{"id":1670,"date":"2023-01-05T04:17:35","date_gmt":"2023-01-05T04:17:35","guid":{"rendered":"http:\/\/wanginnovation.com\/?post_type=portfolio&p=1670"},"modified":"2023-03-31T08:30:03","modified_gmt":"2023-03-31T08:30:03","slug":"%e7%be%8e%e5%ae%9c%e4%bd%b3","status":"publish","type":"portfolio","link":"https:\/\/wanginnovation.com\/en\/portfolio\/%e7%be%8e%e5%ae%9c%e4%bd%b3\/","title":{"rendered":"Meiyijia"},"content":{"rendered":"
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Nine<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Diverge<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Meiyijia<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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creating the second growth curve by incubating private label brands<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\u201cThe Tao produces one, one produces two, two produce three, and three produce all \nthings.\u201d<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u2e3aLao Zi<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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<\/div>Over billions of years of evolution in nature, from the primitive single-cell organisms to \nthe countless diverse species of today, the main reason behind this diversity is the \ndivergence of species. Species diverge to create new species.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 9.1 Darwin\u2019s Principle of Divergence<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>In the business world, categories diverge to create new categories, providing infinite \nopportunities for new brands.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 9.2 Alibaba Growing with New Categories and Brands<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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7-Eleven, the King of New Generation of Retailing in Japan<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>Over the past 50 years of development in the Japanese retail industry, there were three \nmajor different stages: the stage dominated by department stores, the state dominated \nby hypermarkets and supermarkets, and the stage dominated by convenience stores. \nThe convenience store appeared last but grew the fastest.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 9.3 1969-2018 The Sales Value Ranking by Retailers<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>Since its first convenience store in 1974, 7-Eleven has become the king of Japanese \nconvenience stores after 50 years of development.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 9.4 1974-2021 Number of Convenience Stores of 7-Eleven in Japan<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Illustration 9.5 1974-2021 Revenue of 7-Eleven in Japan<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>\u201cConvenience\u201d is the most important attribute of a convenience store and 7-Eleven has \nalways put \u201cconvenience\u201d above all. When entering the Japanese market, longer \nopening hours was perceived as convenience, 7-Eleven was run as 24-hour store. With \nthe intensified situation of population aging in Japan, many seniors have difficulties in \ngoing out. In 2000, 7-Eleven launched its Seven Meal home delivery service. In 2001, \n7-Eleven Bank was introduced. During that time, Japanese banks closed at 3 p.m. in \nthe afternoon and requested customers to dress formally (otherwise would not be \nallowed to enter). 7-Eleven Bank was 24-hour in-store service. Customers could \nwithdraw money anytime without any dressing requirements.<\/p>

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<\/div>The installation of ATMs had brought surprising derivative effects for the stores, as \nmost customers who came to withdraw money would also buy something. In fact, \nmany other services also played critical roles in attracting traffic, such as Seven Spot \nFree WiFi, public utility bills (e.g. water, electricity and gas), tax payment and printing.<\/p>

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<\/div>Despite of all the convenient services, 7-Eleven still relies on selling products to make \nmoney. Besides of selling national brands, 7-Eleven started to sell its private owned \nbrand Seven Premium in 2007.<\/p>

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<\/div>\u201cSeven Premium\u201d initially had only 49 products. By 2014, it owned more than 1,700 \nones. By 2019, it had even expanded to include 4 major categories of fresh food, \nstaple food, processed food and non-food with a total of 4,150 products. Seven \nPremium contributed 80 billion yen in sales to 7-Eleven in its first year, and reached \n1.46 trillion yen by 2020.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Illustration 9.6 The Product Contribution of Seven Premium<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Illustration 9.7 2007-2020 The Revenue of Seven Premium<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Meiyijia, the King of Convenience Store in China<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>Currently, China\u2019s convenience store industry is at a level similar to that of Japan in the \n1990s. According to data from the China Chain Store & Franchise Association, the \nnumber of convenience stores nationwide reached 253,000 in 2021, an increase of \n60,000 compared to 2020 with a year-on-year growth of 31%. The total number of \nretail stores in China is about 6 million with chain convenience store contributing less \nthan 5%. Chinese convenience store still has huge room to grow.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\u56fe9.8 2013\u5e74-2020\u5e74\u4e2d\u56fd\u5b9e\u4f53\u96f6\u552e\u989d\u589e\u901f<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>Unlike Japan where the convenience store industry is equally led by 7-Eleven, \nFamilyMart and Lawson, Meiyijia is dominating in China with over 30,000 stores across \n20 provinces and cities. We collaborated with Meiyijia to develop its private label \nbrands and products in 2020.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Chunhuan Spring Water at 1 yuan<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>The first private label product we worked with Meiyijia was bottled water. Many \ncategories of China's soft drink industry have already stagnated or even declined, but \nbottled water still has an annual growth rate of nearly double digits. Millions of Chinese \nhouseholds are still in the trading up transition of drinking boiled tap water or jug water \nto drink bottled water. Consumers have enormous demands for economy bottled water \nsuch as Jinmailang soft purified water. With over 20 years of communication and \neducation of \u201ca little bit sweet\u201d and \u201ctransporters of natural resources\u201d, Nongfu Spring \nsuccessfully built the perception in consumers\u2019 mind that natural water and spring water are as good as natural mineral water. In fact, natural mineral water has \nindependent national standards, requiring a certain level of specific mineral content in \nthe water source. Generally speaking, manufacturers need to pay higher production \ncosts. Meanwhile, the production cost of natural water is almost the same as that of \npurified water.<\/p>

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<\/div>Taking above information into consideration, we recommended Meiyijia launch a \nnatural water brand called \"Chunhuan Spring\u201d sourcing from the famous Lianhuashan \nForest Park in Shanwei, Guangdong province. The core item of Chuanhuan Spring is \nnot the single count 555ml; instead it is the 6 counts of 555ml (555ml*6) selling at 5.99 \nyuan, which is the only item selling less than 1 yuan per bottle in the convenience store \nin Guangdong. Thanks to the positive perception of natural water and its best value for \nmoney, Chuanhuan Spring had monthly sales over 1 million yuan just 3 months after its \ndebut without any additional promotion resources.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Illustration 9.9 Meiyijia Chunyuan Spring Natural Water<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Xianjiaolasong Bread (bread with fresh pepper and spicy meat floss)<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>In 2021, Meiyijia Central China Bakery Factory was established, located in Changsha, \nHunan province, with the objectives of providing bakery products to thousands of \nstores in Hunan, Hubei and Jiangxi provinces. <\/p>\n

       

<\/div>We conducted field researches in above three provinces, covering capital cities, \nprefecture-level cities, county-level cities, villages and towns. We collected data based \non thousands of bread samples. We spotted the \u201cgreatest common divisor\u201d of the total \nmarket \u2014 the most widely accepted bread categories and their pack formats and \nprices. Meanwhile, we fully leveraged the experience of experts in the bakery factory \nand market insights to give recommendations of innovative products.<\/p>\n

       

<\/div>In early 2022, fresh short-shelf-life packaged bread, manufactured by Meiyijia Central \nChina Bakery Factory, hit the shelves of thousands of stores in those three provinces. \nProducts such as the \"Caterpillar Bread\u201d, \u201cPure Cake\u201d and \u201cCoconut Fruit Bread\u201d are \nwidely and well received by and becoming essential for almost all different groups of \nconsumers. The outstanding market performance of those products generated stable \nrevenues.<\/p>\n

       

<\/div>One particular item impressed consumers deeply \u2014 Xianjiaolasong Bread (bread with \nfresh pepper and spicy meat floss). With consumer studies, we had already learned \nthat Meiyijia would need bakery products with \u201creal meats\u201d inside, such as meat floss \nbun and hot dog bun. With above consumer insights, experts in the factory proposed \nthat they could add some peppers to the meat floss to create a spicy flavor catering to \nthe majority of people in these three Central China provinces. To emphasize the \nfreshness of bread, Meiyijia added with fresh peppers instead of cheaper dry ones. \nSequentially, a bread with \u201creal pepper real meat floss, happiness in each bite\u201d was born. This bread was the best-selling one for over 10 weeks since its launch, becoming \nthe iconic \u201cexclusive and best value product\u201d of Meiyijia bakery business.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 9.10 Bread Shelf in Meiyijia Store<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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28-Day Fresh Beer (fresh beer with as short as 28-day shelf life)<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>Over the past decade, the Chinese beer market has demonstrated the trend of \nconsumption trading up with a decrease in volume and an increase in price. Fresh beer \nis one of the most important strategic directions. Hence, we partnered with Meiyiji \nintroduce its private label brand 28-Day Fresh Beer with the shelf life as short as 28 \ndays, with full cold chain transportation from factory to store.<\/p>

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<\/div>In order to communicate the differentiations between fresh beer and regular beer as \nmuch as possible, we highlighted the brand name 28-Day Fresh Beer on the packaging \nas big as possible. We chose the large size 650ml tinplate can as the format, making it \neasier to be noticed among the leading brands\u2019 350ml and 500ml formats in the \nfreezer.<\/p>

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<\/div>Considering the fierce competition and high cost of gaining spaces in the freezer aisle, \nMeiyijia 28-Day Fresh Beer only focused on a single format with two flavors \u2014 650ml \nbrown ale and 650ml white beer.<\/p>

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<\/div>In the summer of 2022, 28-Day Fresh Beer was piloted in Foshan area. Despite its \nprice as high as 15 yuan per can, it was sold out on the very first day. The top stores \nreached 200 even 300 yuan sales per day. The 28-Day Fresh Beer swiftly became \nanother iconic exclusive best value product for Meiyijia, recruiting many new and \nbetter-off customers.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 9.11 Meiyijia 28-Day Fresh Beer<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>The Chinese fast-moving consumer goods (FMCG) industry is very complex and \ndiverse, with 1.4 billion people spreading across 333 prefecture-level cities, 28,443 \ncounties, and 38,724 villages and towns. It has many different consumption occasions \nand needs for individual, family as well as CBD. The strategy plan of Meiyijia is to cover \nall types of market and stores, hoping to reach 100,000 stores, covering from CBD in \nfirst-tier cites, communities in towns to even villages; from fresh food store, theme \nstore, community store to even grocery store. The goal is grand and challenging. We \nwill continue to explore how to land the goal with private label products.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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INNOVATION CASES<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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