China Food

Helen: Tea on the left and Ruixing on the right

in September last year, hellens landed in Hong Kong stock market and was promoted to the “first share of tavern” in China.

The first drink of young people

After the Scout retired from the army, Xu Bingzhong, who had been a security guard for three years, listened to his friend’s suggestion and opened a tavern in Laos.


After earning the first pot of gold, he returned home to continue his tavern business.


In 2009, Xu Bingzhong opened a tavern called “Helens” in a remote corner of Wudaokou, Beijing.


He never imagined that the tavern expanded all the way, opening more than 700 stores, covering 24 provincial administrative regions and more than 100 cities.


In September last year, hellens landed in Hong Kong stocks and was promoted to the “first share of taverns” in China.


From the corner shop to the first share of the pub, Helen spent 13 years.


Unlike other high consumption pubs, hellens focuses on “its own products, supplemented by external products”. Most of the beer of its own products comes from domestic wineries, and the cost is relatively low.


Most of the products are priced within 10 yuan / bottle, and the core consumer group is between 20-35 years old.


At first, hellens sold only its own products at a low price. Later, the price of products including Budweiser, 1664, corona, Heineken and other well-known brands did not exceed 10 yuan.


Despite the low price, the gross profit margin of Helen’s own products has always been more than 70% from 2018 to 2020.


However, Lao Jin found that the label of Helen’s low price was a little untrue.


Taking the third-party brand products as an example, the three products sold by hellens are Budweiser beer, 1664 and corona. The milliliters are 275ml, 250ml and 275ml respectively, and the selling price is 9.8 yuan / bottle.


After rough calculation, the unit prices of Budweiser, 1664 and corona in Helen’s Tavern are 0.036 yuan, 0.039 yuan and 0.036 yuan respectively.


In the convenience store, 460ml Budweiser beer with 7.5 yuan, 330ml 1664 with 17.5 yuan and 330ml corona with 9.9 yuan. The unit price of each product is 0.016 yuan, 0.053 yuan and 0.03 yuan per ml.


It’s not much cheaper.


Helen, who is known as “fighting for more in the wine world”, learned Huang Zheng’s calculation method.


Black ant capital, a gold rush player in the new consumption wave, locked in Helen’s company a few years ago.


He Yu, managing partner of black ant capital, once said:

Helen division provides users with a truly free and relaxed universal social space without threshold. Once this atmosphere is formed, it is the biggest moat of the brand.


According to the white paper on the consumption power of generation Z, social networking, personal design and pleasing oneself are the three consumption motives of generation Z youth.


Hellens captures the comprehensive demand of young groups for “wine + service + social”, and then brings growth by relying on the consumption power of this group.


It seems that he didn’t catch it.


Hellens has positioned itself as an “offline social platform for young people”, and the brand’s scene experience and interactive marketing are carried out around this theme.


However, Helen’s understanding of young people seems a little narrow.


The theme of the video released by Helen tiktok is that young people are not on the way to confession, but on the way to be confession.


The concerned “coke bucket challenge” activity, the video released by the official, is also a variety of drunkenness of young people.



The changing consumer demand of young groups has given birth to a number of new brands.


In 2020, the first year of the “new consumption era”, a large number of new and cutting-edge brands have made breakthroughs from 0 to 1.


Perfect diary and bubble Mart have been listed one after another. Naixue’s tea is favored by capital for its breakthrough in the new tea drinking track. While riding the east wind of generation Z consumption, Helen is eating the dividend of night economy.


With the new power of consumption, these brands have taken off.


Only when the tide receded did we know who was swimming naked.


Since last year, affected by the rise of raw materials, the price rise of consumer goods brands began to spread.


Helen, the “first share of the tavern”, took the lead in raising prices.


Although Xu Bingzhong once said:

Never raise prices and keep lowering prices.

Helen still raised the unit price by a small margin.


The first thing to take over the price rise of new tea in 2022 is the pleasant color of tea.


Ruixing, Naixue, Xiangpiao and other brands also raised prices.


Just when all walks of life tacitly raised prices, Xi tea cut prices against the trend.


As a popular player in the tea industry, tea looks pleasant and likes tea will inevitably be compared.


It’s always easier for water to flow low.


For happy tea, it is relatively easy to reduce the high-end pricing to the middle-end price market from the psychological acceptance of consumers.


For affordable brands, it is not so easy to go from bottom to top.


Honey Snow Ice City, which also focuses on cost performance, tried to enter the high-end market and launched the tea brand “m +” with the unit price of drinks doubled, which was closed soon.


Ruixing coffee, which no longer burns money to subsidize, has been criticized by consumers after the user education of “inviting the people of the whole country to drink coffee” with large coupons and the brand image of preferential and low prices has been deeply rooted in the hearts of the people.


“30 yuan a cup of coffee, catch up with Starbucks, can’t find the meaning of drinking Ruixing.”


Attracting consumers with price advantage can achieve certain development in the early stage, which is not a sustainable way.


Helen faced similar problems.


Low prices can’t keep young people.


Although hellens’s low price trading method caters to young consumer groups, these price sensitive users often lack loyalty and are difficult to produce sticky consumption.


If there are lower priced pubs, it is difficult to ensure that users will not shift their consumption positions.


In addition, hellens seeks development with scale.


Hellens plans to open 1000 stores in 2021, and the total number will increase to 2200 by the end of 2023.


Industry insiders believe that Helen will be under great pressure to open so many stores in the next two years.


Although branding and scale can have a positive impact on enterprise revenue.


The prerequisite is to ensure the stability of the capital chain.


Due to the large-scale expansion of stores, Helen’s debt ratio has always been above 80% in recent years, and the net profit margin in 2020 has decreased from 14% in 2019 to 8.1%.


Helen’s official explanation was that the price increase was due to the increase in raw materials and consumables, the surge in expenditure on employee welfare and human services, and the negative impact of the epidemic.


In the first quarter of 2020, when the epidemic was the most serious, Helens lost 16 million.


In the first quarter of 2021, when the epidemic was under control and the economic environment recovered, Helen’s net loss was as high as 76.332 million yuan, a loss of 60 million yuan over the same period of the previous year. It can be seen that the root cause of increasing income without increasing profit is not the epidemic.


Helen’s problem also lies in herself.


go left, go right


Helen’s products are not highly differentiated. Its main private brands include fruit beer, milk beer and pure wheat brewing. There are not many types of wine products, and there are many brands with similar taste in the market.


The update frequency of self owned products is not high, and the new speed is not as fast as that of wine enterprises.


Maotai, a traditional and old brand liquor enterprise, launched a new “youmi” blueberry wine, Luzhou Laojiao launched fruit wines such as “Qingyu”, “drinking between flowers”, “picking up light” and “peach blossom drunk”, and Budweiser also followed the trend and launched me series fruit beer.


Among the cutting-edge brands, new products such as missberry berry sweetheart, drunken goose mother, horsepower ton, empty card, Lanzhou and 17 light-years continue to appear, and the circuit of low alcohol liquor market has been subdivided.


New and old brands are constantly emerging in the low alcohol sector, dividing up the young people’s slightly drunk market. The young generation is more willing to try fresh products because they have not formed their own habits for alcohol consumption.


Helen’s is not the only option.


It can be seen from the data released by hellens that in the past two years, its revenue has increased rapidly, but the growth rate of net profit is not high. Although the gross profit margin is considerable, the net profit margin is worrying.


From 2018 to 2020, Helen’s net profit margin declined all the way, which were 9.4%, 14% and 9.3% respectively.


Helen wants to take the extremely low cost structure as a barrier, rely on reducing per capita consumption to achieve rapid replication, and the net profit is low. At the same time, in the face of cross-border participation of other brands in the tavern market to share cakes, its defense ability also needs to be discussed.


Naixue’s tea, Haidilao, local chicken and other brands have opened small pubs.


Haidilao launched “Hi Lao tavern”, selling 9.9 yuan cocktails, which directly hedged with Helen’s low price strategy.


Naixue’s tea, a new tea giant, opened a Naixue Wine House called blablabar and entered Beijing, Shanghai, Guangzhou and Shenzhen, as well as second tier cities such as Hangzhou, Suzhou, Shenyang, Wuhan, Xiamen and Fuzhou.


In addition, some brands do not directly set up tavern business, but choose to expand low alcohol wine categories on the basis of existing technologies and users, such as tea loving “drunken pink litchi”, “drunken peach”, “drunken grape beer”, Coca Cola’s toppchico hard soda sparkling wine, nongnongshanquan’s low alcohol sparkling wine


Helen company anchors the user group with the ultimate cost performance and follows the old path of Ruixing and other brands.


Cai Xuefei, a Baijiu marketing expert, believes that Helen will avoid the first tier cities and enter the two or three line sinking market, and the competition will be more advantageous.


Walking from top to bottom is the idea of liking tea.

In the face of the emergence of new consumer brands one after another, the top tavern that young people drink will eventually go in which direction?

Author: Jin bupang; Source: yilijinya (ID: yilijinya), reprint has been authorized.



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