---
title: "'Seeing' Jiangxiaobai: Big Success in a Niche Market"
description: "From October 23-24, the 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha. Jiangxiaobai, a newcomer to the liquor industry, broke through 700 million yuan in sales by 2017, achieving success through a focus on young consumers, unique product design, and social marketing."
author: "杨勇胜、李泽明"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-10-15"
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# 'Seeing' Jiangxiaobai: Big Success in a Niche Market

> From October 23-24, the 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha. Jiangxiaobai, a newcomer to the liquor industry, broke through 700 million yuan in sales by 2017, achieving success through a focus on young consumers, unique product design, and social marketing.

**From October 23-24, the 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha. Industry experts have sent their blessings; click the video to watch. More details at the end of the article.**

Emerging in 2012 and breaking 10 million in 2013, Jiangxiaobai, a newcomer to the liquor industry, had already surpassed 700 million yuan by 2017! Not only has it "stood firm" numerically, but Jiangxiaobai's disruptiveness and pioneering spirit go far beyond that:

1. It represents youth-oriented small liquor, even transcending the baijiu category to achieve cross-industry social dissemination.
2. It legitimizes the product era, carrying its own traffic label; one clear proof is the extremely high natural sell-through rate on e-commerce channels.
3. It has carved a new path in the baijiu industry: first building consumers, then forcing channel nationalization—a model unprecedented in the industry.
4. From product to IP, Jiangxiaobai's "non-traditional" approach is also reflected in: at the channel level, cross-industry sales resources (advertising, catering) that come "attracted by reputation," and among consumers, extremely high awareness ("heard of it"), even though industry insiders know it is not truly the "small liquor king" in scale...

The Jiangxiaobai phenomenon has become a unique and stubborn presence in the industry. What are the "untold secrets" behind the big success in a niche market?

01
**A company that moves consumers with sentiment and understands the post-90s generation**

Jiangxiaobai founder Tao Shiquan once said: "Our brand must interact with fans; an important point is that we must be a company with attitude and build a brand with attitude." As Tao Shiquan said, since its emergence in 2012, Jiangxiaobai has consistently implemented its unique brand personality concept. "I am Jiangxiaobai, life is simple" is the core connotation of the Jiangxiaobai brand.

The new generation of youth advocates a simple, pure life attitude, and Jiangxiaobai precisely hits the psychological characteristics of contemporary young people. The small liquor launched, whether in packaging, taste, or marketing strategy, instills a personalized, fashionable brand concept into young people. Although there have been subsequent youth-oriented small liquors, they find it difficult to surpass Jiangxiaobai, which led the small liquor category toward youth and rejuvenation. This is because, with the enhancement of Jiangxiaobai's brand value and its prominent position in the national small liquor category, Jiangxiaobai has gradually formed a set of self-brand recognition in consumers' minds: for example, Moutai/Wuliangye = high-end, Hongxing/Niulanshan = Erguotou, and Jiangxiaobai = youth = personalized and emotional liquor. After firmly occupying this consumer perception, subsequent brands find it hard to break this established brand recognition.

In terms of the team, Jiangxiaobai is equally young. Founder Tao Shiquan successively recruited 60% of Chongqing's top liquor industry talent and gathered a group of top domestic sorghum liquor brewing masters and bartenders under Jiangxiaobai Liquor Industry, focusing on creating "low-alcohol, easy-drinking, international" new-generation favorite "light" flavored sorghum liquor.

In addition, the company structure is flat: below the CEO, there is only one level of management cadres, and the core creative team is mostly post-80s, even post-90s, who better understand young people. The 50-something plant manager is the oldest on the team; Shu Bo, responsible for Jiangxiaobai's main promotional channels—Weibo and WeChat operations—is a talkative post-90s tech guy; media director Li Xueqin is a post-85s who previously worked at another well-known Chongqing startup, Zhubajie.com...

02
**Unique category design, entering the light aroma of Xiaoqu sorghum**

Besides at the dinner table, many young people are not interested in baijiu, let alone traditional baijiu: on one hand, there is a lack of liquor specifically crafted for young people; on the other hand, the taste of traditional baijiu does not meet young people's preferences. Jiangxiaobai saw this trend and opportunity, returning to the product taste itself. What taste would young people like? Jiangxiaobai gave a unique answer.

First, Jiangxiaobai's product is a light-aroma pure sorghum liquor, using a single sorghum Xiaoqu brewing process, focusing on creating a pure and fresh taste, removing the strong aroma characteristics of traditional baijiu.

Second, the new exploration of a small category brought uniqueness and selling points: Jiangxiaobai observed that Chongqing sorghum liquor with light aroma is divided into many types, all well-made, but Xiaoqu light aroma has existed for many years without being deeply developed. Therefore, Jiangxiaobai innovated on this basis, endowing two unique advantages: first, handcrafted fine brewing; second, all-natural, no additives, completely natural fermentation. This single ingredient and light body are more suitable for young consumers; third, it caters to young consumers' preference for DIY.

To this end, Jiangxiaobai summarized the easy-drinking sorghum liquor as the "SLP Product Code": SMOOTH (smoother entry), LIGHT (refreshing), PURE (pure). It gave Chongqing sorghum liquor a youthful flavor, letting its "old taste be reborn," positioning the category as light-aroma, leisure, small-packaging sorghum liquor, dressing the traditional old category of "sorghum liquor" in the youthful and fashionable coat of "Jiangxiaobai," endowing Jiangxiaobai with brand heritage and successfully completing the conversion of category to brand, and brand to category.

03
**Insight into consumption scenarios, each product clearly positioned**

Currently, Jiangxiaobai's product types are diversified. In terms of alcohol content, there are 25, 40, and 52 degrees, and the product packaging is distinctive. Among them, Shiren Yin is 25-degree sorghum liquor; Jiangxiaobai Expression Bottle 100ml, Youth Edition 500ml, Sanwu Zhiyou 750ml, YOLO Expression Bottle Commemorative Edition, and Qi Ge Wo Tong Kuan are all 40-degree sorghum liquor; Jiangxiaobai Gold Label 400ml is 52-degree pure grain sorghum liquor.

Jiangxiaobai's launch of various products is not impulsive; there is deep consideration behind it. Jiangxiaobai found that when a product becomes standard in a certain scenario, it drives sales. For example, eating Korean food with Chamisul, eating Japanese food with sake. Consumption scenarios are constantly changing; besides banquet, business, and government scenarios, leisure scenarios are increasing. Jiangxiaobai's products are mainly classified into four consumption scenarios: small gatherings, small drinks, small moments, and small moods.

> ➢ Small gatherings refer to non-business socializing among three to five colleagues, friends, or classmates;
>
> ➢ Small drinks mean not competing in drinking, knowing when to stop, emphasizing moderation;
>
> ➢ Small moments refer to the frequency and spontaneity of moments;
>
> ➢ Small moods mean that liquor is linked to mood and emotion, not just a functional need.

For these four consumption scenarios, Jiangxiaobai has corresponding product strategies: "Youth Edition" is designed for youthful gatherings with hearty drinking; "Sanwu Zhiyou" is crafted for small gatherings of three to five classmates or friends, meeting small social needs; 2L "Shiren Yin" at 25 degrees is hailed as a team-building artifact; and the iconic "Expression Bottle" meets users' emotional expression needs. It can be said that Jiangxiaobai considers offline young consumers' consumption scenarios more detailed and comprehensive, thereby better aligning with the consumption psychology and purchasing needs of the young consumer group.

04
**Social brand marketing, users force channels**

One of the biggest differences between Jiangxiaobai and traditional liquor companies is: **precise social marketing**.

Traditional liquor companies follow the logic of channel dominance: from general agents to secondary distributors, then to terminal stores, each layer down skims a layer of profit; Jiangxiaobai discovered that users are the real sheep, all profits come from users, and firmly grasping end users is the key. So Jiangxiaobai's strategy is: users are king, self-generated traffic. Unlike large liquor companies, Jiangxiaobai positions itself with small bottles, small investment, small communication, and small marketing. Small enterprises are flexible, and this positioning suits operating the brand with internet thinking.

Thus, Jiangxiaobai uses internet marketing tools like WeChat and Weibo, combining online and offline, called "O2O marketing," allowing consumers to actively share and spread, thereby improving marketing efficiency and value. Jiangxiaobai broke the original sales logic of baijiu, befriending users, self-generating traffic, forcing channels from the user end, and changing the industry value chain.

On one hand: online WeChat and Weibo interactive communication builds its own brand IP. From December 27, 2011, when Jiangxiaobai posted its first Weibo post—"I am Jiangxiaobai, life is simple"—to now, it has 230,000 followers. For a product to spark discussion, it must have two characteristics: first, communication power, based on consumption scenarios, allowing interaction between consumers and the product; second, self-contained social attributes, able to create topics and trigger consumers' voluntary dissemination.

At the same time, it embedded in hit dramas: from Chen Kun's "Chongqing Hot Pot" to Sun Honglei's "Mr. Good," to Huang Lei's "A Love for Separation," to Deng Chao's "I Belonged to You." These online drama placements kept Jiangxiaobai's brand heat rising, gaining significant attention and bringing huge traffic. Meanwhile, the 2016 "I Am Jiangxiaobai" MV and the 2017 "Jiangxiaobai" self-owned IP animation release personified Jiangxiaobai itself.

On the other hand, offline community marketing focuses on interaction. Traditional liquor companies spend most of their effort on advertising and channel marketing, while Jiangxiaobai's marketing expenses are mainly spent on offline community marketing activities (accounting for 50% of all marketing expenses). This not only strongly enhances user participation but also forms a closed loop from offline to online interaction, improving communication efficiency. Besides the continuous interaction of the Expression Bottle at the product level, it also plays with consumers through events like the Wine Appointment Conference and mobile bars.

05
**Filling the short board of deep distribution, platform self-operation + human wave tactics**

In my view, Jiangxiaobai, through clever social marketing, built the brand, occupied consumers' minds, and then forced channel nationalization. Although this bottom-up approach seems to "return" Jiangxiaobai, the internal logic and methods actually have a unique "Jiangxiaobai" style:

**1. Channel flattening, platform direct operation with deep distribution, improving efficiency.** Unlike traditional baijiu companies' large dealer system: Jiangxiaobai only sets up provincial-level offices in various places, and the offices only develop one level of general distributors, who directly distribute goods to catering terminals. Compared with traditional liquor companies, Jiangxiaobai reduces at least 2-3 layers of intermediate links. Due to its mass-market positioning and low unit price, it is estimated that intermediate costs can be reduced by at least 15%.

Jiangxiaobai uses high-frequency, small-batch goods circulation instead of traditional baijiu companies' low-frequency, large-batch form, reducing the amount of dealer stock pressure, directly reducing dealers' capital occupation, thereby improving capital utilization and channel circulation efficiency.

**2. Starting from the catering channel, using human wave tactics for intensive cultivation.** Jiangxiaobai builds one or two manufacturer-dealer integrated direct operation platforms in each strategic province, using deep distribution to turn provincial capitals into model markets, then through marginal effects, allows the brand to gradually penetrate from first- and second-tier cities to third- and fourth-tier cities, completing strategic layout. South of the Yangtze River, the company basically adopts platform direct operation or semi-direct operation with deep distribution, directly operating most provincial capital markets, controlling hundreds of thousands of terminals, creating model markets, and then penetrating prefecture-level and county-level markets through marginal effects.

The catering channel serves as a breakthrough. From the golden decade to now, baijiu companies with some brand heritage or product strength have been招商-led, implementing large dealer systems or product buyout operations, rarely doing intensive cultivation. Jiangxiaobai, among the four traditional channels—catering, circulation, tobacco and alcohol stores, and KA—found the gap in the catering channel as an entry point, directly inserting into this gap where small-measure liquor has almost zero barriers, using human wave tactics for intensive cultivation.

In most Chinese markets, the mid-to-high-end bare bottle liquor category has basically not formed channel barriers in the catering channel (except Hunan, Guangdong, and Anhui), unlike beer, which has formed oligopolistic competition. Jiangxiaobai adopted the deep distribution method most commonly used in FMCG, allowing products to appear before consumers overnight.

06
**Chengdu offensive sample, Jiangxiaobai's "four-in-one" counterattack**

"West does not enter Sichuan," in the provincial capital market of Chengdu, which lacks no liquor, Jiangxiaobai was able to "tear a gap," and behind it is not simple:

**1. Focus all resources on taking Chengdu.** Focus all resources to build Chengdu at the fastest speed to create a demonstration effect for other cities. After the strategic positioning of "Take Chengdu, ignite all of Sichuan" was clear, Jiangxiaobai adopted deep distribution as the core tactic, clarifying the approach of building a direct team and reaching terminals directly, dividing Chengdu into 7 major districts, 7 columns, 1 base camp, and 4 offices. The battle route map: 7 districts divided into 60 business cells, each with 200-260 terminals.

**2. Taking the Snow Beer channel.** During distribution in Chengdu, it was found that many high-quality outlets could not be broken, and some commanding heights outlets were bought by distributors or competitors for exclusive liquor supply, so Jiangxiaobai could not enter the stores. Due to certain channel obstacles, Jiangxiaobai conducted a review of Chengdu's channel structure and found a breakthrough—the Snow Beer channel:

Snow Beer has more than 200 first- and second-level distributors in Chengdu, a 1 billion yuan market, with a market share of over 75%. Through deep distribution, it uses professional business levels to intensively cultivate every area and every outlet, and many AB-class high-quality outlets have deep customer relationships with these distributors. Jiangxiaobai's products and Snow Beer are off-season complementary products: beer's peak season is before October, while Jiangxiaobai's is after October. If Snow Beer distributors operate Jiangxiaobai, from an operational perspective, costs decrease, efficiency increases, and the average benefits of people, vehicles, and warehouses all improve, while also enriching the product structure and building their own channel barriers.

Jiangxiaobai immediately started coordination with Snow Beer's channel: regional staff used street-sweeping methods to find Snow Beer distributor information, then Jiangxiaobai visited and negotiated one by one. Adopting nanny-style marketing, Jiangxiaobai grafted one-third of Snow Beer's distributors, opening up channels in the Chengdu market, allowing the company to avoid spending energy on channel competition with competitors and consuming limited resources, instead focusing limited manpower, materials, and financial resources on end consumers.

**3. Opening the last mile, "I endorse Jiangxiaobai" deep interaction.** The activity format: dining consumers only need to take a photo with Jiangxiaobai or the "I endorse Jiangxiaobai" movie call sheet, upload it to Weibo and WeChat Moments, and attach a line: We gather at XXX (restaurant name), we endorse Jiangxiaobai. After sharing, the promotion partner promptly opens 2-4 bottles of Jiangxiaobai and pours for them, saying, "Brother, if the wine is not enough, the restaurant has it for sale!" The partners complete the opening, consumption experience, and sales action in one go. This activity solves the secondary dissemination of the product in the consumption scenario, solves the experience problem of consumers opening and drinking, and solves the interaction problem between product and consumer scenario—killing three birds with one stone. Three mysteries:

> 1. The consumption scenario of three to five friends gathering in a restaurant lacks an emotional medium to ignite the gathering atmosphere;
>
> 2. The product's secondary dissemination based on the hot atmosphere of the consumption scenario;
>
> 3. Consumers truly open and drink, no longer just liking Jiangxiaobai's copy.

**4. Changing virtual socializing, "After-work bar appointment" campaign.** In areas highly concentrated with new-generation groups such as Chengdu's CBDs, high-tech zones, software parks, and entrepreneurship incubation zones, as well as at subway entrances and exits that are must-pass places for commuters, a fierce "After-work bar appointment" ground promotion campaign was launched. The activity is very simple and easy to operate:

> 1. Target consumers take photos with Jiangxiaobai products, share via "Double Micro" (Weibo and WeChat), and @ three or more friends to issue a drinking invitation with the line "I have wine, you have stories, let's go to the bar after work!"
>
> 2. If it is a company or department gathering, through Jiangxiaobai's H5, write the gathering time, place, number of people, and required amount of wine, and Jiangxiaobai will arrange for the regional manager to deliver it.

**From 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 transforming to unified warehousing and distribution platforms to discuss and answer questions around the theme of "New Distribution, New City Distribution," focusing on 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! The specific meeting topics are as follows:

**List of Participating Companies**
(In no particular order)

Hunan Zonglan Diandan Network Technology Co., Ltd.
Jingbang (Wuhan) International Freight Forwarding Co., Ltd.
Mengniu Dairy
Qinghai Hanxiang E-commerce Co., Ltd.
Unilever Service (Hefei) Co., Ltd. Shanghai Branch
Huicong
Hunan Xuan'ang Food Co., Ltd.
Guangzhou Tongdaoren Information Technology Co., Ltd.
Qingdao 888 Trading Co., Ltd.
Uni-President Enterprises (China) Investment Co., Ltd.
Hunan Province Zhongxiang Gongpei Logistics Co., Ltd.
Shenglong Ingredients
COSCO Shipping Logistics Warehousing and Distribution Co., Ltd.
Guangxi Yongpai Liquor Industry Co., Ltd.
Shangqiu Kangrong Trading Co., Ltd.
Jinan Dingzhong Economic and Trade Co., Ltd.
Liaoning Bimai Agricultural Technology Co., Ltd.
Kunming Xiongjia Trading Co., Ltd.
Shaanxi Houheng Trading Co., Ltd.
Guangzhou Dingwo Enterprise Information Consulting Co., Ltd.
Shaodong Jiajiale Trading Firm
Boda Trading
Industrial Bank Changsha Branch
Wuhan Muchén Convenience Store Chain Co., Ltd.
Fujian Fuxing Yuncang Logistics Co., Ltd.
Guizhou Yilimi E-commerce Co., Ltd.
Jiangxi Xiao Laoer E-commerce Co., Ltd.
Jinshan Koufu
Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd.
Shanxi Dezhun Supply Chain Management Co., Ltd.
Shaoyang Tongdeli Trading (Xiangbang Logistics)
Huanfu
Tongda Express City Distribution
Beijing Xinjingxiang Food Co., Ltd.
Wuhan Huizhong Tianhong Liquor Industry Co., Ltd.
Changsha Paide Biotechnology Co., Ltd.
Chao'an Tuqiang
Guizhou Yihe Bopin Supply Chain Management Co., Ltd.
Jiangxi Kang'en Industrial Development Co., Ltd.
Xiangtan County Yisuhe Town Yuhua Paper Store
Luoyang Yuanlang Trading Co., Ltd.
Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd.
Hunan Yongfu Jiujiu Trading Co., Ltd.
Zhejiang Chengchengtong Logistics Co., Ltd.
Chongqing Kaiguo Materials Trading Co., Ltd.
Beijing Xianmaixianmai Data Technology Co., Ltd.
Hanchuan Qixing Trading Co., Ltd.
Tongxin Jiuzhiru Trading Co., Ltd.
Guizhou Meiguo Guoguo Network Technology Co., Ltd.
Hubei Anjie Logistics Co., Ltd.
Hubei Kuaixiao Hulian Technology Development Co., Ltd.
......

**Representatives of Distributor Transformation (Proposed)**
(In no particular order)

Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun
Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo
Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming
Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen
Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu
Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su
Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia
Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun
Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong
Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao
Hebei (Chengde) Wulian Yuncang Co., Ltd. General Manager, Meng Yucun
Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun
Jilin Sanxing Lianggou Chairman, Zhang Hailing
Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao
Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei
......

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