China Food

Dongfang Honghu completed an angel round of financing of more than 100 million yuan and reconstructed the beverage industry with digitization

uses digital technology to improve production, channel, brand market and organizational efficiency in an all-round way, enabling the whole industry and industry practitioners.

Dongfang Honghu (Beijing) Technology Co., Ltd. (hereinafter referred to as “Dongfang Honghu”) recently completed an angel round of financing of more than 100 million yuan. This round of financing is invested by the company, which is also a large amount of angel round financing in the industry in recent years. This round of financing will be used for technology construction, product development, market promotion, expansion of offline channels, etc.

It is understood that Dongfang Honghu locates the new digital FMCG Brand Company and is committed to reconstructing the offline full link transaction scenario in a digital way. It has not only been praised by the Internet giant, but also recognized by the beverage giant Wang Laoji. It has reached in-depth strategic cooperation with Wang Laoji, and Wang Laoji Zero sugar black herbal tea is the first main strategic product line of Dongfang Honghu company.


In recent years, the consumption scale of the beverage industry has gradually expanded, and the increase in the number of consumers has driven the rapid development of the beverage consumption market. The consumption habits of users also show the characteristics of high-frequency development. However, the beverage industry is still in the era of channel being the king for a long time. How to improve the operation and organizational efficiency has become a major problem perplexing the industry for a long time.


Tang Xiaotong, founder of Dongfang Honghu
It is understood that Tang Xiaotong, founder of Dongfang Honghu, has many successful entrepreneurial experiences, attaches great importance to digital and scientific operation, and has accumulated many years of entrepreneurial experience on the Internet platform. In 2020, he began to layout the beverage FMCG industry and build a compound talent echelon with internet gene and industrial ability, Tang Xiaotong has been thinking about how to closely combine the traditional market system with digitization and cross-border joint crack the pain points of the industry.
At the same time, as the leader of China’s beverage industry, Wang Laoji has been actively looking for brand innovation and cooperation opportunities, hoping to cooperate with high-quality partners in the industry to create a new product series. Tang Xiaotong’s team hit it off with Wang Laoji, took the lead in finding a new operation idea and business model, focused the first product on Wang Laoji Zero sugar black herbal tea, and successfully gathered Wang Laoji’s brand endorsement, industry capacity and joint blessing of more than 100 million yuan of capital, which can be expected in the future.
In recent years, the consumption scale of the beverage industry has gradually expanded. According to relevant industry data, the beverage industry is expected to exceed 1.3 trillion in 2024, and the consumption growth rate has reached four times that of the overall beverage and food industry, and the growth space is still optimistic. The whole beverage industry gradually presents three consumption trends of “three-dimensional taste, health upgrading and emotional resonance”, and consumers’ demand and intention to participate in the co creation of brand products are increasing day by day.
Wang Laoji black herbal tea has gone through a 10-month co creation period from R & D to listing. More than 5000 consumers have been invited to conduct research and give feedback and suggestions for many times, and bold innovations have been made in formula, packaging, taste and health. After the trial sale verification of 100 + urban terminals, consumers received high praise and completed a trial sale answer sheet of nearly 100 million yuan in just a few months.
In addition, as a continuous entrepreneur, Tang Xiaotong considered more far-reaching when entering the beverage industry: there are predictable bottlenecks in the success of products and brands in the traditional sense. If the underlying logic of the industry can be reconstructed, it can improve the ceiling of the whole industry.
Photos of Wang Laoji’s new black herbal tea release and digital ecology Summit on January 6
Different from the team composition of traditional FMCG companies, Dongfang Honghu, with the mission of “changing the industry with science and technology”, had more than 50% of its own Internet technology R & D personnel at the beginning of its establishment. The vast majority of high-precision technical talents from Internet companies have laid a talent foundation for successfully building a digital marketing bottom capability platform, And spend a lot of money and manpower to iterate the independent digital system, and strive to improve the operation efficiency of traditional offline channels with the help of digital capability.
Relying on the exclusively developed “multi code combination” technology, Dongfang Honghu has realized that each product has a unique two-dimensional code on the box and bottle, and realized the whole chain digital visualization of production, channel, brand and organizational efficiency through the association between background code pairs.
This innovative achievement, for the consumer side, Dongfang Honghu has built a communication channel that can directly reach consumers, interact directly with consumers and conduct accurate digital marketing. At the channel level, the management of commodity flow is undoubtedly the biggest pain point in the traditional FMCG industry. Through lbs visualization uploaded by consumers, Dongfang Honghu has realized logistics visualization, which makes every commodity orderly managed in circulation and greatly improves the efficiency of channel operation and management.
“Multi code combination” technology also helps to efficiently obtain terminal sales data feedback, accurately form household portraits, and provide data support for product R & D and upgrading, brand service and commodity satisfaction. For the cost saved in all links, Dongfang Honghu will continue to invest in subsidies to continuously transfer profits to consumers, so that both channels and consumers can win-win.
Consumers open cans of Wanglaoji black herbal tea and scan the code. Red envelopes can be directly sent to wechat
Tang Xiaotong also revealed that the strategic focus of Dongfang Honghu is mainly divided into two dimensions. On the one hand, it is necessary to speed up the technical implementation of the full link digital model, continue to build a senior technical team of hundreds of people on the existing basis, and it is expected to complete the first version of the industry digital platform model by the middle of 2022; On the other hand, relying on digital technology to timely obtain consumer insight, combined with market research, continue to be a friend of consumers, and will create targeted product solutions. This year, it is expected to develop and market more than 10 healthy and young soft drinks of different scenes and categories, so as to continuously broaden the product width.
Tang Xiaotong has always insisted that digitization, algorithms and technology are tools. The core purpose is to improve efficiency, and products are the fundamental. Only the combination of the two is the optimal solution. He said, “to be a good product, one point is added, but the price is expensive, one point is reduced, and one point is added and one point is reduced, which does not create substantive value for consumers! The core purpose of Dongfang Honghu’s vigorous development of digital efficiency improvement is that the product is good, one point is added, and the price is cheap! The total score is 2:0!” Because of its high efficiency, Dongfang Honghu can quickly optimize products according to market feedback. At the same time, when facing the end market and consumers, it can provide more flexible marketing solutions, so that consumers can get direct discounts when buying high-quality products. This is the value of digitization and the value Dongfang Honghu is committed to creating for consumers.
Meanwhile, Dongfang Honghu is open to the construction and sharing of digital platform ecology. Dongfang Honghu does not want to subvert the original model of the industry, but to use digital technology to improve the production, channel, brand market and organizational efficiency in an all-round way, so as to empower the whole industry and industry practitioners. Dongfang Honghu team has always maintained humility and awe of the industry. It believes that the reform and improvement of today’s digitization are all based on the successful experience and methodology of predecessors. In the future, we will join hands with Wang Laoji, byte beat and other parties. Its digital system is not only applicable to the company’s brands, but also will be exported to the whole industry free of charge when it is mature. The goal is to become the infrastructure to help the development of beverage and even the whole FMCG industry.





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