Introduction: Designing products from user-perceivable value is the key to standing out from similar products. Author | Feng Yao Reviewer | Gou Gou Layout | Zhang Yuwei Around 2016, new consumer brands in the FMCG industry emerged densely, with capital surging and propelling their development. A flood of innovative products appeared, vowing to redo the industry. However, the pandemic caused many new consumer brands to fall along the way, and only a few managed to secure a seat at the table. In 2020, when new consumption was cooling and consumer sentiment was relatively negative, one brand rose to the challenge. It was established in August 2020 and decided from the start to enter offline channels. Three years later, it has not only successfully driven the health upgrade of jelly products, ranking among the top three in the 'konjac jelly' industry, but also expanded horizontally into the candy category, launching products in a category gap and initiating a second growth curve. This brand is the trendy snack brand 'ZUO一下'. Below, New Distribution decodes the growth secrets of 'ZUO一下' from two directions: product innovation and channel strategy. Jelly Innovation: Locking in User-Perceived Value Looking at the rise of all new consumer brands, 'explosive products' are always at the forefront. At its inception, 'ZUO一下' chose to enter the jelly category. Jelly was once confined to the 'children's snack' scope. Most post-80s and post-90s generations still remember jelly from their childhood, and the development of jelly products has lagged far behind the growth of the first-generation consumers. In the broader snack sector, jelly is a mature product but sits at the bottom of the snack food category pyramid. Due to a single target audience, severe product homogenization, solidified category structure, and stagnant innovation, consumers have more substitutable options. Against this backdrop, 'ZUO一下' resolved to drive the health upgrade of jelly products, moving towards an adult-oriented and social development path. Thus, the Pikmin co-branded juicy low-calorie konjac jelly was born. Designing products from user-perceivable value is the product code that allows 'ZUO一下' to stand out from similar products. What kind of value can be perceived by users? 'ZUO一下' captured two important indicators: functional value and emotional value. From a functional value perspective, konjac jelly is made primarily from natural plant konjac (also known as devil's tongue) jelly powder. It is characterized by being rich in fiber, aiding intestinal motility, low in fat and calories while providing a sense of satiety. 'ZUO一下' positions it as a healthy snack that meets all the needs of 'big kids'. On this basis, to differentiate in taste from other brands, 'ZUO一下' uses up to 58% fruit juice content to create a more distinctive and nutritious functional value. With the functional value of satisfying cravings and being healthy, 'ZUO一下' further tapped into the emotional value of the product, which is also key to winning over channels and consumer choices. Emotional value is the value consumers are willing to pay to obtain a certain emotion or feeling. For example, the rise of blind boxes and live-stream shopping is based on emotional consumption. How does 'ZUO一下' apply emotional value to jelly innovation? First, create the best packaging experience. How can a small jelly be eaten? Unlike traditional packaging, 'ZUO一下' pioneered the first T-shaped packaging for jelly in China, completely eliminating the embarrassment of juice splashing when opening the jelly cup and the risk of choking when swallowing. The new packaging gives consumers a fresh experience: after squeezing, the rich juice mixes with the jelly, and a sip delivers a dual texture of juice and Q-elastic jelly, leaving a lingering aftertaste. Second, use IP co-branded packaging. 'ZUO一下' primarily targets women aged 20-35, a group with high demands for emotional value. They fall into two categories: young women buying for themselves and mothers buying for their children. How does 'ZUO一下' use IP to satisfy their emotional value? Take the Pikmin co-branded juicy low-calorie konjac jelly as an example. The Pikmin IP originates from the picture book 'Chobits', with high recognition and memorability, and a wide age range among fans. As one of the products launched by the exclusive agent of the Pikmin IP in mainland China, the ugly-but-cute Pikmin is the most popular character in the Chobits family and a qualified anti-roll warrior. In collaboration with 'ZUO一下', it has been crafted into a super healing trendy snack spokesperson. 'Extreme ugly-cute' is the IP style positioning of 'ZUO一下'. Breaking the solidified aesthetic means being 'ZUO' (rebellious), unconventional, and willful. These are the attitudes the brand wants to express and also hopes to find resonance with consumers in today's highly competitive life. Xia Jun, a distributor from Shanghai convenience store channels, said in an interview with New Distribution: 'Why do Pikmin jellies sell well? Because jelly is soft and shaped like Pikmin's butt. Having Pikmin printed on the packaging pleases consumers' mood first.' In addition, 'ZUO一下' has also collaborated with popular IPs such as 'Old Master Q', 'Classic Ultraman', and 'PAW Patrol'. Combining different IP characteristics with products of different positioning for co-branded combinations is like adding IP wings to product sales. In fact, not only does it collaborate with high-recognition popular IPs, but 'ZUO一下' itself has the capability to independently operate IPs. After three months of operating social media accounts for Pikmin on platforms like Douyin, Xiaohongshu, and Bilibili, it gained over 500,000 followers across all platforms. As the exclusive agent of the Pikmin IP in the Chinese market, 'ZUO一下' parent company Shanghai Tianshu Brand Management Co., Ltd. not only develops its own co-branded products but can also sublicense the IP for collaborations with other brands. Additionally, they have developed Pikmin peripheral products, such as toys, which are very popular among consumers. Their experience in IP operation and development also helps them continuously break through limitations in consumer insights and product iteration speed. In the future, 'ZUO一下' plans to further explore IP value and expand IP gameplay, such as original IP going overseas and cross-border collaborations with Pikmin. Entering Candy: Second Curve Innovation Starting with jelly, 'ZUO一下' achieved over 100 million yuan in GMV within just over a year of establishment. However, the era of a single big product dominating the market is over. Under the trend from mass consumption to diversified consumption, brands need to consider how to better meet the needs of the specific group they target. 'ZUO一下' has the popular 'konjac low-calorie' jelly among young people and the social jelly 'Dudu Jelly' loved by children. In the future, besides continuously deepening and innovating jelly products, it is also actively expanding into other snack categories. Currently, 'ZUO一下' has entered the candy category, leveraging the experience and resources from the jelly category, and initiated innovation for a second curve. The candy industry is one of China's traditional pillar snack industries, maintaining an annual volume of over 3 million tons with stable market development. The global per capita candy consumption is about 3 kg per year, while in China it is only 0.7 kg per year, indicating huge development potential. At certain moments, candy is the best emotional consumer product. When family gathers; at important life moments like school advancement, marriage, childbirth; when under stress or tension, candy is undoubtedly the most effective in stabilizing emotions and comforting the heart. However, traditional candy was born from these scenarios but is also trapped by them. Over-reliance on these scenarios hinders product innovation. Candy faces the same development dilemma as jelly: most products fail to keep up with the growth of first-generation consumers. Many consumers stop eating or rarely eat candy as they grow up. Does that mean children can't eat candy? 'ZUO一下' changed people's stereotypes about candy with innovative and trendy products. With successful experience in managing the jelly category, 'ZUO一下' deeply understands and taps into the needs of young consumers. Based on scenarios suitable for young people, it has launched multiple candy products, among which a 'tea candy' product has created a market gap and stands out uniquely. 'Tea candy' is an innovative product based on the hard candy market, featuring a new taste that combines fruit, tea, and mint flavors in one, offering a novel taste collision experience. The triple-flavor 'tea candy' is a new product in a market gap. Mr. Xia told New Distribution, 'Although hard candy's market share is currently far less than soft candy, hard candy offers more imagination space. Young people do not refuse hard candy. Referring to the development of hard candy in Japan, whoever can occupy the minds of young people with good craftsmanship and early layout will seize the opportunity when hard candy consumption potential explodes.' Can tea candy seize this opportunity? Let's break it down from the product itself. From a functional value perspective, 'ZUO一下' deeply understands the sweet-sour, fresh, and cool characteristics of fruits, tea, and mint, completely changing the single taste of traditional candy and tapping into the function of fresh breath. In addition to traditional fruit flavors, 'ZUO一下' introduces tea drink flavors popular among young people, such as white peach oolong and green grape oolong, and adds the cool sensation of mint, perfectly blending the three flavors. This solves the sweetness of sugar, the bitterness of tea, and the impact of mint, making it more palatable and acceptable to young consumers. It is worth noting that the innovation of tea candy also lies in repositioning the product, even benchmarking against chewing gum, making it a choice for consumers to freshen their breath. The usage scenarios have also expanded to more places, such as refreshing scenarios for study and work, breath management in social scenarios, and post-meal scenarios for refreshing and degreasing. Mr. Xia frankly said, 'I am optimistic about tea candy, but it must be sold in conjunction with consumption scenarios. Also, it relies on IP. Having been in the candy business for many years, I have found that candy products are no longer sold by taste alone. A good IP pleases consumers and gives them psychological satisfaction.' From an emotional value perspective, sugar is a natural emotional soother. Coupled with the endorsement of 'ZUO一下' co-branded IPs and the grasp of popular tea drink flavors among young people, consumers can gain multiple experiences through a small piece of candy. 'Pure functional hard candy is not a trend product in my view. For example, functional mint candies and throat lozenges are not in my search range because they are stable but not growing.' 'Although I represent many leading candy brands, there is no candy brand with IP endorsement in my product matrix, and the same for jelly. When I discovered the important value of IP beyond product function, I decisively chose ZUO一下.' Mr. Xia added. In addition to hard candy, 'ZUO一下' has also launched new products such as 100% fruit juice soft candy, fun popping candy, milk tablets, and Pikmin stress-relief toys. Against the backdrop of the entire FMCG industry advocating mainstream upgrades and high-end improvements, 'ZUO一下' chooses to upgrade towards health, adult orientation, and socialization, invigorating the industry. Respecting Market Rules and Treating Channels Equally When new consumer brands develop products and plan their product matrix, besides considering the brand and consumers, an important link cannot be overlooked: the channel side. Many new consumer brands develop a good product and master an online viral method, but suffer when entering offline channels. The failure offline makes many new consumer brands realize that their experience is completely ineffective offline, leading them to either retreat to the starting point or fail and not go further. Unlike many new consumer brands, 'ZUO一下' did not choose to harvest online first and then move offline. Instead, it directly laid out offline channels, advancing both online and offline simultaneously. Moreover, the proportion of offline channels is higher. Mr. Zhang, a partner in charge of sales channels at 'ZUO一下', told New Distribution, 'The company has two principles: first, make good products; second, find good customers, let them make money, and leverage their enthusiasm and initiative. We never dictate to distributors what to do; we fully trust our partners and do not interfere too much in specific market operations.' In terms of channels, the basic philosophy that 'ZUO一下' has always adhered to is that market prices cannot be chaotic. As for other matters, such as how to do home delivery business in Beijing, it is the Beijing customer who proposes their plan, and the company cooperates. Mr. Zhang believes that managing distributors too strictly can backfire, and the information many brands get from distributors may not be true. Therefore, 'ZUO一下' prefers to treat distributors as equal friends because when communicating with friends, you can hear more truth. In addition to treating partners equally, 'ZUO一下' fully applies channel thinking in product planning. For example, Mr. Xia, a distributor for convenience stores, mentioned: 'If snack foods do not have a product matrix, a single product in convenience stores is easy to die. If you cannot form a matrix arrangement or visual impact on the shelf, it is hard for consumers to see you.' Before entering a channel, 'ZUO一下' analyzes the different characteristics of each channel, including user demographics, product selection types, and prices, and selects and splits corresponding products. For example, in some CVS convenience systems, it promotes the newest and most fun SKUs to let the channel see the product's value higher than competitors. Secondly, besides having a rich product matrix, snack food distributors actually care a lot about the speed of new product launches. In this regard, with the advantage of multiple IPs and flavors, 'ZUO一下' products are highly malleable, and because it is a startup, the product development process is agile. Once a product prototype is available, it is quickly pushed to the market and communicated with channel partners to understand their interest and feedback. Based on this feedback, the product is gradually optimized. The overall process takes about 3 months before the product can be launched. When channels feedback that they want a certain product, 'ZUO一下' can also meet the channel's needs in the fastest time. In addition, it also launches festive atmosphere products for different marketing nodes, such as the Children's Day new product Pikmin juice sucking jelly, and the Valentine's Day limited edition rose jelly. For different channels, such as Hema and Metro, it launches co-customized or co-created products, such as Children's Day gift boxes and Pikmin gift packs. Final Thoughts Founded only 3 years ago, 'ZUO一下' has already achieved sales of over 100 million yuan. Although this sales figure cannot be compared with leading brands in the category, it is enough to give a new brand confidence and development opportunities. Its founder revealed that the target for jelly products is temporarily set at 500 million yuan and hopes to achieve it as soon as possible. Next, it will focus on three aspects: channels, brand, and supply chain, continuously promoting the dual-wheel drive of the jelly + candy product strategy for better business development. Currently, 'ZUO一下' channel layout is not yet comprehensive. Its channel coverage mainly focuses on convenience stores, premium supermarkets, large hypermarkets, membership stores, and new retail chain brands. However, its channel layout in the larger lower-tier market is insufficient, and its head also admitted that this is the channel direction that 'ZUO一下' will focus on researching and conquering next. Finally, 'ZUO一下' also hopes to connect with more different types of channel partners on the New Distribution platform to work together, empower each other, and grow. Interested channel partners can scan the QR code below to communicate and cooperate with the brand.