The internet and new retail are profoundly impacting the dairy industry. Mengniu, which rose from a traditional offline distributor system, has never stopped trying to transform itself, continuously adapting to channel changes and making innovative attempts.
Launching WeChat-Exclusive Product 'Slow Burn'
As one of the two giants in China's dairy industry, Mengniu gives the impression of constantly learning, reforming itself, and improving its online channels.
Recently, Mengniu launched a new milk product 'Slow Burn' targeting new retail. This product is only supplied to online agents and is brought to market through channels such as WeChat.
Wang Jingbo, head of Mengniu's innovation brand department, stated at an industry forum that the Mengniu Group will cross over into the weight management industry and launch its first fiber milkshake milk product, 'Slow Burn'. In terms of distribution model, it adopts the new retail model of social interaction and transactions among individuals.
In terms of market selection, in addition to entering traditional channels, Mengniu's main channel this time is the new retail market, providing financial support for young entrepreneurs and using WeChat e-commerce for distribution.
This is Mengniu's trial of new retail, starting from the big health industry, focusing on 'health and fat-burning' functional products, competing with international brands such as Herbalife and Nutrilite.
According to New Distribution, this product is only open to online agents and will not be temporarily opened to traditional Mengniu distributors.
A WeChat business partner of this product revealed that Slow Burn fiber milkshake milk is a meal replacement product, not a traditional dairy product of Mengniu. Therefore, the new product will be launched through new retail channels such as WeChat, while also testing market popularity and sales. WeChat business operators can sell both online and offline, meaning offline store sales also need to order through WeChat.
Currently, this product has recruited many WeChat business teams. Compared to traditional distribution agency costs, the current agency threshold for 'Slow Burn' is not high; you can get the highest level agency for less than 100,000 yuan. However, compared to general WeChat agency brands, the nearly 100,000 yuan fee also raises the entry barrier for agents of Mengniu products.
Signing Three-Year, 10 Billion Yuan Deal with JD.com
Mengniu Group CEO Lu Minfang met with JD.com Group Chairman and CEO Liu Qiangdong, and the two sides reached a strategic cooperation agreement.
On February 1, JD.com announced that Mengniu Group CEO Lu Minfang recently led a senior management team to visit JD.com and had in-depth talks with JD.com Group Chairman and CEO Liu Qiangdong.
During the meeting, the two sides reached a deep strategic cooperation agreement. Within the three years from 2018 to 2020, Mengniu's cumulative sales on JD.com Supermarket will strive to hit the 10 billion yuan target.
JD.com stated that in the future, the two sides will also integrate big data resources, build a smart supply chain system, focus on developing personalized customized product systems, and fully establish a new flagship for borderless marketing.
According to the agreement, Mengniu will continue to deepen its marketing layout on the JD.com platform, further achieving precision marketing and personalized marketing. In 2018, Mengniu will provide more customized products to JD.com consumers. JD.com will provide Mengniu with more open data and marketing capability support, as well as opportunities for new product launches, empowering Mengniu to jointly build a new full-chain supply chain collaboration system, achieve the vision of borderless marketing, and realize win-win outcomes for all parties.
The cooperation between JD.com and Mengniu has always been close. It is reported that in June 2017, Mengniu joined the 'JD Quality Traceability and Anti-Counterfeiting Alliance', working with JD.com to build the 'JD Blockchain Anti-Counterfeiting Traceability Open Platform' using blockchain technology. In 2017, Mengniu and JD.com jointly established two collaborative warehouses in Beijing and Shanghai. In the marketing field, during the '11.11 Mengniu Super Brand Day' in 2017, the JD.com app provided brand exposure for Mengniu, combined with off-site traffic from WeChat Moments and Tencent Video, creating a sales peak for the Mengniu brand on 11.11.
JD.com stated that after signing this cooperation agreement, the two sides will also jointly build a new full-chain supply chain collaboration system in areas such as data-empowered smart supply chains, omni-channel cooperation, and full-chain supply chain collaboration, to respond to consumer needs faster and better. At the same time, the two sides also reached a consensus on customized marketing. In 2018, Mengniu will provide more exclusive products and new product launches for JD.com Supermarket consumers, bringing users more differentiated shopping experiences that better meet consumer needs and enhance consumer loyalty.
According to data provided by JD.com, in 2016 and 2017, Mengniu achieved first place in dairy product category sales during JD.com's 618 mid-year promotion and 11.11 promotion. In 2017, Mengniu's sales of only ambient liquid milk products on the JD.com platform increased nearly 100% year-on-year.
Source: Consumer Daily Exposure -END-