A 19.9 yuan anti-all-nighter drink that people dare to buy but not drink? The summer of 2022 hasn't officially arrived, but beverage companies are already slowly releasing signals of their competition for market share. Initially, rumors spread that Pepsi and Coca-Cola were eyeing Genki Forest. Then, Nayuki and Heytea intensified their bottled beverage efforts, revealing their ambitions. Most recently, Lawson has mastered the traffic code with its "One Whole Root Anti-All-Nighter Ginseng Water," quickly going viral. For young people who "soak goji berries in their thermos," this drink perfectly fits their punk wellness philosophy, so it quickly sold out in many stores. As a foreign import, "Lawson and similar stores" have always faced the challenge of competing with mom-and-pop convenience stores. Therefore, beyond basic products, Lawson's private-label items have become a key weapon to attract customers. Meanwhile, as competition in first- and second-tier cities intensifies, Lawson has already expanded to third- and fourth-tier cities and even counties. While opening new battlefields and exploring young consumers' preferences, Lawson's journey of adapting to local customs in China may still be long. 19.9 yuan for traffic: no one will miss it Hu Yu, a college student who has been working part-time at a Lawson convenience store for six months, has been asked most frequently in the past week, "Do you still have that viral ginseng water?" But most of the time, he can only shake his head and say, "It's sold out; you can come back tomorrow after restocking." On May 18, Lawson launched "One Whole Root Anti-All-Nighter Water" in Chongqing, claiming it contains ginseng from Changbai Mountain, with 0 sugar and 0 fat. Within 8 hours of opening, you can add warm water and refill up to 8 times. According to Chongqing Lawson's official account on Xiaohongshu, this drink is currently only available in the Sichuan-Chongqing region and does not support mail order. Because it contains a whole ginseng root, it looks particularly novel, and with regional exclusivity, it quickly became popular online. Zinc Scale visited four stores before finding the last bottle at one store, but the sticker on the bottle had started to bubble due to water exposure, making it look less appealing. "Currently, it's 19.9 yuan per bottle, but the second bottle is only 5 yuan, so most customers buy two at once," Hu Yu told Zinc Scale. "Some customers just pick up the drink to take photos and don't actually buy it. But others sweep the shelf clean in one go, even asking us to notify them when we restock." In short, One Whole Root Anti-All-Nighter Water has indeed become a recent viral product at Lawson convenience stores. Zinc Scale saw many consumer reviews posted immediately on social platforms like Xiaohongshu and Weibo. △ Consumer feedback "I bought a bottle out of curiosity; it might be healthy, but one sip gave me a painful expression," "I think it's just for the novelty and creativity; staying up late and drinking this water have nothing to do with each other. I'd rather call it self-deception water," "It smells like Chinese medicine when opened, tastes bitter, and I had to pinch my nose to finish it, almost crying." From consumer feedback, the taste is not great, and most people try it out of curiosity. Additionally, due to regional exclusivity and limited quantity, for KOLs, reviewing the taste of One Whole Root Anti-All-Nighter Water has become an easy way to gain traffic. Those who haven't tried it want to hear about the taste, and those who have want to discuss it. In short, traffic that can be bought for 19.9 yuan is hard to miss. "This isn't making drinks; it's making social interaction. Brands these days need to create buzz, and they have to come up with weird things," said one consumer. Indeed, previously, Shouqi Beef launched Houttuynia cordata milk tea, and Xiao Yang Sheng Jian launched milk tea shengjian. Regardless of taste, these products leave ample room for discussion, making them highly gimmicky. In Hu Yu's view, Lawson has a certain internet-famous vibe among convenience stores. Whether launching new products or running promotions, they often warm up online. "Many customers come with clear purchase intentions, having already decided what to buy before entering the store." Resellers and third parties profit from price differences, but without authorization One Whole Root Anti-All-Nighter Water has become popular, but many people can't buy it due to regional restrictions, so some have started reselling. Zinc Scale learned from a reseller specializing in Lawson products that due to the high demand, the resale price is also high. "One bottle includes free shipping, but prices vary by city. Beijing: 35 yuan per bottle with free shipping; Guangzhou: 32 yuan per bottle with free shipping. I handle after-sales, and I'll compensate for damage," the reseller told Zinc Scale. Since the product uses glass bottles, packaging usually reaches the first weight standard, with shipping costs between 12 and 15 yuan. However, professional resellers often cooperate with courier companies. For example, with ZTO Express, it's usually not difficult to negotiate 8 to 10 yuan. That means, with Lawson's current price of 24.9 yuan for two bottles, the reseller's profit margin is at least 20 to 30 yuan.
Another reseller, "Cola," uses a method of purchasing at original price but charging a proportional service fee. At the start, "Cola" clearly told Zinc Scale that currently, One Whole Root Anti-All-Nighter Water has a promotion of 5 yuan for the second bottle, and he charges an additional 9.9 yuan service fee, but this fee is only for orders under 200 yuan total; for every additional 200 yuan, the service fee increases by 9.9 yuan. "Cola" told Zinc Scale that in the past week, many customers have asked him to buy One Whole Root Anti-All-Nighter Water, with over ten per day from all over the country. Some even wanted to buy 15 bottles at once, but he advised against impulsive consumption and persuaded the customer to buy four bottles to try. Image source: Qianzhan Industry Research Institute In addition to resellers, some third-party distributors have appeared on e-commerce platforms. These online stores generally sell at 29.9 yuan per bottle with free shipping, 59.9 yuan for two bottles, and 159.9 yuan for six bottles. These prices are not advantageous compared to Lawson's offline stores or resellers. However, due to the product's popularity, many consumers are still placing orders. These third-party online stores can also meet bulk purchase needs. One store owner told Zinc Scale that the wholesale price for two cases is 15 yuan per bottle, with 15 bottles per case, but shipping is not included. If the order volume is large and long-term, the price can be further negotiated. However, Zinc Scale later contacted the official brand store for One Whole Root Anti-All-Nighter Water. Its offline liaison told Zinc Scale, "Currently, there are no first-tier agents, and we only use chain convenience stores as the main sales channel. Except for the brand's online store, other online stores are not authorized, and we are currently addressing this." Judging from the liaison's recent updates, since the product went viral, the brand has been very busy, with many inquiries about agency and procurement. It can be said that this cooperation has been a win-win for both the brand and Lawson. To break through 10,000 stores, product virality alone is not enough Although Lawson occasionally goes viral with novelty products, this is still insufficient for expanding brand influence and profitability. According to media reports, Lawson only achieved overall profitability in the Chinese market in 2020, nearly 25 years after entering Shanghai in 1996. Lawson's official website states: "As of the end of June 2018, we had 1,642 convenience stores mainly in Shanghai (including surrounding areas), Chongqing, Dalian, Beijing, and Wuhan. Compared to local convenience stores, Lawson has a high proportion of private-label products and flexible franchise models. In the future, Lawson will accelerate its development in China, aiming to exceed 10,000 stores by 2025." Other data shows that as of February 2021, Lawson had over 3,300 stores in Shanghai, Chongqing, Liaoning, and other regions. In three years, Lawson's store count in China doubled, but with three years left, the 10,000-store goal may be challenging. In fact, Lawson's rapid expansion is largely due to its franchise model in China—regional franchising or regional joining. Currently, franchise stores account for over 70% of Lawson's stores in China. The franchise model can indeed bring rapid growth, but it also brings many problems. Zinc Scale searched on Heimao Complaint and found 435 complaints against Lawson, many involving expired food sales, price overcharging, foreign objects in food, and other issues. For Lawson, which has a high proportion of private-label products, ensuring product quality should be a non-negotiable bottom line, as it is also the foundation that differentiates Lawson from other convenience stores. According to Ai Qi Cha, there are 12,640 convenience store companies established in the past 1-2 years that are still operating. As the overall convenience store industry develops, various brands' outlets and supply chains will bear the responsibility of ensuring basic household consumer goods. Zhang Guoheng, chairman of Meiyijia, once publicly stated that he believes the future development of the convenience store industry has three key points: First, high integration of online and offline; second, integration of physical and virtual stores; third, intelligent business operations. This may also be the current development approach for major convenience stores. In the future, Lawson will likely continue to accelerate community-oriented and youth-oriented strategies, and continue to expand into lower-tier markets. The virality of One Whole Root Anti-All-Nighter Water is a feedback effect of Lawson targeting Generation Z who love new consumption, but continuously offering differentiated products and standardized store services is the key to maintaining Lawson's appeal. Source: Zinc Scale (ID: znkedu) -END-