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Written by: Xu Jialu, Zhao Zenghui
Edited by: Wilbur ZHU (WeChat ID: aotokuer), Anna HU
Does the youth really “abandon” liquor? CHONGQING JIANGXIAOBAI LIQUOR makes the youth “fall in love” with liquor.
In the keynote address given by Road Tao, chairman and chief executive of CHONGQING JIANGXIAOBAI LIQUOR at the Product Innovation sub-session of Food and Beverage Innovation Forum (FBIF2017), he claimed that in the new age, the younger generation of consumers seemed uninterested in liquor even though the spirit was a historical and cultural heritage in China. Where, then, should the liquor industry go and how could the younger generation’s demand for liquor be developed? The “Three Strategy” of CHONGQING JIANGXIAOBAI LIQUOR may be a feasible solution.
Slow Growth in Liquor Industry with Changing Consumers
Liquor has been a traditional, conservative, and even a closed category in food and beverage industry with a slow growth and even an overall decline today. This is caused by various reasons, the first of which is the lack of novelty of many products, especially the old and traditional ones, which are getting stale for consumers, thus driving the new generation of consumers away from the brands; second, the younger generation of consumers focus more on their own health while liquor is haunted by an impression of “harmful drinking of alcohol”. In summary, the slow growth in liquor industry is an indisputable fact from any angle in the context that 1990’s and even 2000’s generations start leading the consumer market in China.
“Three Strategies”, a Feasible Solution to Revive Liquor Industry
“Three Strategies” means thinking and innovating from 3 angles i.e. category, product, and brand, the work from which forms a combined impetus to liquor industry.
Category Innovation: Developing Subcategories
Development of subcategories is key to category innovation. There are many categories of Chinese liquor, such as Guizhou Mao-tai and Beijing Erguotou, which are better known. But in fact, the sorghum-based liquor of Chongqing happens to be an undeveloped flavor with unique production techniques and characteristics. In many people’s ideas, liquor is liquor and its classification on aroma type, category, and origin is ignored. Actually, the main type of Chinese liquor is multigrain-based i.e. made from various grains while the sorghum liquor of Chongqing differs in raw material as it is made from single sorghum. As for flavor, almost all other types of liquor are strong, adding to the mental burden with a sense of “drinking for battle” but the light flavor of Chongqing sorghum liquor attracts more young consumers than old ones.
Chongqing sorghum liquor is actually not a new category but CHONGQING JIANGXIAOBAI LIQUOR has developed the value of the spirit and put the brand elements in. Its advantages include: first, it is hand-made; second, it is all natural and additive free with all natural fermentation, the single raw material and light body are better suited for young consumers; third, it meets young consumers’ favor for DIY as their personalized demand is filled by cocktailing. These are the category course that CHONGQING JIANGXIAOBAI LIQUOR will be persistent on in 5-10 years to come.
Product: Solutions for Consuming Scenarios
Products of CHONGQING JIANGXIAOBAI LIQUOR are categorized in four consuming scenarios: little get-together, little drink, little moment, and little feeling. Little get-together means non-commercial socializing with 3 or 5 colleagues, friends, or schoolmates; little drink means drinking without competing the amount but just for a proper taste; little moment means the regularity and chance of moments; little feeling means the connection of alcohol product to feelings and emotion rather than a mere functional demand.
CHONGQING JIANGXIAOBAI LIQUOR has the product strategies corresponding to abovementioned four consuming scenarios. For example, the classic small bottle of the brand is designed for get-togethers with 3 or 5 schoolmates and friends and demand for such small socializing; its “expression bottle” is offered for users’ demand of emotional expression. For Chinese consumers’ significant desire of expression, “expression bottle” provides a outlet for their emotions.
Own IP of Brand: Bringing Visit Flow and Attention for Product
For the consumers in the new age, CHONGQING JIANGXIAOBAI LIQUOR keeps innovating in brand strategy, which is primarily achieving own IP of CHONGQING JIANGXIAOBAI LIQUOR thus bringing visit flow and attention for the brand. In this June, the animation with the own IP of CHONGQING JIANGXIAOBAI LIQUOR will be shown, which will promote the interaction and connection between the brand and consumers and is an important brand strategy for the new generation. In addition, stress is laid on the brand promotion for CHONGQING JIANGXIAOBAI LIQUOR through social channel. Last year, for example, a CHONGQING JIANGXIAOBAI LIQUOR expression bottle was launched, with which consumers could spread what they said on social platforms on time thus bringing the second spread and a rise in the efficiency of brand promotion.
In the Context of Consumption Upgrade, More Attention Needed on Product Quality in Liquor Industry
In today’s circumstance of consumption upgrade, consumers are actually willing to pay more value for higher product quality. CHONGQING JIANGXIAOBAI LIQUOR has become a high-end brand in small bottles. Innovation is, of course, key to improve product quality; nevertheless, it should not be pointless but with logic and demand. Innovation and marketing cannot be discussed without product. Meanwhile, the upgrade of product technology is inextricable from talented people. Having hired 3 state auditors so far, CHONGQING JIANGXIAOBAI LIQUOR is powerful in technology. No doubt that brand marketing is important, but a company should concentrate more on the improvement of product quality and, during this process, innovation and the following technical upgrades are indispensable.
Food & Beverage Innovation Forum 2017 (FBIF2017) was held in Shanghai from April 19th to 21st, 2017. The theme of FBIF2017 is “Global Innovation, Powering Future!”. Topics include Trends, R&D, Marketing and Packaging. 1500+ attended. Speakers include: Zhang Jianqiu, Executive President, Yili Group; Stephen Maher, President, Mondelez China; Zhou Li, Secretary of the Board, Ph.D, Nongfu Spring; Yan Weibin, Chairman, Ausnutria; Craig Slavtcheff, Global VP, R&D, Campbell Soup; Zhang Liaoyuan, Founder, Three Squirrels; Jet Jing, VP, Alibaba Group; Martin Suter, Head of eCommerce, China at AB InBev. For more please reply "FBIF" .
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