Xuan hesheng: use real products to do real marketing, leading the mode to break through
“The functional food industry is a very competitive Red Sea market. However, the production end, supply end and sales end of the industry are inefficient, conceptual products are more than efficency products, and bad money tends to drive out good money. How to make the front end of the sales of truly efficent products run, upgrade the customer experience, maximize the efficiency of supply chain management and the rate of return, and enable agents to quickly gain a firm foothold in the market and maximize profits is the exploration of The business model of Xuanhosheng.”
Functional food industry, to be precise, functional food and health products industry, is a completely competitive market, fish and dragon mixed. It takes innovators to break old industry stereotypes and negative word of mouth! One company decided to give it a try. It wants to win users with professionalism and value, and win the “big cake” of functional food industry.
Rise with good products
“A bottle of natural extraction and concentration of oral liquid, through 14 processes, using supercritical extraction and other high-tech methods refined.” This bottle, like a work of art, needs to be polished repeatedly. It is the painstaking efforts of Xuan Lingxiang, the founder of Xuan Hesheng, who has been rushing about in this industry for many years. It is also the pride of his product feelings after realization.
Xuan Ling xiang recalled when she entered the functional food industry, and found that most of the well-known brands in China are conceptual. Through the contact with numerous generation processing enterprises, found that many products of raw materials effectiveness of the composition is not up to standard, the publicity is advertised as very effective, the product price is very high, hype concept, deceive consumers.
Xuan Ling to establish a number of enterprises before, covering communications, real estate and other large projects, understand the significance of marketing to the survival of enterprises. When he saw the marketing slogans of “cure diabetes in 30 days”, “eliminate high blood pressure” and “cure psoriasis”, he found that the functional food industry had a “bad conscience” — the claims were no longer consistent with medical science. The effect is exaggerated by substituting the individual for the whole.
Do real products, do marketing with efficacy. Xuan Ling Xiang decided to make a breakthrough in product functions.
Xuan Ling went to Europe, the United States and China to study and investigate health care products and food production enterprises. In the Chinese Academy of Sciences, he received the “Chinese thermal imaging” physical examination technology; In various universities, he organized academicians and expert teams from China Agricultural University and Jiangnan University to develop five kinds of functional food, creating a product system of “whole-body conditioning”. By modern science and the study of plants, the use of high-tech means to extract the effective components in the medicine edible plant, and according to the scientific formula, the organic combination of a variety of effective components, greatly improving the efficiency of the effect of traditional Chinese medicine edible plant, break the traditional Chinese medicine tisanes difficult, the problem of slow, to a variety of diseases “ill conditioning, no disease prevention”, Based on such competitiveness, In 2013, Xuanling Xiang founded Shandong Xuanhe Biological Technology Co., LTD. In 2015, Xuanhe biological production base ground breaking construction.
“If you go to our manufacturing facility, you’ll see at least eight devices. The production of a product, from the beginning to the end, from the selection of raw materials, to the output of finished products, the whole process of transparent management, the whole process can be traced and checked.
There are so many similar competitors in the market that xuanhesheng needs to keep up with its high-quality products as well as its services if it wants to stay in the market. Under the banner of Xuanhe Biology, Xuanling Xiang established shandong Zhibao Tang E-commerce Co., LTD. It is not the same as the drugstores and health stores at the corners of the streets. If Xuanhe Bio is a functional food product brand, Then Zhibao Tang is a service brand “focusing on the health of young and middle-aged people”.
This positioning makes clear the strategic advantages of Xuanhe Sheng.
First of all, it has segmented the market and targeted its audience at young and middle-aged people, the largest consumer group in the society.
The user experience of functional food emphasizes professionalism, efficacy and convenience in turn. Because of the product advantages of “conditioning, prevention and control”, Xuanhesheng gives priority to “professionalism” and specially targets the young and middle-aged people who are prone to sub-health and early disease. This group has a large base, strong consumption power, began to pay attention to their own and family maintenance, in their own conditioning, family maintenance, filial piety and other aspects have great demand. Targeting the young and middle-aged group, Xuan Hesheng’s professional ability has been released and reflected.
Secondly, determine the hardware products to extend to the body recuperation service system.
Functional food is the internal conditioning of the body, in addition, Xuanhesheng also created a health check up, doctors diagnosis and treatment and other systematic health care services. The core of health examination is the thermal imaging technology equipment of TRADITIONAL Chinese medicine, which is developed by the China Academy of Chinese Medical Sciences and is a national key scientific research project. It combines traditional Chinese medicine theory and uses modern thermal imaging analysis to accurately and effectively judge the physical condition, effectively predict the risk of disease in the future, and achieve the purpose of early prevention and treatment.
The combination of internal recuperation, health check-up and professional program is the OPS International Health Management Program of Xuanhe Sheng. Together with the modern Chinese medicine patent technology of Xuanhe Biology, it also constitutes xuanhe’s core competitiveness and the biggest business barrier and weapon. This weapon prompted many franchisees of Xuanhe Sheng to achieve a sharp breakthrough in their respective areas and gradually expand the market.
Control product supply chain
In the traditional model, functional food producers produce products that are purchased by wholesalers in the middle, and end retailers purchase products from wholesalers. And Xuanhe health jumped out of the traditional mode, through the model of self-established supply chain, the production base xuanhe biological in Jining.
The front end provides health services and sample display. Professionals help customers to conduct physical examination and choose products. According to different data such as consumers’ physique, physical examination results and living habits, consumers can make “private order” directly from the mall. Moreover, the products are directly sent from the factory to consumers, which eliminates consumers’ doubts about fake products, eliminates the price difference of middlemen, and makes the product price truly return to the product value. With small front desk and large back office, Xuanhesheng’s “no inventory mode” has brought high efficiency of capital operation to each store.
According to the health situation of Chinese consumers, Xuanhesheng specially designs the use plan for each product, and stores only need to display fewer samples to provide various types of health services. The extreme case is that stores only need to place 5 boxes of samples before normal business.
In addition to supply chain, Xuanhesheng has also established corresponding operation industry on the market and user side.
Xuan hesheng organized a training program for rural doctors in China, and held an activity called “Bringing rural doctors into the tens of thousands of people” to spread health knowledge and traditional Chinese medicine culture throughout the country, and actively promote new domestic and international advanced methods for preventing diseases. Such large-scale public welfare activities can conduct market education for parents, children and doctors, quietly implant xuanhesheng’s brand image in users’ minds, and imperceptively move the market.
Building a community of Shared interests
Talent is an unavoidable problem in the growth stage of Xuanhe Sheng. With the extreme product research and development and unique business model, Xuanhesheng has opened more than 200 stores nationwide, covering more than 20 provinces and autonomous regions in Beijing, Guangzhou, Shenyang, Harbin, Shaanxi, Shanxi, Hebei, Henan and other places.
Li Chengliang from Qingdao, Shandong province has worked in the direct selling industry for many years. After the cold economic winter in 2013, he came up with the idea of transformation and development. After examining more than a dozen projects, I decided to enter the field of health management for young and middle-aged people. After repeatedly comparing nine brands in the same industry, he joined Xuanhesheng. It only took 29 days from the site selection to the decoration, and in the decoration period, customers came to inquire one by one. The turnover of the month of trial operation was nearly 50,000 yuan, and the second month was more than 120,000 yuan easily.
Guangzhou Zengcheng Ms. Liu, in understanding xuanhesheng “conditioning, prevention, control” product advantages after joining. Because she has to take care of her children’s life and study, and there is no large-scale publicity, in the past year alone, her wechat circle of friends has brought more than 900,000 achievements, becoming a new “Internet celebrity” in the circle of friends, Ms. Liu not only gained wealth but also made more friends…
In Kunming, Yunnan province, there lived zhang Xingzheng, known as “Xingzheng Lay scholar”. Before that, he worked in Xuanhe For three years, from salesman to regional manager, and from regional manager to franchisee. In Honghe, zhang Xing, 27, is making Xuan and Sheng a household name in six months. Eight months later, he displayed a car worth 260,000 yuan on wechat moments. “Real people do real projects to make real money,” was his mantra.
Many franchisees are from the point and surface, step by step. It can be said that when Xuan And Sheng enter a city, they will occupy a city. It is in the health conditioning subdivision field, became the invisible champion.
With the expansion of the scale, Xuanhesheng also has a sound human resources system, management system.
Hsuan launched a “spokesperson program” in 2016 to incubate talent for channels. Franchisees around the selection of their own talent, sent to the headquarters to learn. The headquarters not only provides training, food and accommodation, but also pays salaries to the talents in each store during the training period. The spokesperson Program has been successfully carried out for 4 periods, with a total of more than 40 “spokespersons”. They brought immediate performance improvement to all regional stores and began to realize self-value on the platform of Xuanhe Sheng.
In Xuan Lingxiang’s design, there is a “joint investment” mechanism in individual areas. Hsuan and franchisees, together with local business backbone, form a joint investment company. The joint venture will invest in, manage and share profits from the local Xuanhe Stores. At the same time, the headquarters gives the local company corresponding authority, encourages it to expand into the surrounding area, attracting new investors.
This mode can not only retain key employees, but also maintain the interests and enthusiasm of franchisees, and raise both of them to the level of “partners”. The mode of joint investment company makes enterprises and partners form a community of interests and form a joint force for expansion.
Consolidate mode fulcrum
Looking back at the development of Xuanhesheng, the enterprise accurately grasped the pain point of the market and constructed a business model with breaking significance. There are several important fulcrum points in this logic.
First of all, subvert the sales end of the game, deep cultivation of user groups.
Under the traditional mode, various brands of health care products and functional food are sold in the store. On the one hand, these categories are mostly wholesale from multiple levels, and the price system is trap type and disorderly negotiation, resulting in high procurement and operating costs. On the other hand, due to the disorderly product category, the target customers can not be accurately segmented, the store lacks systematic competitiveness, and the foundation for deep cultivation of user value.
Xuan Hesheng has identified his own user group “young and middle-aged” and can concentrate resources on targeted marketing and product development for this group, thus determining his own ability advantage: “Focusing on health management of young and middle-aged”.
Second, supply-side matching has been innovated.
Because it controls the whole industrial chain from production to sales, Xuanhesheng is actually a retail store brand as well as a health product brand. Under the effect of scale, Xuanhesheng removed many intermediate links of traditional marketing and reduced the cost chain, so as to control the cost, price and quality of products. All links are close to users, so that Xuanhesheng more efficient.
Finally, focus, acme, word of mouth, fast.
Early, Lei Jun summed up the successful experience of Xiaomi mobile phone. Xiaomi’s success coincides with Xuan hesheng’s thinking. Focus: In the past 5 years, Xuanhesheng has been developing a product “functional oral liquid” and doing only one thing “health management for young and middle-aged people”. Acme: aiming at different health conditions of young and middle-aged people, we provide professional services with acme personality. Word of mouth: with the effect of young and middle-aged health conditioning, moved a batch of customers. Fast: with the ability of big data operation, we can quickly respond to market demand and achieve customized services of multiple batches and less batches. Because of the rapid iteration of the product, functional oral liquid has evolved into the third generation.
Big space, big shuffle
Nowadays, the sub-health population in China ranks first in the world: there are about 160 to 170 million people with hypertension, over 100 million people with hyperlipidemia, 92.4 million people with diabetes, 70 to 200 million people with overweight or obesity, 160 million people with dyslipidemia and 120 million people with fatty liver. In China’s mainstream cities, 76% of white collars are in sub-health, 60% are overworked, and less than 3% are healthy in real sense. In 2013, the prevalence of chronic diseases reached 20 per cent and 83 per cent of all deaths occurred. Over the past decade, the annual average of new chronic cases has nearly doubled. The number of cases of heart disease and malignant tumors has increased nearly 1 times! Xi general secretary in the report the run-off for building a well-off society in an all-round way, seize the new era of the great victory of socialism with Chinese characteristics “, there is no universal health, there is no comprehensive well-off, the health of the people shall be as the primary cause of socialist development Is young and middle-aged health’s rigid demand side, the side is high attention of the government, the market has tremendous temptation. The industry is mixed, who can get the first? The person who innovates, thinks for consumers, and provides the most professional service is more likely to win the respect of the market.
Get the sales front running, upgrade the customer experience, and maximize the efficiency and return rate of supply chain management. Xuanhesheng’s model can be said to be a sample for the industry to learn from and a pioneer in the evolution of the industry. Health industry is a complete competition market, the market from disorderly competition to orderly competition, will be reshuffled inevitably. Those with a better business model will continue to consolidate their advantage in the shuffle and win.