Vibrant forest, benchmark coca-cola

Recently, there are two brands in the beverage industry.

One is the listing of Nongfu Spring, making it the richest man in Zhong Shanshan.

The other is Yuan Qi Forest, whose products are red. The series of stocks of "Yuan Qi Woods Concept" in the capital market have been rising for a long time.

The listing of Nongfu Spring has been heated up because there are too few companies with good assets and the capital is crowded.

Yuan Qi Forest, a "network celebrity" brand, not only sells well, but also has a legend of a brother in the capital market. A group of "sugar-free" concept stocks made news, and Qi Fei, an upstream raw material partner's stock.

There are many giants in China beverage market, whether it is Nongfu Spring, Master Kong, Uni-President, Huiyuan Juice, etc. Its listing did not bring the so-called upstream concept series.

Is Yuan Qi Forest an online celebrity brand or a brand different from many giants? With the fierce competition in the beverage industry, can Yuan Qi Forest's "sugar-free" concept become a sugar giant like Coca-Cola?

Sugar-free concept new track

Consumers and capital markets first became familiar with the dynamic forest, starting with the slogan "0 sugar, 0 fat, 0 calories".

The slogan of "0 sugar, 0 fat, 0 calories", high-value packaging and high exposure of social platforms have always been the first impression of the brand "Internet celebrity" in Yuan Qi Forest. Yuan Qi Forest doesn't seem to agree that it is an "Internet celebrity" company, but thinks it is a new beverage company with Internet genes, which may be because it is good at marketing.

"Zero sugar, zero fat, zero card" made Yuan Qi Forest capture many hearts of the post-90s and post-00s. A new brand stirred the industry not long after its birth, creating a new concept of capital market, which invisibly put great pressure on those giants.

As a company, do you have R&D or factories first? Should we grab the market first or engage in research and development first? In order to gain a firm foothold in the market and obtain sufficient development funds, general enterprises will choose to have the market first and then research and development.

However, Yuan Qi Woods appeared in a different way.

Zong Hao, the head of Yuan Qi Forest Brand, said that Yuan Qi Forest was first established as the Yuan Qi Forest R&D Center on 20 15, and then entered the product research and development stage before the company was established. Two years later, Yuan Qisenlin's products finally officially face the market and consumers.

The first batch of products just rolled off the production line, and the Yuan Qi Forest Creation Team was very dissatisfied. "Before entering the market, Yuan Qi Forest originally made a product that we thought was not perfect. Later, we chose to spend millions of dollars to destroy it instead of bringing it to market at a low price. " Zong Hao said.

"Customer first" is the principle that Yuan Qi Woods always adheres to. Perhaps every brand will emphasize "customer first", but in the face of profits, enterprises will give in.

There may be many explanations for the concept of "customer first", but in Yuan Qi Woods' view, the most basic one is: Are we willing to drink the products we produce? Are we willing to recommend it to family and friends?

As mentioned above, once entering the beverage market, value orientation becomes more important.

In the traditional beverage market, some enterprises often use part of the product price for channels, part for marketing, part for profit, and the rest for R&D and production. In the beverage market dominated by international giants, if it develops like this, it will never be able to compete with it. Only by changing the values can there be great room for development.

The approach of Yuan Qi Woods is to completely subvert it. Zong Hao said, first consider what users need, and then meet users' needs with innovative products regardless of cost. Yuan Qi forest believes that good products can talk and sell themselves.

What do users need for drinks?

According to a report by Nielsen, consumers in China are more concerned, aware and willing to consume healthy food, and 80% of them are more concerned about the ingredients in food and drinks, especially the sugar content in drinks. In the special activity of "Healthy China", it is clearly pointed out that consumers are encouraged to reduce their sucrose intake.

Especially young consumers, who are the main consumers of beverages, need innovative products that can add value to their lives and satisfy their personal pursuit. Good taste is no longer their only pursuit. While having a good taste, low-fat and sugar-free quality products are the healthy lifestyle they want.

Before Yuan Qi Forest entered the market, the domestic carbonated beverage market was basically monopolized by international brands, but the emerging and diversified demands of consumers were not well met. Yuan Qi forest thinks this is an opportunity.

It is in this context that Yuan Qi forest sugar-free soda bubble aquatic products are innovated and developed on the basis of insight into consumers, and at the same time meet consumers' expectations of sugar-free, sweetness and self-expression. With the product concept of "0 sugar, 0 fat, 0 calories", they meet the more needs of young consumers for good taste, good ingredients and good face value, tear a hole in the market that originally looked like the Red Sea and become a star explosion product, opening up a blue ocean dominated by domestic brands.

After Yuan Qisenlin's deus ex, "0 sugar, 0 fat and 0 calories" became the new trend of post-90s and post-00s. Many famous brands turned around and found that they had missed the opportunity, and Generation Z had left them.

Generation Z consumption focuses on the direct participation of consumers.

Internet gene companies attach importance to consumers' sense of participation in product development.

Internet products are tested internally, and those that can enter the public's field of vision are often not original products, but constantly improved through consumer trial and error.

Similarly, Yuan Qi Woods is not like traditional enterprises. The product launched is not decided by the boss with his team in the conference room, but by letting consumers directly participate in the voting and make the most correct choice for the enterprise.

It is understood that the corporate culture of Yuan Qi Forest encourages innovation and trial and error, advocates a lot of innovation and trial and error, and strives to reduce the cost of trial and error. In traditional beverage enterprises, such innovation is facing greater pressure: cost and quick profit.

According to the official introduction of Yuan Qi Forest, every product has passed hundreds of blind product tests from research and development to production. The selected ingredients and ingredients have high standards and high costs in the industry. We often ask several questions repeatedly, "Will you finish one bottle at a time?" "Will you buy it yourself?" "Will you keep drinking it yourself?" At the same time, combined with the careful study of the market, channels and sales, these problems are quantified and studied into specific data, and our business actions are adjusted in time according to these data.

Can you resist the Giants' attack?

However, the beverage industry is not a high barrier industry. The "sugar-free concept" initiated by Yuan Qi Woods has also triggered the giants to follow suit, and may even marginalize Yuan Qi Woods with deep pockets.

Yuan Qi Woods also saw this "crisis". In the early days, with the attitude of "going into battle lightly", we quickly cut into several subdivided tracks and quickly established a product matrix covering soda, tea drinks, energy drinks, milk tea, yogurt and so on. Product development is ahead of the giants.

However, doubts have followed. The OEM mode of traditional manufacturing industry, especially the food industry, often leads to a natural decrease in the trust of the outside world. When the beverage giants with strong supply chain support flocked to soda water, the track was extremely crowded, and the proliferation of the concept of zero sugar beverage also led to a mixed market, and various crushes followed. Is the moat in Yuan Qi Forest wide enough?

So it took eight months to build a factory in Chuzhou, surrounded by mountains, with an annual output of 450 million bottles.

In addition, the Guangdong production base will also break ground this year. The new factory in Tianjin has broken ground and is expected to be put into production this year.

At this time, Yuan Qi Forest chose to set up its own factory to control the whole production process, which is of great significance to enhance the product innovation ability.

The demand of beverage enterprises for product innovation ability is increasing rapidly. Choosing a foundry or a self-built factory is directly related to new product testing and process optimization, as well as subsequent new product research and development and market competitiveness. As Xiao Yang, chief operating officer of Yuan Qi Forest, said, changes in the beverage industry have been taking place. After owning his own factory, Yuan Qisenlin will definitely bring new and different experiences to the products in the manufacturing process.

According to the daily consumption exposure, the daily shipment of forests in Yuan Qi is currently 300,000 cases, of which the daily output of Chuzhou Factory is 6,543,800 cases.

Yuan Qisenlin, the person in charge of production, said that the production ratio of self-operated and OEM factories may be flat by the end of next year. However, it is expected that the proportion of self-operated factories will reach 80% in the future.

In the field of traditional consumer goods, Yuan Qi Forest is a laggard, challenger and creator. The outside world is constantly tracking whether the dynamic forest model can be sustained or even become China's "Coca-Cola".