and retaining customers will be greatly reduced.

From the public data, the operating loss rates in the four quarters of 2018 and the first quarter of 2019 were 966%, 283%, 201%, 138% and 110% respectively. In the first quarter of 2019, the cost of Ruixing coffee to obtain new customers decreased from 103.5 yuan to 16.9 yuan, and the previous two quarters were 25 yuan and 51.6 yuan respectively. The trend of continuous decline was obvious, and the promotion cost also decreased from 15.8 yuan to 6.9 yuan.

So far, Ruixing model seems to be gradually recognized.

Make a fuss on NASDAQ

——Fake delisting and saw his building collapse

Ruixing’s storm has become his turning point. Earth shaking changes have taken place in the management, capital and team, and Ruixing has shocked the world again.

three point one   Muddy water explosion

Muddy water threw out an anonymous report on February 1, 2020 and said it would short Ruixing coffee. This anonymous report not only questioned Ruixing’s financial data, but also enumerated Ruixing’s business risks and disadvantages of its business model.

The series of figures listed in this report can easily catch the attention of investors: “92 full-time and 1400 part-time investigators”, “collected more than 25000 tickets”, “10000 hours of store videos”, etc.

But many organizations choose to believe in Ruixing.

The Research Report of CICC believes that this anonymous short selling allegation lacks effective evidence, the grass-roots research data is not representative, the observation days and small tickets of a single store are small, the understanding of the applicable value-added tax rate for packaging products consumed in the store is wrong, and the allegation of falsely increasing advertising expenses and single store profits is more subjective.

“I don’t think it’s correct to be bearish on the report,” said the managing partner of citron capital. After analyzing the business of Ruixing coffee, discussing with stakeholders and competitors and viewing the payment data of the company, it was decided to hold the position of Ruixing coffee.

This muddy water short did not really change Ruixing’s position in the hearts of investors. But it foreshadowed the self explosion behind.

three point two   Delisting storm

On April 2, 2020, Ruixing coffee revealed that it was fake. After the audit of the 2019 annual report found problems, the board of Directors established a special investigation committee.

The committee found that Liu Jian, the company’s chief operating officer, and some of his subordinates had forged transactions. The information determined by the preliminary survey results shows that from the second quarter of 2019 to the fourth quarter of 2019, the company falsely increased the transaction volume by up to RMB 2.2 billion, and the relevant expenses and expenses also falsely increased accordingly.

After the opening of U.S. stocks on the same day, Ruixing’s share price fell precipitously and finally closed at $6.4/share, down 75.57%. Ruixing’s market value shrank overnight to 1.62 billion yuan and evaporated $5 billion.

The share price of Ruixing coffee plummeted on the same day

On May 12, 2020, Ruixing announced the adjustment of the board of directors and senior management, and the CEO and coo were suspended. Co founder Guo Jinyi served as acting CEO, and Cao Wenbao and Wu Gang became directors of the company. On May 19, Ruixing issued an announcement, received a delisting letter from Nasdaq and decided to submit an application for hearing to NASDAQ.

However, on June 24, Ruixing informed the listing qualification examination staff that it decided to withdraw the above hearing request and did not seek to overturn or suspend the decision of the listing qualification examination staff on the company’s delisting from NASDAQ.

On June 27, 2020, Ruixing coffee issued a statement that the company would suspend trading on NASDAQ on June 29 and delist for filing. At the same time, Ruixing coffee will operate normally in more than 4000 stores across the country.

On July 1, 2020, Ruixing coffee announced that the internal investigation had been basically completed. It is revealed that the company’s special committee found that the forged transaction began in April 2019, and the company’s net income in 2019 was exaggerated by about 2.12 billion yuan (RMB, the same below). Among them, the inflated revenue in the second quarter of 2019 was 250 million yuan, the inflated revenue in the third quarter was 700 million yuan, and the inflated revenue in the fourth quarter was 1.17 billion yuan.

The news of NASDAQ delisting caused a sensation all over the country for a time, and consumers were worried about whether Ruixing would go bankrupt, whether their coupons could still be used, and whether they could still drink national coffee. Ruixing did usher in a wave of users’ coupon exchange, but it did not go bankrupt, but it became more low-key.

Pressed powder single market

——Reap the consequences, adjust the strategy and regenerate the strength

Since the delisting of Ruixing, most people think they can’t trade, but in fact, Ruixing went to the powder list market.

During Ruixing’s delisting, the new tea and coffee track was particularly active and financing continued. Ruixing is short of arms and legs at the capital level. It was also this year that Ruixing was reborn in a low-key way, began to pay attention to profitability, found many ways to get out of the circle, and gradually became plump. What Ruixing is going through at present, in fact, vaguely indicates his future.

four point one   Powder sheet Market

The function of the pink sheet market is to provide trading and circulation quotation services for those stocks that choose not to be listed on the American stock exchange or NASDAQ, or do not meet the listing conditions. Specifically include:

1、 Securities delisted from Nasdaq stock market or exchange because they no longer meet the listing criteria;

2、 Securities withdrawn from OTCBB to the pink single market in order to avoid becoming a “reporting company”;

3、 Other securities for which at least one market maker is willing to quote.

In the practice of securities trading in the United States, most of the stocks traded in the pink sheet market are forced off the market or OTC because the company itself cannot regularly submit financial reports or major event reports.

The powder sheet market has the characteristics of insufficient supervision and relatively poor liquidity. In fact, for companies that can trade in the pink sheet market, there are many less normal financing means, which is considered disabled at the capital level.

four point two   Internal cultivation skill

Ruixing’s model requires continuous capital promotion, and finally crosses the breakeven point. However, in this disaster, at least the capital is indifferent to Ruixing. Without the external force of capital, the model has been hit, which can be said to be in danger. Ruixing can only start from the existing basic plan. No one knows the good or bad luck. However, from the perspective of the future, many people will say that this step highlights the value of Ruixing in advance.

Ruixing’s main contradiction at this stage is money. With the least money, it will bring the greatest benefits. Pay attention to the profitability of single stores, close unprofitable stores, open franchises and reduce capital investment; Give up the money burning era of holding high and beating hard in marketing and open a new era of privatization; The product line is developing towards diversification. It not only pays attention to tea products, other coffee products begin to occupy the market, but also develops peripheral products. It has opened the era of product reputation. It is popular once a month, and the product has a strong ability to break the circle. At the same time, the supply chain advances steadily according to the previous rhythm.

Single store profitability strategy

Shutdown loss.

Ruixing made major adjustments in store strategy under the dual influence of the epidemic and the capital market. Suspend Qian Zhiya’s grand plan to open 10000 stores by the end of 2021. Pay more attention to whether the profit model of a single store can run through.

Ruixing CMO once said in an interview: “Ruixing’s goal of opening 10000 stores will be temporarily stranded. This year, the store opening strategy has been adjusted to” close down and switch over “individual stores with poor benefits or overlapping customer coverage. At the same time, it continues to open new stores, control costs and ensure revenue. The focus is to improve the retention and frequency of stock users, reduce costs and increase efficiency. In addition, Ruixing coffee said, It will speed up the opening of stores in good areas. “

As of November 30, 2020, the number of Ruixing coffee stores had decreased from 4507 to 3898, including 894 affiliated stores. In the first three quarters, Ruixing coffee closed 65, 378 and 448 stores respectively, and the number of newly opened stores was 69, 134 and 133.

From December 16, 2020, the joint liquidator of Ruixing coffee submitted its first report to the Grand Court of the Cayman Islands. From the report, 60% of Ruixing coffee’s self operated stores have achieved profits, and the revenue also achieved double-digit growth in the first three quarters of this year.

Ruixing’s single store model in its own store began to run straight. Since the single store model has been established, it should expand rapidly and further share the comprehensive cost. So Ruixing’s next move: open to join.

Join tuozhang.

The expansion of Direct stores requires good cash reserves or financing capacity. In fact, Ruixing doesn’t have it at that node. However, we can expand the brand by joining in and obtain the benefits brought by the franchise store at the same time.

In January 18, 2021, WeChat official account of Rui Xing coffee released a new retail partnership recruitment plan, announcing its release. Without charging any form of franchise fee, you can have a Ruixing coffee with an initial investment of about 35W (Ruixing side investment). Ruixing earns income in the way of stepped Commission.

Ruixing franchise information

In the process of contacting one of the store managers, I also learned a lot of implicit information. Ruixing doesn’t seem to cut leeks:

1 – Ruixing’s equipment is cheaper than the same products found online. On the device, there is no money.

2 – I don’t want to open it. The equipment can be depreciated.

3 – the store address is submitted by the store manager. Ruixing will finally determine the address according to the model to avoid the follow-up problem of unprofitable store.

4 – Ruixing’s opening is gradually tightening, and this window may be closed in the near future.

Franchise and direct marketing are always the choice of a catering brand. Direct marketing can control quality, and franchise can expand coverage and brand influence. It is also a choice that every brand will make. Ruixing is very suitable for joining, but he is very restrained.

Suitability means that Ruixing has a high degree of standardization and digitization, and stores and employees need to participate less. Human variables can be reduced in food quality control, which is very suitable for sinking.

Restraint means that Ruixing’s open franchise only opens third and fourth tier cities or even lower tier cities. Leave the most potential market for yourself and continue to open in the future. From the information of new stores published by Ruixing every week, the vast proportion of new stores is indeed franchise stores in three or four cities.

Franchise store in a third tier city

Marketing privatization strategy

After Ruixing’s capital was limited, Ruixing gave up money burning fission in marketing and followed the private domain marketing method after the epidemic. Ruixing’s own model is a set of online process and offline performance model. It is much easier than many brands to start the road of private domain.

There are many brands in the private domain, and few can be revitalized. The private domain does not mean that a matrix and a process can bring value into play, but that the private domain can really become a part of the user link.

The user’s cognition of Ruixing is online, and the action before consumption is to get coupons. Getting coupons has become a strong hand in the private domain, and Ruixing’s sense of private domain existence has a natural strength. Whether it’s new or retained, “do you want to drink Ruixing cheaply and stay in my private domain”.

Then activate users through fine operation of private domain. It has to be said that the user education of receiving vouchers has revived the closed-loop private domain.

Ruixing’s private domain based flow chart

Under this mode, there are specific technologies and specific operation strategies.

1 – ticket collection entrance visible to all private domain traffic – forming user path dependence;

2 – several private positions drain each other – increase access channels and improve marketing effect;

3 – innovate, retain and promote multidimensional activation throughout the user’s life cycle – to ensure the maximization of user value;

When users enter the private domain, Ruixing is also further strengthening its interaction with users. Micro-blog and official account often do interactive activities. Through interaction, Ruixing not only strengthened user stickiness, but also increased the understanding of users. Whether it’s the reward for forwarding, sun photos and monthly favorite powder plan in microblog; It’s also the WeChat official account, the award interaction, the sweepstakes, the drinks, etc. Through private domain and interaction, Ruixing is no longer a simple cup of coffee, but a way of life.

In addition to opening up territory in the private domain, Ruixing’s previous marketing methods also continue, but the momentum is not so fierce.

On the star endorsement, on March 1, 2021, actor Tan songyun became Ruixing brand ambassador. This is also the first official announcement of a new partner after Ruixing exposed the negative news. On May 6, after the May Day holiday, Ruixing official announced Li Luxiu as the brand ice coffee recommender on the first day of work, and launched the advertising film Ruixing yyds. It was released in less than 24 hours at station B, and the broadcast volume has exceeded one million. This advertisement is still read on the microblog with 100 million + topics.

Publicity map of popular “raw coconut latte”

In terms of event marketing, for example, in August 2020, when there was a rainstorm in Beijing, Ruixing took the opportunity to launch a marketing activity: it is estimated that the small blue cup can be filled in a few minutes.

Ruixing event marketing

Ruixing’s advertisement implantation can be seen in the TV series “eye of the storm” broadcast in 2021.

Stills of eye of the storm

Ruixing’s private domain marketing play fully excavates the user value left by early advertising marketing. At the same time, Ruixing is slowly recovering its previous marketing methods.

Production line diversification strategy

Previously, Ruixing’s products, whether Ruina ice series or Ruixing tide products, are the performance of diversified product lines. Ruixing not only adheres to this direction, but also enlarges its investment in this regard.

Among Ruixing’s new products this summer, Reina ice series accounted for the majority. The coffee market can be described as steadily occupying the user’s mind, and began to seize the market of Xicha, Naixue and Baidao tea through tea series. Even the number of new product R & D in tea exceeds that of many tea brands.

At the same time, Ruixing chaopin and comprehensive shopping mall mode began to settle in various e-commerce platforms.

On July 20, 2020, Ruixing coffee’s official microblog announced that JD’s self operated flagship store was opened. On August 24, 2020, Ruixing coffee’s official microblog announced that Ruixing officially settled in pinduoduo.

Ruixing Jingdong self operated store opened

Use its own brand advantages to expand sales channels. At the same time, Ruixing’s coffee products, ear coffee and instant coffee, are often listed in the sales list, forming a comprehensive coffee product brand.

Competing brands are also favored by capital. Tianchuan coffee, a brand of guaer coffee, has completed round B financing of nearly 300 million yuan; Instant coffee brand three and a half meals, completed a new round of financing of hundreds of millions of yuan, and the post investment valuation is 4.5 billion yuan.

Ruixing guaer coffee ranks first in pinduoduo category

Product explosion strategy

Relying on the broken circle of raw coconut lattes this year, Ruixing not only sold out of stock in the whole network, forcing the person in charge of product R & D to pick coconuts in Hainan in person, but also triggered a number of new tea brands to emerge a variety of coconut milk product series. Only the raw coconut series sold more than 10 million cups a month.

The person in charge of the product went to Hainan to collect coconuts in person

Ruixing explosive products can not be regarded as a strategy, but pay more attention to product innovation and provide users with more quality and delicious drinks. Last year, Ruixing’s new products have basically formed a rhythm of pushing one wave a month, with “thick milk latte”, “Yangzhi manna”, “thick milk latte”, “raw coconut latte” and other popular models emerging in the middle.

Ruixing’s innovation promotion ability has formed a fixed mode:

Research and develop the matching mode of coffee + everything, reduce the bitterness of coffee and the cognition of pure functionality, and realize the new coffee of functionality + taste. It can be taken as the coffee market of Starbucks and the milk tea market of tea, which is a real mass product.

In terms of marketing, with the advantages of private domain and social marketing, it can cover enough new customers. Once a product is praised, it can strengthen marketing and form a popular scene of social fission based on word-of-mouth.

In terms of undertaking new product production, stores are highly standardized, learn the process updated on app, and have low threshold new product production ability.

In terms of undertaking the supply chain, a stable and high-quality supply chain ensures that thousands of tons of products provided to stores every month are highly consistent in flavor, properties and so on.

Ruixing internal Seminar on “promoting innovation”

Ruixing’s past new product data and final results reflect the strong innovation promotion ability and experience in creating popular models. People have to believe that there will be countless explosion funds in the future.

Supply chain strengthening strategy

Ruixing has little change from its previous strategy on the supply chain side. The overall demand has not decreased, and the pursuit of quality has not changed. Continue to improve the quality supply chain and strengthen the construction of independent supply chain.

In January 2021, Ruixing signed the strategic cooperation framework agreement on the procurement of high-quality coffee beans in yegaxuefei, Ethiopia. In April, the procurement of 1000 tons of Yunnan fine coffee beans in the new production season 2020 / 2021 was completed.

The supplier of “frozen raw coconut milk” in Ruixing’s new raw coconut latte selects high-end brands, fino and coconut extract.

The previously invested baking base was also officially put into operation in Fujian on April 18, 2021. The annual baking capacity of coffee beans is 15000 tons, which can realize full-automatic production from raw bean processing, baking, packaging, stacking to storage.

Ruixing uses its own coffee supply chain system to purchase global high-quality coffee beans, including high-quality coffee beans from Yunnan, China, so as to realize the upgrading of the whole industrial chain of high-quality raw beans + efficient supply chain + unique baking production and processing mode + high-quality terminal services.

Ruixing coffee gradually opens up and realizes the extension of the whole industrial chain. It can control the coffee quality in the whole process and provide high-quality, cost-effective and convenient products.

four point three   The foreign enemy is strong and brave

In the year of “frugality” of Ruixing, earth shaking changes have taken place in the overall external market. New tea and coffee tracks are hot, and more giant capital begins to support their own coffee brands. The competition pattern has become more complex, which is not only the choice of investors and consumers for this big track, but also a challenge for Ruixing itself.

The new tea has formed a preliminary market pattern“ “Naixue’s tea”, the first share of new tea, was listed on the Hong Kong Stock Exchange on June 30. On July 13, Xi tea completed round D financing, with a financing amount of US $500 million, and the current valuation amount has reached 60 billion yuan. After the initial formation of the new tea market pattern, more capital found the potential track of coffee.

Coffee financing in the first half of 2021

Boutique coffee has gradually entered the vision of investors, including Internet giants such as “Tencent”, “byte beat” and “meituan”.

Tims, a coffee chain brand, announced in May 2020 that it had received hundreds of millions of yuan of investment from Tencent.

Manner, a boutique coffee brand, became a star brand in the first half of 2021 and was invested by well-known institutions such as Temasek, meituan Longzhu, byte beat and so on.

There are more voices about the coffee market than in previous years. In terms of product positioning, TIMS and Starbucks both emphasize the concept of spatial consumption, while manner and Ruixing both take the form of takeout coffee, a competition between old and new forces.

At present, in the coffee market, rising stars are difficult to shake the giant position of the front wave, and it is difficult to form a monopoly in the consumer market. In the end, it is more likely to form a market pattern of diversified consumer brands. This investment tide is more like a filling war.

Learn the classics and set out

——Take the blame, regroup and start again

A wrong Ruixing, wholeheartedly starting again. On the one hand, Ruixing adjusted its strategy and optimized its mode of operation. On the other hand, it is to eliminate the previous management and give an explanation to the market.

At the capital level, gradually resolve the negative impact of previous business fraud. Ruixing has been on the road of making the overall situation better and better. Only when people observe things, they applaud and applaud when the results appear.

five point one   Regroup and start again

The board reorganized and put on clean clothes

During the delisting storm of Ruixing, the members of the board of directors changed very frequently. Among them, two changes in the membership of the board of directors are the most critical.

The final result is that the core management centered on Lu Zhengyao is out. A key background is the explosion of their previously Pledged Shares.

Change chart of board members of Ruixing coffee

The first time was on May 12, 2020, Ruixing coffee announced that CEO Qian Zhiya was terminated. At the same time, Qian Zhiya and coo Liu Jian were kicked out of the board of directors, and Guo Jinyi, the company’s co-founder and senior vice president, took over as CEO, and announced the addition of senior Vice President Cao Wenbao and vice president Wu Gang as new directors. Ruixing coffee has made a big change in the management in order to tell the outside world about the company’s business fraud.

On July 5, 2020, Lu Zhengyao, Li Hui, Liu Erhai and Shao Xiaoheng, the independent director of Ruixing coffee, were removed from the appointment of directors as a result of the special general meeting of shareholders of Ruixing coffee. At the same time, two new independent directors Zeng Ying and Yang Jie are added. The two candidates for independent directors have relatively deep legal background. Ruixing coffee has made a major change in the management, hoping to lead the company to a new life through the new board of directors.

During the change of the board of directors, the once “iron triangle” had conflicts in front of interests. Li Hui and Liu Erhai, as directors, insist on independent investigation, which is beneficial to their respective funds. However, Lu Zhengyao was unwilling to cooperate with the independent investigation.

After the internal bucket is completed, the management layer tamps the foundation

On the evening of January 6, 2021, a letter of request for the removal of the chairman and CEO of the board of directors of Guo Jinyi Ruixing coffee (hereinafter referred to as the letter of request) flowed out on the Internet.

The removal request letter wrote that “due to the immorality and incompetence of the current chairman and CEO Guo Jinyi, the company has reached the edge of survival”, “we solemnly request the board of directors and major shareholders to immediately remove Guo Jinyi from his position as chairman and CEO and appoint a new senior management of the company as soon as possible.” Subsequently, Guo Jinyi made a positive response to this, pointing out that it was led by Lu Zhengyao and Qian Zhiya.

Ruixing internal open letter

On January 8, 2021, Ruixing coffee issued a statement on the company’s official website that the board of directors had established an independent committee to investigate the allegations made by some employees in the letter. On February 17, Ruixing coffee said that the special group of Ruixing coffee’s board of directors had concluded its internal investigation of chairman and CEO Guo Jinyi and found no evidence to prove its misconduct.

Ruixing coffee said that the board of directors will continue to fully support Dr. Guo and his management team. On February 18, Guo Jin, CEO of Ruixing coffee, issued an internal letter, in which he said: “the past 2020 is the most difficult year since the establishment of Ruixing coffee. It is gratifying that with the joint efforts of all partners, we continue to provide customers with high-quality products and services, realizing the bottom rebound and contrarian growth of Ruixing coffee”.

The letter revealed that by the end of 2020, Ruixing had nearly 4800 stores, and the sales volume of current drinks exceeded 300 million cups; At present, there are nearly 100 million registered users. In January 2021, Ruixing opened more than 120 new stores. At the same time as the internal letter, there is also a document on the organizational structure adjustment and appointment notice of Ruixing coffee from the human resources department.

Ruixing internal information

Ruixing’s more than 200 days of “internal fighting” came and went back several rounds, and the flowers gradually became charming. The core behind is the competition for interests led by Lu Zhengyao and Li Hui.

Support agents and compete against each other

After the fraud broke out, Lu’s capable generals, CEO and coo were washed out of the board of directors and management. However, after Lu and Li had a contradiction about the investigation, they all left the board of directors and retired behind the scenes. The competition for actual control between them is realized by adjusting their own agents in the board of directors.

Cao Wenbao, Wu Gang, Zeng Ying and Yang Jie joined the board of directors in two batches, which were recommended by Lu. Cha Yang and Liu Feng are new directors initiated by Li Hui. From this point of view, although Lu Zhengyao, Li Hui and Liu Erhai all left the board of directors, their forces are clearly visible. The core is the investigation faction and fraud faction. Lu: Guo Jinyi, Cao Wenbao, Wu Gang, Zeng Ying, Yang Jie. Li: Liu Feng, Cha Yang, Zhuang Weiyuan.

Quitting and defecting, the outcome is divided

In the subsequent board of directors, Yang Jie and Zeng Ying nominated by Lu Zhengyao have resigned. Shao Xiaoheng, who had been kicked out by Lu, re entered the board of directors.

The directors of professional managers such as Guo Jinyi, Cao Wenbao and Wu Gang choose to accompany Ruixing to tide over the difficulties and rebuild Ruixing, which probably needs some future interest promises. Liu Feng, Cha Yang and Zhuang Weiyuan are still members of the board of directors.

The last struggle is powerless

Lu lost control of the board of directors and core management. From bottom to top, launch a joint report letter to try to support the agent again. Even if there are 46 signers, including 7 vice presidents, 5 directors and 34 regional managers, the general trend is gone and there is no way to return.

In the final open letter, Guo Jinyi said that “some of the employees involved did not know the truth and were coerced to sign” and matched Ruixing’s business data. Guo Jinyi is also making efforts to save some people. “Ruixing has developed very well. You don’t know the truth. This signing doesn’t matter to you.”.

At least in terms of new personnel appointments, Cao Wenbao, senior vice president, will be responsible for the operation line, Yang Fei, chief growth officer, will be responsible for the growth line, and Zhou Weiming, senior vice president, will be responsible for the product line, all of which will report to Guo Jinyi. It can be seen that the core management is willing to believe Ruixing and go on with Ruixing. I’m afraid this will also affect the choice of most middle managers.

So far, Ruixing’s board of directors and management have made a clean break from the previous “fake Ruixing”. During the internal struggle, Ruixing’s data in all aspects have been greatly improved, and can’t the stable management bring more surprises?

five point two    Capital market self rescue

When new tea and coffee brands take financing and expand the market one after another. Ruixing is in the powder trading market, and the share price was even lower than US $1. In contrast, the situation is really miserable. However, Ruixing is also actively self-help. This is precisely this attitude, which makes game investors see the opportunity and have Ruixing’s first ten times story.

Ruixing has reached a settlement with the SEC, submitted for bankruptcy protection and refinanced. Any node is the only way to save Ruixing’s capital market. In all this, the expert Dazheng capital behind Ruixing has the ability and strength to save Ruixing.

Settlement with SEC

On December 17, 2020, Ruixing issued a statement saying that it had reached a settlement with the US Securities and Exchange Commission (SEC) on the suspected financial fraud of some former employees, agreed to a permanent ban and paid a fine of US $180 million to reach a settlement.

Ruixing reached a settlement with the sec

The background of this statement is that on that day, the U.S. SEC will file a lawsuit to the court accusing Ruixing of violating the anti fraud, reporting, books and records and internal control provisions of the U.S. federal securities law.

Without admitting or denying it, Ruixing agreed to reach a settlement with the US SEC. Reconciliation can largely avoid the punishment of administrative organs, and avoid the “crime” of securities fraud in the form of judgment.

It is the best choice for Ruixing. At the same time, the permanent prohibition of the settlement refers to the permanent prohibition of Ruixing and its related persons from violating the Federal Securities Law mentioned in the lawsuit, including Article 10 (b) of the Securities Exchange Act of 1934.

On the evening of February 8, Ruixing announced that the settlement agreement reached with the US SEC had been approved by the court.

bankruptcy protection

On February 5, 2021, Ruixing coffee announced on the company’s official website that the company was applying for bankruptcy protection.

In the announcement, Ruixing coffee said that the company applied to the bankruptcy court of the Southern District of New York in accordance with Chapter 15 of TITLE 11 of the bankruptcy law. At present, the company is negotiating with its stakeholders on the financial restructuring of the company, so that the company can continue to operate and benefit all stakeholders by strengthening the company’s balance sheet.

Ruixing further explained bankruptcy protection

Ruixing filed for bankruptcy protection in the United States to avoid claims from creditors in the United States, because other creditors can no longer claim from Ruixing coffee before the reorganization plan is reached.

On that day, many investors understood this as “bankruptcy liquidation”, and the powder sheet market plunged by more than 40%. However, such a bankruptcy protection procedure gives Ruixing coffee a chance to rest and concentrate on restructuring and business operation.

A new round of financing

On April 15, 2021, Ruixing coffee announced that it had reached a stock investment agreement with the company’s shareholders, Dazheng capital and pleasure capital, with a total amount of US $250 million.

According to the agreement, Dazheng capital and pleasure capital have agreed to purchase about US $240 million and US $10 million of senior convertible preferred shares of Ruixing coffee respectively through private placement; In some cases, Dazheng capital and pleasure capital can increase capital by another 150 million US dollars in proportion.

Ruixing will use this financing to complete the restructuring plan recently reached between the company and convertible bond holders, as well as to fulfill the settlement agreement reached by the CSRC. It also issued a notice appointing zhongzhengda accounting firm to replace Michael Boping as its independent auditor.

The rescue of Ruixing with us $250 million this time proves the vitality of Ruixing’s performance in the coffee market to a certain extent, which is also due to the deep binding of Dazheng capital and pleasure capital in Ruixing coffee. This financing further increased the voting rights of Dazheng capital.

break open a way through bramble and thistle  

——   The road ahead is long, the road is blocked and long, and courage is still needed

Ruixing has been on the road of rebirth. Through various storms, Ruixing’s whole team has survived the most difficult time.

In the future, Ruixing will have many difficulties and disturbances, but the whole team has learned the spirit of “being sad and passing the pass”. Since then, there will be more applause.

six point one    The management is ready to explode

Ruixing’s business level did not retreat due to the delisting storm, but the growth rate slowed down. Ruixing’s number of stores, although not in accordance with the previous CEO Qian Zhiya, will reach 10000 by the end of 2021.

After a year of stagnation in store growth, a round of replacement has been realized. And in 2021, it will return to the growth curve and have a faster and faster trend.

Change chart of total number of Ruixing stores

     

Under the background of store expansion, single store data is also very bright. According to the recently collected data, the single store in the third tier cities has achieved a revenue of about 30W in recent months.

Ruixing’s brand has become an online red brand. Grass growers such as microblog and little red book share countless social content every day, forming a good brand effect. On August 5, 2021, the news of Ruixing’s profit was hot searched on the Internet. It was all the hearts of Ruixing in exchange for a cup of milk tea / coffee in the past.

Ruixing users push Ruixing into hot search

In terms of overall revenue, Ruixing’s guided revenue was between 3.8 billion and 4.2 billion in the most difficult last year. Under the background of epidemic and store closure, it can increase by 26% compared with 2019. Specific data still need to wait for Ruixing’s official data.  

six point two   The future of the capital layer

Ruixing is fully profitable in operation. From the perspective of overall strategy, Ruixing needs to continue to take the road of capital return if it wants to continue to obtain greater development space.

Resume financial disclosure

Just two months after the announcement of replacing the independent auditor as zhongzhengda certified public accountants in April 20, Ruixing coffee reissued the 2019 annual financial report on June 30, 2021, which was one year late.

In the statement, it also pointed out that “according to the disclosure requirements of the CSRC, the company will continue to actively fulfill its disclosure obligations, release the 2020 annual financial report as soon as possible, and gradually return to the normal progress of financial report disclosure”.

Ruixing released 2019 financial report

This background will involve two things. One is the U.S. board transfer rules and the recent provisions of the U.S. Securities Regulatory Commission.

If Ruixing wants to return to the main board, restoring normal financial disclosure is one of the conditions. According to section 15c2-11 of the securities and exchange act of 1934 amended by the SEC, securities issuers (including OTC securities issuers) need to publicly disclose the current annual report before securities brokers can publicly quote the securities.

Withdrawal from bankruptcy protection

Bankruptcy protection means that no matter whether the debtor has solvency or not, when the debtor voluntarily puts forward an application for bankruptcy reorganization to the court or the creditor forcibly puts forward an application for bankruptcy reorganization to the court, the debtor should put forward a bankruptcy reorganization plan to make arrangements for the time limit and method of debt repayment and the possible impairment of the interests of some creditors and shareholders.

For enterprises, it is always a temporary state. Bankruptcy protection has two results: successful reorganization or failure of reorganization into bankruptcy liquidation. Bankruptcy protection is a buffer period during which the enterprise operates normally and gives a specific reorganization plan. However, all major business decisions of the enterprise must be approved by a bankruptcy court, and the enterprise must also submit a report to the securities and Exchange Commission.

At present, Ruixing is in the state of bankruptcy protection. Bankruptcy protection is a good legal tool for Ruixing. Give yourself more time to optimize the operation and more attention to the state of operation and capital in order to get Ruixing out of the dilemma. From Ruixing’s cash, financing and debt situation, it is almost impossible to go bankrupt.

Ruixing had previously issued a restructuring support agreement with important creditors. At present, the progress is almost in agreement with the majority of creditors.

As Ruixing gets financing and starts to make profits, plus the cash in hand is enough to cover the debt, it will withdraw from bankruptcy protection through the bankruptcy restructuring plan in the near future.

Back to NASDAQ

Ruixing’s financial restructuring or pink order transaction is a temporary state. As a good business model, returning to the normal financial state meets the expectations of business development, management and investors. This step of returning to NASDAQ is only the author’s analysis. Previously, media reported that “Ruixing’s internal plan is to return to a shares two years after Cayman’s restructuring”. This message came out of a store in February 2021. So is Ruixing most likely to return to a shares or NASDAQ?

First, all previous actions are guiding Ruixing to return to NASDAQ from the powder single market. Ruixing did not choose to withdraw directly from the US stock market when delisting, but took a circuitous way to withdraw to the powder order market. After that, he returned to NASDAQ to lay the foundation. Because there are many such cases in U.S. stocks, they retreat to the powder single market and then return to the main board. Then he reached a settlement with the US SEC and paid the fine honestly. Finally, restore the normal financial disclosure system.

Second, it is difficult to return to a shares and easy to return to NASDAQ. Back to NASDAQ, as long as Ruixing meets the conditions (resuming financial disclosure and withdrawing from bankruptcy protection), it can re initiate the application. Back to a shares, the first is the aversion of a shares to the history of counterfeiting and the history of punishment for Ruixing’s counterfeiting. Secondly, the main board and gem can not meet the continuous profit requirements, and the science and innovation board can not meet the industry requirements.

The dollar funds of Dazheng capital and pleasure capital prefer to be listed in the United States; Whether it is a reference to Starbucks’ valuation system; Or internationalization in the future.

There are many logical points about the answer of NASDAQ. In a comprehensive view, NASDAQ is the best choice.

six point three   Capital level risk still exists

The core of Ruixing’s subsequent capital level risk comes from class action.

In the United States, regulators do not assume the responsibility of reviewing the materials provided by listed companies, and rely on mature litigation system and severe punishment to ensure the authenticity of materials. The US securities class action system stipulates:

All shareholders who bought shares during the affected period can become plaintiffs, and the final judgment or settlement agreement also covers all shareholders by default. The lawsuit is generally promoted by the law firm representing the plaintiff. The plaintiff does not have to pay, but the lawyer pays in advance. If the lawsuit is won, the lawyer team can share the compensation in proportion.

This system has greatly increased the illegal cost of listed companies, forced the listed enterprises to be cautious, and ensured the authenticity of information disclosure to the greatest extent.

Due to Ruixing coffee’s admission of business fraud, the appellant has a high winning rate, and many law firms have filed lawsuits. Class action usually ends in settlement, but the settlement amount to be paid is relatively large.

However, for Ruixing, the class action may take about 3 years or even longer, and the business accumulation during this period will bring much less pressure on the whole.

Practice as Buddha

——After suffering, Huigen has now repaired the golden body

At present, most of the attitudes in the market are still wait-and-see. I hope Ruixing can return to the king again. Looking at the future from the perspective of humanism actually makes the author firmly believe that Ruixing will return to the king. Because of his experience and experience, he has become a Buddha.

seven point one    If the Buddha does not cross, everyone will cross

During the operation of counterfeiting, Ruixing actively cooperated, readjusted its strategy in the difficult period, and adhered to the original intention of providing users with a cup of good and high-quality coffee. With the gradual improvement of the situation, funds entered and gained more market recognition. Ruixing walked out of a reversal situation.

At present, many people in the capital market are still full of doubts about Ruixing, because he has made mistakes and made fake before. However, the current Ruixing is a new Ruixing, which is completely different from the “fake Ruixing”. Xinruixing is more down-to-earth and calm, honestly makes products and tries to serve users well.

From the perspective of investment, a company about to reverse the bottom is located in a high-quality track, has the advantages of basic brands and stores, and has strong potential energy for development, which is an opportunity for high odds and high winning rate.

At present, the business market still stays in the past for Ruixing, thinking that Ruixing is a fool who can only burn money. However, in the early stage of building a brand, and then experiencing precipitation, making products and profits, xinruixing has the ability to make blood.

From a commercial point of view, an Internet company in the name of consumer products is also the best marketing company among Internet companies. Ruixing is also worth learning from many new consumer companies in terms of model and strategy.

At present, many people in the consumer market still think Ruixing is exclusive to white-collar workers. I don’t know. Ruixing has mixed into the online red circle and college circle. It has a strong fan base after the young 00. Ruixing also often explodes in the sinking market. Xinruixing has broken the circle and become a real National Coffee / tea brand.

From the perspective of consumption, taste and price are the best choice reasons. The marketing content that is deeply rooted in the hearts of the people, who doesn’t love it.

Hanshan asked, “how should people in the world slander me, deceive me, humiliate me, laugh at me, despise me, base me, evil me and deceive me?”

Shide replied, “just bear him, let him, let him, avoid him, bear him, respect him, ignore him, stay for a few more years, and see him.”

seven point two    How far can Ruixing go in the future

Ruixing came out of thin air to the Jedi counterattack. In just a few years, he has walked the road of many enterprises for a lifetime and has created many miracles. These experiences are the factors that make the company more mature. At present, more people are still discussing his Nirvana rebirth. Ruixing’s real potential energy may be the “star sea” after Nirvana rebirth.

It is difficult to find a similar model to guide Ruixing. It must not be Starbucks, tea loving, or manner. The underlying structure is more like a variant of the Internet model.

The Internet model can realize planning through online products and free services, so as to achieve the marginal decline of cost under the scale effect and realize it through traffic. In the context of traffic support, we can carry out upstream and downstream development related to users’ full life cycle realization and continuous expansion of products.

Consumer Internet model

I prefer to call Ruixing model “consumption Internet model”. The bottom layer is still Internet model in essence, but the core is realization, which is upgraded from flow realization to product realization. This product has become a consumer product.

Online digitization is adopted for users and process operation to realize marginal cost decline under scale effect. So as to truly provide cost-effective products and have market competitive advantages. Then it’s good to perform the foundation offline. Based on the user, it can be realized in many aspects.

Ruixing has some basic capabilities, such as brand marketing, private domain marketing, Ruixing chaopin, ear hanging / instant coffee, and then to the self built coffee supply chain. Ruixing has made profits. The cost coverage under scale is realized. So, the most important strategic step of Ruixing in the future: open a store, open a store, open a store.

The real star sea: it is constantly opening stores and diluting the overall cost. Ruixing is making more and more money for marketing, developing the whole coffee ecological chain, and diversifying around the existing foundation. A big snowball of a good track appeared in front of the world.

Therefore, the author finally understands the strategy of “opening 10000 stores in 2021” proposed by Qian Zhiya in 2019. At that time, most people couldn’t understand what they said. The swallow and the bird knew the ambition of the swan!

Based on the opening of stores, Ruixing can focus on three aspects to improve the store density in the first and second tier cities, quickly seize the brand awareness of the sinking market and expand globally.

Ruixing’s standard system under the digital capability can reduce people’s requirements in the supply of terminal products; The cost-effective products under the operation of Zhongtai make the products competitive in the market on the premise of ensuring profitability. These two points can almost support three store expansion directions. However, in terms of cost and feasibility, I’m afraid it will give priority to increasing density and seizing sinking. These two points keep many brands out of the door of national market development. The happiness of happy tea and honey snow ice city are not interlinked.

seven point three   What is the value of Ruixing

Based on the above cognition, what is the value of Ruixing? At present, many investors mostly refer to the market value of Starbucks and Naixue and the valuation of Xicha and manner. The author only believes that the above brands can be used as a reference for the track market dimension, and no similar brand has been found in the model dimension so far. At present, Ruixing lacks complete data, capital layer problems remain, and the future new strategy is uncertain. More willing to share the views of the two investors on this market.

Wu Shichun: “now some stores can’t look at the valuation based on the current number of stores, but the current structure has the basis to expand the scale of thousands of stores. Capital is to buy that position. It may occupy a good position when the coffee market rises rapidly next. How much will that position become? “

Liu Erhai: “Ruixing coffee represents the creation of a new business form in China under the condition of new infrastructure – for the first time, enterprises can communicate directly with consumers in commercial manufacturing and services without any intermediary, so as to conduct data analysis and better meet the needs of consumers. Therefore, we call it” data coffee “. Under China’s new infrastructure such as mobile Internet, logistics and made in China, many industries in China will undergo drastic changes. Coffee is one example. “

According to the data of toubao Research Institute, the freshly ground coffee market will enter an acceleration period in the next 3-5 years, and China’s coffee consumption level will quickly approach the international level. This basic coffee consumption is the space for mass affordable brands. As the most competitive enterprise in this market, “Ruixing coffee” is the most suitable at present. The high-quality coffee is the consumption upgrading after the basic consumption of coffee. The outbreak of that market still needs a longer time.

Market scale of China’s freshly ground coffee industry

Ruixing’s own store fission ability + the value of online users and the potential of private domain traffic are unprecedented in the field of consumption. From the perspective of coffee market increment, Ruixing’s development speed and stable market pattern, Ruixing’s stores will far surpass the second place and become China’s Starbucks. As for the valuation of Ruixing, even the valuation of coffee chain, this issue can be left behind for continuous attention and tracking.

No matter today or in the future, countless people will ask, “what’s the basis of Ruixing”. Talented young man, domineering, causing great disaster, concentrate on facing the wall, cultivate internal skills, and then start

If you don’t know his past, how can you understand his present and see his future

Screenshot of Ruixing documentary deer

作者:橙子;来源:橙子钟(ID:czzchengzizhong),转载已获得授权。
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