Sales Exceeded 100 Million in 2015? Why Did He Avoid the 'Multi-Level Distribution' Path in WeChat Business?

China's WeChat business market was once extremely hot, with low entry barriers making it accessible to everyone. Amid the wave of mass entrepreneurship, recruiting WeChat sellers became a panacea. Driven by herd behavior and profit, a pyramid-like 'multi-level distribution' scheme was promoted and widely imitated.

However, a Shandong company did not follow the trend to build a so-called multi-level distribution system. Instead, leveraging its years of accumulation and local specialties in Dong'e Town, Pingyin County, it gathered nearly a thousand WeChat sellers nationwide, creating a niche brand based on 'best friends' (闺蜜): Xiaomei. The name Xiaomei originates from the nickname of Pingyin County, 'Rose City', and its initial products were Xiaomei Donkey-Hide Gelatin Cake and Rose Tea.

Positioning as 'Best Friend's Gelatin' Is the Key to Xiaomei's Success

As we know, the positioning of WeChat business is to sell products to friends, leveraging strong ties between acquaintances. However, in traditional Chinese culture, discussing money among friends can harm relationships. This leads to a situation where even if the target consumer is nearby, selling to them can feel awkward. Yet everyone has a profit motive. So selling products turned into selling agents, and because agents couldn't move products, the game of layers of agents pressuring each other to stock up quickly spread.

(Xiaomei's TV commercial on CCTV)

Xiaomei's CCTV ad slogan is "Xiaomei Donkey-Hide Gelatin, My Best Friend's Gelatin." The phrase '闺蜜之胶' (best friend's gelatin) is a homophone for '闺蜜之交' (best friend's friendship). Thus, Xiaomei's products are not just gelatin cake and rose tea; they become social tools for purchasing gifts among best friends, which aligns perfectly with the WeChat business channel. In China, best friends are those with exceptionally close personal relationships, sometimes even sharing things they wouldn't tell parents or spouses. Buying and giving gifts among best friends is common, so Xiaomei's brand quickly took off based on this precise positioning.

Among Xiaomei's WeChat agents, over 80% are women, with some men. Buyers often share happy moments with their best friends. When Xiaomei is linked to best-friend relationships, transactions become less awkward. Therefore, Xiaomei's WeChat sellers sell products within their circle of best friends. Although some cities have set up general agents and upgrade systems, they haven't truly used the multi-level distribution arbitrage game because products sell well, making distribution unnecessary.

Dong'e Town's Donkey-Hide Gelatin and Pingyin County's Roses Are the Fundamental Guarantee of Xiaomei's Product Reputation

Donkey-hide gelatin is a tonic, and historically, the best gelatin comes from Dong'e. Xiaomei's chairman, Chen Yanqiang, is a native of Dong'e Town, Pingyin County. In 2008, he built a factory in Dong'e Town, covering 80 mu, located on the Langxi River, with modern production equipment for processing.

In 2013, he created the Xiaomei Donkey-Hide Gelatin brand, combining Pingyin County's roses with Dong'e Town's gelatin, and was the first to launch gelatin cake products. In 2015, Xiaomei's gelatin cake sales far exceeded those of the more well-known Fujiao Group.

In the WeChat business circle, we've seen health products, skincare, and various bags, most of which are outwardly strong but inwardly weak. Photos can be beautiful, prices not too cheap, but upon receipt, they turn out to be factory goods. Xiaomei did not do this. Xiaomei's gelatin cake uses gelatin from Dong'e Town mixed with edible roses, and packaging is designed by a renowned design company. Whether the Huayan series or the high-end Black Gold series, products are meticulously crafted and presentable as gifts. (Xiaomei WeChat agent selfie) Gelatin products, as tonics, are important for women's lactation, yin nourishment, and blood replenishment, making them ideal for circulation among best friends. Thus, the startup brand Xiaomei, without capital investment, leaped from an unknown small brand into the '100 million club', becoming the third gelatin enterprise after Dong'e Ejiao and Fujiao to achieve annual sales exceeding 100 million yuan.

Under Xiaomei's leadership and the dividend of the WeChat channel, fresh graduate Wang Hongli, construction worker Zhang Kaiqiang, and ordinary accountant Zhou Yaping all changed their destinies, starting from zero to achieve annual incomes of over 100,000 or even several hundred thousand yuan. Such successful WeChat sellers are common in Xiaomei's community.

(Some of Xiaomei's WeChat team participating in a headquarters-organized outing)

Completing the Company's Initial Accumulation, Xiaomei Invests Heavily to Attack Functional Snacks

For Xiaomei's chairman Chen Yanqiang, Xiaomei's success was both expected and unexpected; he never imagined it would grow so large. However, Chen believes that gelatin cake is relatively common in the industry, with many competitors, and is not a unique product. Although his gelatin, backed by the Langxi River and sharing the same origin as Fujiao, is more competitive, without innovation, Xiaomei could be popular for two years but not sustain itself.

In 2014, Chen Yanqiang collaborated with Shandong Agricultural University to develop Xiaomei gelatin snacks. In 2016, they successfully developed a gelatin nut bar, scientifically combining gelatin, cashews, almonds, red dates, and peanuts. It was launched in circulation channels, supermarkets, and mother-and-baby stores. In Jinan alone, sales exceeded 500,000 yuan in just two months, with higher sell-through rates than some well-known brands.

Chen believes that gelatin snacks are based on the 'consumption upgrade' trend. By combining expensive tonic Xiaomei gelatin with healthy ingredients through a scientific formula, they created the first functional snack product in China. For consumers, for 6 yuan, they can taste a snack with gelatin, significantly enhancing the consumption level while also providing tonic and health benefits.

Thus, there is the story of a 6-yuan gelatin snack that sold 100,000 yuan a day, but only in three cities in Shandong. What exactly happened? Please see tomorrow's sharing.

On November 26, Jinan, Shandong will host a wealth-sharing meeting for Xiaomei gelatin snacks developed by Shandong Agricultural University. However, this recruitment is not for WeChat sellers, but for high-end, exclusive city agents.

See the company, see the market, see the shops Click the bottom-left "Read Original" to register for inspection During the inspection, accommodation and meals are covered by the headquarters.

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