The incense that suddenly exploded was fluttering, and the days had just eased up

The new product is slightly financial

2024-05-05 16:21Posted in Guangdong financial field creators

Source: New Products & Finance

Author: Wu Wenwu

Xiang Piaopiao ushered in the wealth of the sky!

On May 4, the topic of "Xiang Piaopiao's response to the product packaging sarcasm incident" rushed to the hot search, instantly pushing Xiang Piaopiao into the spotlight.

A few days ago, according to a report by Zhongxin Jingwei, some netizens posted that Xiangpiaopiao's MECO juice tea was printed with a slogan mocking the discharge of nuclear sewage into the sea on the products of the Okubo store in Kyoto, Japan, which quickly detonated heated discussions on the Internet.

Pictures and video messages posted on social media show that the fragrant MECO juice milk tea packaging is printed with slogans in Chinese and Japanese, including "shameless", "0.1% of the land pollutes 70% of the ocean", "you can't live without Japan", "the ocean is not Japan's sewer", etc.

On May 4, the staff of Xiang Piaopiao responded simply at first, saying that they had noticed that the online goods in Japan were printed with information about ridiculing Japanese nuclear sewage, and the staff member said that he did not know about the suspected personal behavior of the employees in the online rumor.

In the evening of the same day, Xiang Piaopiao once again publicly responded to this incident, with only one sentence: Our employees are good!

Soon, Xiang Piaopiao's response rushed to the hot search, and Xiang Piaopiao put the same product on the shelves in the live broadcast room that night.

At present, Xiangpiaopiao is popular, more and more media reports it, netizens also praise it, the topic is still hot, and this time the rich traffic fell on Xiangpiaopiao's head.

In this way, the long-silent Xiangpiaopiao has been on the hot search, looking back, Xiangpiaopiao's life has not been easy over the years, and it was not until last year that Xiangpiaopiao came out of the darkest moment.

Looking back on the development history of Xiang Piaopiao, this company has had a peak past, and then its performance has declined for many years, falling into the darkest moment, after positive adjustments in recent years, Xiang Piaopiao's days have just eased up.

More importantly, can Xiang Piaopiao catch this wave of rich and noble traffic? Can it be sustained in the future?

01 The peak of the "National Milk Tea" fragrance

Nowadays, there are many bubble tea shops on the street, and consumers can buy a new cup of tea at hand.

For post-80s and post-90s consumers, Xiangpiaopiao can be said to be the memory drink of youth, and the most impressive thing is the advertising slogan: 1 billion cups are sold a year, and the cups can circle the earth 3 times when connected.

In 2004, Jiang Jianqi, who was still in the business of producing popsicles, found by chance on the street that people lined up to buy bubble tea, Jiang Jianqi found this pain point, if the development and production of brewed milk tea can meet people's needs for milk tea anytime and anywhere, the domestic brewed milk tea market was still blank at that time, and there must be a lot to do.

Jiang Jianqi said just do it, find Hangzhou Institute of Science and Technology Agriculture to help develop the formula, ask the design company to design the packaging, about half a year later, the product trial production was successful.

Under the leadership of Jiang Jianqi, in 2005, Xiang Piaopiao was born in Huzhou, Zhejiang, before the product was launched, Xiang Piaopiao chose to test sell in Wenzhou, Huzhou, Wuxi, Suzhou four cities, selected middle schools, standard supermarkets and other scenes, with students as the main customer group, and it was quickly confirmed that this is a product with great potential.

Like many entrepreneurs at that time, Jiang Jianqi not only had a keen business vision, but also attached great importance to advertising and marketing, and he was convinced that if you want to sell products well, you must first do a good job in advertising.

While expanding sales channels and selling products, Xiang Piaopiao spent a lot of money on advertising. In 2006, Xiang Piaopiao advertised during the peak ratings of Hunan Satellite TV, and in just 15 seconds, Xiang Piaopiao repeatedly appeared 7 times, and Xiang Piaopiao became an instant hit.

Xiang Piaopiao also invited many celebrities such as "Pink Girl" Chen Hao and "National Male God" Zhong Hanliang to endorse, and her popularity rose rapidly.

In this way, it only took one year for Xiang Piaopiao to become the first brother in the industry, and its sales soared from 3 million yuan to 480 million yuan.

Xiang Piaopiao has also sponsored many variety shows, such as Zhejiang Satellite TV's "I Love to Remember Lyrics", Hunan Satellite TV's "Happy Camp" and "Everyday Upward", two ace variety shows, and also sponsored the total naming rights of the second season of "The Voice of Chinese Dream" with a huge amount of 112 million yuan.

Public data shows that in 2008, Xiang Piaopiao reached its peak, and its revenue reached 4 billion yuan that year. In 2017, Xiangpiaopiao landed on the Hong Kong Stock Exchange and became the "first stock of milk tea", with a market value of more than 13 billion yuan.

At its peak, Xiang Piaopiao was a business winner of that era and achieved a classic business case.

02 From the peak to the trough, now ushering in the dawn, Xiang Piaopiao just breathed a sigh of relief

The peak is always so short-lived, and the fragrance before the listing is fluttering, as early as 2012, its performance is not fragrant.

According to public data, from 2012 to 2013, Xiangpiaopiao's annual revenue hovered around 2 billion yuan, and only in 2014 and 2015, its net profit was mostly below 200 million yuan, and began to show negative growth.

From 2019 to 2021, Xiangpiaopiao Company achieved revenue of 3.978 billion, 3.761 billion, and 3.466 billion respectively, and sold 861 million less in just four years.

Xiang Piaopiao's annual revenue and net profit in 2022 will both decline, although Xiang Piaopiao has updated the advertising slogan to "cups are connected, you can circle the earth 40 times", but Xiang Piaopiao's performance is diametrically opposed to the number of cups connected.

So, why isn't the fragrance fragrant?

In the view of "New Product Strategy Finance", Xiang Piaopiao took the lead and quickly reached the peak, and then went downhill, in addition to changes in the market environment, there are also reasons for Xiang Piaopiao itself.

First, Xiang Piaopiao is subject to strong competition from competitors.

The industry barriers to brewing milk tea are not high, and later competitor brands such as Yoremi and Nestle also launched brewed milk tea, and Yoremi invited Jay Chou to endorse it, and the advertising effect was also very good, directly separating the fragrant consumers.

Second, the times of milk tea consumption have changed, and the freshly made new tea drink has a ruthless impact on the fragrance.

A few years after Xiangpiaopiao was at its peak, there were more and more 1.0 version milk tea shops such as Taigai, Huangcha, and Lujiao Alley, and consumers began to turn to buy freshly made milk tea.

Soon, various new tea brands such as Hey Tea and Nai Xue's tea appeared on the streets and alleys, and there were naturally fewer and fewer people who drank fragrant fragrance.

Third, Xiangpiaopiao has not kept up with the wave of younger consumption.

In the era of brewing milk tea, Xiang Piaopiao spent a lot of money on advertising, invited celebrities to endorse, sponsored variety shows, and seized the traffic password of young people in that era, making Xiang Piaopiao very successful.

Xiang Piaopiao later realized this, began to accelerate younger marketing, and began to ask Wang Yibo and other new generation of traffic stars to endorse before winning a game.

Fourth, the excessively single product strategy once made Xiang Piaopiao successful, and then became a stumbling block.

Xiang Piaopiao started by brewing milk tea, and at the beginning of the single product strategy made Xiang Piaopiao reach the peak, but the single product strategy has great limitations.

Xiangpiaopiao only began to lay out the ready-to-drink business in 2017, and continued to increase the weight, and began to explore the second growth curve.

Until 2024, Xiangpiaopiao finally came with good news, and the old brand finally ushered in the dawn of recovery.

On April 17 this year, the 2023 annual report released by Xiang Piaopiao showed that the annual revenue was 3.625 billion yuan, a year-on-year increase of 15.9%, and the net profit was 280 million yuan, a year-on-year increase of 31.04%, ending the negative growth of revenue and net profit for three consecutive years since 2020.

The days of fragrant fragrance are finally relieved.

03 The fragrance is fluttering, and you still need to work hard

Xiangpiaopiao's 2023 financial report data shows that Xiangpiaopiao, which has been in decline for many years, has finally improved, and the market has paid new attention to this old beverage company.

And behind this, Xiang Piaopiao has indeed made a lot of changes and efforts, in the view of "New Product Strategy", Xiang Piaopiao has entered the era of "creating the second generation + professional managers".

Xiang Piaopiao's founder, Jiang Jianqi, like many entrepreneurs, has reached the age of retirement, and the 60-year-old Jiang Jianqi has also handed over the helm of Xiang Piaopiao to the next generation.

Jiang Jianqi's daughter Jiang Xiaoying was born in 1993 and is also a serial entrepreneur. In 2016, Jiang Xiaoying became the general manager of Xiangpiaopiao, responsible for the e-commerce and new media business, and now she is the director and general manager of brand innovation of Xiangpiaopiao.

This time, MECO, which was on the hot search, was launched under the leadership of Jiang Xiaoying, and Xiangpiaopiao also launched Lanfangyuan, these two brands mainly focused on the mid-to-high-end liquid milk tea market, and later launched juice tea with 0 fat and 0 added pigments.

The new category sub-brands have made significant contributions to the performance of Xiangpiaopiao. In 2019, MECO juice tea ranked among the 1 billion-level major single products In 2019, fragrant and fluttering ready-to-drink products entered Li Jiaqi's live broadcast room, and a new product from Lanfangyuan sold 300,000 cups in 1 minute.

On the cover of Xiangpiaopiao's 2023 financial report is printed the ready-to-drink product MECO cup juice tea, which can be seen from this point that the ready-to-drink business is becoming more and more important to Xiangpiaopiao. According to the financial report, in 2023, the ready-to-drink business will contribute revenue of 901 million yuan, a year-on-year increase of 41.16%.

Another point that makes the outside world more noteworthy is that Xiang Piaopiao is accelerating de-familialization.

At the end of 2023, Jiang Jianqi, the founder of Xiangpiaopiao, decided to "take a step back" and resign as general manager, and Xiangpiaopiao hired Yang Dongyun as president (general manager).

According to public information, Yang Dongyun has served as the executive president/vice president and director of Baixiang Food Group, and the president of Jianxingyuan.

In fact, there are already a number of family businesses that are now managed by professional managers and are still developing very well, and Fang Hongbo, the current helmsman of Midea, is a professional manager.

However, in the view of "New Product Strategy", although Xiangpiaopiao ushered in the dawn of recovery, Xiangpiaopiao is still facing a lot of pressure and needs to work harder.

First, Xiang Piaopiao must first defend the base area.

Xiangpiaopiao wants to keep the base, which means that Xiangpiaopiao's traditional brewing milk tea business is still very important, and Xiangpiaopiao is still the leader of the brewing milk tea industry.

According to the financial report, the revenue of Xiangpiaopiao's brewing business in 2023 will be 2.686 billion yuan, accounting for about 74%. The brewing business is still very important to Xiang Piaopiao.

In the future, Xiangpiaopiao will still have to hold on to the brewing business, especially accelerate the brewing milk tea business in the sinking market, and continuously improve the market penetration.

Second, the ready-to-drink business also needs to be strengthened.

Although Xiangpiaopiao's ready-to-drink business has developed well, according to Wall Street reports, a source said that Xiangpiaopiao's ready-to-drink business has not yet reached the breakeven point, dragging down Xiangpiaopiao's overall profit performance.

Judging from the financial report data, the revenue data of Xiangpiaopiao's ready-to-drink business in 2023 will drop slightly from the volume of 1 billion yuan in the previous two years. According to the above-mentioned sources, Xiang Piaopiao expects MECO fruit tea to recover to its peak volume of 1 billion yuan in the next two years.

However, in the long run, the proportion of ready-to-drink business will increase year by year, and the ready-to-drink business is expected to become the second growth curve of Xiangpiaopiao, but it will take time.

Third, Xiangpiaopiao also needs to develop more new ready-to-drink products.

In recent years, Xiangpiaopiao has accelerated the research and development of new ready-to-drink products, such as Xiangpiaopiao's brand Lanfangyuan Frozen Lemon Tea products, which are being launched, claiming to benchmark against Vita lemon tea, hoping to reach a sales scale of 3 billion yuan.

In the future, Xiangpiaopiao will accelerate the launch of more new ready-to-drink brand tea drinks, especially in terms of younger products, and still need to make efforts.

The beverage market is fiercely competitive, and even Nongfu Spring can't help but launch a green bottle purified water business now, preparing to fight Wahaha and Cestbon.

This occasional hot search can bring traffic and popularity to Xiangpiaopiao, but it is only short-lived, Xiangpiaopiao has just ushered in the dawn, and it still needs to practice internal strength, and there will be more challenges in the future.

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