Since the rise of live streaming, traditional sales methods have been greatly impacted, and the food and beverage industry is one of them. With the entire market being reshaped by live e-commerce, the food and beverage industry is undergoing a "live e-commerce" change, whether it is marketing methods or sales forms, whether it is channels or sales.
As a basic consumer industry, the food and beverage industry is one of the industries that has been most transformed by live streaming e-commerce. Whether it is marketing methods or sales forms, whether it is channels or sales, the food and beverage industry is undergoing a "live e-commerce" revolution.
According to NielsenIQ retail data, online channel sales accounted for 6.8% of all channels (17.5% excluding fresh food), and content e-commerce represented by Douyin drove the overall growth of online channels by 14.0% with a growth rate of 75.0%, and content e-commerce has quickly become an important battlefield for brand competition.
1. The food and beverage industry that has been "innovated".
In the past few years, Douyin's e-commerce food and beverage industry has grown rapidly, with a year-on-year growth of 133% in 2022, and a compound growth rate of 264% from 2018 to 2022, far exceeding the growth rate of the overall online market.
In 2023, the food and beverage industry will show an all-round growth trend on Douyin, and the huge engine data shows that:
- In terms of platform content, the IP investment in the food and beverage industry of the giant engine doubled year-on-year, the number of food vertical experts exceeded 900,000, an increase of 50% month-on-month, and the search volume of food industry-related content reached 58 billion+. From January to October 2021, the number of food and beverage-related content creators on Douyin increased by 18.3% year-on-year.
- In terms of Douyin e-commerce, the monthly active consumers of the food industry exceeded 150 million, and a large number of food and beverage brands relied on Douyin e-commerce to expand their sales channels, with a year-on-year increase of 50%+ in the Douyin food industry, and more than 140 brands with a GMV of more than 100 million.
- In terms of life services, Douyin has cooperated with food and beverage brands to more than 2,500 offline stores, reaching more than 370 offline cities, involving more than 35 types of life scenarios.
- In terms of user growth, in December 2022, the number of interested users in Douyin's food and beverage industry increased by 15.7% year-on-year. Users also convert their interest into purchases, and nearly 6 out of 10 active e-commerce users have purchased food and beverage products.
At the marketing level, the food and beverage industry is also rapidly migrating to live-streaming e-commerce platforms. According to data from QuestMobile, the food and beverage industry continues to focus on exposure-based marketing and advertising, and has migrated from long videos to short videos.
In the specific sub-categories of food and beverage, content e-commerce has achieved rapid growth far beyond the industry in all categories. NielsenIQ retail data shows that 34.5% of content e-commerce food and beverage categories have doubled their expansion. Among them, the growth rate of beverage preparation and snacks and nuts is even greater, far ahead of wine, grain, oil, rice and noodles and other categories.
Second, live broadcast e-commerce has become a sharp blade for brand "counterattack".
During this year's Double 11 promotion, there were many brands on the list of best-selling food and beverage brands. According to the data of Yiou Think Tank, the old domestic product Renhe in Douyin e-commerce ranks TOP1, and the white-label modomodo ranks TOP1 in Kuaishou e-commerce, and Adopt a Cow is in the forefront of Douyin and Kuaishou, achieving an explosion in sales.
The Adopt-a-Cow brand successfully achieved product and sales synergy through IP and e-commerce nodes, and the two complemented each other, doubling the brand's business in two years.
From October 8th to November 9th, the sales of the e-commerce double 11 of the low-temperature line of adopting a cow exceeded 10 million yuan. The reason why it can show such a huge explosive power in a short period of time is not only due to the adoption of a cow's usual focus on the operation of Douyin Mall, but also participated in the "All-Star Fan Festival" event held by Douyin Mall, and promoted sales growth by increasing the number of live broadcasts, inviting celebrities to parachute into the live broadcast room, and launching hot search topics.
In H1 2023, the social media sales of adopting a cow will be mainly contributed by live broadcasts, and it can be seen that the Douyin platform is mainly based on self-broadcast operations, accounting for 50%, and the Kuaishou platform relies on the cooperation of top influencers to drive sales. In the "Annual Explosive Charge Award" released by Giant Engine, adopt a cow to become one of the "Charge Warriors".
The list of "Explosive Product of the Year Charge" for huge engines
Third, the level of science and technology is the core of the competition
Relying solely on live e-commerce for marketing has become a "general" operation in the food and beverage industry. Since the popularity of live streaming e-commerce, almost every food and beverage brand has made Douyin the main front of marketing.
But under this craze, a new craze is already quietly rising. And this new craze, like live e-commerce, will subvert the brand ranking of the entire industry.
For example, the "scientific and technological power" behind the popular Oriental Leaf in the past two years comes from the aseptic product line that Nongfu Spring spent ten years building.
In May 2011, Oriental Leaf became the first new product of Nongfu Spring's aseptic production equipment process "Chuangsheng". Log6 level aseptic production cold filling solves the problem of tea beverages that are prone to oxidation and discoloration. This also makes Oriental Leaf a Chinese sugar-free tea beverage that can truly achieve the five zeros of "0 sugar, 0 calories, 0 fat, 0 flavors, and 0 preservatives" in the industry, and it is still the ceiling level of domestic tea drinks.
"Now it seems that this is a quite advanced technology layout, the introduction of this production line, greatly improved the quality of our products, and in the past ten years we have continued to upgrade the technology to maintain the world's leading industry. Nongfu Spring's technical team introduced.
In addition to Oriental leaves, Nongfu Spring's aseptic technology has also achieved a large number of beverage products. Today, Nongfu Spring's sparkling water has also achieved a breakthrough in the sparkling water market with the selling point of potassium sorbate through log6 aseptic technology, becoming the biggest winner this year. Nowadays, many businesses have also realized the value of log6 aseptic technology and have followed suit. However, the technical advantages accumulated in ten years of long-distance running may not be easily compensated for by short-term shocks.
To a certain extent, it is not traffic, speculation, or capital that ultimately determines the product, but the power of science and technology. "Technological strength" has also become the core of competition among food and beverage companies.
On May 10, Wang Laoji launched the first batch of products independently designed by AI in the beverage industry, and this product with the theme of "Chinese style" combines the concept of the four seasons, based on traditional national style elements such as landscapes, forests, and birds, which are quickly designed by AI and evaluated by the design team, and finally the four designs are retained.
Wang Laoji wants to use the super algorithm of AI to bring more creative products to consumers. Similarly, Yili has recently launched 6 AI packaging for dairy products, which is also the first AI packaging in the dairy industry.
Yili's AI packaging design process is led by AI, and AI has designed design works with smooth lines, simplicity and elegance in the six elements of science and technology, natural vitality, oriental aesthetics, futurism, minimalism and innocence.
At present, AI applications are only reflected in brand marketing, but in the long run, AI technology will inevitably be actually connected to the production and R&D process. The use cases of AI to assist in product development, improve production efficiency, and manage security risks are also increasing. According to Polaris Market Research, the global AI in the food and beverage market was valued at USD 4.49 billion in 2021 and is expected to grow at an average annual growth rate of 45.4% during the forecast period.
图源：Polaris Market Research
In addition to improving the efficiency and accuracy of R&D, there are many research projects that have not yet been commercialized on a large scale in the fields of basic food science, agricultural production, consumer behavior analysis, production control, supply chain management, and retail channels.
At present, the application of AI in the food industry is only the primary ability. In the future, the changes brought by AI to the food industry will be subversive, full-chain, and unstoppable, and the gameplay will advance from "live e-commerce" at the marketing level to "science and technology" at the production and R&D level, and a new reshuffle has begun.
As an emerging marketing method, live streaming e-commerce has changed consumers' shopping Xi, making the shopping experience richer and more three-dimensional, and also providing enterprises with a new channel to directly reach consumers. From real-time interactions to personalized recommendations, livestreaming e-commerce is redefining the sales model of food and beverages. At the same time, it also puts forward higher requirements for it, not only in the food and beverage field, but also every consumer goods company needs to seize the wave of technology such as live broadcast e-commerce, digital human, AIGC and continue to innovate and iterate on itself.
Businesses and consumers will benefit from this change together, and livestreaming e-commerce is ushering in a new era for consumer goods.
Author: Jin Qi, Editor: Xiaobai
Source: Jixin, a venture capital and industry research media perpendicular to enterprise services and hard technology
This article was originally published by @极新 on Everyone is a Product Manager. Reproduction without the permission of the author is prohibited.
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