On New Year's Eve, the IPO prospectus was submitted. Before the gong, the founder Peng Xinhe conducted more than 65,438+060 roadshows intensively and met with more than 500 Chinese and foreign investors. They were repeatedly asked: Why is it snow?
The competition in the new tea industry is fierce. Why is Naixue one step ahead of the competition? How did Naixue come to this day and gradually turn losses into profits, with a market value of 30 billion? This is the third time I have heard Peng Xin tell the story of her and Naixue. This paper attempts to show the growth logic behind Naixue's Death Details and Death Quality. ...
Author: Cao Yuxin
Source: Zhenghe Island
0 1, brewing for nearly 2 years, opened three stores in one breath. ...
Looking back on the development road before listing, Peng Xin said frankly that when he was doing Naixue, he didn't expect to achieve today's scale. "Everything goes with the flow", but it is not easy.
From 20 14 to 20 11201,"Naixue Tea" opened its first store in Shenzhen, and in the first month, it opened three stores in succession, all located in the bustling area of Shenzhen. At that time, people's impression of tea shops remained in street shops.
Naixue's tea made a subversive attempt from the beginning, and found a first-class design team in 200 square meters of large space, decoration design, lighting debugging and many other aspects. The two founders, Peng Xin and Zhao Lin, invested huge sums of money, so they had to mortgage the property.
This is a romantic entrepreneurial story from the beginning. Peng Xin, born in the 1980s, and Zhao Lin, born in the 1970s, met each other because of a business plan and got married quickly within three months. Working in Kingdee International Brand Department in his early years, Peng Xinxin wanted to open a shop. Zhao Lin is a veteran entrepreneur in the catering industry. Peng Xinxian went to a catering enterprise 1 year. After finding out all the processes, she started the entrepreneurial road of Naixue Tea. "Naixue" is her screen name.
Opening a big store, to some extent, stems from an experience of Peng Xin: she once asked friends to meet in a five-star hotel. A friend came in with Starbucks, and another friend took milk tea. My friend threw away the milk tea before entering the hotel.
Peng Xin is deeply touched: When will it become the Starbucks of China tea industry?
The newly opened three stores did not do much marketing, and spent less than 50 thousand marketing expenses, but they were very popular. The three stores invested 6.5438+0 million, and earned 6.5438+0 million in just two months. Since then, it has been out of control. As long as there are new products in the store, customers are very enthusiastic to pay the bill. This made Peng Xin find confidence.
Today, Naixue Tea has opened nearly 590 direct stores in more than 70 cities in China and Osaka.
The most important soul is the product.
What Peng Xin talks about most is the products, what's new in the store and what's the latest explosion. She also spends the most time on product development and plays the role of product manager.
"For a consumer brand like Naixue Tea, the most important soul is the product." This is Peng Xin's insistence.
The research and development of products is not smooth sailing. I've stepped in many pits and tried and tried. Peng Xin even opened another small shop before Naixue's tea was officially opened. As long as she is not on a business trip, she will take the R&D team to debug in the store over and over again, which fruit is better with tea, which tea to choose in the season, how much ice to add, the ratio of fruit to tea and so on. Every time she presents a new product, she drinks a small glass. At most, she drinks over 60 cups of tea a day. They made products for guests to try, and in this way they found explosive products such as domineering oranges, cheese strawberries and so on.
20 18 Up to now, about 60 kinds of seasonal products have been introduced for Naixue's tea. The core menu includes more than 25 classic teas and more than 25 classic baked products. All products are fresh and refreshing, and the sweetness is controlled at about 5%.
With the precipitation of experience, more and more products have become explosive. Naixue's tea products adhere to three principles:
1. High quality ingredients
No consumer can pay for marketing planning and online celebrity packaging for a long time. To a large extent, the ingredients determine the taste, and the quality determines whether customers will buy again.
The tea industry has gone through three stages: the "powder age", the "street age" in which small shops on the street sell quickly, and now the "new tea age" in shopping centers. A major feature of new tea is its fresh ingredients. Naixue has spared no effort to adhere to high-quality and healthy ingredients, using fresh fruit instead of syrup, using high-quality tea instead of tea powder and tea powder, using fresh milk instead of creamer, and adhering to a low-sugar formula.
Therefore, compared with peers, Naixue's tea raw material cost accounts for a high proportion of revenue, which has risen from 35% in 20 18 to 38% in 2020. Many investors asked Peng Xin how to optimize the cost of ingredients. She always said firmly, "We will not reduce the cost of ingredients, and quality is our threshold."
2. Face value is very important, so it tastes good.
The portraits of Naixue's main consumers are young people aged 20-35, who have high requirements on the appearance of products. From cups to cup holders, to packaging paper bags and store design, Naixue's tea gives people a soft and warm artistic atmosphere, and even introduces various joint designs.
Since 20 19, Naixue has launched a long-term artistic strategy "Naixue Cup Art Museum Project", and has launched six issues. Cooperate with artists from all over the world to present art exhibitions with different themes, aiming at making each teacup an independent, movable and storable work of art, making art more popular, making art enter the daily life of urbanites and making Naixue users become collectors. According to statistics, each exhibition planned by Naixue Cup Art Museum has reached more than 654.38+million person-times.
Good products are dug up again and again. At first, in order to develop a cup with a better handle experience for consumers, Peng Xin repeatedly proofed 18 times with the size of the palm of his hand, and spent hundreds of thousands of mold opening fees to design a beautiful "snow-resistant cup" with a better grip.
Nowadays, people are used to drinking tea and slender cups, but they don't know that milk snow tea was originally designed.
3. Give the product an emotional experience
For many people, tea has gradually become a way of life, not just a cup of tea, but more importantly, the experience brought by drinking tea. When products are endowed with more meaning and emotion, people have more desire to buy.
Peng Xin gave an example. Recently, Naixue's tea has a particularly hot product called "Domineering Jade Orange". Although oranges are bitter ingredients, they have good sweetness. Naixue's tea wrote a slogan "Three seconds is slightly astringent and five seconds is sweet". This sentence is actually a vivid description of an experience scene of consumers.
To some extent, it's like many people's life experiences, bitter first, then sweet. It's snow that continues to exert its strength. First, she filmed a short story about a young man who didn't work well and realized that life was "as bitter as an orange" under the guidance of his father, and joined hands with the band "Five People" who are both popular in Guangdong and five TVCs in continuous shooting to skillfully combine the product characteristics of "Domineering Jade Orange" with the classic quotations of "Five People". The series of actions triggered consumers to buy jade oranges in succession, detonating the market.
Consumers' choice of products has also become the expression of position and emotional sustenance.
03, the brand has users want to.
To make products, we must understand the needs of consumers and always think from the perspective of users. Similarly, to be a brand, we must also have the thinking of users. Tea is especially a habit and trust consumption, and customers often choose brands that they are more familiar with and trust.
From the very beginning, Peng Xin and Zhao Lin reached a * * * consensus: to be a global tea chain brand deeply loved by customers.
In terms of product types, unlike many tea shops, Naixue not only provides tea, but also soft-packed European bags. This puts forward higher requirements for the store: larger area and smoke exhaust passage. To some extent, it also limits the rapid development of Naixue. Then why did you do it?
Peng Xin has his own explanation: different consumers often have multiple needs in a scene, such as quenching thirst and satisfying hunger. Naixue should try to meet the different needs of consumers at the same time.
In addition, Pengxin is eager to be a tonal brand, provide social space, attract all fashionable young people, create a lifestyle, and become an innovator and promoter of tea culture to the world.
People who eat Naixue soft European steamed buns for the first time will carefully find that they are particularly soft. Peng Xin revealed with a smile: We humidified the soft European set meal. This seems to be a very simple thing. Naixue's tea had to buy a batch of large-scale humidifying equipment from abroad, each of which was as high as several hundred thousand yuan. Tea and baked products account for 75% and 20% of Naixue's total sales respectively. It is precisely this kind of "a good cup of tea, a soft European bag, and two kinds of beauty are snow" that has created a dual-category model of "tea+soft European bag" in the industry.
Inadvertently, the year after Naixue's tea was introduced, many people in the baking industry came to inspect it, and soon a large number of bakeries also put soft European buns on the shelves. A friend who makes bread and Peng Xin said, "A tea seller led the popularity of our baking industry".
Consumers are extremely sensitive to price. Although Naixue is listed as the pioneer of high-end tea, the price is not all outrageous. Tea costs from 12 yuan to 32 yuan, and baking costs from 8 yuan to more than 20 yuan. "I just want more consumers to choose products that suit him in Naixue. No matter what price they buy, they can get the same quality experience. "
In fact, there is a positive relationship between new consumer brands and consumers. With the upgrading of consumption, customers are willing to pay for high prices, but they also require products to provide corresponding value.
The top sellers of Naixue are all teas above 25 yuan, such as the familiar domineering cheese strawberries and domineering oranges. Interestingly, the cheapest domineering lemon sales ranked lower. Customers' choice of high customer unit price is also constantly strengthening Naixue's upward orientation.
Someone on the Internet laughed and said, "I dare to enter Prada with a glass of Naixue." Peng Xin was also happy after listening. "Then he can also take Naixue to a five-star hotel!"
04. How does Naixue's tea consolidate the moat?
More and more people cross the border into the tea industry, and even post offices and police stations have opened tea shops. It is not easy to establish a Starbucks in the tea industry. If products and brands are the cornerstones of Naixue's development, what moats are there?
In Peng Xin's view, many shops in busy areas are one of the important moats of Naixue. Buying a house, the core geographical location is scarce resources; Similarly, opening a store occupies the golden position of shopping centers in major cities, and it is difficult for new brands to enter again. Many tea shops in Naixue are set up according to Starbucks. In Yuehai Street, Nanshan District, Shenzhen, Naixue DreamWorks invested nearly 10 million yuan, covering an area of 1 0,000 square meters, and earned nearly one million yuan in the first three days.
Super big stores like Naixue DreamWorks undertake more brand demonstration significance, while small stores are pioneers in expanding market share.
On June 5438+065438+ 10, 2020, under the influence of COVID-19 epidemic, Naixue realized that consumers' demand for one-time consumption increased, so she decided to vigorously lay out "Naixue Tea PRO" with higher floor efficiency. Compared with the standard store of 200-400 square meters, Naixue's tea PRO area is reduced to 150-200 square meters, and the number of employees is also reduced compared with the standard store. According to Naixue's tea prospectus, it is planned to open about 300-350 stores in first-tier cities and new first-tier cities in 20021and 2022, of which 70% are Naixue's tea PRO.
Peng Xin talked about the construction of online digitalization. As early as the end of 20 19, Naixue began to build a membership system, and gradually formed a closed loop through many functions such as membership points, shopping malls, coupons, electronic gift cards, and spelling orders. The number of Naixue members has exceeded 35 million, and online order revenue accounts for nearly 70%. Orders for self-operated small programs (private domain traffic) have grown rapidly. It is precisely because of the early digital layout that Naixue's tea still maintained a strong performance growth trend and turned losses into profits in 2020 when the world was hit by the epidemic.
For online celebrity consumer goods brands with high public awareness, the marketing expenses are tens of billions, and the marketing expenses only account for about 2% of Naixue's total revenue. According to the prospectus, the advertising and promotion expenses for 20 18, 20 19 and 2020 will be 39.4 million yuan, 67.5 million yuan and 82.2 million yuan respectively. This also reflects Naixue's confidence. "Members often interact with us, give feedback and form a positive and stable trust relationship with Naixue."
Talent is always the core asset of an enterprise. When Naixue's tea began to enter the national market, the positioning of the two founders was to adhere to a long-term and compliant business model. They were only part of the platform, and more outstanding people should join Naixue. They hired a team of professional managers to invest heavily in technology research and development and dig technology from major Internet companies with high salaries. Before listing, Naixue's tea gave employees a wide range of equity incentives. Naixue has more than 1.7 million employees. Doing standardized training and improving the service quality of stores has always been Naixue's insistence.
Teams should have the ability to run quickly. The competition in the tea industry is becoming more and more fierce, and explosive products are easily copied by peers. How to iterate quickly has become a test that has to be faced. Before joining Naixue, many employees thought it was easy to open a tea shop. Later, they found that this was not the case. They should go all out to do all the processes of the enterprise, slowly and steadily, "every cup of products and every shop can't go wrong", and at the same time quickly adjust their posture during running.
Since its establishment, Naixue has gone deep into the upper reaches, built a high-quality raw material supply chain, and established exclusive organic tea gardens, gardens and orchards. This has become an important guarantee for high-quality ingredients, further consolidating the moat of Naixue. Even so, it still can't meet the needs of Naixue's continuous expansion of new stores, and it has a long way to go and has become the focus of future efforts.
05. "We and our peers are only primary school students on the big consumption track."
Behind Naixue's tea is the 100 billion tea market, which is the general trend of consumption upgrading. Tea has a long history in China. In the past, it was mostly exported as raw materials, with meager profits, and there was no listed company.
The White Paper on New Tea in 2020 shows that the total tea market in China will be 442 billion yuan in 2020. Among them, the market scale of new tea will exceed 654.38+000 billion yuan, and it is expected to exceed 654.38+065.438+000 billion yuan by 2026.5438+0. Among them, the high-end freshly squeezed tea represented by Naixue has become the fastest growing and most eye-catching subdivision track of the whole freshly squeezed tea industry with a compound annual growth rate of 75.8% in the past five years.
The competition in the new tea industry is becoming increasingly fierce, and various brands are racing around. The domestic capital market voted for the new tea industry with real money, and first-class capital institutions such as Sequoia, Tiantu and Gaoyou entered the market one after another. In contrast, international investment institutions maintain a relatively restrained attitude.
When Naixue went public this time, many people said Naixue was the tea of capital, but there was not much financing along the way from Naixue. Before the outbreak, there was even only one investor, Tiantu.
Being the first in the industry means that no enterprise can refer to it. During the road show, Naixue's tea should not only answer the enterprise itself, but also answer many questions about the industry, so that Hong Kong regulators and more investment institutions can understand the development and prospects of the new tea industry.
Many roadshows ended and the plot reversed. Investment institutions stopped asking Peng Xin and Zhao Lin questions, but told them what they could bring to Naixue's development.
The voice of many tea brands going public is endless, and there will be the second and third shares of new tea in the future ... There is no doubt that Naixue's tea will become the benchmark for newly listed tea enterprises in the future, and investors' decision-making will become simpler.
When people mention Naixue's tea, they will inevitably think of Xi tea with many similarities. What do you think is the difference between Naixue's tea and other new tea brands, such as Xi tea and Mi Xue Ice City tea?
Peng Xinze think longer:
For Naixue, listing is a key step for more standardized development and market expansion.
From Shenzhen to the whole country, and then to the whole world, the planning map of Naixue is getting bigger and bigger. The overseas team formed has not been dissolved due to the epidemic and is still under planning. Naixue's brand effect has gradually gained more recognition, and the rental cost is declining. Some overseas shopping centers even proposed to introduce Naixue brand free of rent.
06. "This is what we want to do all our lives!"
In fact, with the emergence of new consumer brands, a group of young entrepreneurs born in 1980s and 1990s have emerged in China in recent years. What they have in common is that they attach importance to products and operations rather than management, but this does not mean that they encounter fewer management problems.
20 19 when I first met Peng Xin, she was in an anxious state: the rapid growth of the company exceeded the growth of personal ability for the first time; Her own marketing investment is low, the public awareness is low, and the high demand for opening a store affects the expansion speed ... She thinks hard about the future direction.
During this period, Peng Xin attended classes in Qingteng and Peking University Guanghua. She regards study as a holiday and thinks. "At this time, she can temporarily leave the company's affairs." Professors can bring some inspiration and inspiration, but "you still have to think clearly yourself."
With the rapid development of snow resistance, Peng's thinking is becoming clearer and clearer: at each stage, enterprises will encounter different problems, but all things can be solved and broken through in the end. The important thing is that the team is twisted into a rope, making every cup of tea in a down-to-earth manner, opening every store well, and going further unconsciously.
Peng Xin is glad that he has "a completely trustworthy partner who can go back to back". The first thing she and Zhao Lin wake up and the last thing they sleep in every morning are work. "Work is life, and life is work", but they enjoy it.
Even during the roadshow, the two of them made 160 roadshows for two weeks in a row and met more than 500 Chinese and foreign investors. Many people said it was too hard, but Peng Xin enjoyed the process. "Entrepreneurship has matured me. Very interesting. There are many interesting experiences. Everyone will live this life. They can't be content with the status quo and keep growing. "
"We both like it very much. Dreams and goals are very consistent:
I hope Naixue will become a great brand, which is what we want to do all our lives! "