The gun rang, and who will the deer break into?

Editor’s note: This article from the micro-channel public number “Bear out the ink, please pay attention” (ID: xiongxiongbiji).

In the past two days, Ali and the tea-smelling anecdote spread outside the industry, and everyone talked about it. The 100-million-dollar father also loved the net black tea.

I don’t know when it started, the tea shop became the must-go place for the net red card. Nai Xue’s tea, the palace’s tea, Xi tea, CoCo, Xiaolu tea… These brands that are catchy and catchy are playing in the traffic of various shopping malls. Other shops are the best, but the tea shop is everyday.Long queues.

And following the net red footsteps, in addition to wave after wave of grass-roots consumers, there are capital and entrepreneurs.

Mei Tuan Comments pointed out in the “2019 China Beverage Industry Trend Development Report” that as of the third quarter of 2018, the number of tea-making stores in the country reached 410,000, and the growth rate of the North-Guangzhou-Shenzhen reached 59%; /strong>However, another set of data reflects a heart-rending reality:In the second quarter of 2018, compared with the same period last year, the first-tier city tea shop closed shop opened The rate is twice as high as 55%.

As a result, the situation of players in the Internet industry is quite similar. The high-line city of the tea track is in the Red Sea, and the low-line city has become the hope.

The battle of

There is a natural foresight of the Internet, and the low-profile launch of the new deer tea retail partner program. According to the bear out of the ink, please pay attention to understand, it is mainly aimed at recruiting partners in the third- and fourth-tier cities, the first stores will open in mid-October this year. Carrying a full set of resources such as brand, product, traffic, technology, etc., the independent development of Xiaolu Tea is tantamount to the first shot of the sinking market.

The battle of sinking is on the horizon

The annual average purchase price is 14.3 cups, and the average price per cup is 15.2 yuan. The China Industrial Research Institute has drawn conclusions from the sampling statistics of 15-45 year old consumers in 25 cities across the country–China’s current tea market The scale is close to 100 billion yuan.

The battle of

Smelling the tea market is really fragrant, capital in 2015 Intensive shots in -2018 directly contributed to the rise of a large number of brands. Taking 2018 as an example, according to the statistics of the China Investment Network, although the enthusiasm for capital investment has declined, the amount of financing for the 2018 tea track in the whole year is still more than 2 billion yuan.

To this year, the market structure is clear, the head brand’s leading edge is established, and the tea market seems to evolve into a “big table”.

On July 8th, LatePost reported that Xicha is about to close a new round of financing, Tencent and Sequoia led the investment, with a valuation of 9 billion yuan; recently, the tea color is related to Ali. In addition to Erma, Ruixing, who went public in the US, launched Xiaolu Tea in July and marched into the tea market.

The story is always full of twists. When everyone thinks that the market window is gradually closing, Xiaolu Tea reaches out and uses the new retail operation partner plan to successfully shift the attention of the industry to the sinking market.

On the one hand, the sinking market is selectively ignored by mainstream brands.

In order to build brand tonality, the location of the main tea brand stores is mostly set in the core business district of the second-tier cities. Hi tea is the most representative. The official website of Xicha can be inquired, and its stores have been opened in South China, North China, East China, Central China, Southwest China and Northwest China. For example, in North China, Xicha has been stationed in six cities including Beijing, Tianjin, Shijiazhuang, Zhengzhou, Qingdao and Jinan.

Aching the opening of a second- and second-tier city means higher costs, in exchange for a larger premium space. However, not all brands are suitable for this path.

Before, Yang Shun, director of Unilever Food Planning Tea Company, revealed that in the second quarter of 2018, compared with the second quarter of 2017, the closing rate of first-tier city tea shops was twice the opening rate, up to 55%, second-line. The city closed store rate was 35%. In contrast, the 13% closing rate risk in third- and fourth-tier cities is significantly smaller.

On the other hand, the sinking market is a silent gold mine.

From the perspective of city level, there are 49 first-line, new-line and second-tier cities in China. The sum of the administrative areas of these cities accounts for 5.36% of the country, and the remaining 95% belong to the sinking market. Excluding the population of first- and second-tier cities, the population of the sinking market is close to 1 billion.

Economic development, sinking market income is rising steadily. According to data released by the National Bureau of Statistics, the per capita disposable income of urban residents in China was 39,251 yuan in 2018, a year-on-year increase of 7.8%; the per capita consumption expenditure of urban residents was 26,112 yuan, an increase of 6.8%.

The battle of

The consumption power has increased and the tea market has risen. “The 2019 China Beverage Industry Trend Development Report shows that the lower the city level, the faster the number of existing tea shop stores will grow. In the third quarter of 2018, the growth rate of cities in the third line and below reached 138%, which was 79% higher than that in the north. Even so, the quality supply in the sinking market is still lacking, and the needs of users are far from being met.

Perhaps it is the temptation to fancy the above. Recently, Ruixing opened the entrance of the new retail operation partner of Xiaolu Tea in its WeChat public account. The entrepreneurs who intend to join can fill in the corresponding information to submit the cooperation application.

Three-powered users “like”

After researching the tea market, the US group concluded that the main consumer motivation is “like”. It is not easy to do this. Xiaolu Tea has to face this challenge in developing a sinking market. There is no chance of winning, we analyze from the triple dimension.

The battle of

First is the brand:

Although Ruixing is still in the entrepreneurial stage, it has opened 3,000 stores nationwide in the past year and over 40 cities across the country. And landing on Nasdaq, set a record of 18 months of IPO. With the ambition to become China’s largest coffee chain brand at the end of this year, Ruixing has 22.8 million users, and its brand elements such as Xiaolan Cup and Lutou are well known to more consumers.

The deer tea, which was launched in July, quickly attracted young consumers to spontaneously launch a new round of screens under the blessing of value, quality and marketing strategy. Subsequently, the various gameplays of Xiaolu Tea also followed the preferences of young consumers. For example, please note that the Liu Weiran doll blind box and the antler cup have just been written. The first day of the launch was too hot and even led to a brief collapse of Ruixing APP.

The battle of

As of now, Weibo platform # accompany Liu Yanran to drink Xiaolu tea # Topic reading has been close to 48 million, Chen Duling, spring and summer stars hit the card #小鹿茶女孩# Topic reading has passed 10 million. Coupled with the spread of social media such as Little Red Book and Vibrato, the Deer Tea brand has accumulated hundreds of millions of exposures.

Second is operational:

During the research, the US Mission found that more than half of tea consumers hope that merchants can provide “pre-order” services. In addition, the demand for membership services such as points and points, payment convenience, and online queuing are also common. These can be solved through digital operations, and Xiaolu Tea knows this.

Based on technology-driven, the digital operation of the entire transaction process is a typical feature of new retail. Xiaolu Tea will release a separate app next. Just like Ruixun Coffee, users can use the APP to order online and then go to the store to pick it up. The front end improves the trading experience, and digital operations can improve operational efficiency at the back end. According to the bear out of the ink, please pay attention to understand, thanks to the online and offline data, the members of the store, equipment and other partners can be intelligently managed through the APP one-click.

Last mode:

The plan proposed by Xiaolu Tea is “new retail operation partner”, rather than “joining” in popular traditional cognition, which reflects its thinking on cooperation mode.

In the past, the joining of the tea market was in fact a lot of cooperation. The franchisee’s brand use right is simply and rudely granted, and the operation management of the subsequent franchise stores is no longer involved or has no time to take care of, and the business situation between the stores is obviously different. Not only the rights of franchisees can not be guaranteed, but also the brand will cause irreparable losses.

Little Deer Tea adopts a chain business model of joint operation with partners, risk sharing and profit sharing. The brand management party and the operator cooperate to open the operation store. Specifically, the partner is responsible for the site selection, decoration, personnel recruitment, and order production. The Xiaolu Tea Corporation is responsible for brand marketing, customer source, product development, supply chain, and procurement. , warehousing, distribution, personnel training and other work.

In other words, Xiaolu Tea is systematically exporting operational capabilities to partners. In view of this, Xiaolu Tea stated the six advantages of the new model when recruiting partners: 0 franchise fee, shared risk, brand endorsement, quality products, global traffic support, and digital operations.

Little Deer Tea + Rui Xing =?

From coffee to tea, phaseI believe that you have seen a slight change in the play of Xiaolu Tea. These changes are due to the difference in the target market and brand positioning.

Compared with coffee, the resistance of tea to sink into third- and fourth-tier cities is significantly smaller. Coffee is facing the office scene, and Deer Tea is a casual scene. There are also differences in the audience. Rui Xing hopes that coffee can occupy the desk of the white-collar workers, and Xiaolu Tea locates the energetic afternoon tea of ​​young people.

The sinking of users and the sinking of geographical distribution are actually an extension of Ruixun’s unlimited scene strategy. After reaching various consumer scenes, the synergy between Ruixing Coffee and Xiaolu Tea will gradually manifest. For a simple example, the daily habits of users in third- and fourth-tier cities are consumed in Xiaolu tea shop. When they are in first- and second-tier cities, because the member systems of Xiaolucha and Ruixing Coffee are connected to each other, they will naturally be led to Ruixing. Coffee shop.

The founder and CEO of Ruixing Coffee, Qian Zhiya, previously said that coffee is a good business, and more importantly, “coffee is a very good grip.” Therefore, The launch of the new retail operation partner program of Xiaolu Tea can be understood as Ruixing is building a second hand.

The two grippers will force at the same time, or will bring Rui Xing as a whole into a new ascending orbit.

Last quarter’s earnings report showed that Ruisheng’s various indicators are improving and it is expected to reach a breakeven point in the third quarter. The expansion of Xiaolu Tea in the sinking market may not make much contribution to achieving this goal in a short time. But the timeline is stretched, and the value of the deer tea will be reflected when the scale is rolled out.