Click 'Read Original' for details. The WeChat business channel is extremely hot. Following Mengniu, Wahaha, Dali, Panpan, and others joining the WeChat business channel, now another major food company has entered: Yili.

Yili enters the fray, launching two WeChat business products Recently, Yili, the dairy industry leader, launched two solid beverages named 'Xinshiji'. It is reported that 'Xinshiji' is positioned as a 'healthy dietary supplement', focusing on women's beauty and health, providing scientific and professional dietary supplementation.

Currently, 'Xinshiji' has two products: 'Collagen Peptide' and 'Yeast Beta-Glucan', which respectively focus on anti-aging and beauty, and immunity enhancement. Among them, 'Collagen Peptide' uses patented enzymatic hydrolysis technology to extract collagen from fish scales. The product has no chemical additives, zero preservatives, and contains up to 9 grams of nutrients, offering anti-aging and beauty benefits.

Yeast Beta-Glucan has effects such as enhancing the immune system, boosting immunity, repairing cells, resisting radiation, and regulating blood lipids and blood sugar. It is reported that both products are 100% originally imported from Japan.

Notably, the product has enlisted Victoria's Secret supermodel He Sui as brand ambassador. Victoria's Secret, as a top global fashion brand, represents sexiness, youth, and vitality. Yili's Xinshiji has invited a Victoria's Secret angel to promote the product, targeting women who pursue a quality life and know how to enjoy it.

Yili subsidiary fully operates the brand For Yili, the launch of 'Xinshiji' is a new attempt outside its main dairy market, using innovative categories to enter the beauty and health industry. So, who is behind the operation of this product?

Here, three companies must be mentioned:

  1. Production company. It is understood that 'Xinshiji' is manufactured by Itoh Kanpo Pharmaceutical Co., Ltd. Founded in Japan in 1887, Itoh Kanpo has a history of 131 years and has independently developed and produced over 140 products, including dietary supplements, functional nutritional foods, and beauty and health products.
  2. Brand agency company. Lizhimei (Shanghai) Investment Co., Ltd., with a registered capital of 500 million yuan, is located in the China (Shanghai) Pilot Free Trade Zone and was established in 2016. It is a wholly-owned subsidiary of Yili Group. According to information reviewed by Food Edition, unlike Yili Group's domestic dairy product line, Lizhimei's business scope includes industrial investment, food circulation, and mechanical equipment sales.
  3. Channel operation company. The Suzhou-Zhejiang International team is one of the earliest teams to enter the WeChat business field in China. This team has operated many well-known brands such as Mengniu's Manran and Wahaha, and has rich management experience in the WeChat business circle. On September 12, Lizhimei (Shanghai) and Suzhou-Zhejiang International held a new retail signing ceremony in Shanghai, reaching cooperation on operating this product.

Two giants face off: Yili and Mengniu compete in WeChat business In January 2018, Mengniu, a Fortune 500 company, was the first among FMCG brands to test the social retail model, launching 'Manran' fiber milkshake milk, targeting the increasingly popular weight management market. It adopted a 'one-on-one' new retail model that directly communicates with consumers, quickly becoming a hit and sweeping the nation. Leveraging the influencer economy for new retail, it achieved sales revenue of nearly 1 billion yuan within six months of launch.

In September 2018, Mengniu launched its second new retail product, 'Ningchun Collagen Peptide Crystal Extract', which has effects of enhancing immunity, beautifying, and anti-aging. At the same time, it brought in celebrity Ma Sichun as spokesperson and partner for comprehensive advertising.

It is not hard to see that Yili and Mengniu are using similar tactics: 1) Both launch oral products with beauty and anti-aging effects; 2) Both target the new retail WeChat business channel; 3) Both use celebrities as brand ambassadors in marketing.

Since the beginning of this year, competition between the two dairy giants has been particularly fierce. Under the background of the 'double 100 billion target' and industry competition, Mengniu has been frequently launching new products. Yili, to achieve its goal of 77 billion yuan this year, has also been expanding its product line, launching one star product after another. Now, fierce competition is driving change. In 2018, on the basis of traditional products and channels, Mengniu and Yili have started a new round of competition in the new retail market.

Appendix: A table of food companies entering WeChat business this year Food companies entering WeChat business in 2018 Company| Product| Category| Effect Mengniu| Manran| Milkshake drink| Weight loss Mengniu| Collagen Peptide Crystal Extract| Suction drink| Beauty and skin care Yili| Xinshiji| Solid beverage| Beauty and skin care, immunity enhancement Wahaha| Tianyan Jingqing| Beverage| Eye protection Wahaha| Xianxi Jiaren| Milkshake drink| Weight loss Dali| Frota| Leisure bakery| Satiety Panpan| Panpan Food| Leisure bakery| Satiety Junlebao| N1115 Probiotic Powder| Solid beverage| Health and wellness New Hope| Kuairan| Beverage| Satiety, meal replacement, weight management Wandashan| Fiber Milk| Beverage| Satiety, meal replacement Source: Food Edition (ID: tyjspb)

October 23-24, during the Autumn Sugar and Wine Fair, the '2018 FMCG City Distribution Logistics Conference' hosted by New Distribution will be held. We will invite industry experts, FMCG warehousing and distribution specialists, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution. We hope to bring you different inspiration and thinking!

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