Guest business founder Wu Ting: RMB 20 billion!Honey Xuebing City's hair history

Mixue Ice City is one step closer to the listing of A shares.

On September 9, the official website of the China Securities Regulatory Commission disclosed that Guangfa Securities "About Mixue Bingcheng Co., Ltd.'s first publicly issued shares and listing counseling reports" shows that Mixue Bingcheng has completed listing counseling. If the work of the subsequent application is progressing smoothly, the market may be expected to usher in the "milk tea second share" after Jinai's tea.

As "Pinduoduo in the milk tea industry", Mixue Bingcheng has been fighting fiercely in the market in the past two years, and the price of penetrating the bottom of the ground has allowed it to rapidly expand the country to exceed 20,000 stores, and the company's valuation has reached 20 billion. Founded in 1997, it is actually not a new milk tea brand. How did it sweep the country in recent years? Let's review its hair history together. Below, enjoy ~

Do you know how many cups of tea do Chinese people drink each year? The answer is 10 billion cups.

what is this concept? 10 billion cups (currently) Tea are connected together, and you can go around the earth for 30 laps. Among them, there were 3 laps that turned out to be contributed by a company.

This company is: Honey Snow Ice City.

In 2020, Mixue Bingcheng's sales were 65 billion. Based on the current tea -making single -made tea drink items with an average price of 6 yuan, it is equivalent to selling 1.1 billion cups.

Let's take a look, what kind of industry is tea drink? Every year, 30,000 stores are closed, 90%of them can make money.

The competition is so tragic and tragic, but Mi Xuebing City earns 800 million yuan a year, and the valuation has reached 20 billion.

What's even more scary is that its scale is still expanding. As of October 1, 2021, Mixue Bingcheng Store has exceeded 20,000, becoming the first brand to break 20,000 stores in the milk tea industry.

What is the concept of 20,000?

Let's put it this way, the second place in the industry has exceeded 10,000 stores so far, and there is still a considerable distance.

Xixue's tea, Lele Tea, Tea Yan Yue color ... These stores that start at 20 or 30 yuan are added to the stores of the online black tea brand, which can not be compared to the store volume of Mixue Bingcheng.

Of course, we cannot losing winning with simple digital. After all, the strategy of each store is different, but this volume is indeed very amazing.

So, how does Mixue Bingcheng achieve this revenue and volume?

As for my observation and summary, I think that the growth and success of Mixue Ice City depends on its "flywheel effect".

In this issue, I will take you to take a look at the history of Honey Snow Bingcheng, and talk about its successful methodology.

First of all, we solve the core concept. What is the concept of the "flywheel effect" I just said?

Many large companies will summarize their own flywheels. Flying Wheel, we make up for it. Does it mean "self -consistent" and "closed loop", but also the trend of "forward". Amazon has a "growth flywheel", Microsoft has "fast iterative flywheel", the sports brand Giro's "star effect flywheel", the Ohay Music festival has "listeners participating in the flywheel", Sister Ting's lecture also has "speech flywheel".

After investigation and demonstration, I found that Mi Xue Bingcheng can consider and move forward, and it also has its own "cost -effective flywheel".

The higher the price of products, the more satisfied the consumer is; the more satisfied the consumer is, the higher the sales volume; the higher the sales volume, the lower the purchase cost; the lower the purchase cost, the higher the price / performance ratio ...

This forms a virtuous cycle of "rolling like wheels."

The starting point, end point, and key point that wants to start this flywheel model and want it to continue rotating, that is, three words: cost -effective.

When I say this, you may understand.

oh! Isn't this model?

That's right, although these companies are in different fields, they are all commercial flywheels that are launched by cost performance.

Therefore, you also understand why people call Mi Xue Bingcheng as "Milk Tea's Pinduoduo".

So, how did Mi Xue Bingcheng start this flywheel?

Things have to start in 1997.

The founder of Mixue Bingcheng is Zhang Hongchao.

In 1997, grassroots Zhang Hongchao opened his own entrepreneurial path in a village in Zhengzhou. He was 20 years old that year.

He has sold ice, apples and sugar gourds, and even tried to open the restaurant, but he was not very successful.

Until ten years later, Zhang Hongchao suddenly discovered that a rainbow hat ice cream burst into Henan.

But the price of the ice cream is high, and one will sell for nearly 20 yuan, so even if it is a wealthy family, he hesitates when he pays for money.

Zhang Hongchao found that the sales model of ice cream was that the store was purchased from the dealer. When the dealer purchased it from the manufacturer, when the ice cream was in the hands of consumers, many layers of prices had long been added.

Zhang Hongchao also found that although the ice cream has a strange shape and nice name, it is actually similar to the previous torch ice cream. There is no reason or cost of outrageous.

So in this contrast, he smelled business opportunities.

He decided not to find a dealer or buy someone else's goods. He wants to do it himself.

So, after relying on past experience, he tested more than ten samples with raw materials such as milk, flour, and eggs, and finally made ice creams that people around him. Then he went to sell it himself.

Guess, how much is ice cream pricing?

You may not imagine that the final pricing of this ice cream is 1/10 yuan for rainbow ice cream. Moreover, if you buy other things in the store, you can get a coupon of 1 yuan. Do you say it is cheap?

Such extreme cost -effective products burst into the market instantly.

In fact, the process of starting the commercial flywheel is especially like the state of the tractor when a small partner of the countryside starts.

I don't know if you have seen a tractor in the countryside, it is the kind of hand shake.

It requires you to rotate it hard with a joystick. After a dozen times continuously, the entire engine can rotate, and then provide a steady stream of motivation.

Driven by the "2 yuan ice cream joystick", Zhang Hongchao quickly threw his peers behind him and successfully launched his own commercial flywheel. The ice cream branch opened one after another.

The flywheel turns to this day, the ice cream shop has become a "honey snow ice city" that our passers -by.

Therefore, the starting point of the flywheel is "cost -effective", and the higher the cost performance, the more satisfied consumers are.

In the field of tea, under the same raw materials, the gross profit of other brands may be 60%~ 65%, but Mixue Bingcheng does not have so much profit. They will press the gross profit to 30%to 50%, just for the ultimate cost performance.

To what extent can Mixue Bingcheng pick up the price?

The packaging of milk tea, they never use high -end cups, sealing without cup lid, directly plastic.

Even such a story was circulated inside them. Previously, the management of Mixue Bingcheng also discussed whether to use a cup.

But this proposal was directly by the CEO Zhang Hongchao, he said, "Can you eat this thing? Can't you need it?"

At this time, go back to the details of "selling 2 yuan", it is very intriguing. Zhang Hongchao can actually price ice cream at 10 yuan, compared with 20, it is also cost -effective. But he chose to sell 2 yuan, kill all the differences, and kill all the profits. What does his picture?

Today, after the flywheel turns, we can clearly see that he is a scale.

This extreme savings allowed Mixue Bingcheng to complete the original accumulation.

In 2014, the 1,000th store of Mixue Bingcheng was listed.

The so -called "the more satisfied the consumer, the higher the sales volume."

In the process of continuously expanding, Zhang Hongchao made another choice: producing raw materials to control the supply chain. Instead of buying other people's raw materials.

In 2012, Mixue Bingcheng built the central factory R & D center to achieve its own production and self -selling of core raw materials.

In 2014, Mi Xue Bingcheng began to build its own warehousing and logistics distribution center, becoming the first free delivery brand in the country.

These two decisions bring two effects.

On the one hand, in the raw material procurement stage, Mixue Bingcheng can use the name of the factory to cooperate directly with tea production and processing enterprises, skipping many intermediate links, at least 20%of the cost;

On the other hand, these new storage and logistics centers can not only accurately control the amount of inventory, but also accelerate the operating cycle and reduce warehousing costs and logistics costs.

This cycle explains the "higher sales and lower cost" in the flywheel.

While reducing costs, Mi Xue Bingcheng also did a second thing to get quality.

For example, even if you make 3 yuan of sweet bomaker ice cream, Mi Xue Bingcheng also said that they insist on using eggs to make egg rolls, but refuse to use flour and sugar.

In 2018, Mixue Bingcheng opened 5,000 stores; in 2020, 10,000; in October 2021, they exceeded 20,000.

This is "the lower the cost, the higher the cost performance."

The "commercial flywheel" of Mixue Bingcheng turned like this.

In fact, in my opinion, Zhang Hongchao's success, there are many, many elements, such as compliance with the needs of China's sinking market, such as the expansion speed brought by the franchise mode, but the most precious thing is The original intention of "let ordinary people eat high -quality ice cream", this is the ultimate motivation of his commercial flywheel for 24 years.

From 2 yuan to 20 billion, the history of the wealth of a tea shop is here.

Are you optimistic about Mi Xue Bingcheng? Is its growth story inspired you?

- END -