China Food

What happened to Ruixing after the financial incident?


Ruixing, start again and go all the way.
Because of the epidemic in Shanghai, I still stay at home. I haven’t had coffee for a long time, and I often think that after unsealing, I should go to have a drink first.
Do you know what I particularly want to drink now?
When I was able to go to work in the company, there was another coffee brand downstairs in my office building. There was jiaruixing in the opposite office building.
It is more convenient for me to buy other brands, but I have to check the health code twice every time and go to the opposite side to buy Ruixing.
Why?
Because “sea salt cheese thick milk latte” is really delicious.
Later, because I wanted to lose weight, I drank American style. But I have also tasted the American style of Ruixing, and the taste is very good.
However, in addition to staying at home and paying special attention to Ruixing’s “coffee”, as a business consultant, I am more concerned about Ruixing’s “operation”.
Since the financial event of Ruixing in april2020, their team has undergone a major change, and their marketing, product and operation strategies have been greatly adjusted. Face problems squarely and solve them. After great changes, the new team is equivalent to starting again.
So what happened to Ruixing who started again today?
Until recently, I saw the financial report for the first quarter of 2022 just released by Ruixing. The total net income of Ruixing was RMB 2404.6 million, an increase of 89.5% year-on-year. The same store sales growth rate of self operated stores reached 41.6%, and the quarterly operating profit became positive for the first time since the establishment of the company. In this quarter, there were 556 new stores, and by March 31, 2022, the total number of stores had reached 6580.
After financial events and under the haze of the epidemic (especially in Shanghai, where coffee lovers hardly consume anything), Ruixing’s performance has been able to achieve profitability and positive improvement. It should be said that it is not easy.
Ruixing still has strong vitality. From the bottom, up again.
Then I made a special appointment with Yangfei, CGO (chief growth officer) of Ruixing coffee.
As the innovator and witness of the rebound at the bottom, I asked him to tell me what Ruixing has done and what he has done right?

How to retain as many users as possible?

Yang Fei said that this would go back to april2020.
Ruixing has closed a number of stores and left a number of employees. The company’s operation is not so ideal. At that time, the budget was very limited, and there were many problems to be solved at the level of marketing growth.
You can only start with the most important things.
What is the most important thing?
User, especially user retention. What we think is that, in any case, we must first keep the users, and at the same time, we must constantly produce new products and continuously polish the good products retained by the users. Because the more challenging it is, the more you need to be with users.
Connecting our users is the most important thing and the key to the future turnaround.
At this time, a problem arises: how to connect users more efficiently in a special period when there are not many employees? We thought, find a tool.
At that time, we quickly decided to use enterprise wechat as a new operation tool to retain consumers.
Because through enterprise wechat, we can constantly meet users where they often appear.
Only then can we provide services for users and create value.
From April, 2020, we first screened 50 stores in more than 4000 stores nationwide for pilot projects, and connected our users with enterprise wechat. In May, it will be rolled out nationwide at the pace of building 50-100 store groups every day. By almost July, our stores nationwide had connected 1.8 million users through enterprise wechat, of which 1.1 million users had joined more than 9100 user communities built around the stores.
These 1.8 million enterprise wechat users contributed more than 35000 cups of direct orders every day, and promoted more than 100000 cups of orders through group information reminders. At that time, the monthly consumption frequency of these private domain users increased by 30%, the number of weekly re purchases increased by 28%, and the monthly activity increased by about 10%.
Now, after two years of development, the number of users of enterprise wechat has also increased from 1.8 million to nearly 20million.
It is quite good to have such achievements in our own community. I asked Yang Fei, how did you do it?
Yang Fei said that he understands users, does not harass users, but pushes good products and personalized services to users.
For example, we will recommend different coffee and services to users according to the influence of temperature and weather.
When the temperature in the city is above 20 ℃, we will push iced coffee and provide more iced drinks. But if it is cold in your city today, we will offer more hot drinks when the temperature is below 20 ℃.
For example, at noon on October 12, 2021, we pushed to the community at the same time. At that time, we recommended Yangzhi manna (ice drink) to 78 high-temperature cities, while we recommended velvet latte (autumn warm coffee) to other cities. The
The
(ice drinks were recommended in Haikou where the temperature was high, and hot drinks were recommended in Nanjing where the temperature was low)
When users enter our stores, in order to give users a more consistent consumption experience, the smart screen of our offline stores will also mainly promote different hot and cold products according to the weather conditions.
When it’s hot, drink an ice drink to cool off. When it’s cold, our users are also recommended to drink a hot drink to warm up.
(when the temperature changes, the smart screen displays hot and cold products)
In rainy days, many users are inconvenient to go out. We also found that many users like to buy coffee together.
At this time, we will invest more takeout and share coupons (coupons for buying multiple cups of coffee) and appropriately exempt some delivery fees.
You see, this is the rainy day coupon we give to users to express our little care. We can drink a cup of good coffee in rainy days.
(rainy day voucher given to users in rainy days)
This is to meet the different needs of users in different scenarios. When you can understand the user, the user will naturally give back to you.
Later, when we accumulated more users, we continued to think. Isn’t this kind of service not sophisticated enough?
No matter in the community and circle of friends, or in the client and applet, this is still more inclined to the “1 to many” logic. We thought, can we provide more value to users and realize the real “1-to-1” personalized service?
We hope that lucky, the welfare officer of Ruixing, will not be a customer service in the future, but a close coffee steward around users. When you need it, wechat tells me that I am always online to meet your coffee needs.
Hearing this, I couldn’t help but ask Yang Fei whether the one-to-one service, although closer, would disturb users? You should know that one-to-one service is most afraid of blackmail.
Many brands have to tell users when their products are new. However, in the 1-to-1 message, once an advertisement is issued, it will fall off and be blackened by users. The blacking rate sometimes reaches more than 10%. Don’t you worry about that?
But Yang Fei told me that Ruixing’s black rate was less than three thousandths.
Less than three thousandths! This is a very low number. How?
By analyzing the data, we can get closer to our users and see what they like to drink.
Mr. run, do you prefer latte or American style?
I like American style. That’s great. Recently, we have just introduced a new American coffee, which is very popular and may be suitable for you. In addition, we also give you a new product coupon and recommend you to try it together.
You see, because we know that you often order American style, we won’t give you new iron products, which may be valuable to you, not completely disturbing.
The user thinks that we know him very well and provide him with valuable information and even benefits. Therefore, the blackmail rate is very low and he is more willing to buy.
The repurchase rate of Ruixing also increased by 30%.
Therefore, when you can understand your users, and the messages you send are valuable and can meet their needs, the users will not refuse, but will be very happy.
And did you know that behind every Rui Xingli official added by consumers are our real employees.
He will silently accompany you behind the screen, become your coffee steward, and recommend your favorite coffee. When you want to find him, you can get a reply by sending a message and answer the questions you care about.
Sometimes, users treat the welfare officer as a robot and send exam assignments and photos to the welfare officer. As a result, our employees reply with real people and ask the user if there are any problems to be solved. The user is surprised and surprised.
So our users also like to play with us. In some small groups, people often send all kinds of expression packets. One person says “Rui”? Soon many people will respond, “ruiruirui”. The atmosphere is very good and happy.
(Ruixing users interact with emoticons)
These users will also give Ruixing a lot of feedback. Many of the ideas and marketing methods of popular products come from the inspiration of interacting with users. For example, on the first day of the launch of our heavy new product “Yeyun latte” in April this year, the sales volume of a single store exceeded 130 cups, and the total sales volume in six weeks exceeded 17million cups. As a result, our product innovation efficiency has been improved.
This is the truth and warmth that connects Ruixing with users.
By the first quarter of 2022, Ruixing had 16million monthly average trading customers and more than 29million corporate fans. Now on the enterprise wechat, Ruixing has accumulated nearly 20million users, which can better improve the efficiency of serving consumers externally.
Ruixing really has a lot of thinking and practice in this regard. I then asked Yang Fei, what about inside?

Internally: how to improve organizational efficiency?

After Ruixing has realized the connection with consumers through enterprise wechat, it needs more internal linkage between the headquarters and stores to provide more support.
This requires Ruixing’s headquarters to get through with the front-line stores and have more cooperation.
For example, do you remember that we mentioned earlier that we would recommend different coffee and services to users according to the influence of temperature and weather?
When the urban temperature is above 20 ℃, we will push ice drinks. When the urban temperature is below 20 ℃, we will provide more hot drinks. On rainy days, we will put in more takeout.
But how did this happen?
In fact, the headquarters is on the enterprise wechat, connected to the third-party weather system, and then automatically implement different strategies.
Outside the station, we will automatically change the push copy based on the temperature and weather factors, and recommend cold or hot drinks, which has also increased the startup rate of our customer base by 4%.
In the station, a pop-up window or banner will be triggered to release coupons for one or more cups within a limited time. As a result, the order conversion rate of our users increased by 2% and the number of drinks increased by 3%.
Offline, the store smart screen will also be updated automatically, bringing a consistent consumption experience to consumers.
In other words, the headquarters will automatically implement different strategies according to different situations, and each contact can realize automatic synchronization. When users open their mobile phones, they can see automatic recommendations, and then pick them up or deliver them to nearby stores.
Stores, so you don’t have to think about what activities should be done under different circumstances, or how to update materials. Naturally, the work content will be reduced. All the time and energy saved are focused on delivering well.
However, besides the contacts such as apps and applets are automatically updated, there are also communities and 1-to-1 push. These need to be completed by store employees. What should we do?
The headquarters will also provide support. For community activities and 1-to-1 coupons, the system of the headquarters will connect with the official group sending interface of enterprise wechat to realize task push, group message push and 1-to-1 message push. These tasks are generated by the headquarters. The store clerk only needs to confirm and push them.
In this way, the automatic strategy at the headquarters level can save a lot of labor costs. Store clerks can also reduce their work burden and focus their time and energy on making coffee to ensure the consumer experience.
The
(automatic reminder of extreme weather)
For another example, we once launched the free time promotion function after 4 p.m. every day.
Some foods have the best taste for only 24 hours. In order to provide consumers with the best quality food and reduce consumption, we will promote after 4 p.m. every day.
Therefore, the headquarters system will automatically capture the inventory of the store to realize automatic discount. After placing an order, the user can also pick it up at the store or deliver it to the door.
These collaborations are realized through the open interface of enterprise wechat.
The
(free time promotion after 4pm)
It is through the cooperation between the headquarters and the stores that Ruixing can better understand the sales situation of each store in each region and promote the sales objectives of the whole organization.
I asked Yang Fei, how did Ruixing do it? There are many organizations, which generally do not resume until the end of the month, but such timeliness is challenging, and the results are difficult to correct. What to do?
Yang Fei said that Ruixing also has sales targets every month, and these targets also need to be implemented in each region and store.
So how do you manage these goals? What we think is, can we judge in advance, make a real-time resumption, and realize risk early warning, instead of failing to meet the standard by the end of the month?
Therefore, the company enabled OKR to manage. In the OKR system of the third party, we set and align goals, and then repeat and correct errors with high frequency.
However, after a period of time, it was found that the OKR system, which was not connected to the execution system, could not meet its own needs.
As a retail enterprise, the changes it faces are too many and too fast. So our adjustment should be made quickly. In the face of target deviation, it should be able to automatically calculate and remind, hold a meeting at the first time, and follow up various to do tasks efficiently.
In the face of change, it is not enough to make a double offer. We should also use actions to hedge against changes.
Therefore, in addition to the OKR system to help us find deviations, there should also be a set of collaboration system to help us execute efficiently.
Later, we decided to re develop a set of OKR by ourselves, and we should use enterprise wechat as the base to connect with enterprise wechat.
Because we not only use enterprise wechat to serve users externally, but also want to use enterprise wechat to manage employees internally. In this way, all the collaboration of the organization can be realized in one system. Enterprise wechat also has various interfaces for internal management, which can help us improve the execution efficiency of the organization.
For example, when the meeting is over, we need to track, urge and accept the next work. With so many things, it is definitely not possible to rely on people to stare at them, but to find people automatically through things.
Through the message interface of enterprise wechat, we push tasks to relevant group members and individuals, and automatically remind everyone that there are any tasks to follow up. One thing will not be lost forever.
Everything is explained, everything is settled, and everything is answered.
The
(automatic reminder of to-do tasks)
For another example, we also prefabricate many relevant automation strategies through the special group of on duty robots to improve our work efficiency.
We originally wanted to see the daily data through the Bi Kanban (business intelligence Kanban) developed by ourselves. Then our data personnel and employees of the business line also need to prepare analysis reports. This is actually a waste of time.
Now, after getting through with enterprise wechat, you can automatically capture data, such as daily growth report, month on month and year-on-year situation, cup volume increase, number of connected users, which cities have abnormal data, and so on. The on duty robot can realize point-to-point automatic push of analysis template.
The on duty robot can also push and alarm, such as CPU usage, hard disk usage reminder, package code completion tracking, etc.
In this way, the efficiency will be improved without people staring at it all day.
The
(Ruixing has customized more than a dozen tools on the enterprise wechat workbench)
Look, this is our worktable. In addition to what you just said, we have also developed many plug-ins and functions with the interface of enterprise wechat.
These plug-ins and functions can help us improve work efficiency and save a lot of time and cost.
Yang Fei told me that in fiscal year 2021, Ruixing’s total net income was 7.9 billion yuan, an increase of 90% compared with fiscal year 2020, nearly doubling, and finally overfulfilled the task.
This is closely related to Ruixing’s management style.
Through target management, with strong execution as the guarantee, the efficiency of the organization is continuously improved and the results are obtained.
Behind this is an efficient collaboration system as the base. Enterprise wechat connects OKR with action. Connect external services with internal management. Ruixing’s sales, service and management links can be clearly and transparently incorporated into target management.
Ruixing now has about 13000 employees using enterprise wechat. In the next step, it will involve upstream and downstream partners in the management of enterprise wechat.
Every day, we communicate, discuss, repeat and execute in the enterprise wechat. Bit by bit, improve the efficiency of the organization and keep moving forward.

The foundation of all businesses is to benefit users

Yang Fei said that we have only one purpose to improve the efficiency of serving consumers externally and improve the cooperation efficiency of the organization internally: to make users gain value. Because the foundation of all businesses is to benefit users.
Ruixing chose to return to the user experience, pay attention to the core values and start again.
The core values Ruixing provides to users are three highs: high quality, high cost performance and high convenience.
Let users drink a cup of good coffee. This cup of coffee should not be too expensive. It costs 15-20 yuan. And when users want to drink, they can easily buy it.
However, the “three highs” are easy to say but difficult to do in practice.
Because it is difficult to lower the price if we want to provide high quality and insist on using good raw materials and equipment, let alone have high convenience to quickly deliver coffee to users. There is a problem behind these requirements: high cost.
This problem must be faced. Therefore, the cost can only be reduced by improving the external and internal efficiency. Let me give you the simplest example. The rental cost is a headache for the retail industry.
Have you found that Ruixing’s stores are often opened in the non pedestrian area of the ground floor, or even on the second floor. Why?
Ruixing is different from other coffee brands. Stores of other brands are usually beautifully decorated to attract you to drink coffee and encourage you to sit down and have a rest.
The role of stores for them is mainly to “get customers”. Therefore, it must be opened in the prime location, in the front and on the first floor, otherwise no one may patronize it.
However, Ruixing has paid attention to the Internet mode of placing orders online from the very beginning, and subsidizes offline traffic through online traffic. Consumers place orders online with their mobile phones, pick them up at the store, or we deliver them to the door.
For Ruixing, the role of stores is mainly to “deliver”. We just think about how to make coffee, instead of thinking about how to attract guests all day.
Therefore, our stores do not have such high requirements for site selection, and the area of our stores does not need to be too large. In this way, the cost of rent is reduced.
This can only be achieved by improving the efficiency of external service providers and consumers and the cooperation efficiency of internal organizations.
Then, the saved cost is invested in our product research and development, in the consumer experience, and in providing more value.
Behind the core values of “three highs” is the ultimate pursuit of efficiency.
This is our philosophy.
Then, implement the idea with tools. Use excellent tools to solidify the business philosophy into work habits.
This may be what Ruixing is exploring now. In the future, we will continue to insist and explore.
Last words
After listening to Yang Fei’s sharing, I wonder how you feel?
My feeling is that maybe we should re recognize this company and re understand Ruixing.
Ruixing, start again and go all the way.
In the business world, there are many different approaches, but there is always underlying logic. The underlying logic is to always provide value to users.
The user value provided by Ruixing is three highs: high quality, high cost performance and high convenience.
Then, carry the high cost that may be brought on your own shoulders to continuously improve efficiency. Improve the efficiency of serving consumers externally and improve the efficiency of the organization internally.
Ruixing has also chosen the enterprise wechat as the platform to connect users and employees and create value with connections. Ruixing’s practice on enterprise wechat is also worth learning and reference by many enterprises.
I also hope you can inspire me.
Do the right thing, do more difficult things, and let users get more value.
Thanks to Yang Fei. Also bless Ruixing.
After the chat, I also decided to go and see what the coffee steward recommended. No, let’s order a cup of Ruixing coffee.
Viewpoint: Liu run; Main pen: Jiaopi; Editor in charge: Yingying; Source: Liu run (id:runliu pub), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);

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