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This is a rare “marriage between new and old” in the field of consumption. Will the merged Manji dessert usher in a new life or become the next Xu Liushan? Xu Liushan, the “founder of Hong Kong Style desserts” born 60 years ago, was liquidated last year.
The 26 year old Hong Kong Style dessert “Manji dessert” merged with the three-year-old “Xiaoman tea field” to create a new Manji.
On May 7, the Hong Kong Style dessert chain brand “Manji dessert” announced the merger with the new tea drink “Xiaoman tea field”. The new group completed a new round of financing, which was jointly led by the well-known catering group and the new consumption Unicorn company. Liu Zizheng, founder of Xiaoman tea field, will be the president of Zhigang group (the parent company of Manji dessert) and the co CEO of Manji dessert. Hu Fengchun, former head of Starbucks China’s supply chain, COO of Piye coffee, former COO of Xiaoman tea field and song Xiaoli, former head of Starbucks China’s East China operation, will join us.
It is reported that after the merger, “Manji dessert” and “Xiaoman tea field” will open a new flagship store, which will be positioned as a medium and large-scale store of about 200 square meters, and will launch a new dessert concept. In the second half of this year, new stores will be opened in Beijing and Shanghai.
As a rare “two-way rush” in the field of consumption, the merger of Manji dessert and Xiaoman tea field is regarded as a “short board” move to complement each other. Liu Zizheng, founder of Xiaoman tea field, also publicly said that the merger of Manji dessert and Xiaoman tea field is a “marriage between new and old” in the field of consumption. In the past, new and old consumers have encountered different problems: traditional consumer brand products, operation system and cost control are excellent, “the chassis is stable”, but they lack insight into the “front end” and lack of brand power. New consumer brands rush to the “front end”, but the back-end support capacity is often insufficient, and “xinmanji” can supplement these two ends.
The transformation of time-honored enterprises is not new. The merger of Manji dessert and Xiaoman tea field, who is only three years old, is a development trend of the integration of dessert and new tea drinks and the healthier and higher quality of new tea drinks. However, will the merged Manji dessert usher in a new life or become the next Xu Liushan? Xu Liushan, the “founder of Hong Kong Style desserts” born 60 years ago, was liquidated last year.
A rare “marriage between the old and the new”
According to public data, Manji dessert was founded in Hong Kong in 1995. Around 2010, it relied on the dividends of shopping centers to create a “sweet rest area”, and the number of stores in the mainland was close to 500. From 2008 to 2013, the number of Manji dessert stores increased the fastest, and more than 90 new stores were opened in one year. Double skin milk, jelly and poplar branch manna are classic explosive products known by the post-80s and 90s.
Manji dessert has a number of professional central kitchens, fruit processing warehouses and transportation fleets. The production capacity of one central kitchen can supply dozens of chain stores, and the central factory uniformly distributes the products to branches across the country. Professional thermal insulation transportation and storage equipment are used, and product inspectors are arranged to inspect the stores. The food is fresh and hygienic. It has been open to join for some time, but the application for joining has been suspended since 2013. At present, all new stores are direct stores.
However, in the past two years, with new tea drinks like tea, Naixue’s tea and shuyishaoxiancao, new dessert and baking brands such as Momo dessert Bureau and Hutou Bureau emerge one after another, and the Hong Kong style and Guangzhou style dessert market is gradually declining. Manji dessert has also been reducing its stores in major cities in the past two years, from nearly 500 stores in the mainland alone to nearly 300 fully Direct stores in the mainland, Hong Kong and Singapore, But the good thing is that it still remains profitable and its annual income is nearly 1 billion yuan.
Xiaoman tea field, the new tea brand in this marriage, was founded in 2019. It is the pioneer of domestic chelizi themed tea. It aims at the younger generation’s demand for continuous upgrading of high-value fresh fruit tea products in the tea market. The customer unit price of the product is about 30 yuan. It focuses on and is based on the concepts of “high-value chelizi” and “dessert drinks”, covering a variety of chelizi, QingWang qingti and other high-value fruits, It has more than 20 products and diversified product matrix.
Tianyancha data show that Xiaoman tea field, only three years old, has completed four rounds of financing since its establishment. Its founder Liu Zizheng was once responsible for investment in the consumption field in the China team of Warburg Pincus investment group. As the youngest investor of Warburg Pincus investment, he once led or participated in the investment of famous projects such as Moby bike and geek +, and had made little achievements in the investment industry at that time.
Under the fighting of many immortals of high school new tea brands, Xiaoman tea field entered the game from the concept of main super category. Founder Liu Zizheng once said that Xiaoman tea field was thinking in the opposite direction, “looking for categories that are unstable in the supply chain, not cheap, not easy to obtain, but really valuable in the hearts of users”.
In 2020, Xiaoman tea field’s first store opened in Beijing’s Chaoyang Joy City. The cherizi tea series built around the core category cherizi has attracted a large number of consumers with the high-value concept of “cherizi freedom” and ultra-high appearance. The dessert beverage “cherizi bomb” created by 12 cherizi has become an explosive product in the store.
In order to turn 200-300 yuan a catty of cherries into a drink and ensure gross profit, Liu Zizheng, founder of Xiaoman tea field, chose to set up barriers before opening the store. By investing in the upstream fresh fruit supply chain and purchasing globally through his own supply chain, he focused on “supplying high-quality cherries throughout the year for 365 days and across three continents and seven seas for 365 days and nights”, so as to reduce procurement costs and form strong control over the supply of cherries. His resume background of consumer investors who worked in private institutions also provides advantages for his main upstream high-end fruit supply chain.
High value fruits, once the supply chain barrier is established, will form higher and scarce product value. Relying on the advantages of cherizi’s productization and supply chain capacity, Xiaoman tea field has established industry barriers in the broad new tea market. At present, no brand has followed up and imitated its similar super category tea drinks such as cherizi.
It is understood that the current volume of Xiaoman tea field is small. Based in Beijing, there are no more than 50 stores in the country, and the monthly floor efficiency of stores reaches 8000 yuan. In an interview with the media last year, founder Liu Zizheng said that the gross profit margin of Xiaoman Chatian chelizi series has reached more than 65%, and all stores have turned losses into profits.
in the field of consumption
Xinmanji or the next xuliushan?
The transformation of time-honored consumer enterprises is not new. In the field of Hong Kong Style desserts, Xu Liushan, a generation of “king of desserts”, was once a strong rival with Manji desserts. However, while expanding on a large scale for many times, he changed ownership three times. In 2009, Xu Liushan’s founding family shareholders sold all their equity to naivs capital, an investment company in Malaysia. In 2015, naivs capital transferred to Huang Jihuang’s parent company (Huangtian International Holdings) at a price of HK $500 million. In 2019, KFC parent company Yum China acquired Huang Jihuang.
After several changes of ownership, Xu Liushan did not escape the impact of new tea and online Red catering. Because of the excessive opening and joining after the change of ownership, poor store management and revenue, no innovation and change in products, and the unstable operation of Xu Liushan who stayed in place, he finally fell behind and went bankrupt and wound up.
On May 26 last year, according to several media reports, four creditors of Xu Liushan filed a petition for the winding up of Xu Liushan Food Manufacturing Co., Ltd. (hereinafter referred to as Xu Liushan), and the master of the high court of the Hong Kong Special Administrative Region has issued a winding up order to Xu Liushan in Hong Kong.
Now, compared with Xu Liushan, the market still has time to remember dessert. At present, the operation and management level of Manji dessert is relatively good, and the basic plate is stable. In June last year, ADV capital partner successively completed the M & A of Manji Hong Kong, South China and East China, integrated its stores in Southeast Asia, Hong Kong and Mainland China and cross regional functional management headquarters, realized the unification of Manji brand for the first time, and achieved profitability in the third and fourth quarters of this year.
In the context of the wave of new consumer brands, while maintaining the brand’s own feelings and culture, Manji dessert strives to meet the changes of consumers’ needs, and closely follows the development trend of new retail and Digitization: in 2016, it will lay out the Internet field and open takeout channels on meituan, hungry and other platforms; Enter the supermarket and launch the “honeymoon express” store type jointly with box horse fresh food; In 2019, a private domain operation platform was built to open the marketing mode of “light meal + dessert”. In 2020, Yituo store will open the urban taste buds, innovate the product categories with the background of urban stores, and launch IP co branding and joint innovation attempts.
It can be seen from the current sales products of Manji dessert that the products of Manji dessert have expanded from Hong Kong Style sugar water that pays attention to health preservation to new products, coffee and cakes with the shadow of new tea, such as “potable taro mud double skin milk”, “persimmon your good luck cheese Bobo Cup”.
However, in the past two years, Manji dessert has been closed for many times, indicating that the competitiveness of product taste and innovation is still slightly insufficient in the current consumer market dominated by young people. According to the analysis of insiders, it is not the dessert baking brand rising in recent two years that “beats” the traditional Hong Kong dessert, but the new milk tea brand.
Compared with the new milk tea, the product cost of the traditional Hong Kong Style dessert shop is higher, and it is vulnerable to seasonal influence. The customer source is also declining. The new tea brands are generally more accurate in product positioning. They understand the flow playing methods of brand marketing such as Tiktok and xiaohongshu, and are closer to the needs and pain points of the younger generation.
According to media reports, Liu Zizheng, the new CEO of Manji dessert, has his own new plan for the development of dessert market and new stores: first, dessert “snack”. The use scene of desserts should be unlimited, not limited to space and appliances; Second, dessert “gift”. Drive the transformation of catering from traditional on-the-spot production and sale to higher dimensional retail format; The “all day” of desserts promotes the quiet transformation of desserts to light food instead of food; The last is to return to the reconstruction of basic funds. The traffic brought by compounding and dazzle technology is not sustainable, and the gross profit margin and repurchase rate are not supported.
With the consumption upgrading of the younger generation of consumers, the traditional dessert brand is gradually declining. The aging brand and limited consumption scene are not the problems that a time-honored enterprise needs to face. From cup roasted fairy grass, sago to fresh fruit Yangzhi manna, traditional desserts and tea are constantly integrated. Desserts tea drinking has become a new trend in the development of the new tea industry. While desserts tea drinking, sugar free, low-fat, low calorie and light food are also expected to become the development direction in the future.
Many insiders believe that Manji dessert, a 26 year old traditional dessert brand, has the advantages of brand power, central kitchen factory and large-scale stores. Xiaoman tea field, a young new fresh fruit tea, is more accurate in consumer demand insight and marketing. If they work together, if they can grasp the new trend of the transformation of dessert tea and light food instead of food, it is expected to be born and go to a new Manji in both directions.
Original title: Manji dessert and Xiaoman tea field merge to regain a new life or the next “Xu Liushan” New consumption observation
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