Click the image for details 2018 is coming to an end, but what does it matter if it's the end of the year? What matters most is having confidence in yourself. If you haven't been doing business solidly, then your report card will only bear four neat characters: "Thanks for participating." In the past year, some brands have been unstoppable; some products have risen rapidly; the entire beverage industry has gradually shifted from frantic running to deep cultivation. At the same time, some illusions have been exposed, and some bubbles have been bravely burst. The market has fairly tested the quality of every brand. This time, we've reviewed the major events in the beverage industry worth looking back on in 2018. Some may inspire you, some may make you sigh, and some may have you as the protagonist! 01 A Great Show: Luckin Coffee If burning money could recreate a Starbucks, would anyone be willing to bet? The answer is yes. Luckin Coffee, which started trial operations in January this year, declared "benchmarking against Starbucks" upon its debut. Using a strategy of burning subsidies and fission marketing, it expanded stores at a pace unimaginable for the industry. In 2018, Luckin's reported results were: $400 million in financing, a valuation of $2.2 billion, 2,073 stores opened, 12.54 million cumulative customers, and 89.68 million cups sold. The self-pickup ratio increased from 35% at the beginning of the year to 61%. How many cups did you contribute to the 89.68 million? (Image source: Sina Weibo @Luckin Coffee) As a brand unprecedented in the beverage industry and in Chinese business history, how should we evaluate Luckin Coffee? First, it triggered a series of catfish effects, shaking up the industry's landscape and invigorating the entire sector. It even made people who don't drink coffee aware of Luckin Coffee and gave them their first free cup. Starbucks initiated Chinese consumers' coffee awareness; Luckin brought coffee into Chinese consumers' beverage choices. It completely broke through the window paper that coffee represents high prices and quality life in China, allowing premium coffee to reach consumers in an affordable and accessible way—this is the greatest value Luckin has brought to the market so far. But this doesn't eliminate my doubts about it: burning money is a story too familiar in the internet field. To test jade, you need to burn it for three days; to test a brand, you need at least three years. Looking at past failure cases, Luckin's real challenge is not educating users but a series of issues that return to the essence of business: Is the capital chain sufficient? Is the supply chain efficient? Can team management keep up? Will users buy it? Some say: Every disruption is a risk-taking adventure; cash flow can break at any moment, and a company can collapse at any time. But if it truly succeeds, it will be a miracle. For now, let's wait and see. 02 The Rise and Fall of Answer Tea Answer Tea, a brand that emerged out of nowhere like Luckin, opened on January 14 this year. Within two months, it signed 237 franchisees, and over 20 short videos on Douyin garnered more than 1.1 million likes. Fame brings trouble, and so it is with brands (Image source: Baidu Images) Fame brings trouble. Within less than two months of its divination-themed popularity, Answer Tea was pushed to the forefront due to trademark issues. First, a franchisee exposed: "I spent 89,000 and just bought an answer generator." Then there was the dilemma of three Answer Tea stores on one street, making it hard to tell them apart. Eventually, franchisees blocked the store, demanding that Answer Tea return their hard-earned money. The reason was that all trademark applications under the name "Answer" were rejected. The real Answer Tea couldn't prove it was the real one, and it had no way to deal with those fast-franchise companies that were just circling money and ruining reputations. But at the root, it was a lack of basic skills. In the fourth quarter of 2018, news of Answer Tea stores closing or transferring appeared in multiple places. Even the authentic Answer Tea store in a Zhengzhou mall, which had a legitimate background, rarely saw the queueing spectacle from the beginning of the year. Black technology meeting the Douyin era was Answer Tea's fortune, but also its misfortune. If Answer Tea had returned to basics initially, honed its fundamentals before debuting, it might have been a different story. 03 Capital: From Hype to Caution "This market doesn't lack money," was a common saying among tea drink bosses before the first half of 2018. Countless hot money flooded into the tea drink industry, but in the second half of the year, the situation wasn't so rosy. Reviewing the tea drink brands that received financing in 2018, the first half saw continuous funding rounds, with brands coming and going, and the new tea drink capital market was booming. But in the second half, the capital market clearly tightened. Apart from Lelecha and gaga Fresh, no other brands were reported to have received financing. Capital has the keenest sense of smell. When it detects signals of economic change, it contracts accordingly. On the other hand, it also shows that the new tea drink market has truly reached the "deep cultivation" stage. The landscape for leading and mid-tier brands is initially set, the possibility of another phenomenal brand emerging has greatly decreased, and capital's return on investment isn't as optimistic. 04 Naixue and Heytea's Real-Name Battle If I hadn't interviewed the parties involved, and if "Sexy Tea" hadn't later trended on hot searches, I would have initially thought this was a "strategic mutual provocation" planned by Peng Xin and Nie Yunchen. For those who don't know much about this, here's a one-minute recap (if you know, skip this): First, Peng Xin, founder of Naixue's Tea, posted on WeChat Moments, calling out Heytea founder Nie Yunchen, criticizing his product plagiarism; then Nie Yunchen "retaliated." The WeChat screenshots went viral on Weibo. It's common for brands to quarrel, but the biggest twist was that big influencer Liu Tong gave a shout-out to Sexy Tea on Weibo, and Sexy Tea rode the wave to trend on hot searches. This is probably what "winning by lying down" means (Image source: Sina Weibo) Brand feuds have become an art form, and it's also become a marketing method with the lowest cost but the highest attention-grabbing rate. The more fiercely they fight, the more they hit consumers' excitement points. Like Coca-Cola and Pepsi, Burger King and McDonald's, Wanglaoji and JDB, they not only fight well, achieving win-win between companies, but also create a triple win including the spectators! In 2019, if you want to have a "strategic fight," please pay attention to the tone, posture, and attitude of the fight. Not only should it be creative and explosive, but it should also let consumers get excited while absorbing the essence of brand culture. 05 The Dark Horse: The Alley How popular was The Alley in 2018? I'd like to use two data points: In May, The Alley had only 5 stores in mainland China, but by December, it had opened 121 stores. In October, with fewer than 100 stores in mainland China, there were already 2,000 counterfeit stores. It's all because of its popularity (Image source: Baidu Images) There's never a fire without a reason. At the "Wanyou Yinli" conference by Kamen Club, The Alley's founder Qiu Maoting shared their systematic social marketing operations, including "selection of seed users, placement of fission bait, and satisfaction of sharing fun," as well as their product development thinking starting from aesthetics, which attracted countless fans. The Alley's marketing can be replicated, but we must not forget: Product is 1, marketing is 0. Only when the product is amazing can marketing amplify its power by 10 or 100 times. 06 The Delivery Storm It's said that in 2018, the messages instantly clicked in work groups were, besides the boss's red envelopes, milk tea delivery group orders. Heytea and Starbucks both launched delivery services with great fanfare this year. The trend of delivery in the industry intensified. The unlimited scenarios that delivery can achieve are increasingly attractive to young people. Launching delivery to expand sales channels (Image source: Baidu Images) According to a report from Meituan: The number of freshly made tea drink delivery merchants nationwide continued to grow, with a 56.8% increase in Q3 2018 compared to the same period last year. The quarterly compound growth rate of freshly made tea drink delivery orders nationwide was 38%, with an 87% increase in Q3 2018 compared to the same period last year. Who said that bosses who often treat employees to milk tea are likely to have good luck? 07 The Magic of the "Milk Tea Effect" In 2018, a new species emerged that could serve as an economic predictor better than skirt hems or lipstick, and that's milk tea. To sum it up: The worse the economy, the more popular milk tea becomes. People are willing to use this "affordable luxury" to comfort themselves. This economic winter isn't too cold for the new tea drink industry. A strong piece of evidence is: A report on the beverage industry released by Meituan showed that in Q3 2018, the number of freshly made tea drink stores nationwide reached 410,000, a 74% increase within a year. Last Friday's Weibo hot search diagnosed young people with a new illness: self-indulgence. Symptoms: being particularly indulgent to oneself, always trying every way to self-reward. Prescription: cathartic eating and self-rescue consumption, spending money on food and drink to cheer oneself up, surviving by granting oneself a little reward. Don't wake me up, I want to indulge (Image source: Sina Weibo) Milk tea, as a beverage, perfectly fills the gap between lunch and dinner—that time when you're "not very hungry, but inexplicably want to eat something." Sweet and fragrant milk tea, chewy pearls, slurpy pudding, and flavorful fruits are a little comfort in a tough life, providing a moment of inner peace. Then you sigh inwardly, "Ah, f*** it, I can go on living." 08 Big Shots Gather in the Coffee Circle This year, there were many big names in the coffee circle. Following the "marriage of two fathers" (Starbucks and Alibaba's alliance), the "Goose Factory" and the "Deer Factory" (Luckin partnering with Tencent) also successfully joined hands. Alibaba and Tencent also enter the coffee market (Image source: Baidu Images) Whether it's shopping at Hema and drinking Starbucks, or playing "Honor of Kings" and ordering Luckin Coffee, in short, the coffee business has caught the eye of internet giants. Besides Alibaba and Tencent, international giants Coca-Cola and Nestlé also entered the scene in groups, acquiring Costa and Starbucks, respectively. In any case, having so many big names meet in this industry within a year is a big deal! 09 The Age of Great Voyages Begins Overseas markets are becoming the "new continent" that tea drink brands are vying for. In September 2018, Naixue's sub-brand Taigai opened a store in Singapore; in November, Heytea's first overseas store also officially opened in Singapore; in December, Naixue's Tea's first overseas store landed in Singapore. In addition, CoCo Fresh Tea & Juice has opened over 80 stores overseas, and Chatime, which focuses on the international market, has 2,500 stores globally. The Alley, which suffers from counterfeits domestically, has opened over 100 stores abroad. Brands like CoCo Fresh Tea & Juice, Happy Lemon, and Chatime have completed the first great voyage era for tea drink brands. The wave of tea drinks going overseas (Image source: Baidu Images) With the advancement of domestic internet technology, changes in the financial system, the completion of branding for new tea drinks, and the globalization of social media, new tea drinks are about to usher in a second great voyage era. Wei Guoxing, general manager of Tiantu Capital, once said that with the cultural rise accompanying China's economic rise, it's not impossible to produce multiple Starbucks-level brands. Starbucks' global popularity fundamentally rode on the wave of Western cultural export. In contrast, milk tea and fruit tea, which have lowered the barrier and are loved by young people, can easily ignite the deep tea consumption base in China and even globally. 10 Tea Drinks Become a "Jack of All Trades" New tea drinks in 2018 seemed to become a panacea, working wherever applied. McDonald's and KFC sell tea drinks, Xiaolongkan launched Longxiao Tea, Coucou re-promoted Chami Tea, DQ sells milk tea, dessert shops sell milk tea, restaurants sell milk tea, beauty stores sell milk tea, and Zhengxin Chicken Steak, which manages over 10,000 franchise stores, also opened Zhengxin Hand-Shaken Tea. Even Zhou Hei Ya joined in the fun by opening an esports-themed milk tea store. No matter what they do, they all sell milk tea (Image source: Professional Catering Network) The new tea drink market overlaps highly with leisure and social scenarios. Besides restaurants, dessert shops, and collection stores, hair salons, nail salons, KTVs, massage and foot therapy places, and game arcades are also other in-store scenarios where new tea drink users like to spend. This provides industry merchants with rich and practical cross-scenario marketing opportunities. This year, tea drinks were truly favored, but whether those who like to cross into others' territories made a profit or a loss remains unknown. What other impressive events in the beverage industry this year left a mark on you? Leave a message and tell me! Source: Kamen Club (ID: KamenClub) New Distribution will hold the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar and Wine Fair from March 16-18. This conference will focus on the topic of "Breaking the Game" , engaging in in-depth discussions with numerous brand owners, supply chain service providers, distributors, retailers, and others. Compared to previous conferences, this summit will be fully upgraded. In addition to original topics like channel innovation, city distribution logistics, and distributor transformation , it will add multiple parallel forums on new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail . Through three days of ten high-density, high-quality expert sharing and exchanges, we believe every brand owner and distributor can learn the latest business models, expert insights, and practical methods, finding new tools and approaches to break the game in 2019 and return to a path of rapid growth. ****Conference Time: March 16-18, 2019 Conference Venue: Longfeng Hall, Chengdu Longemont Hotel Conference Topics 2019 5th FMCG + Internet Conference Date| Time | Venue| Topic 3.16 | All day| Main Forum| Breaking the Game – 2019 (5th) FMCG + Internet Conference 3.17| Morning| Parallel Forum 1| New Logistics, New City Distribution Parallel Forum 2| How Can Distributors Achieve Iterative Upgrades? Afternoon| Parallel Forum 3| IP Empowerment, Boosting Brand Growth Parallel Forum 4| How Can Community Group Buying Reconstruct the Value Chain? 3.18| Morning| Parallel Forum 1| Retail Scenario Innovation Parallel Forum 2| New Product Sales Public Class Afternoon | Parallel Forum 3| Social E-commerce Parallel Forum 4| New Marketing Public Class Proposed Guests Chen Qiwei, Chairman of Coca-Cola (China) Investment Co., Ltd. Zhao Shuanglian, Chairman of COFCO Group Co., Ltd. Lin Bihbao, Chairman of PepsiCo Greater China Wang Chaocheng, Founder of Yijiupi Su Xiaoxin, Executive President of Zhongshang Huimin Zong Fuli, Chairman of Hangzhou Wahaha Group Co., Ltd. Chen Duye, General Manager of Toutiao Marketing Center Lin Xiaohai, General Manager of Alibaba Retail Link Yang Qianhui, Chairman of Tingyi Holding Corp. China Region Chen Xiaodong, Senior Vice President of Nestlé Greater China Zhang Nan, General Manager of Douyin Short Video Tao Shiquan, Founder of Jiangxiaobai Mao Wenchao, CEO of Xiaohongshu Cui Zhen, Founder of Huidanxia Huang Zheng, Founder of Pinduoduo Liu Bo, Vice President of Best Group, General Manager of Best Dianjia Ye Maozhong, Famous Marketing Expert Li Jiaoshou, Famous Marketing Expert Xiao Masong, Independent Strategic Marketing Consultant Liu Chunxiong, Founder of New Marketing Theory Fang Gang, Famous Marketing Expert Bai Ya, Founder of Youzan Li Qian, Founder of Youqingxu Liu Zhao, Founder of Waiqin365 Xu Yonggang, Founder of Maideline Niu Enkun, Famous Marketing Expert Wang Qi, Founder of Weijie City Distribution Wang Shenbing, Founder of Zhongke Shangruan Chen Siting, Founder of Wanchaobang Rui Yun, Founder & Chairman of Dianda Huang Wei, General Manager of Uni-President Life Foods Division Liu Peng, Vice President of Chongqing Jiangxiaobai Liquor Co., Ltd. Chen Lei, Founder of Maolaile Ma Xiaolong, Marketing Director of Taishan Beer Wu Jinghe, General Manager of Caihua Trading Tang Xiangyang, General Manager of Lidu Liquor Guo Guangyu, General Manager of Squirrel Small Store Wang Jun, Famous New Retail Industry Expert Liu Xiaoting, Famous New Retail Industry Expert Wang Jinghua, CEO of Miduo Big Data Engine Lin Feng, Chairman of Beijing Jundu Excellence Consulting Co., Ltd. Chen Ruifen, General Manager of Uni-President Tea Business Group Gu Tiefeng, CEO of Answer Tea Zhu Zhentao, CEO and Chief Product Officer of Jumi Intelligent Zhuang Jianzhong, CEO of Meinian Changxiao Miao Qingxian, Chief Consultant of Shanghai Yihe Marketing Agency Ding Ding, Founder of Fanworks Liao Chuan, CEO of Xian Shiji Zheng Yubin, CEO of Palm Quick Sale More guests are being invited... Previous Participating Companies **Brand Owners Coca-Cola, Mengniu, P&G, Mengniu, Lay's, Tingyi, Uni-President, Yili, Bright, Wahaha, Mondelēz, China Resources, Jiangxiaobai, APP, Daliyuan, Haojiayi, Xiaoshile, Ubrew, Xipin Tiancheng, Tsingtao Beer, Budweiser, Youqingxu Snacks, Ximai, Six Walnuts, Mingren Soda Water, Deqingyuan, Blue Moon, Haoxiangni, Wyeth, Heng'an, Bright, Sanquan Foods, Daohuaxiang, Zhujiang Beer, Suntory, Kraft Heinz, Unilever, Qiaqia, Jinluo, Johnson & Johnson, Colgate, Bacardi, Laiyifen, RIO, Zhonglv Culiangwang, Beibingyang, Mars Wrigley, Zhongjing Mushroom Sauce, Liby, Hengshun Vinegar, Totole, Orion, Liuliumei, Baicaowei, Baiya Group... Supply Chain Platforms Alibaba Retail Link, JD New Channel, Yijiupi, Zhongshang Huimin, Best Dianjia, Huidanxia, RT-Mart E-Lufa, Caihua Trading (Yueheji), 1 Life, Xingaoqiao, Xian Shiji, Palm Quick Sale, Dianda, Rongcheng Yigou, Waiqin365, Qianmi Network, Zhongke Shangruan, Youshang Software, Weijie City Distribution, Wanchaobang, Tao Daqing, Dinghuobao, Huoquanquan, Hailian Tianxia, Shenzhou Liangpin, Guanjiapo, Fengwang, Yishenghuo, EAS, Yunniao, Dianxiaohuo, Xinshangmeng, Yuncangpei, Wuqianjia, Bianlibao, Lianpin, Jingxiaoyi, Yibao Payment... Internet Platforms Alibaba, JD.com, Suning, Pinduoduo, Xiaohongshu, Youhaohuo, Dalinjia, Yunjie, Sibu Group, Weixuan, Youzan, NetEase Yanxuan, Weimob... Unmanned Retail Shenlan Technology, Bingo Box, Xingbianli, Xiaomaicabinet, Youbao, Miss Fresh, Haha Convenience... IP Commercialization Tencent Video, iQiyi, Youku, Palace Museum, Tencent Animation, Wanda Pictures, AC Nielsen, Alibaba Fish, Miduo, Jiangxiaobai, Peppa Pig, Xiaoming Classmate, Lawson, Three Squirrels, Luckin Coffee... Community Group Buying Chongma Linli, Kaola Selection, Linlinyi, Tianxianpei, Meiri Yitao, Yipin Fresh, Dailebu, Shixianghui, Shihuituan, Niwannin, Xingsheng Youxuan, Linzhanggui, Haoxiangtuan, Xianlepin, Youjia Puzi, Huigou GO, Qianmama, Meijia Youxiang, KeKe Selection, Rongcheng Youpin, Squirrel Pinpin, Xiaoqule, 1 Life, Dingdantu, Shudongpo... Ticket Information Type| Price| Early Bird Price| Benefits Regular Ticket| 599 | 399| 1. Access to the full-day conference and all forum activities; 2. Conference guide, agenda, and other meeting materials; 3. One copy of the "2018 China FMCG B2B Competitiveness Survey Report"; 4. Early bird discount limited to 200 tickets, available on a first-come, first-served basis. VIP Ticket| 1999| 1299| 1. Reserved VIP seating in the front rows of the main venue; 2. Dinner voucher for the closed-door banquet on the evening of the 16th; 3. Conference guide, agenda, and authorized speaker PPTs and other meeting materials; 4. Access to the full-day conference and all forum activities; 5. One copy of the "2018 China FMCG B2B Competitiveness Survey Report"; 6. Early bird discount limited to 50 tickets, available on a first-come, first-served basis. Registration Method Registration is now open. Long press the QR code below or click "Read Original" to register . Early bird tickets at 66% discount are limited to 200 and are selling fast...! Add the conference staff to register Review of Previous Conferences Click the links below to review the highlights of the 1st, 2nd, 3rd, and 4th FMCG + Internet Conferences: -END-