1919 Quick Drink Zheng Guangxian: Realize the Reform of Traditional Liquor Channels and Be the "Shell + SHEIN" of Liquor Platform

Reporter Sun Jizheng reports from Beijing

Recently, Zheng Guangxian, chairman and general manager of 1919 Digital Business Group, shared the development status of China's wine industry at the 2023 China New Consumption Summit Forum. He pointed out that according to the data of all parties, China's alcohol consumption is decreasing year by year and has become an industry trend, and many wine companies have inverted the problem of sales data.

Zheng Guangxian believes that alcohol consumption, especially in retail channels, lags behind the renewal and reform of mainstream retail channels, and for a long time, offline and online are two forms of channels that are completely separated and separated. "With the 1919 omni-channel tripartite e-commerce matrix as the core, 1919 Kuaiyu hopes to transform the traditional offline channels, so that the previous tobacco hotels can obtain the blessing of digital retail, and online, so that more consumers can get a channel to understand the products, so that consumers can see and buy, and truly realize the integration of online and offline alcohol channels. ”

Zheng Guangxian, chairman and general manager of 1919 Digital Business Group

"For a long time, alcohol consumption is a seller's market, consumers buy what they see, and what 1919 Kuaiyu does is to make this market become dominated by consumers' willingness, gain insight into consumers' consumption needs, and then guide manufacturers to meet consumers' consumption wishes, so that upstream and downstream can communicate at low cost and high efficiency. Zheng Guangxian said.

It is understood that 1919 Quick Drink is an innovative project of instant retail of alcohol under 1919 Group. Relying on the all-round advantages of 1919 brand, operation, supply chain and other aspects, it abandons the traditional asset-heavy store opening model, focuses on global digital online operation, provides one-stop fully managed digital upgrade services for physical liquor store merchants, and provides consumers with instant wine purchase services with high quality, excellent price and the fastest delivery in 19 minutes.

The transformation of traditional liquor channels

For a long time, for tobacco hotels, the main consumption is concentrated on the "three major pieces", namely wedding banquets, gift consumption, and business consumption, which is actually very dependent on acquaintance consumption, but under the change of new retail, the real increment lies in stranger consumption, which is difficult to reach for a long time in traditional tobacco hotels.

Zheng Guangxian introduced that in the past two years, manufacturers have sunk to do circle marketing and direct stores, and dealers have done terminals around core stores, which has caused a "dimensionality reduction blow" to traditional cigarette hotels that lack core competitiveness. In the consumption of alcohol, the tobacco and liquor industry is basically still a digital island, and the digitalization of the alcohol industry, brand digitalization, channel digitalization, and terminal digitalization is seriously lagging behind other industries in the overall development.

While many cigarette shops are aware of this problem, their solutions to this problem are lackluster. Zheng Guangxian said that in March this year, our team conducted nearly a month of research on Beijing's tobacco and alcohol market, and a large number of terminals in the entire market were helpless in the face of changes and upgrades in consumption. Some may shoot some short videos, and some do some Meituan channels, but most of them have no operational capabilities. We see that 20% of stores are willing to upgrade digitally, but 100% of stores do not have the ability to upgrade digitally. If we help the industry to do digital empowerment and use the traditional way of digital industry upgrading, then what we can do will not be of much significance to the innovation of the industry. However, if we help stores to acquire customers and do digital upgrades to obtain orders, the industry situation of traditional stores will change. We think it's a very thin cut, but that's where 1919 Drink is currently coming in.

As a traditional offline channel, the format of the cigarette hotel will not die, but how to make the traditional cigarette hotel survive better has become the focus of 1919's offline channel innovation. For 1919, what we do offline is to let all terminals enjoy 1919's digital infrastructure, and enjoy all the digital services of 1919's middle and back office.

In this regard, Zheng Guangxian explained that 1919 fast drink can be simply understood as "shell + SHEIN", or 1688 of alcohol, but our difference is that we have customized more accurate product channel acquisition for the retail side. For example, in terms of short videos, 1919 is a non-inductive customer acquisition SaaS system for all channel terminals, to put it simply, we help stores to do various forms of online traffic promotion, including short videos, social platforms, etc. All in all, we are helping all terminal stores to do traffic matrix, digital matrix, and video matrix. 1919 Kuaiyu has reserved a relatively strong online promotion ability in this regard, including the establishment of a joint venture company with a head anchor, etc., to apply the main domestic and foreign digital models to the wine industry, simplifying, molding, and tooling all the large models, and finally allowing the store to quickly generate content and help itself to do publicity.

It is understood that 1919 Kuaiyu has obtained very valuable user needs and data in the middle. For example, craft beer is growing by more than 50% per year in instant retail, but liquor and wine are growing by more than 400%-500% per year, and these data models are very difficult to obtain for traditional stores. For traditional cigarette hotels, the biggest significance of 1919 is to help them deliver orders, provide online traffic and even direct profit subsidies, and at the same time help 1919 incubate new products that meet the market consumption channels.

Zheng Guangxian said that for the stores that have joined the current company, 1919 actually subsidizes the stores in many products. "The meager profits of retail are the consensus of the industry, and we 1919 will directly transfer a part of the profits to the store is to allow the store to directly obtain a greater living space, subsidize the downstream with upstream profits, and truly realize the honor and disgrace of the upstream and downstream. ”

At present, 1919 has more than 3,000 stores across the country, and according to the plan, it will exceed 10,000 next year. For traditional stores, the emergence of 1919 has really solved the problem of development and survival, and for 1919, the rapid growth of stores has directly strengthened the radiation scope and ability to deliver wine to homes in 19 minutes.

"1919 Kuaiyu is transforming the traditional format, we 1919 Kuaiyu started the project in August, and now has completed the digital transformation of more than 1,000 physical liquor stores, and we hope to achieve more than 10,000 by next year, and we hope to achieve more than 30,000 by the year after next. Zheng Guangxian said.

Do wine industry incubation camp

According to the data of the National Bureau of Statistics, from 2016 to 2022, the output of Chinese liquor (65 degrees, commodity volume) showed a downward trend year by year. In 2022, the output of Chinese liquor (65 degrees, commodity volume) will be 6.712 million kiloliters, a year-on-year decrease of 6.20%, which is also the sixth consecutive year of decline in the country's liquor since 2017, and it is almost "halved" compared with the peak in 2016. From January to July 2023, the output of Chinese liquor (65 degrees, commodity volume) was 2.367 million kiloliters, a year-on-year decrease of 13.3%.

For a long time, there has been an argument in the wine industry, especially in the liquor industry, that is, in today's declining alcohol consumption, small distilleries and small wine companies will continue to die, and the wine industry will become the world of giant wine companies. Although this argument has been around for a long time, with the continuous growth of online consumption, many small wine companies and new brands have begun to emerge and gain new development opportunities.

In this regard, Zheng Guangxian told the "China Business Daily" reporter that many small brands can now obtain hundreds of millions of yuan in sales through online channels, which is enough to support the survival and development of a winery, and the key to the success of these wineries lies in the breakthrough of the subdivision track. "For example, these small distilleries all focus on ration wine, that is, the wine that consumers drink on their own in their daily consumption, although this market accounts for a relatively small proportion of alcohol consumption, but it is enough to feed more small wineries. "For 1919, on the manufacturer side, what we do is to help them open up various channels and cultivate consumers' consumption Xi.

In the current consumer market, especially in the online consumer market, the post-80s to post-00s are the main consumer groups, and how to let them establish alcohol consumption awareness is crucial, and the focus of 1919 online is exactly this. Online, what we do is traffic monopoly, that is, the monopoly of advertising media, including inviting celebrities to endorse, such as Mojito asked Jay Chou to be an endorsement last year. All brand chains, industrial chains, chain owners, popularity, topics, and finally form a traffic engine, which is the most relied on advantage of 1919's online channels.

It is understood that 1919 has maintained the scale of its own sauce-flavored liquor brand Hengchang Burning Workshop at 2 billion to 3 billion yuan through its own online advantages. This actually proves that 1919 has a strong appeal and industrial advantages online, and has become the key to attracting upstream industries to join.

Zheng Guangxian pointed out that some overseas models that are now used by everyone have some data on foreign wines, but there is no data on Chinese wines, because no one feeds the data into it for infrastructure. But at present, 1919 is doing a data model of Chinese liquor, in this process, we have a brand department, a marketing department, we feed all the traditional data and infrastructure into the large model, and finally form an industrial application. If it is a simple large model, it actually has no vitality and productivity, but once it is deeply integrated with the industry, it has a broad application space.

"What 1919 is doing is an incubation camp for explosive products in the wine industry, first forming a traffic explosion in the public domain, forming a rapid distribution in the industry, and finally forming a business with many small disks driving large markets. Zheng Guangxian said.

(Editor: Yu Haixia Proofreader: Liu Jun)