On February 4, Tang Binsen, the founder of Yuanqi Forest, issued a 2024 internal letter titled "Believe in Partners, Believe in Products, Believe in Management". In the internal letter, Tang Binsen once again mentioned the power behind the word "believe", that is, believe in good partners, believe in good products, and believe in good management. Tang Binsen pointed out that Yuanqi Forest should insist on doing a good job in product quality and take "simpler and cleaner ingredient list" as a long-term corporate mission. It is necessary to serve users and partners well, and friends should do a lot, and do not disconnect from self-management. It is also necessary to find and solve problems in a timely manner and continue to create value in the market.
At the same time, Yuanqi Forest firmly believes that a good product logic will eventually win the market and users, and adheres to the concept of insisting on making good products, and the overall performance of Yuanqi Forest in 2023 also shows a growth trend higher than that of the vertical industry.
2023 with a steady increase.
In the internal letter, Tang Binsen affirmed the performance of Yuanqi Forest in 2023. Tang Binsen said that in 2023, Yuanqi Forest's performance will show a growth trend higher than that of vertical industries, and breakthroughs have also been made in several new product innovations, basically resolving the hidden dangers accumulated in the channel in the past few years. Looking back at the work goals in last year's all-staff letter, they have been achieved one by one relatively efficiently.
At the 2023 National Dealer Conference of Yuanqi Forest, Yuanqi Forest disclosed its performance and product sales in 2023. For the full year of 2023, Yuanqi Forest achieved double-digit growth in performance, and its core basic indicators rose to a historical peak. UKI, head of Genki Forest Market Brand, said that in 2023, Genki Forest's Alien Electrolyte Water, Genki Forest Iced Tea and Genki Forest Milk Tea will still achieve significant growth in the market. Among them, the performance of milk tea in autumn and winter exceeded expectations.
In addition, Tang Binsen also summarized the performance of Yuanqi Forest in 2023 in three aspects: sales system, product matrix, and management structure in an internal letter. Tang Binsen said that in the past year, with the hard work of all members of the team, Yuanqi Forest has spent 365 days of steady improvement: it has further consolidated the partnership between the dealer system and the first-class business system, and entered the key cycle of close interaction, win-win and mutual benefit; The product matrix is hierarchical, and the growth potential is obvious and each has its own strengths; Through more than a year of management framework combing, the goal of improving organizational efficiency has been basically achieved, and a new round of "building a team, boosting morale, and promoting growth" has been completed.
In the internal letter, Tang Binsen revealed his insights into the beverage industry. Tang Binsen said that since the birth of Yuanqi Forest seven years ago, Yuanqi Forest has found that the younger generation of consumers pay more attention to product quality, health and emotional value. The beverage industry is a cyclical industry that has continued to grow even during the "lost two decades" of the economic downturn in other Asian countries.
In addition, Tang Binsen is optimistic about the future development of China's beverage market. Tang Binsen said: "Yuanqi Forest firmly believes that in the next 20 years, with the segmentation and upgrading of consumption concepts, there will be a new stratification and fission in the daily consumption of Chinese users. In recent years, we have seen the gap and space between China's annual per capita beverage consumption and the United States, Japan and other countries, and we can also see the current situation of beverage products in the Chinese market and consumers' demand for products with higher quality, healthier, more functional and more scene value. ”
Insist on making good products.
In terms of products, Tang Binsen reviewed the sales of Genki Forest Iced Tea, Alien Electrolyte Water and Freedom Water in 2023.
Tang Binsen mentioned in the internal letter that when Yuanqi Forest Iced Tea initially returned to the domestic market, it was not recognized by channel providers and users, and there was a backlog of inventory, but due to the timely adjustment of product details by the market and brand team, it came out of the trough after half a year and became a new growth curve of the product system. Since then, due to the feedback from the front-line business, the iced tea team has innovated again and launched a new specification of 900ml iced tea priced at 5 yuan. A few months later, iced tea became one of the most favorable bullets for Genki Forest's 2023 peak season sales.
Regarding electrolyte water, Tang Binsen said in an internal letter that most products do not have the luck of being a blockbuster, and it depends more on patience and hard work to have a chance to break through the encirclement. Alien electrolyte water has survived for 5 years to have today's results, which is a typical good product in the Yuanqi Forest that dares to sharpen a sword for several years.
At the beginning of 2023, Tang Binsen clearly identified Alien Electrolyte Water as the second growth engine of Yuanqi Forest in an internal letter released by Tang Binsen. At the end of 2023, Alien Electrolyte Water delivered a satisfactory answer. According to the official information of Yuanqi Forest, as of the beginning of December 2023, the annual sales of alien electrolyte water under Yuanqi Forest have exceeded 3.5 billion yuan, nearly three times the sales in 2022.
In addition, Tang Binsen mentioned in an internal letter that Yuanqi Forest was not optimistic when it was first launched, and it has become a widely acclaimed product today. The success of Yuanqi Forest Free Water proves that as long as you are willing to work hard to make products, you must have the opportunity to do well.
It is reported that in February 2023, Yuanqi Forest will launch a new brand series "Free Water", striving to create a Chinese-style health water with clean ingredients and real boiling. The product quickly sold out only 5 days after its debut on Tmall***. During the 2023 618 promotion, the sales volume of Genki Freedom Water reached a new high after its launch, selling more than 100,000 bottles.
As one of the representative brands of new domestic products and new consumption, Yuanqi Forest continues to innovate products to meet the personalized and multi-level needs of consumers, while injecting recovery vitality into the consumer market. Xu Xiongjun, a strategic positioning expert and founder of Jiude Positioning Consulting Company, believes that "the strategic positioning of Yuanqi Forest is to maintain the health, naturalness, functionalization, ecology and diversity of products. ”
Win-win with dealers.
In the internal letter, Tang Binsen also mentioned the need to "believe in good partners" and unite most of the external partners to focus on promoting development.
Tang Binsen said that in 2023, Yuanqi Forest will further implement budget management, clarify the relationship between the headquarters and the local government, refine the channels in the sales field and show a new look in the regional management, the subtraction and convergence in the field of product incubation and brand innovation will also be recognized by the market, the inventory backlog and indirect waste in R&D will be greatly reduced, and the management efficiency in various fields will gradually be improved.
In 2023, Yuanqi Forest began to thoroughly investigate the problems existing in the national sales system and carry out drastic rectification. Focusing on dealer channel management, Yuanqi Forest changed the No. 1 position of the marketing center, led by Fan Jun. After Fan Jun took the helm, the original "one-way order confirmation mode" was changed to a "two-way order confirmation mode", and at the same time that Yuanqi Forest delivered the goods to the dealers, the dealers would receive information and verification codes with all product details, and only after the dealers confirmed that they were correct, the goods would be shipped. In addition, under the new model, the specific distribution actions of dealers will be included in the detection, and the task indicators will also be refined from the traditional sales to the distribution indicators with finer granularity. The dealer's right to speak has been enhanced, and the dealer is no longer passively taking orders.
In addition, Yuanqi Forest also learned from Nongfu Spring and other brands to develop the market in the early stage, adopted the "co-construction of talents" model, and expanded the terminal talent team and optimized the overall sales team through refined control of the terminal.
In 2023, Yuanqi Forest will begin to "build a business generation" with dealers, and the business ** will be responsible for the specific work of Yuanqi Forest in the region, such as commodity shelves, material placement, and activity execution. Business** has reached in-depth cooperation with the dealer team to serve the products of Yuanqi Forest. Under the co-construction model, Yuanqi Forest and dealers jointly bear the salary of employees, and Yuanqi Forest bears 60%-70% and the social security of the industry generation. According to data from Yuanqi Forest, in less than a year, nearly 1,000 new people have been co-built on behalf of the industry.
Through a series of rectifications, the overall sales system of Yuanqi Forest has become more standardized and efficient.
Looking forward to 2024, Fan Jun, head of Yuanqi Forest Marketing Center, said at the 2023 National Dealer Conference of Yuanqi Forest that Yuanqi Forest will continue to deepen its interactive and cooperative relationship with dealer partners and jointly explore new market opportunities. Yuanqi Forest will implement more preferential policies to meet the needs of dealers in terms of staffing and working capital. In addition, Yuanqi Forest will also improve the quality of its cooperative outlets, increase the activity of its outlets, and expand the depth and breadth of distribution.