Fragrant fluttering, not even sinking the market, it is not fragrant

Author ｜ Jin Yan

Edit ｜ Song Han

"I have been drinking incense when I was a kid."

"Who still drinks that kind of milk tea now? You have to make yourself, it's too much trouble."

"I can't remember when I bought it last time, probably junior high school or high school."

When did you buy a bubble -type incense -fluttering milk tea? As some consumers said to Xiaguang Society, Xiang Piaopiao is being forgotten by consumers. Maybe many people can no longer remember when the last time I bought Xiang Piaopiao, and I did not know that Xiang Piaopiao launched a bottle of drinking milk tea. Essence

The "Chinese Milk Tea First Stock", which was once beautiful, is in trouble. Performance has become the most intuitive evidence: In the first half of this year, Xiangpiao's loss reached 129 million, which was doubled last year. Because "Hundreds of millions of months" Xiang Piaopiao recently appeared on Weibo hot search, which evoked a wave of "memories killing".

Picture source: Weibo

Although the company launched an instant drinking product, which increased the layout of the sinking market, the momentum of decline in revenue and increased losses did not slow down, and Xiang Piaopiao was unknowingly fading out of the public vision.

Milk tea "godfather"

Jiang Jianqi's founder Jiang Jianqi was assigned to the Shanghai Railway Bureau after graduating from high school. He quickly got tired of looking at the life, and used his free time to walk on the street to make pastry business. It is said that in 1985, he saved tens of thousands of yuan.

Jiang Jianqi, who made the first bucket of gold, was not satisfied, and simply resigned and returned home to take over the cake shop where his brother lost money. After taking over the pastry shop, Jiang Jianqi realized that the product needs to be innovated.

It should be said that Jiang Jianqi, who is flexible, has the kind of energy in the bones of Jiangsu and Zhejiang people. He took the initiative to find the Hangzhou Food Research Institute and went to the voluntary market to investigate and launched a sticky product.

In 1993, Jiang Jianqi went further and inspired by the martial arts novel "The Heroes of the Condor Heroes", he named the company "Old Triors". By 2003, the sales of old urchins reached tens of millions of levels, but the company's product form was relatively single, and it would be affected by the season. In winter, sales of sales fell rapidly, which made Jiang Jianqi realize that new products needed to fill gaps.

In 2004, Jiang Jianqi saw many people buying milk tea while hanging strolling on the street. Milk tea, and ran to Guangdong to find designers for packaging.

In 2005, Xiang Piaopiao was formally established. At the same time, Jiang Jianqi scolded a huge sum of money to invite well -known directors to shoot advertisements and play advertisements at the golden time on television. With the mellow taste, novel tuning method and dazzling packaging, Xiangpiao milk tea has become a explosion once it was launched.

From 2005 to 2007, the first three years after the company's official establishment was rapidly developing rapidly, "in 2007, it has achieved 480 million sales, creating a myth of the fast-moving consumer goods industry."

But during this period, the followers also flocked. Jiang Jianqi once said that in 2008, there were 100 similar competitors, of which the three most powerful competitors were the Youle Milk Tea, a subsidiary of Xizhi Lang, and Lilce's Lilce of Lianlihua. Milk tea and Zhejiang Dahao Da Fan met with milk tea.

How to stand out from the competition? At that time, in addition to milk tea, Xiangpiao also had projects such as rice cakes, peanuts, real estate and other projects. Jiang Jianqi's approach was unexpected -cut off all business that was not related to milk tea. "Diversity is indeed a practice, but I believe the power of 'special". "

In 2008, Xiangpiao's annual sales exceeded the billion mark. "The sales volume for 6 consecutive years, selling more than 300 million cups a year, the cup can be around the earth." This advertising word becomes a household name.

In a public speech, Jiang Jianqi specifically mentioned that Xiang Piaopiao focused on the spread of mainstream media. "The focus is on the concept of passing the pioneer and leader. . "At that time, after the advertisement was launched in Hunan Satellite TV, Zhejiang Satellite TV, Oriental Satellite TV, and CCTV, the information could be quickly passed on to consumers' brains and hearts. "".

In 2011, the sales of Xiangpiao milk tea have increased from more than 300 million cups a year to more than 1 billion cups, and the advertising words have also changed from "one circle around the earth" to "three laps around the earth"; Tmall and other e -commerce platforms, this move made its revenue directly standing up to 2 billion.

In November 2017, Jiang Jianqi led the enterprise to realize the A -share IPO and became the "first share of Chinese milk tea". His name also began to appear frequently in various rich lists. He is a veritable "milk tea godfather".

According to the statistics of third -party agencies, from 2012 to 2020, Xiangpiao's market share exceeded 63%. The market share of cups of milk tea for 9 consecutive years remained first. Xiang Piaopiao became the biggest winner in brewing milk tea.

Competition in parallel time and space

2107, the listing of Xiangpiao is not only a highlight of the development of enterprises, and may also be a turning point in Xiangpiao's development.

Although Xiang Piaopiao firmly occupied the market share, the threat of the offline milk tea shop has always existed.

Since 2010, offline milk tea shops have entered a blowout period under the wrap of capital. Especially after 2015, new tea such as Xixue and Naixue's tea has been hot. Zhuo Zhi Consultation data shows that the current tea drink is high -speed expansion. In 2015 After the year, the average annual growth rate of more than 20%was maintained.

At the same time, the brewing milk tea market belonging to Xiang Piaopiao gradually saturated. In 2017 and 2018, the growth rates of the brewing milk tea market in China fell to 2.4%and 5%, respectively. The limited market space is naturally not conducive to Xiang Piaopiao telling his own capital stories. This may be why Xiang Piaopiao's third impact on the capital market will finally get what he wishs. Although the current milk tea market and the brewing milk tea market have a competitive relationship, after all, the scenes used are different, just like two parallel space -time that exists at the same time, but the appearance of takeaway has completely pulled the two to the same battlefield. The current milk tea has a strong flavor, and it is healthier than brewing milk tea. The changeable taste can meet the customized needs, let alone mention its social attributes. In the comparison of many parties, the current milk tea is almost better.

Chinese food industry analyst Zhu Danpeng told Xiaguang Society that consumers' purchase of milk tea pays more attention to quality, brand tone, scenes, and services. "Xiang Piaopiao is facing the aging of the entire system, including the aging of business philosophy, the aging of categories, the aging of the product, the aging of customers, the aging of the team, and the aging of channels. Under the blessing of so many 'aging', Xiang Piaopiao From a well -known brand to a three -fourth -tier brand in the eyes of the public. Especially for brewing milk tea business, it has been slowly abandoned by the mainstream consumer groups. "

Picture source: Weibo

The performance of financial data is more intuitive: During 2017-2020, Xiangpiao's operating income was 2.64 billion yuan, 3.251 billion yuan, 3.978 billion yuan, and 3.761 billion yuan. From the perspective of the growth rate, it was 23.1%in 2018, 22.4%in 2019. By 2020, revenue fell by 5%, and in 2021, it fell by nearly 8%year -on -year. By the first half of this year, Xiang Piaopiao realized operating income of about 8.59 100 million yuan, a year -on -year decrease of 21.05%.

The net profit changed from profit to loss. In the first half of this year, the net profit attributable to shareholders of listed companies was about -129 million yuan, and the same period last year was about -062 million yuan.

The success of Xiang Piaopiao's early years originated from precise positioning, which has a lot to do with Jiang Jianqi's cooperation with Trust. Trust is known for its "positioning theory". It can be said that without having a diversified business at that time, there was no success of Xiang Piaopiao later.

A noteworthy detail is that the business that Jiang Jianqi was determined to cut off at the time, in addition to food and real estate, also had a well -operated milk tea shop. I don't know if he saw the tide -like offensive of the offline store, did Jiang Jianqi regret the decision at the time?

Perhaps it is due to the dependence on the accurate positioning marketing. Xiang Piaopiao has smashed heavy money in marketing in recent years. Especially after 2015, the endorsement stars invited by Xiang Piaopiao were almost overllow. Zhong Hanliang in 2015, Chen Weiting in 2017, Wang Junkai in 2019, and Wang Yibo in 2021.

From 2012 to 2021, the sales costs of Xiang Piaopiao exceeded 6.6 billion. In 2019, the sales cost was nearly 1 billion. As soon as the advertisement rang, the gold was two thousand, but this time, Xiangpiao became the one who paid for.

There is no doubt that traffic star endorsements are to shorten the distance between brands and young consumers, but how much sales transformation can bring in traffic stars is unknown. The positioning of Xiang Piaopiao in the past is deeply imprinted in the minds of consumers, becoming the biggest cricket in the company now. Many young consumers don't even know that behind the Xiangpiao milk tea on the supermarket shelves is a large -scale listed company.

Sink and go to the sea, jump into another red sea

Xiang Piaopiao also wanted to break his shackles. He tried to find the company's second growth curve through the product strategy of "brewing+". In 2015, after the acquisition of the Hong Kong Lanfangyuan brand, Xiang Piaopiao began to develop liquid milk tea business, and launched Meco Honey Valley juice tea in 2017.

However, in 2021, the operating income of brewing products was 2.78 billion yuan, accounting for 81.2%of the company's operating income, and only 18.8%of drinking products. The brewing products are still the main force of the company's performance.

Compared to the new milk tea, the actions of fragrant fluttering are still too slow. According to Jiuqian Zhongtai Data, from 2018 to 2020, the tea of ​​Xixue and Naixue has been on 300 new and 200 products in three years. In terms of research and development cycle and research and development costs, industrial tea drinks have been hit by the dimension of milk tea.

In terms of channel layout, the domestic market competition is fierce. In 2018, Xiang Piaopiao established an independent overseas business department to try to open up a new market.

The company's financial report disclosed that Xiangpiao's overseas market revenue in 2020 was 29.11 million yuan, an increase of 67.53%year -on -year. This market share was extremely shrinking in 2021, fell by more than 50%year -on -year. Ten million -level sales can almost ignore the current company's revenue.

The problem of overseas business may be positioned. Although Xiang Piaopiao entered the United States and Canada, the consumer groups were basically limited to the Chinese circle and could not expand to local people.

This seems to be a common problem encountered by many brands to the sea. It will move domestic sales models and marketing methods to foreign countries. Without considering the differences in the local market, it is naturally impossible to break the circle to the local consumer group.

In the domestic market, Xiang Piaopiao relies on the support of the third and fourth -tier sinking market. In the annual financial report of 2021 and this year's midterm performance report, Xiang Piaopiao said that brewing products will sink and deeply cultivate channels. Compared with the current milk tea, the price of brewing milk tea is low, which is more in line with the consumption level of third- and fourth -tier cities and county markets. But at the same time, there are fewer young consumers in the sinking market and their willingness to consume. In addition, there are already brands such as Honey Snow Ice City and Fresh Fruit Time among the current milk tea brands. Once a large number of franchisees enter the township expansion stores, it will undoubtedly further squeeze the market for brewing milk tea.

A boss who runs a supermarket in Fuyang County, Anhui told Xiaguang Society that "Xiang Piaopiao really can't sell it. Except for someone to give gifts before and after the Spring Festival, there will be some sales of gifts. The brand control price is too strict, the profit of the supermarket is relatively low, and the people may not buy a big brand, so I will not buy it later. "

"The people in the small county town here feel that the fragrance is not delicious, and it is too sweet. There is a honey snow ice city next to the supermarket I opened. There is no one to buy it. "

In fact, even the new tea with the upper hand with Xiangpiao's competition is not a good track. The growth rate of new tea drinks is slowing. According to Ai Media data, in 2016-2021, the market size of the new tea industry has been nearly 10 times, but the average growth rate in the next five years is only 6%. The growth rate of the number of milk tea -related enterprises has also slowed. According to the company's investigation data, in the first half of 2022, my country ’s new milk tea -related enterprises were 31,300, a year -on -year decrease of 42.32%.

Zhu Danpeng's analysis, neglecting the R & D and industry is the common problem of the old -generation bosses in China, and consumers pay attention to the product itself. "Xiang Piaopiao has biased the consumer awareness of the new generation and the current new generation of consumer consumption and consumer thinking on the entire attention point. It does not accurately capture the real needs of consumers. This is the reason why Xiang Piaopiao is abandoned by consumers. one."

In the final analysis, Xiang Piaopiao did not seize the change of consumption trends, and blindly "hugging and lacking." Considering the uncertainty of the company facing the rise in raw materials, the growth of new business growth, and the high increase in sales costs, if Xiang Piaopiao cannot grasp the hearts of consumers through product innovation, it is a matter of time to be forgotten.

*Cover and head map source Xiang Piao Diao official website.

Reference materials:

[1] "Chairman of Xiang Piaopiao: I don't understand the milk cups that can be sold around the earth now", surging news

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