Yang Zhe, CEO of Fu bi xing liquor industry: Now is the best time to seize the folding opportunity of the product iteration period

Financial Circle Network August 26 news In 2021, under the influence of the disappearance of the demographic dividend, consumption upgrading and the global epidemic, the industrial Internet track has ushered in an unprecedented opportunity for development, and digital technology is accelerating the reshaping of the upstream and downstream collaboration relationship of the industrial chain.

In the roundtable forum of "Supply-side Change - Data, Intelligence, Customization", Niu Xiaoyi, Managing Director of Huaxing New Economy Fund, and Yang Zhe, founder of Fubixing Wine, launched an in-depth dialogue.

How did Fu Bi xing wine industry start?

Niu Xiaoyi: 2C investment is very hot, because young people, a new generation of people, there are always new needs, and the business environment is also changing. Please fu Bixing Yang Zong first introduce, because you are making wine this industry, wine is an ancient industry, but the category you do may be a very new category, so can you introduce what changes in the market demand you see? Why do you need a business like ours? What opportunities have arisen?

Yang Zhe: Hello everyone! I am Yang Zhe, the founder of Fu Bi Xing Liquor Industry, just now Niu said that Fu Bi Xing is actually doing business for young people, because today is the best era of consumer goods, the real increase in income is the confidence of consumers, under this confidence there is the so-called aesthetic, there is a deep understanding of the product. It can be said that all the opportunities for new consumption and new brands today actually come from the real return of consumer sovereignty to users, and the entire fragmented channel and fragmented traffic have accelerated the realization of this personalized, diversified and humanized demand.

And as I just said, drinking wine itself is called new wine, which is different from the traditional liquor, beer, rice wine and red wine, we are called new wine. We feel that the future of new drinking is humane in itself, and there should be more personality propositions for drinking, so we are making new drinking.

Niu Xiaoyi: We understand that the so-called new wine drinks, such as the category we are doing now, are actually a rapid development, but in fact, the overall market size is definitely relatively small compared with traditional wines. How did you see this demand change at the time? What inspired you to be this new supply chain company?

Yang Zhe: Actually, I think I still see it because I believe it. Because since last year and the end of the previous year, the entire new wine and drink track has attracted a large number of brands, including investors. In fact, we entered this track relatively early, I was looking at this category in 2017 and 2018, including in fact, in the beginning, Fu Bixing is not a factory form. We initially believed that the opportunity of diversified and fragmented consumption would cause such a category of opportunities, and we initially looked at the entire large category and big opportunity, but there was no brand, no giant such an opportunity, so initially we also wanted to start from the entire foundry factory.

It can be said that we visited all the factories in the country at that time, all the factories were telling us about the ancient method, handicraftsmen, itself is the lack of food safety management system, the lack of modern food industry system, we were looking for the first batch of foundries to do all the products are broken.

At that time, in fact, in order to continue the project, we had to go into the manufacturing process. So the entire supply chain of Fu Bichen was forced out and had to be done. I remember when the factory was built in 2018, from the entire equipment, process, talent, the country is new, including we are doing equipment, such as you want to do a liquor, or other beverage factories, you can find a very mature assembly manufacturers and equipment manufacturers in The country, equipment manufacturers will give you a lot of solution ideas, and we were in this category, we need to refine our process as a whole, summarize to the equipment manufacturers, and the equipment manufacturers to achieve the manufacturing of the entire equipment.

This is actually a process of re-examining the value of the supply chain, and we feel that only after the completion of infrastructure construction, upstream buildings, upstream brands, and upstream consumption can we firmly prosper. Supply and demand itself, or we talk about the relationship between the factory, or the supply chain and the brand, it is a synergistic relationship, it is a mutually reinforcing relationship, but I think it is more of a sequential relationship, it must be the completion of the infrastructure first, and then there is the firmness and prosperity of the entire top level. So we've been putting ourselves in an infrastructure perspective.

In terms of the industry as a whole, wine is actually a very, very traditional, and very, very large track. I think that whether you choose the entire supply chain end or the entire brand end, entrepreneurship is actually like climbing a mountain, it is a process of climbing a mountain, whether the factory chooses a brand or circulation or a factory, it is actually a point of climbing from the east or from the west. The common goal is to climb this mountain that can meet the needs of users.

And when we go to see wine, wine is a mountain with a very high peak, but it is also a small form of industry with a peak. When we look at the industry, they are basically large-cap companies, and it is an oligopoly monopoly market between categories and brands. In fact, this is actually a hellish model for entrepreneurship, or entrepreneurs, but once it reaches the top, there will be the biggest reward. So I think from a higher, longer dimension, we do this supply chain depth, or a very heavy thing, I think it is just a grasp of fast and slow, is a chance to have a greater chance to approach this peak success.

Niu Xiaoyi: So in fact, the first thing is to believe in this new consumption, and the second is that in the process of actually doing it, this mountain has not been climbed, so it needs to be built, so we need to build our own roads, we need to build our own bridges to meet the new needs.

Yang Zhe: Indeed. Because at that time we went to review China's new consumption opportunities, we felt that China must have Budweiser in ten or twenty years. I think we look at the current traditional giants, the current giant products, and the future diversification, personalized the entire product iteration will have some many folding opportunities, including opportunities in product form, product categories, changes in channels, changes in circulation, including how to replace imports, how to domestic efficiently go to sea many, many opportunities.

Entrepreneurs in an ecological niche can capture these opportunities, can be prepared to these opportunities to grasp a form, with the ability to such a dividend, I think this is actually the best era, can capture these dividends, can seize these dividends, it is possible to become China's Budweiser, China's Suntory, I think this is the best opportunity of the times.

Fu bichen's attempt at production standardization?

Niu Xiaoyi: Later, I actually want to talk to Mr. Yang again, because we talk about customization, customization often represents personality, and production must be standardized to be efficient. When I went to Yang Zong's office, I found that you have made a lot of standardized attempts, and I feel that it is particularly simple to make a wine, first pick the bottle, what color you want, what taste you want, based on what base wine, let me feel that there is a hook, you can also do a brand of your own, I think it is quite interesting. So Mr. Yang, can you talk about what attempts we have made in our industry, such as in the production standardization?

Yang Zhe: First of all, we talk about flexible factories and agile factories because after the current demand becomes smaller and more fragmented, the entire industrial chain is forced to force an inevitable requirement to the production end, but the stable output of large orders, it considers cost and quality, which is parallel to multiple SKUs, which is a contradictory solution.

The solution to this contradiction, in fact, we are also in the middle, although wine is a very traditional industry, but our new wine is still relatively new in the entire category, and it is scarce in the entire supply chain side to win. The entire digital, intelligent national level is the new infrastructure, and what we do is to be able to build our organizations and processes on top of the entire foundation.

For Fu Bixing, how to be a grasp of such a manufacturing industry, to cooperate with our suppliers, our food packaging materials, food raw materials, food-grade assembly, our downstream, along with our commodities flow to our customers, which logistics, information flow, and finally to the entire user. In fact, in the whole process, can we cooperate with upstream and downstream enterprises to continuously reduce costs and increase efficiency, and achieve comprehensive upgrading?

Although our customers are our "parents", in essence, it is our ultimate goal to continuously meet and upgrade the needs of end users. In fact, we are still in the first stage of supply chain service providers, we are production supply chain service providers. Fu Bixing produced more than 170 SKUs last year, behind which is more packaging materials, including many raw materials, and this flexible result is unimaginable to traditional wine manufacturing plants.

The whole switch of the traditional factory, the product is difficult to imagine, we also have digital applications, in our front-end, to our customers, our packaging material library, our raw material library, our design library, and even in the 33 categories of wine, we registered a large number of brands, customers can directly take the trademark away for recombination, he can check the price online, including the school team of the process, through our system, to solve an industry from ideas to products a landing process.

The entire middle office, our digital design is actually to establish a product-centric material database, through the digital link of the entire supplier, including and our production process of the entire data-based material center, we are now gradually improving, this year we can go to our suppliers and our customers to the entire open.

At this stage, our digitalization is still in the factory, and what we are doing now is through the combination of IoT and supply chain, and we control the entire fermentation process. Part of it is that we can quickly issue products, one a week, can change quickly, and we also have unchanged things, because the core of business is that you must have unchanged things, if you have been changing, one is not retained, and your marginalization cost is not reduced, so there are a lot of standardized actions and a presentation of the whole diversification choice in the output.

Niu Xiaoyi: In fact, we have done a lot of standardization on the product side and the production end. Because the so-called manual ancient method is actually no data based on experience. I also went to your new factory at that time, we are also building new capacity, definitely data collection, the design of the entire line, etc., in fact, are very scientific, are dependent on technology, so it is still very interesting.

The Moutai of the future young people?

Niu Xiaoyi: Mr. Yang, do you think we have the opportunity to become the largest supply chain in our category? Or is your ambition to become a young moutai?

Yang Zhe: China's wine will definitely go to sea with the rise of Chinese culture, and we will definitely have the opportunity to go to sea in the supply chain in the future. Just said that the new wine is not actually a supplement to the traditional wine, the new wine may be a very structural change in the next 35 years, 10 5 years after an intergenerational change.

There are many categories of wine in this, and we are now because we are still a very early start-up company, and we are also cutting in from a very small small sweet water. But in the next step, we will do a larger category, including rice wine, including sparkling wine, craft beer, etc., which is actually a judgment of a company from scratch to small, from small to large, at different stages.

So I think Fu Bixing also has its own 5-year plan, and we also have our own major efforts in the first 5-year plan. I think it is still in the spirit of how to solve the needs of future end users, how to meet his needs on the path, just said that the increase in categories, but also can include and serve more users of a process.

This article originated from the Financial Circle Network