Should new consumer brands become “Internet celebrities”?

With the successful listing of Yixian E-commerce, the parent company of Perfect Diary, on the New York Stock Exchange, the market has increasingly discussed new domestic brands such as Perfect Diary, Vitality Forest, Saturnbird and Zhong Xuegao. Recently, Shanghai’s Bear Claw Coffee has also caused a lot of heated discussion on social networks.

However, for most people, the impression of new domestic products still rests on the exquisite packaging design and internet celebrity marketing strategy. However, consumer product entrepreneurship is originally a crowded track. Two simple logics alone can no longer help us accurately locate the circle-breaking and capital recognition of these brands.

In this course, we will try to take the innovative coffee brand “three and a half meals” as an example, around the melee coffee track, and talk to everyone about what they did right.

If we have to use some elements to summarize the success laws of new consumer brands such as Yuanqi Forest, Zhong Xuegao, Ramen Talk, Perfect Diary, and Huaxizi, we think it can be roughly summarized into three points:

A new consumer brand that emerged at the same time as Sandton, including Perfect Diary, Vitality Forest, Zhong Xuegao

Take three and a half meals as an example.

1. Channel dividend

Compared with traditional advertising, new consumer brands have seized more channels of social content to help them better penetrate consumers’ minds.

Channel dividend

The three and a half meals actually grabbed the channel dividend of an app called “Xia Kitchen”. By sending their products to a large number of food lovers on the “Xia kitchen” APP, three and a half meals have gained a lot of user reviews and creative sharing, and a lot of popularity has been quickly accumulated in the process. These popularity soon brought a second spread on station B (Bilibili) and Xiaohongshu (Little Red Books).

2. Content bonus

Three and a half meals of coffee, which is known as “everything is soluble”, can not only be dissolved in hot water, but also in various beverages such as ice water, soda water and coconut water. As shown in the figure below, users on social platforms have invented endless ways to play by matching three and a half meals of coffee with various beverages on the market, and attracted more buyers.

Content bonus

3. Aesthetic dividend

Huang Hai, former executive director of Fengrui Capital, once made an insightful metaphor for “aesthetic dividend”. He said that aesthetic dividends are closely linked to the rate of image formation-whether users will take photos of your products and forward them to friends determines the degree of spread of your products

If you can allow a considerable percentage of consumers to take the initiative to take photos of your products and send them to friends, your free traffic will be like a snowball.

If we dig into the background that new consumer brands can ride the wind and waves, we can see that the most fundamental reason is still the environment of China’s consumption upgrade.

There is still a lot of controversy among all parties as to whether it is a consumption upgrade or consumption downgrade. But if we take a longer perspective, we will find that the trend of “consumption upgrade” is almost certain-

Nestlé entered China in 1989, and the current price on Taobao is about 1.09 yuan per piece.

Saturnbird was established in 2015 and the current price on Taobao is 7.67 yuan a cup.

So, consumption upgrade does not mean price upgrade.

The consumption upgrade we are discussing is mainly about two points, one is better quality, healthier materials, fresher ingredients and so on. The other is to satisfy my spiritual attributes and make me more enjoyable to use.

Therefore, Saturnbird and a half relative to Nestlé’s upgrade, we define it as “freeze-drying process relative to the upgrade of industrialized products”, but also “creative design relative to traditional design upgrade.