Binding Starbucks Corp to make his debut, the marketing of this brand "touching porcelain" has become the password of wealth.
OATLY, the oat plant-based brand, last month released its first annual report since landing on Nasdaq.
According to the data, OATLY's revenue in 2021 was $643.2 million, up 52.6 per cent from the same period last year; revenue in more than 20 countries grew more than 50 per cent year-on-year, and the Asian market soared 136.5 per cent.
Focusing on the Chinese market, the Chinese market contributed US $47.452 million in revenue to OATLY in 2020, an increase of more than four times compared with the same period last year; by 2021, OATLY will become the No. 1 oat dairy brand of Tmall.
How on earth did such a brand grow up?
01. No one cares about repositioning and saving.
OATLY was founded in the 1990s and has been largely unattended for more than 20 years.
At that time, Arne Dahlkvist, the discoverer of lactose intolerance, started the research on animal milk substitute food in order to solve this problem. Unexpectedly, its student Rickard ste successfully developed a milk substitute, oat milk, and founded the oat company OATLY.
OATLY is called an oat company rather than a beverage company because it only makes oats and studies how to grow, harvest, select oats and turn them into oatmeal milk instead of milk.
Unfortunately, this alternative, which is targeted at lactose intolerant people, has been lukewarm.
You know, more than 10,000 years ago, nomads in northern Europe and Central Asia began to live on domesticated cattle and sheep, drinking milk and dairy products, and this tradition continues to this day. People who eat a lot of dairy foods every day maintain high lactase activity throughout their lives. As a result, only about 5% of the population in northern Europe is lactose intolerant.
It started in areas where dairy products are the staple food, but located a very small number of people who are lactose intolerant, and the response of oat milk which is too lack of universal orientation is mediocre.
It was not until more than 20 years later that the newly appointed CEO changed its brand positioning, touched porcelain marketing, and turned OATLY into an environmental fighter, which opened its way to a turnaround in the European and American markets.
Since the 1990s, the "Mediterranean diet" advocated by the World Health Organization (WHO), that is, multi-plant, multi-grain diet, has aroused widespread popularity, and has become the mainstream voice in the concept of healthy and environmentally friendly life.
Toni Petersson, then CEO of OATLY, changed the positioning of oatmeal milk to a healthy, environmentally friendly and sustainable healthy diet, and launched creative brand packaging and promotional copywriting to turn it into a pure green lifestyle.
Its greenhouse gas emissions are printed on the outer box-producing oatmeal milk of the same weight reduces greenhouse gas emissions by 80% compared with milk. Because Greenhouse Effect is indeed hundreds of times the equivalent unit of carbon dioxide caused by methane emissions from cattle and sheep, most countries in the world have begun to plan and limit the number of livestock raised.
It has to be said that consumers like this very much in European and American markets, which are keen to emphasize the "environmentally friendly, healthy and green" lifestyle. Such brand positioning and marketing means make oatmeal milk, which has been too narrow due to low sales, turn red quickly.
02. "touching porcelain" marketing has become the password of wealth.
Petersson has said: "the goal of OATLY is to disrupt one of the world's largest industries, the dairy industry, and lead the new direction of the food system in the process." This kind of market earthquake has already begun, and there is no turning back. "
Subsequently, OATLY launched an environmental war, aimed at milk.
The brand made up a tone-deaf song that sang in the advertisement every day: "Wow!" No Cow (Wow! No milk), "It's like milk,but made for humans. (very similar to milk, but for human beings. ) ".
OATLY's packaging and advertising copy all imply provocation and irony-milk is for cows to drink, who is the person who wants to drink milk?
The explosive touch caused OATLY to be sued by LRF Mj lk, a Swedish dairy group, in October 2014, on the grounds that the vulgar promotion had clearly maliciously damaged the image of milk.
Unsurprisingly, OATLY lost, and the ad was banned in Sweden.
But in terms of brand marketing, OATLY won. Petersson began to use the lawsuit as a pretext to publicize the art of communication into the story of "a new food company for the sake of human well-being, suppressed by traditional giants". He posted the 172-page indictment on his website, saying consumers were allowed to judge right or wrong by the facts.
After the advertising incident, OATLY also sold T-shirts with the words "I hate OATLY ads" on its website, which were snapped up by young people.
At the same time, OATLY also printed bad reviews on its own oatmeal milk box, and a wave of reverse marketing directly brought OATLY a lot of attention. At that time, the brand's revenue increased by 100%, local sales in Eurasia and Sweden rose by 37% and 45%, and even had spare money to advertise exaggerated advertisements on the streets of Britain and Germany.
Black and red is also red, the goal of disturbing the milk industry has really been achieved by a coquettish operation.
OATLY accounted for 53 per cent of total sales of dairy substitutes in Sweden by the end of 2020, according to NielsenIQ.
In the UK and Germany, it took OATLY three years to boost sales of oats more than all other plant-based dairy products.
In the US market, OATLY's sales grew by 182 per cent in 2020, but skim milk sales in the US, which represents health, fell 16.5 per cent in the same year.
Global liquid milk sales fell 3.5 per cent in the first four years to 2017, according to Rabobank data quoted by the Financial Times. Tom Bailey, a dairy analyst at the bank, said the rise of "milk substitutes" had become a concern for the entire dairy industry.
In addition, OATLY, which is often sold out, even became a lot at one time. $Amazon(AMZN.US$AmazonThe seller's wealth password. Once they hoard goods and sell them, they can earn 4-5 times the price difference. When the product sold out on its website on Christmas Eve, 2018, Amazon.Com Inc sold an average of 12 boxes of OATLY oatmeal milk for $226.12, while the price for the same specification was less than $50.
This has forced OATLY to build factories everywhere to increase production capacity. But to date, OATLY has failed to achieve a balance between supply and demand, and even officials have come forward to say that the company is facing a capacity crisis of global supply shortages.
From a small company that can't sell its products to a listed company that doesn't sell enough, the crisis statement is more or less Versailles.
03. Take advantage of bundled coffee to make a debut
After nibbling down the European market, OATLY's overseas expansion began to rush to China, a huge market with large amounts of lactose-intolerant consumers.
Compared with the nomadic peoples in Europe, the ancestors of East Asians were more in agricultural civilization and took crops as their staple food. In the long process of evolution, milk had little effect on the survival of East Asians, and the lactose tolerance gene was much lower than that of Europeans. Therefore, China and even the whole of Asia are the hardest hit areas of lactose intolerance, and there are plenty of consumers who suffer from gastrointestinal discomfort when drinking fresh milk.
According to the National lactose intolerance Survey launched by Dr. Chunyu in 2016, about 310 million people in China are lactose intolerant.
However, China has long had a substitute-soybean milk. So, how does oatmeal milk, represented by OATLY, get a piece of the soymilk market with a history of thousands of years?
Thanks to the channel support of investor China Resources, OATLY was placed on the shelves of China Resources boutique supermarket Ole in its first year of entry into the Chinese market. Just because the domestic consumers' awareness of oat milk is not enough, the sales volume of Shang Chao channel is not ideal.
A month later, OATLY put the fulcrum in the cafe.
As a substitute for milk, it can pull flowers, season, foam and make a base like milk, which is the advantage that oatmeal milk can enter the field of coffee. OATLY has developed a new product BARISTA for coffee, and for fans who can't drink milk and don't like American and Italian coffee, oatmeal milk is a glimmer of hope.
To this end, its Chinese team has established three focus strategies, namely, one product, one city and one market.
"one product" refers to a star product that focuses on creating BARISTA coffee master oatmeal. Start with boutique coffee shops and Liansuo coffee shops, and use the awareness of coffee shops to drive oatmeal milk to open the consumer market.
"one city" means that priority should be given to the Shanghai market, because Shanghai is the city with the largest and fastest development of coffee culture in China. If it can succeed in the most representative Shanghai, it can succeed in China.
"one market" refers to the pilot selection of boutique cafes of the third generation. Boutique cafes that follow the trend have become "online celebrity punch-in places" throughout the city, allowing OATLY to quickly find a brand audience.
Soon, China Resources's $The Pacific(601099.SH$PacificCoffee began to provide consumers with OATLY oatmeal milk coffee. Then, including $Starbucks(SBUX.US$StarbucksOATLY has appeared one after another in chain coffee shops and independent coffee shops, including SeeSaw.
The deep binding with industry giant Starbucks Corp is a key step for OATLY to build up Chinese consumer awareness.
We don't know much about plant base or oatmeal milk, but we all know Starbucks Corp very well. Before that, the only "plant base" Starbucks Corp could offer was soy milk, and sales had been tepid, while oatmeal coffee with OATLY sold 62 million cups in a year.
With Starbucks Corp's "endorsement", OATLY quickly became popular and began to work with Manner,Tim HortonsAnd other new consumer brands to cooperate. By the end of 2020, OATLY has settled in more than 8200 terminal stores in China.
OATLY, which has become a popular product, has driven the sales share of the entire Asian market. According to its revenue data for the first quarter of 2021, the year-on-year growth rate in Asia is as high as 414.6%, and China is the country driving the rapid growth of the Asian market.
Oatmeal milk is as popular as China's coffee market is. After the coffee shop made its debut and became popular, OATLY began to walk out of the coffee shop and into the fast elimination channel.
In the traditional retail channel, it is different from that of the $Walmart(WMT.US$Walmart Inc, RT-Mart, Yonghui, and warehousing giants Metro and Sam have reached a cooperation. Convenience store channel Zhonghe 7-11 has expanded its distribution in Greater China, focusing on retail shelves and coffee bars. New retail, stationed in JD.com home, ele.me, box horse and other platforms.
OATLY's fourth-quarter and full-year 2021 results showed on March 10 that its fourth-quarter revenue was $185.9 million, up 46.3% from $127.1 million in the same period last year, and full-year revenue rose 52.6% from $267.7 million a year earlier to $643.2 million.
With the rapid development of the coffee market and the consumption trend of healthy eating, coupled with a large consumer audience, the entry of OATLY has come at a good time.
04. Write at the end
The current problem with OATLY oatmeal milk is that the price is not friendly to the people.
Official pricing, OATLY coffee master oatmeal 1L unit price is 48 yuan, the original oatmeal dew 1L package price is 38.5 yuan. This makes OATLY so popular that it is jokingly called the "IQ tax for the new middle class".
This is also the drawback of OATLY, bundled coffee is its advantage and its shackles. The high-priced oatmeal milk of detached coffee, as a daily drink, loses its competitive advantage with other plant protein drinks.
Data source / SPINS, PBFA, GFI
The popularity of OATLY oatmeal milk has indeed stirred China's plant beverage market, which has been stagnant for years. According to the "2020 Innovation trend of Plant protein Beverage" released by Tmall New Product Innovation Center, China's plant protein beverage market grew by 800% in 2020, the number of buyers increased by 900%, and contributed 15.5% to the beverage market, ranking third.
The fast-growing vegetable milk market also began to emerge more and more new consumer brands, and capital also began to enter the market.
Plant milk brands such as Wheat Oyer, oatoat, Daily Box and Planet Omai have all received as many as several rounds of financing in 2020. Without exception, these new domestic brands have adopted a product strategy similar to OATLY, with good-looking packaging, high-frequency network marketing, and a broader application scenario for unbundled products.
It is still difficult for OATLY to break down the fast consumer channel. If it is not bundled with coffee, consumers may still find the cheap, large bottle of Vee and Dali more fragrant.
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