The fragrance is fluttering, and it has risen by 700 million in one day

City Boundary

2024-05-06 19:43Posted on the official account of Beijing Municipality

1. Daily sales of 1 million, stock price limit

During the May Day holiday, Xiang Piaopiao ushered in a splashing heat due to a packaging incident, and the live broadcast room was also sold out.

The cause of the incident is that some netizens went to Japan on May Day and found that the outer packaging of Xiangpiaopiao's "Meco Juice Tea" was printed in Chinese and Japanese with words mocking the nuclear-contaminated water in the beverage cabinet of the Chinese supermarket. After it was exposed on social media, it immediately caused heated discussions. Some people said that "the fragrance is good", and some people said, "This wave of face sticking is too cool, you must buy it."

A Weibo posted by Xiang Piaopiao's official end detonated the field of public opinion. On the evening of May 4, after the fermentation of the packaging incident, Xiang Piaopiao posted a few words on the official Weibo, and the final word: "Our employees are good!" Subsequently, this Weibo was quickly put to the top, with more than 330,000 likes as of press time, which is in stark contrast to the hundreds of likes on weekdays.

▲ (Source/Xiangpiaopiao's official Weibo)

The traffic is coming, and the company's executives are not idle. On the evening of May 5, Yang Dongyun, president of Xiangpiaopiao, walked into the live broadcast room and said that he would reward 100,000 yuan to "good employees" and donate all the live broadcast income from 8 o'clock to 24 o'clock that night to the Environmental Protection Foundation.

On the other side, Jiang Jianqi, the retired founder of Xiang Piaopiao, was photographed by netizens holding a banner at the airport, welcoming returning employees, and the banner read, "Xiang Piaopiao welcomes the return of warriors!"

Several operations directly let Xiang Piaopiao harvest the daily limit on the first trading day after May Day. As of the close of trading on May 6, Xiangpiaopiao was quoted at 19.21 yuan per share, a new high since July 2023, and the total market value rose by 719 million yuan to 7.89 billion yuan in one day.

The wealth of the sky has also turned into real sales. According to the third-party data platform, after the incident sparked continuous heated discussions, on May 4 and 5, a total of more than 10 million netizens poured into the Xiangpiaopiao Douyin live broadcast room to buy the same product. The daily sales of the store's live broadcast soared from 2,500 yuan to 1 million yuan, an increase of up to 400 times.

Compared with Nongfu Spring, which was involved in the whirlpool of public opinion, and then changed the packaging "Mingzhi", Xiang Piaopiao's move can be regarded as stepping on the emotional point step by step.

Under the relevant entries on Weibo, 34% of netizens have a positive attitude towards Xiang Piaopiao, accounting for the mainstream of public sentiment. However, on Xiaohongshu, from time to time, some netizens tried to "restore" the truth of the matter, saying that Xiang Piaopiao "went to a Chinese store to pose for photos" and "took it off the shelves after filming". There are also doubts that the move could put the supermarket owner in a difficult position.

At the same time, Xiang Piaopiao, who took the initiative to stand on the cusp of public opinion, did not give more details about the "facts", but urgently catered to the "emotions" and started business.

▲ (Source/Xiangpiaopiao's official Weibo)

Now click to enter the Xiangpiaopiao Tmall Futures Ship Store, the first thing that catches your eye is the sentence "Our employees are good" with a high emotional value. In the store, the Meco cup fruit tea, which attracted the attention of public opinion, was specially marked as "the same style as the hot search of Japanese events". In the live broadcast explanation screen of related products, there is no lack of words "the light cup of domestic products is urgently stocked and reissued after arrival". Even, the Meco cup fruit tea link is called "the light link of domestic products" by the anchor.

2. "The first share of milk tea in cups"

Before the high-profile appearance at the airport this time, Jiang Jianqi had been "fading" out of the rivers and lakes for a long time.

Jiang Jianqi, 60 years old, is the founder of Xiangpiaopiao and is known as the "father of Chinese cup milk tea". As a supporter of Trout's "positioning theory", "the pioneer and leader of milk tea in cups" and "cups connected around the earth N circles" are his proud works.

In the early years, the media that had seen Jiang Jianqi himself described him as "with the obvious characteristics of Zhejiang businessmen". When talking about the milk tea business, Jiang Jianqi "has bright eyes and a high tone", and when it comes to marketing and packaging, he is very interested, "his hands are gesturing and his body is tilted to the side".

In that era when advertisements rang out and gold was ten thousand taels, Jiang Jianqi walked on two legs with products and marketing, and once brought the fragrance to a historical height.

In 2005, Xiangpiaopiao Food Co., Ltd. was established in Huzhou, Zhejiang. This is Jiang Jianqi's birthplace. Prior to this, Jiang Jianqi worked in the Shanghai Railway Bureau, and then resigned to start a business, selling pastries and popsicles, until he found the "bonanza" of cup milk tea.

The cup of milk tea is in line with Jiang Jianqi's imagination of "big business". First, in his cognition, the sales of what he drinks are greater than the sales of food; second, the long queue at the door of the bubble tea shop proves that this is a demand that has not been fully met, and there are countless business opportunities behind it; third, making cups of milk tea is convenient and branded.

In order to open up sales, Jiang Jianqi first targeted the student group, and gradually won the supermarkets around the school by "putting an extra cup of milk tea in the box and asking the boss to taste it". Later, at the 2005 National Sugar and Wine Fair, Jiang Jianqi tried his best to "make friends" with the dealers in order to better distribute the goods. The company's revenue has also broken through the hundreds of millions, billions, and billions of mark.

With the surge in sales comes fierce competition. The biggest threat to Xiang Piaopiao is Yoremi, who was caught on fire by Jay Chou's sentence "I want to hold you in the palm of my hand". In order to meet the challenge, Jiang Jianqi and Xiang Piaopiao "marketing first", so there were a series of follow-up marketing cases: for example, spending tens of millions of dollars on Hunan Satellite TV during prime time, finding someone to tailor a song "Xiang Piaopiao", and the popular sentence "sales are connected around the earth N circles".

In 2017, Xiang Piaopiao, who hit the listing three times, finally knocked on the door of the capital market and became the "first stock of milk tea". Due to the previous distrust and rejection of venture capital, Xiang Piaopiao has a clear family business nature: before the issuance, Jiang Jianqi was the largest shareholder, holding 65.54% of the shares, and his younger brother Jiang Jianbin, his wife Lu Jiahua and only daughter Jiang Xiaoying held 10%, 8% and 5% of the shares respectively, and after the issuance, the Jiang family still held nearly 80% of the shares.

In addition to holding shares, as Jiang Jianqi's only daughter who is praised as "talented in business", Jiang Xiaoying was also appointed as the general manager of the company's Internet Innovation Center in 2016, responsible for e-commerce and new media operations. In 2019 and 2022, Jiang Xiaoying successively served as the general manager of the Xiangpiaopiao Internet Business Division, the general manager of the Brand Innovation Center, and the director of the company - and the Meco cup fruit tea in the whirlpool of this incident came from her.

Jiang Jianqi's "milk tea daughter" was born in 1993 and graduated from Zhejiang University. During her time at school, Jiang Xiaoying started a camping equipment rental business, and then successively launched the camping booking management platform "Easy Camping", and the "Order is Coming" to provide data services for the homestay industry, the former was valued at as high as 50 million yuan, and the latter exceeded 100 million yuan in a year.

After returning to the family business, Jiang Xiaoying focused on two major directions: online and rejuvenation. The fruit tea that young people like, the idol that young people chase, and the platform where young people gather have all become the focus of Xiangpiaopiao. Of course, marketing money is also not less spent. From 2016 to 2023, the cost of sales of Xiangpiaohua, which is more than 500 million yuan all year round, is 2~3 times the profit of the same period.

▲ (Source/Xiangpiaopiao's official Weibo)

At the end of 2023, Xiang Piaopiao has experienced a round of personnel changes. First, Jiang Jianqi resigned as general manager (president) and was replaced by 53-year-old Yang Dongyun. According to public information, Yang Dongyun has successively served as the regional manager of Guangzhou Procter & Gamble, the senior vice president of Super 8 Hotel, and the executive president and director of White Elephant Food Group. In this appointment, Yang Dongyun is fully responsible for the daily operation and management of the company. In March 2024, Jiang Jianqi's younger brother Jiang Jianbin also submitted a resignation report, resigning as the company's director and vice chairman.

It seems that Xiang Piaopiao is completing the "de-familyization" action. However, as of the end of the first quarter of 2024, Jiang Jianqi is still the largest shareholder of Xiangpiaopiao, holding 50.44% of the shares, his younger brother Jiang Jianbin holds 8.76% of the shares, his wife Lu Jiahua holds 7.01% of the shares, and his daughter Jiang Xiaoying holds 4.38% of the shares. Yang Dongyun, a professional manager who has just taken office, holds 5.12% of the shares, ranking the fifth largest shareholder.

3. Revenues are back to growth, and there is still a long way to go from the peak

Before the sales surge, Xiang Piaopiao had just taken a breath from the three-year decline in revenue.

From 2020 to 2022, Xiangpiaopiao's revenue will be 3.761 billion yuan, 3.466 billion yuan, and 3.128 billion yuan respectively, and the revenue decline will expand from -5.46% to 9.76%. In terms of net profit, Xiangpiaopiao fell from 358 million yuan in 2020 to 214 million yuan in 2022.

Under the impact of new tea brands represented by Hey Tea and Mixue Bingcheng and the healthy consumption trend of "0 sugar and 0 calories", brewed milk tea containing non-dairy creamer has become a yellow flower of yesterday and has gradually been abandoned by consumers. Even Xiang Piaopiao himself admitted frankly in the financial report: "In the face of the trend of consumption upgrading, we did not launch healthier and younger products in time." ”

However, after being replaced by a second-generation successor and ushering in a professional manager, Xiang Piaopiao turned over in a crowd of voices. In 2023, Xiangpiaopiao's annual revenue will be 3.625 billion yuan, a year-on-year increase of 15.90%, and its net profit will be 280 million yuan, a year-on-year increase of 31.04%, with both revenue and net profit achieving the first growth in three years.

The number of dealers who have been losing money has also increased in 2023: from 2019 to 2022, the number of Xiangpiaopiao dealers decreased from 1,481 to 1,197, a decrease of 284, and by 2023, the number of dealers has increased instead of declining, to 1,531, a year-on-year increase of 406.

"Xiangpiaopiao's current strategy is two-wheel driven, that is, brewing and ready-to-drink," He Songsong, partner of Reese Category Innovation Strategy Consulting China, told "City Boundary".

The instant beverage category is the second growth curve of Xiangpiaopiao's heavy bet, and the company's newly developed Meco cup fruit tea and Lan Fang Yuan bottled frozen lemon tea are the two cores in the instant beverage category. At present, Xiangpiaopiao is divided into two categories: brewing products and ready-to-drink products, the former accounts for more than 70% of Xiangpiaopiao's total revenue, but the growth rate has slowed down, with a growth rate of only 9.37% in 2023, and although the latter accounts for less than 30% and revenue is less than 1 billion, the growth rate last year reached 41.16%.

In the relatively weak e-commerce channel of Xiangpiaopiao, that is, the beverage category, it brought a sales growth of 50.22%, while the revenue of the brewing category in the e-commerce channel decreased by 16.15%.

"Lanfangyuan 0 sucrose frozen lemon tea is the growth king of the beverage market last year, with a retail sales scale of 4-5 billion, and the sugar and wine promotion conference is also attracting much attention. In the future, in the ready-to-drink track, Xiangpiaopiao will continue to base itself on the tea track for category innovation, and continue to strengthen the growth curve of ready-to-drink", said Jun Songsong, "The potential of Lanfangyuan frozen lemon tea will be greater, although it has only been on the market for more than a year, we believe that it will have billions of potential space in the future." ”

▲ (Source/Xiangpiaopiao's official Weibo)

A series of reforms that Xiang Piaopiao will make in 2023 are also related to the force of beverages. In addition to the changes in senior management, Xiangpiaopiao also recruited more than 600 beverage sales professionals, and formed an independent ready-to-drink business sales team of 1,000 people with the company's original team. In addition, the company's grassroots employees are also given priority to the front-line sales department.

This directly led to an increase in sales expenses, and in 2023, Xiangpiaopiao's sales expenses will reach 860 million yuan, a year-on-year increase of 53.42%. Huafu Securities analysts believe that the increase in the sales expense ratio is mainly due to the company's increase in advertising and marketing expenses, and the new manpower expenditure after the establishment of the ready-to-drink team has also increased the company's sales expenses.

And this packaging incident will undoubtedly increase the popularity of Meco's cup fruit tea. For Xiang Piaopiao, which is undergoing category transformation, it is not an exaggeration to compare it to a timely rain.

But looking at the long term, Xiang Piaopiao still has a way to go if she wants to return to the top of her past. Although its revenue will increase significantly in 2023, it will still be 353 million yuan less than the 3.978 billion yuan in 2019, and the stock price will also have a big gap compared with the peak of 36.62 yuan per share in 2019.

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