---
title: "Exclusive Interview with 'Yizhenggen': One Month After Launch, Marketing Spend Only 10,000 RMB"
description: "In a generally low-pressure business climate this year, their joy is so rare and infectious that even 'Case' feels embarrassed to raise the industry's concerns: Is ginseng water a 'wisdom tax'? Can vague functionality and controversial taste ensure repeat purchases? After the hype, how far can Hardcore Research Institute go with a single SKU? Before 'Yizhenggen' launched, the institute, founded in 2020, had already made four unsuccessful products in just over a year, from small-bottle bird's nest to carb-blocking milk tea, all riding the wave of young consumer trends but quickly collapsing."
author: "案例 SHOWCASE"
publisher: "New Distribution"
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published: "2022-07-26"
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# Exclusive Interview with 'Yizhenggen': One Month After Launch, Marketing Spend Only 10,000 RMB

> In a generally low-pressure business climate this year, their joy is so rare and infectious that even 'Case' feels embarrassed to raise the industry's concerns: Is ginseng water a 'wisdom tax'? Can vague functionality and controversial taste ensure repeat purchases? After the hype, how far can Hardcore Research Institute go with a single SKU? Before 'Yizhenggen' launched, the institute, founded in 2020, had already made four unsuccessful products in just over a year, from small-bottle bird's nest to carb-blocking milk tea, all riding the wave of young consumer trends but quickly collapsing.

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**Introduction:** In this year's generally low-pressure business climate, their joy is so rare and infectious that even 'Case' feels embarrassed to raise the industry's concerns: Is ginseng water a 'wisdom tax'? Can vague functionality and controversial taste ensure repeat purchases? After the hype, how far can Hardcore Research Institute go with a single SKU?......
Before 'Yizhenggen' launched, Hardcore Research Institute, founded in 2020, had already made four unsuccessful products in just over a year: from small-bottle bird's nest to carb-blocking milk tea, all riding the wave of young consumer trends but quickly collapsing. Among them, the instant bird's nest 'Yizhan Benbai' had a PSD (per-store daily sales) of only 0.3 bottles.
By the end of 2021, founder Tang Fei, then 25, had sold his car and watch to cover the company's losses. Sitting at home in a daze, he often thought: What else in this house can I sell?
'Yizhenggen' was Tang Fei's all-or-nothing decision. The launch period was plagued by bad luck: during the Shanghai lockdown, half of the employees tested positive for COVID. 'Everyone rushed to go to the same quarantine facility, at least we could gather to discuss plans.'
Then came today's story: A health drink with a whole ginseng root in a glass bottle was launched on May 17, 2022, at 19.9 RMB in Lawson convenience stores in the Sichuan-Chongqing region. The next day, the first batch of 10,000 bottles sold out completely. That evening, the topic soared to No. 6 on Weibo's social hot search list, staying for two days, with over 12 million views. By May 19, Xiaohongshu was flooded with photos of 'Yizhenggen', and comments were filled with 'Please restock' and 'Went today and it's already gone.'
When 'Case' spoke with Hardcore Research Institute, 'Yizhenggen' had reached a daily production of 100,000 bottles. In a beverage market dominated by domestic and international giants, breaking through with a single product is rare, especially since Hardcore Research Institute insists they are just an ordinary post-90s startup team with no special background. To date, total marketing spend has been only 10,000 RMB.
At first glance, these three post-90s entrepreneurs seem like good buddies from a college dorm, joking around and dreaming big: Founder Tang Fei dropped out of university and started multiple ventures, including offline stores and shared spaces. He and partner Sun Ze are friends who started businesses together. Li Zhiqiang, the co-founder in charge of brand marketing, joined last. He previously worked at Ogilvy and later founded an MCN agency.
Hardcore Research Institute founder Tang Fei, co-founders Sun Ze, Li Zhiqiang. Image source: Hardcore Research Institute
In this year's generally low-pressure business climate, their joy is so rare and infectious that even 'Case' feels embarrassed to raise the industry's concerns: **Is ginseng water a 'wisdom tax'? Can vague functionality and controversial taste ensure repeat purchases? After the hype, how far can Hardcore Research Institute go with a single SKU?......**
Tang Fei said they had turned down many interviews because internal matters were not yet resolved. 'Case' is their first choice for external communication, so they decided to do the interview together, all three of them. He hopes to sincerely share with the outside world their review of the viral success and the road ahead.
**01 The breakout was truly accidental; when orders came, the factory had stopped**
**Q: How are sales going now?**
A: As of the end of June, we have over 10,000 stores selling the product, with daily sales of about 50,000 to 60,000 bottles.
**Q: After so many failed projects, when did you feel this one would likely succeed?**
A: It launched on May 17. On May 18, we saw a blogger post a note. That evening, the note went from 64 likes to over 1,000, then to 3,000 the next day, and then 5,000. By May 19, my phone (Tang Fei) was blowing up with orders from distributors across the country, invitations from investment institutions, and constant updates from various departments.
**Q: What proportion of this is organic traffic?**
A: 90% is from word-of-mouth. It went viral before we even pushed. Total investment across all channels is 10,000 RMB, mainly for seeding to test which platform works best.
We really didn't expect it to go viral. It was just a small-scale pilot: 900 boxes, about 10,000 bottles. Lawson in the Sichuan-Chongqing region said it would take at least 15 days to sell out. If we had been prepared, we wouldn't have had the factory stopped when restocking orders came the next day.
**Q: How did you handle those orders later?**
A: Ginseng water is unique. We had no brand or product to reference; we set our own SOP (standard operating procedure), so we couldn't quickly find more factories to take over production.
So production couldn't ramp up immediately. The first day we could only produce 3,000 bottles, the second day 5,000. It took us 20 days to reach 100,000 bottles per day.
**Q: That's relatively slow. What's the biggest challenge in the supply chain now?**
A: The hardest part is finding suitable ginseng.
Our core raw material, Changbai Mountain white ginseng, has no standardized market standard. It's like when apples had no standard and all sold for 1 yuan. But American ginseng and Korean ginseng have standards, ranging from 1 yuan to 20 or 100 yuan. Plus, ginseng is harvested only once a year. When we buy on the market, we have to accept mixed lots like buying luxury bags: to get good ones, we must also buy some inferior ones. Non-compliant inferior products can't enter production, so the usable proportion is small.
Even with 4-5 year ginseng, small ones can't be used, and those with excessive pesticide residues or heavy metals are rejected. The cheap ginseng circulating online doesn't meet standards, which eliminates a large portion of market supply. Overall, the loss rate is high.
Earlier this month, I visited the factory and stopped two production lines. The faster we produce, the more we need to control quality. We still want to ensure output quality and be more steady.
**Q: After launch, two points were questioned: the functionality for staying up late and the price.**
A: The most important recent adjustment was removing the words 'Stay-Up Water' from the label. Initially, we used that to market it, meaning ginseng water can refresh and replenish energy. But after it went viral, many media outlets misled it as encouraging staying up late. We don't want to convey wrong values.
For packaging, based on feedback, we increased bottle transparency, increased the label budget, and made the cap thicker. Ginseng water is a new product; we set the SOP ourselves, and we need to standardize everything from outer packaging to ginseng shape. We want to reduce the consumer's understanding cost.
For ginseng, initially we only specified age, but later we set more standards, including length, width, and whether it sinks or floats in the bottle.
'Yizhenggen' poster. Image source: Hardcore Research Institute
**02 Ginseng water is not a 'wisdom tax'; we aim to de-traditionalize health preservation**
**Q: Before this, Hardcore Research Institute also made instant bird's nest 'Yizhan Benbai' and many failed products.**
A: Yes. In 2019, we went on a team-building trip to Thailand and found that instant bird's nest there cost only about 30 RMB and was available in convenience stores. When we returned to China, we wanted to buy some. We searched and found Xiaoxiandun at 99 RMB—so expensive! Thailand has it; why don't we in China?
So we wanted to make a trendy, cost-effective instant bird's nest sold at Lawson and FamilyMart. But sales weren't great, averaging 0.3 bottles per store per day. In our review, we found the biggest problem was that our own team didn't drink it, so how could users buy it?
The team didn't drink it for three reasons: First, our team is young, but the bird's nest presentation was still traditional. Second, the portion was too small, only 40 ml, and the experience time was short, with a high unit price. Asking young people to spend 30 RMB on a sip of bird's nest might get a try, but repeat purchases would be low. Third, it lacked social attributes. After drinking, I'd throw away the bottle, and there was no social interaction.
Many reflections from this project were adjusted in 'Yizhenggen': We are now de-traditionalizing 'health preservation,' which started with 'Yizhan Benbai.'
**Q: Why choose the 'light health preservation' positioning?**
A: We always believe products upgrade step by step. Previously, people had only rigid needs: I'm thirsty, I drink water to quench thirst. When living conditions improved, it wasn't just about quenching thirst; we wanted sweet water. When conditions got even better, we wanted water with efficacy that keeps us healthy.
So **the overall trend in beverages is shifting toward functionality. Therefore, our brand philosophy is 'Don't drink useless water.'**
We initially considered newer products like 'electrolyte water,' which are 'relatively trendy.' But we finally chose a 'relatively earthy' product route with a more traditional raw material background.
On a larger scale, seeing Chinese ginseng exported to Korea at raw prices, then Korea labels it and sells it back to China at ten times the price, you feel you need to do something. On a smaller scale, ingredients like ginseng, bird's nest, and cordyceps are known to be effective and nourishing, but young people are increasingly not consuming them. Traditional elements are good things and should be known by young people.
**Q: How was 'Yizhenggen' designed step by step?**
A: Start with the raw material.
We initially looked at over 60 medicinal and edible ingredients. The finalists included Dendrobium, snow frog, cordyceps, goji berry, and ginseng. We chose ginseng. Its advantages are clear: outstanding value, recognition, and efficacy. The disadvantage is also clear: it's too traditional, and people's perception is outdated. Ginseng is like something from age 50; to get 20-year-olds to drink it, it must wear clothes of a 20-year-old.
So we paired it with relatively youthful packaging and placed it in a relatively youthful scenario.
**Q: The 'whole ginseng' in the bottle is the most highlighted feature of 'Yizhenggen's' popularity. How did this idea come about?**
A: The key thinking was to have a 'visual hammer'—the whole ginseng root is the visual hammer that grabs attention—and to highlight real ingredients.
Some people make ginseng products as slices or powder, where you can't see the original ginseng. We thought: Is ginseng something not presentable or not worth showing to users? I want users to see my ginseng and see that I use real, substantial ingredients.
The bottle label was initially designed based on this principle. After designing each label, we placed the bottle on Lawson's shelves to see if it stood out. Bright, contrasting colors could catch consumers' eyes immediately, but ginseng is already 'earthy' enough; adding bright colors and complex elements would make it even more so. For the overall youthful feel, we finally chose a 'black and white' label.
'Yizhenggen' Image source: Hardcore Research Institute
**Q: The name 'Yizhenggen' is also a highlight. Was the name determined based on this visual concept?**
A: Yes. We originally wrote over 100 names, like 'Super Fuel' and 'Ideal Bomb,' but none were great because they required explanation to be memorable. For example, 'Super Fuel'—I'd have to explain why it's super fuel.
One night at 9 PM, a colleague got tired of thinking and said, 'Hey, let's just call it Yizhenggen.' The next day, the company was still discussing Yizhenggen. Everyone said, let's use this name. Because you don't need to explain why it's called 'Yizhenggen'; it perfectly achieves the effect of combining audio and visual.
**Q: From planning to launch, how long did 'Yizhenggen' take?**
A: From September 2021 to May this year.
**Q: Why choose the pricing strategy of 19.9 RMB per bottle and half price for the second bottle?**
A: Buying anything needs a reason. At home, I can drink Nongfu Spring, but when I'm out, if conditions allow, I'd prefer Ganten. If I place the product offline today, you can spend 19.9 RMB to buy a bottle and drink it all day outside. That's an improvement in quality of life. That's the first reason.
Second, we want to get as close to users as possible. Many brands use various online traffic methods to achieve ROI, but I don't think that's true ROI. Our original intention is to understand users. When the product launched, all colleagues squatted outside Lawson, and whenever someone bought, we asked why they bought.
**The second-bottle discount is also to reach more users.** Many people might find the ginseng taste too strong on the first sip and not want a second bottle. But since you've bought the second bottle at half price, you wouldn't throw away a glass bottle, right? So you drink another bottle, and after adapting to the ginseng taste, it might feel better. Even if you don't drink it, you might give the second bottle to someone else—and then I've gained another user.
This is also a social attribute.
**Q: Did you anticipate that many people wouldn't like the taste on the first sip? How did you consider the taste issue?**
A: For many young consumers, we are the first brand related to 'ginseng water.' Since we're selling ginseng products, we should make it as acceptable as possible. So we deliberately retained the original taste of ginseng.
Many say they can't get used to it; we think that's normal. It's a new product; it takes time to accept. American coffee is bitter, yet many people drink it. Why can coffee be bitter, but ginseng can't?
We'll first launch the current 'Yizhenggen' No. 1 water, and on that basis, we'll introduce some flavors, like fruit-flavored ginseng water, which will be much tastier.
**Q: Many also say your ginseng pricing is 'inflated' and profits are high.**
A: Because the industry lacks standards, consumers have no price awareness for our 'white ginseng.' Many people refer to ginseng that costs 1-2 RMB, but that's not the same standard as ours.
Actually, I was quite happy when the hot search about price came out, because people's attention is due to the lack of standards in this industry. If we can set standards, the brand will be successful.
We didn't set the price arbitrarily. Before pricing, we did about 150 user interviews and offered several price tiers. We found that below 19.9, people would doubt if it's real ginseng; above 19.9, acceptance was low. So we finally set this price, and I can still make a little profit.
**Q: Some voices say 'Yizhenggen' is collecting a 'wisdom tax.'**
A: We drink it every day ourselves (Tang Fei picks up a bottle and takes a big sip). It's refreshing.
China's thousands of years of ginseng consumption history best proves its value. Previously, many questioned that cold-brewed ginseng can't extract effective components. Actually, we have rigorous processing techniques, including UHT instant sterilization, high-temperature extraction, and centrifugal purification, which effectively extract the essence of ginseng.
Each bottle of 'Yizhenggen' contains effective ginsenosides, and we also commissioned third-party authority SGS, which issued a test report.
Netizens' discussion on 'Yizhenggen' Image source: Weibo screenshot
**Q: Some also speculate about your entrepreneurial background. You've also made carb-blocking milk tea, VC sparkling water, and other products that are relatively internet-famous with high-concept attributes.**
A: Some say we have capital behind us. What capital is pushing me? If there were, we wouldn't have been like that before (laughs).
Initially, our logic was to make a good product and sell it; as long as users approve, we can profit. But after entering the FMCG industry, we found this logic doesn't apply. FMCG requires finding markets, hitting pain points, and building channels, all of which cost money. We didn't have money to burn on the market, so we were likely to fail.
Later, we thought, let's just create a new field of our own and see if we can make it.
**Q: We tried to summarize the characteristics of 'Yizhenggen's' approach: making traditional supplements affordable, fun, instant, and youthful?**
A: Yes, we hope to transform high-recognition products.
**03 Trend is the way to break out; efficacy is the foundation**
**Q: Are you all post-90s?**
Yes. One born in 1992 (Li Zhiqiang) and one in 1996 (Tang Fei).
**Tang Fei:** Around 2015-16, I started my first venture, initially in food delivery, franchising a store called 'Yaoji King.' I was in the business group, writing interesting notes on delivery labels. We recouped our investment in the first month and became the No. 1 roast chicken in Beijing by the second month. Later, I returned to Wuhan and did a shared office space project. Over about three years, the largest commercial development area exceeded 500,000 square meters, eventually reaching 95% occupancy.
**Li Zhiqiang:** I worked at Ogilvy PR early on, in the same group as Liu Lian, mainly handling automotive business. In the early days of Douyin, I left to start a food and lifestyle MCN, mainly doing full-service talent IP incubation. But blogger IP has some uncertainty. I met Tang Fei through a project; I was his client. We got along well and later co-founded Hardcore Research Institute.
**Sun Ze:** I graduated from China Medical University. Since 2016, I've been starting businesses with Tang Fei, from catering and real estate to the Hardcore Research Institute project.
**Q: How does the brand think about the future path after 'single product breakout'?**
A: As I said, trends are our way to break out, but the core of 'useful water' products must be our foundation. We will continuously validate this.
A 'wisdom tax' will never last. Many people stay up later and feel worse; there's a hard, real need. 'Yizhenggen' aims to solve users' real needs in the context of 'light health preservation.'
In the future, we will expand the professional line and flavor line. After all, ginseng water is a new category with much room for imagination. I think 'Yizhenggen' won't just have one wave.
'Yizhenggen' x Bored Ape limited edition. Image source: Hardcore Research Institute
**Q: How will 'Yizhenggen' plan its next products?**
A: We will focus on dividing products into professional and flavor lines. In the professional line, we'll make products more professional. If consumers are into taste, we'll make corresponding products. This addresses two different user needs.
**Q: How do you understand your target users?**
A: Many say our niche is precise but the market is small. We don't quite agree with 'small.'
Compared to traditional health products, our biggest feature is light health preservation and making health preservation part of daily life. **If everyone treats health preservation as drinking a plant-based beverage or a new lifestyle choice, the niche isn't small.** That's the starting point we see in this 'small' and 'precise.'
We believe 'light health preservation' is a future lifestyle attitude. We need to first build the brand, like Starbucks made people love coffee. Now it's about making people know what 'Yizhenggen' and ginseng water are; the next step is to make people love the light health preservation attitude and lifestyle.
**Q: What are your development goals within a year?**
A: We hope to fully establish 'ginseng.' In July, we must launch the No. 2 water in the professional line; in August, we must launch the flavor line.
Compared to the current No. 1 water, we've added 'oyster' and 'black truffle' to No. 2, and added a 'daisy' flavor, with a stronger ginseng taste. By the end of the year, we aim to complete the annual sales target of 10 million bottles and have at least 4 SKUs.
After a two-hour in-depth conversation, 'Case' believes that 'Yizhenggen's' success doesn't rely on long-term deliberation or massive research, but rather on a burst of inspiration and intuitive victory. More noteworthy is that 'youthful health preservation' has become an important track worth studying and investing in, where more stylish new consumer products will surely emerge.
A single product going viral is truly rare. But in the fiercely competitive beverage market, Tang Fei and his team have a long way to go:
How to do more scientific user positioning and understand users? How to occupy the target audience's mind?
How to develop the next hit product?
How to ensure stable supply of ginseng as a raw material?
How can the 'brand' truly lead the young generation's light health preservation trend?
What other categories can be expanded under 'light health preservation'?
Source: Case SHOWCASE (ID: LangAward) Author: Case SHOWCASE
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