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functional ingredients used in functional beverage

Hubei Srikro Technology Co.,Ltd
Time: 2021-08-29
There are entry-level supplementary products that focus on affordable, unique flavor, and 0 sugar, 0 fat, and 0 calories—collagen sparkling water; there are mainly healthy, pure natural, and weakly al

   



     Chuangyebang learned exclusively that the female light-supply functional beverage brand "Rule" has completed a pre-A round of financing of millions of yuan at the end of last year. The investors in this round are Dianhun Venture Capital and Dahua Investment. The financing will be mainly Used for channel promotion, offline team expansion, and R&D investment for new product lines.

    Prior to this, "Rule" also received nearly 10 million yuan in angel round financing from the joint investment of Qingsong Fund, Shenggang Investment, Jiuyouque Capital, and Jisu Capital in July 2019.

     

    "Rule", which has continued to focus on Entrepreneurship, was established in 2019 and is positioned as a functional beverage brand for women. It focuses on women's light supply needs such as skin nourishment and relaxation, and creates natural and healthy health drinks.

    

    

    Functional drinks show explosive growth

    

     

    The concept of "functional beverages" was first born in the 1920s in the United Kingdom, after which a variety of functional ingredients have come out. Until now, functional beverages have gradually developed into an important sub-category in the beverage industry.

     

    According to iiMedia Consulting's data, the scale of China's functional beverage market has maintained a steady growth trend from 2011 to 2018. The overall market capacity was 9 billion yuan in 2011, and it has risen to 36.2 billion yuan in 2018. It is expected that in 2021, the number It will also rise to 48.6 billion yuan.

     

    Driven by the new crown epidemic in 2020 and the concept of healthy living, consumers' demand for healthy ingredients, low-calorie functional drinks has become more prominent.

    Taking the data of the domestic functional beverage operator Reignwood FMCG in the first half of the same year as an example, the sales of its brands Red Bull, Zhanma, Guobeishhuang, Vita Coco and Fusi mineral water totaled 14.326 billion yuan, of which, Red Bull's sales were 13.393 billion yuan, accounting for more than 93% of overall revenue.

     

    With a clear increase and a clear momentum, "Rule", a functional beverage brand for women that focuses on relaxation and pleasure, has also emerged.

     

    In an interview with Chuangyebang, Rule founder & CEO Su Qian revealed that during the outbreak of the epidemic (January to May 2020), the company's online channels gradually matured. During the peak period, only Tmall’s single store monthly sales were already available. With nearly one million yuan, it ranks among the top seven in the Tmall Double Eleven flavored water + juice category.

     

    This is really rare for a new brand that has only been on the market for one year.

    

    New opportunities for new segmentation scenarios


    

     

    Susie is a ten-year veteran of the beverage industry. She graduated with a master's degree in management. She became the youngest director of the Wahaha Group at the age of 28. She is good at online and offline operation of new products, rapid channel deployment, and model cities ranging from 0 to 1 During his tenure, he also led the team to plan the advertising placement project of Gvass in "I'm a Singer".

     

    "Although the beverage industry has become a red sea, there are still opportunities for small brands to innovate in market segments." Susie told Chuangyebang: "Rule starts from the point of demand for women to relax, become beautiful, and reduce burdens, and is committed to Fast digestion of nutritional products such as collagen, filling the gap in the market for women’s exclusive functional drinks."

     

    In her opinion, women are born with "pleasure themselves" characteristics. In order to improve their self-happiness, their willingness to consume and spending power are generally high. Based on this, Rule accurately found the core user group: 16~35 years old, especially young women aged 18~24.

     

    In order to accurately cover user groups with different needs, Susie divides Rule's product line into three stages, namely entry-level, advanced-level, and high-level.

     

    Among them, the entry-level products are mainly oriented to the primary user group. There are entry-level supplementary products that focus on affordable, unique flavor, and 0 sugar, 0 fat, and 0 calories—collagen sparkling water; there are mainly healthy, pure natural, and weakly alkaline drinking water with nutrition ingredients, healthy ingredients and functional ingredients. Upgraded product-natural soda water; more importantly healthy, with flower extract as the core ingredient, and a light replenishment flavored drink containing collagen-flower extract water.

    These products are different from most drinks on the market in terms of taste and concept. The price is 5~8 yuan per bottle. The sales channels are concentrated on online platforms, offline convenience stores/boutiques, etc.

    

    The advanced level products are the benchmark of the classic series. In terms of functionality, they pay more attention to skin beautification and body warming than the entry level. For example, collagen fermented fruit water, brown sugar ginger tea, etc., the average price is about 10 yuan, mainly through Online live broadcast, content operation and other methods to attract users.

     

    The high-end products are mainly functional food supplement products, and the profit margin is relatively higher. This type of product line focuses more on cooperation with channels such as beauty salon lines and female communities to deeply link users with high consumer stickiness.

     

    Based on the above three product lines, Rule combined the user's differentiated consumption level shopping plan, and also established a private domain traffic pool to feed back product research and development with users' potential needs, and increase the overall repurchase rate and brand influence.

    It is reported that the current purchase evaluation rate of the two core products of Rule is 60%, and the product viscosity is much greater than that of ordinary beverages.

    

    

    Young women alone

    Why host a subdivided track beverage brand?

    


     

    

    Susie said that the volume of the national beverage market has exceeded trillions. As a start-up company, if it wants to stand out, it must find its uniqueness in cross-competition with healthy ingredients and functional ingredients.

     

    The uniqueness of Rule lies in the aspects of product differentiation, supply chain, and channel expansion.

     

    In terms of product strength, there is currently no domestic competitor to the benchmark. With its first-mover advantage, Rule has taken the lead in establishing brand influence in the domestic market with nutrition ingredients, launching 1 to 2 new series of products every year. In 2020, when offline is not optimistic, the company has verified user data through online data and improved the promotion path to facilitate faster coverage of offline channels in the later period.

     

    At the supply chain level, based on the team’s years of precipitation and experience accumulation in the fast-moving beverage industry, the company has mastered the full chain capabilities of raw material such as healthy ingredients and functional ingredients selection, formulation research and development, production and processing, and has reached agreements with global leading suppliers and R&D institutions Cooperation ensures the stable supply of products.

     

    In terms of channel expansion, since the launch of the product in April 2019, Rule has successfully entered Tmall, JD.com and other platforms online, and entered Ito Yanghuatang, Hema, FamilyMart, Hexdo, Lawson, Yintai and other online platforms. More than 2,000 terminal channels such as Western Selection, VanGo, and Fat Donglai.

     

    After this round of financing, the company will continue to expand R&D investment, enrich the existing product line, and expand existing channels. It is estimated that in 2021, the company will achieve 40 million yuan in revenue.

    

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