---
title: "2-Year Sales Surge of 2000%, 100+ SKUs: Shark Fit Founder on Hit Product Logic"
description: "As per capita consumption rises, the wave of consumption upgrade is driven by evolving consumer attitudes, expanding the industry's scale and creating more space for growth. In recent years, the 'health' trend in the food sector has remained strong, prompting even industry giants to test the waters. For instance, last year, COFCO launched weight-loss meal replacement biscuits, Want Want introduced its healthy snack brand Fix Body, and Master Kong released a meal replacement bar called 'Sunshine Youxian'."
author: "何年"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-09-21"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/1JD2Mv5W2k17LRG9KUkWXA"
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# 2-Year Sales Surge of 2000%, 100+ SKUs: Shark Fit Founder on Hit Product Logic

> As per capita consumption rises, the wave of consumption upgrade is driven by evolving consumer attitudes, expanding the industry's scale and creating more space for growth. In recent years, the 'health' trend in the food sector has remained strong, prompting even industry giants to test the waters. For instance, last year, COFCO launched weight-loss meal replacement biscuits, Want Want introduced its healthy snack brand Fix Body, and Master Kong released a meal replacement bar called 'Sunshine Youxian'.

As per capita consumption rises, the wave of consumption upgrade is driven by evolving consumer attitudes, which also expands the industry's scale and creates more space for growth.
**In recent years, the 'health' trend in the food sector has remained strong and intense, prompting even first-tier industry giants to abandon a wait-and-see attitude and test the waters.**
For example, last year, COFCO launched new biscuits with weight-loss meal replacement effects, Want Want introduced its healthy snack brand Fix Body, Master Kong listed a meal replacement bar called 'Sunshine Youxian', and PepsiCo's oat brand Quaker partnered with Wugu Mofang to launch its first meal replacement shake 'Low Calorie Control'.
Not only these traditional food giants, but now more and more emerging food brands are carving out market share from large food enterprises. A brief review of recent internet-famous products shows: **carbonated drinks have shifted to sparkling soda water; convenient foods have expanded to self-heating products; fruit oatmeal is gradually eroding the traditional oatmeal market; and concepts like zero sugar, zero fat, zero calories, and zero additives are gaining popularity...**
The health trend is strong, but the market has also seen more segmented tracks. These emerging brands are adapting to rapidly changing consumer demands, whether in marketing concept innovation or product innovation.
Within the broader healthy food track, a more segmented track has emerged to address the pain point of 'convenience' in human nature—healthy convenient food.
**Recently, New Distribution has focused on a brand gradually taking the lead in this track—Shark Fit.**
**-01-**
**Strong Positioning**
During the pandemic, besides healthcare and education sectors seeing capital booms, investment and financing in the consumer goods industry also continued to grow. In the tail end of the pandemic, Shark Fit still quickly completed two rounds of financing.
**On June 29, 2020, Shark Fit announced the completion of a 10 million RMB angel round, invested by Buhuo Ventures. Just over two months later, on September 11, 2020, Shark Fit announced the completion of a 15 million RMB Series A round, with investor Plum Ventures.**
Founded at the end of 2017, Shark Fit is a healthy convenient food brand positioned for all scenarios and all categories. In the broader health track, it entered with chicken breast as a starting point, deeply addressing the consumer pain point of convenience.
Because the chicken breast category has always been in the consumer mindset of those with exercise and health habits. But it's clear that traditional solutions for chicken breast are not user-friendly; buying and preparing it is troublesome, and even ready-to-eat chicken breast that requires low-temperature storage adds the step of taking it out of the fridge, which is 'too troublesome' for new consumers.
**So Shark Fit's solution was to make the product shelf-stable and ready-to-eat, quickly exploding in the market.** On Tmall, sales broke 5 million monthly within 8 months, exceeded 10 million in 16 months, and surpassed 30 million in 26 months, with continuous sales growth. During Double 11 and 618, it ranked first with a significant lead, and this year's revenue is expected to exceed 250 million RMB.
Currently, Shark Fit sells over 500,000 orders per month across all channels and has expanded to over 100 SKUs.
**At the 'China FMCG Conference' held in Shanghai in August, New Distribution invited Shark Fit founder Mr. Qiang Xiaoming as a speaker, and conducted an exclusive interview afterward to discuss Shark Fit's unique logic for creating hit products across multiple categories and SKUs.**
**-02-**
**The Hit Product Expert's Logic**
Compared to other innovative brands, thanks to its previous experience in e-commerce operations, Shark Fit has served nearly 20 head brands in sub-categories, giving it excellent capabilities in creating hits and driving sales.
**Currently, among Shark Fit's 100+ SKUs, besides chicken breast, there are over a dozen products with monthly sales exceeding 10,000 units.** Some innovative brands may have ridden a trend initially and gained some dividends with one hit product, but their second and third products have been slow to appear. It's clear that Shark Fit must have a comprehensive and unique set of methods for creating hit products.
When discussing traditional FMCG, we often start with product, price, place, and promotion—the 4Ps. Here, because these innovative consumer brands mostly sprout and thrive in the internet soil, **let's look at Shark Fit's hit product methodology from the perspective of new consumption, such as operations, traffic, users, and conversion.**
**1. Traffic: Public - Private - Commercial Domains Building a Closed Loop for Mind Share**
Public domain traffic refers to free traffic that platforms can give you, such as consumers' active searches on Taobao or JD.com, which appear even without promotion. For example, if you make a short video on Douyin without advertising, the platform will still give you some traffic.
For the operations team of an innovative brand, it's crucial to understand the public domain traffic rules of major platforms, because first, this traffic is indeed free. Second, as competitors emerge, this traffic will be diluted significantly, and positioning becomes key. Startup brands need the ability to obtain free traffic to survive easier in the early stages.
Commercial domain traffic is traffic you can buy on platforms. Effective purchasing of traffic ensures support when rapidly scaling up. Because free traffic has bottlenecks, platforms in the blue ocean period offer more traffic; as platforms mature, you need substantial commercial domain traffic for investment.
Taking chicken breast as an example, in the early days, free traffic was large, but few people searched. Shark Fit chose to list on Taoke and rebate sites, expose in KOL groups, and distribute coupons, **doing a wave of mind-share education. After word-of-mouth spread, it ignited public domain traffic on comprehensive e-commerce platforms like Tmall.**
Then, after the blue ocean period of platform traffic passes, you need to continuously invest in commercial domain traffic. In short, you need to position yourself, ideally securing official event support and mobile Taobao search hits, **creating industry hits, isolating competitors, and harvesting the core traffic.** According to the founder, in the chicken breast segment, Shark Fit captures 2-3 times the public domain traffic of the second and third players.
While buying commercial domain traffic, you also gain additional public domain traffic support. **The underlying logic is to find the boundary between paid and free, and how to balance it is a capability new consumer brands must possess.** In the early stage, competition in public and commercial domains yields thin profits, more like strategic losses, but if you maintain this point, at least crossing the break-even line is no problem.
Next, you earn profits through private domain. Private domain traffic involves bringing acquired users into a private traffic pool, managing them in WeChat groups for repurchase and fission, similar to membership marketing. With manual service promotion in WeChat groups, future activities and pushes cost almost nothing, so private domain can achieve higher net profits.
**In summary: commercial domain as the starting point—public domain for balance—private domain for profits. The three domains build a closed loop for mind share, allowing for intensive bombardment and strong brand recognition.**
**2. Product: User is King**
**Shark Fit expanded to over 100 SKUs because it maintains a pace of 5-6 new products per month. From an operational perspective, it is user-centric, starting from consumer needs.**
First, product development. Shark Fit's monthly product development meetings consider multiple dimensions. First, collect what consumers want to see developed; second, research which categories have rising awareness, searches, or sales; third, after collecting needs, conduct user voting.
Shark Fit interacts with users frequently via WeChat, phone, and SMS every month. Only products that pass user voting are developed; those that don't pass are not developed. Products with more votes are prioritized, while those with fewer votes are queued later.
Second, tasting. After product development, tasting begins: first by product developers, then by company employees and department heads, and finally, before launch, consumer tasting reports are obtained before market release.
Third, iteration. After a product is listed, user feedback is tracked. The first wave is customer service, communicating with each customer promptly; the second wave requires the product department to call customers from each batch, asking if the taste is too salty or too bland; the third wave, from the brand level, uses user feedback to decide whether a product should continue or be phased out.
If it continues, what are consumer needs? Iterate the corresponding processes and upgrade the product. Products with poor feedback from the general public or insufficient sales chains that can't maintain factory orders are directly eliminated.
**So, the decision to develop is made by consumers, the decision to list is made by consumers, and the decision to upgrade or eliminate is also made by consumers—product is user-driven.** Basically, this process ensures products are satisfactory to consumers, leading to better word-of-mouth, fission, and repurchase, allowing products to grow almost geometrically over 20+ months.
**3. One Product per Supply, Hit Product Driven**
Many brands hope that one product can use a standardized brand strategy to penetrate all channels, with online and offline prices the same.
**Shark Fit is more flexible in this regard. All channels operate with one product per supply, serving according to corresponding specifications and needs. Each channel uses a hit product model to create hits.**
**Mr. Qiang Xiaoming told New Distribution that their team found through analysis that customers prefer to choose a platform they trust first, then select products. However, Shark Fit's customers on Tmall barely overlap with those on JD.com or Pinduoduo.**
So, for different channels, products are set according to channel rules. For example, for the same chicken breast, different specification strategies might mean Pinduoduo promotes a 30 RMB set, Tmall a 70 RMB set, and JD.com a 90 RMB set, ensuring these products fit the platform's consumption habits and become hits on all three platforms.
Additionally, there are search hits for search, live-streaming hits for live streams, and exclusive offline products, with each product differentiated in specifications and prices.
**-03-**
**Healthy Food Track**
Shark Fit's field can be categorized into the broader healthy food track, a health market with a stock of over 100 billion RMB, and it is still in a high-growth stage.
According to Euromonitor International data, the healthy food market is nearly 15 billion USD (100 billion RMB) and maintains high growth, with a 7% CAGR over the past five years. It is expected to continue growing at this rate for the next five years, reaching over 20 billion USD (nearly 150 billion RMB) by 2024. Among these, long-shelf-life healthy meat, seafood, fruits, and vegetables account for over 25% of the total market share.
**Moreover, similar to the 'category without brands' characteristic of the Berry Sweetheart fruit wine track previously reported by New Distribution, this track's biggest structural issue is 'products without brands'.**
As consumer health awareness rises, demand for healthy food is increasing. Chinese consumers are paying more attention to personal health and prefer foods beneficial to health.
According to China Industry Research Institute data, the number of people participating in physical exercise in China reached 550 million in 2017, with a CAGR of 7.7%; meanwhile, the fitness industry output reached 154.523 billion RMB. As the fitness population expands, the demand for healthy food to complement fitness is also growing.
**Final Thoughts:**
New demographics have new consumption culture and concepts, but there are no good brands or products to carry them. There is an urgent need for new products and brands to emerge—this is an opportunity for new brands to rise.
**Shark Fit's simultaneous development of over 100 SKUs may not be suitable for all new consumer brands to learn from, but it did not rise by riding a trend or reaping dividends. Instead, it played new tricks within traditional e-commerce logic. The deep thinking behind this is worth learning from for other innovative brands.**
Tips will be paid 400-2000 RMB upon adoption.


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