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Tang Binsen: China Fortune is rewarding companies that are committed to producing good products

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Tang Binsen, the founder of Yuanqi Forest, said at the Yabuli China Entrepreneurs Forum a few days ago that six years ago, he saw the involution of the Internet industry and the surplus of the platform economy. However, what is not commensurate with the strong consumption power is that good products are still lacking. Over the years, China Fortune is rewarding companies that are committed to producing good products.

(Picture source: China United Business Daily)

“About 6 years ago, I sent an email to the team, saying that China’s high-speed rail is the most advanced, high-rise buildings are also the most advanced, Internet platforms, e-commerce, logistics systems and other infrastructure are all the most advanced, but We have seen the involution of the Internet industry and the surplus of the platform economy. What is relatively lacking is good products and good services. This is also the source of the country’s supply-side reforms.”

Tang Binsen believes that in the past six years, the process of wealth creation in China is rewarding companies that do good products, such as Xiaomi, Ideal, Weilai Automobile and other products made with the spirit of the Internet. The essence is to make up for the shortcomings caused by consumption. It is a world of good products and good services.

In the past two years, “Internet thinking” has become popular. Distribution fission, private domain traffic, and free models have affected many companies. Many companies have just learned D2C and then learned C2M. The company has become unprofitable.

“My understanding of the spirit of the Internet has two sentences: one is the ultimate pursuit of user experience, and the other is the extreme respect for talents. Because of the ultimate pursuit of user experience, there are various ABTests, and we have invented retention rates, A series of concepts such as NPS, secondary retention and monthly retention are used to pay attention to the loss of users in every link.”

In fact, Tang Binsen didn’t have this consciousness at the beginning. “We also went through a detour at the beginning, and asked professionals to do a pricing analysis for us, saying that Coke is about 3.5 yuan, you can only sell 4 yuan, the channel and the terminal each take 30% of the commission, and the cost is about 5. Mao, at that time we produced products worth 5 million yuan, and then we destroyed them. I thought for a long time, why couldn’t we follow this model? Actually, it was just a bunch of boxes. Then I found one. Colleagues who play games, ask him to make a drink he likes without thinking about anything.”

It is based on this concept that Yuanqi Forest is the first in the industry to use a sweetener that is very close to sugar, and its cost is 50 times more expensive than traditional aspartame. It is the first to use 3 times milk and 3 times tea and juice bubbles. 99% of sugar comes from fruit juice. “This is not about feelings and implanting ads. This is the true spirit of the Internet. Internet companies pay great attention to daily statistics. What we pursue is to drink first, then earn income, and finally profit.”

Tang Binsen believes that in the past, China’s FMCG industry did not attract talents, but now many FMCG companies have begun to learn how to play the Internet, have begun to implement equity incentives, and use the talent standards of Internet companies to attract talents. Many Tsinghua and Peking University graduates are entering In the fast-moving consumer goods industry, the opportunity for great development of the industry is coming.

“There is a famous saying in the Internet industry that humans will only reward companies that are good to users. Products made with this spirit will have a better retention rate, will be recommended by users, and will definitely be rewarded.” Tang Binsen said.