Facts have proved that Tianrun won this adventure.

Everyone must have felt that in the dairy products section of various supermarkets or stores, well-known dairy companies such as Mengniu Yili Guangming have always dominated, with a wide range of products, occupying half of the shelves.

However, when the island owner was visiting the supermarket recently, he discovered an interesting phenomenon. There is an exclusive area in the dairy section. There are a wide variety of products in it, including pure milk, yogurt and even milk beer. . Moreover, the flavors are different and the packaging is novel. The most eye-catching thing is the name of the yogurt, such as "The ice cream has melted!", "The chocolate has broken!", "The rose has turned red!", etc., which are unforgettable. It has become a unique landscape in the dairy area.

Who is this magical milk company that can carve out its own niche under the encirclement and suppression of these dairy giants? The island owner picked up a bag of "The ice cream has melted!" with two big characters "Tianrun" written on the label.

Speaking of golden milk sources, the first thing that comes to mind is the prairie of Inner Mongolia, where the two dairy giants Mengniu and Yili originate. But in addition, not far away at the foot of the Tianshan Mountains in Xinjiang at 42 degrees north latitude, there is also a vast "golden milk source belt" with abundant sunshine, rich pasture and rich grass. There are dozens of local dairy brands in Xinjiang, and Tianrun is one of the best.

Tianrun Dairy was founded in 2002, formerly known as Urumqi Nongken Dairy Group Company. It is affiliated to the 12th Agricultural Division of the Xinjiang Production and Construction Corps and implements semi-military management. This is called Corps milk.

The Corps has made outstanding contributions to the economic development of Xinjiang. The first electricity generated in Xinjiang, the first piece of steel smelted, and the first piece of cloth woven were all made possible by the sweat of the Corps members. figure. Tianrun is the representative of the XPCC in the dairy industry.

When Tianrun was founded, although it built its own milk source base, due to insufficient research and development, single products, and insufficient quality and taste, it was never able to create a product that drove the overall product line. Star product. It does not have an advantage in the fiercely competitive Xinjiang milk market, and its development path is difficult.

Under the severe situation, Tianrun did not choose to avoid the problem and wait for death, but actively responded to it. Around 2007, Tianrun introduced a large amount of fresh blood into the company to try out product upgrades.

As the saying goes, if you don’t break, you don’t stand. Through resource integration and R&D discussions, Tianrun boldly gave up the brand’s signature single product “colostrum” and took a new path to differentiate from other milks. .

This was an adventure. After extensive market research and product development, Tianrun’s answer was the first 400 ml bag of pasteurized milk in the Xinjiang market.

Facts have proved that Tianrun won this adventure.

Pasteurized milk refers to milk processed by pasteurization. It is fresher, more natural and more nutritious than traditional milk, and has a large fan base.

However, since pasteurized milk has a short shelf life and requires refrigeration, it is classified as "fresh and ready to eat", so its capacity is generally small. However, as people's understanding of milk deepens, the demand for fresh milk every day is also increasing. Small packages often require purchasing multiple bags, which is more troublesome, so large packages of pasteurized milk will be a new trend. Tianrun seized this opportunity.

After several years of accumulation in the milk market, coupled with technological innovation, Tianrun’s pasteurized milk has a mellow taste, first-class quality, and unique large packaging, which quickly attracted attention in the market. This has triggered a consumption boom in Xinjiang’s milk market.

The success of pasteurized milk allowed Tianrun to gain a firm foothold in Xinjiang and start the path of catching up from behind. First, in 2009, Tianrun cooperated with "Jiali", another dairy brand in Xinjiang, to launch Tianrun milk beer, which became a hit in the future.

Immediately afterwards in 2010, Tianrun grabbed food from the tiger's mouth and won the auction with Xiyuchun, the leading dairy company in Xinjiang, and acquired Gary Dairy Co., Ltd. to avoid Xiyuchun being the only one company at the same time. , embarked on the path of group development. Finally, in 2013, he successfully backdoored his company and entered the ranks of listed companies, becoming one of Xinjiang's dairy giants.

But Tianrun’s ambitions don’t stop there.

The achievements in Xinjiang have not stopped Tianrun from moving forward. Instead of struggling in the local market, going out of Xinjiang is the inevitable choice for Tianrun to develop to a certain stage.

In 2015, Tianrun, which adheres to the path of differentiation, launched the "Eclin" series of low-temperature concentrated yogurt. It was this product that completely changed Tianrun’s destiny and realized Tianrun’s ultimate goal of “going global”.

Since the production of "Eclin" condensed yogurt, the average daily sales volume is 62 tons, and the daily sales volume can reach 100 tons during the peak sales season. After winning the sales championship in the Xinjiang market, it has entered the market outside Xinjiang in one fell swoop. It is still hot and the market supply exceeds demand. The annual sales account for 30% of the company's total product sales, becoming Tianrun's leading product.

The first question we discuss first is, why did Tianrun choose low-temperature yogurt as a breakthrough to enter the mainland market?

First of all, yogurt is made from fermented milk. It has a sweet and sour taste and is rich in nutrients. It is a nutritional product with unique functions that can regulate the balance of microorganisms in the body. Drinking yogurt can promote digestion and absorption and increase appetite. It has become very popular among people in recent years.

Secondly, the normal-temperature milk market in the mainland is mature, with serious homogeneity and fierce competition. Moreover, Xinjiang has high altitude and long distances, and the transportation cost is high, making it difficult to bring out the fresh and instant characteristics of fresh milk. With the rapid development of cold chain logistics and transportation, low-temperature yogurt has become the best choice for Tianrun to go out from Xinjiang.

The second question is, why does this Tianrun yogurt stand out from the competition in the mainland market and become popular all over the country?

As we mentioned earlier, Tianrun is focusing on building a high-quality milk source base in Xinjiang. It is located in the Tianshan Ranch and has the unique advantage of golden milk sources. The protein content of Tianrun’s concentrated yogurt is 3.3g/100g. , 43.48% higher than the national standard of 2.3g/100g. The yogurt tastes mellow and rich, and its quality is trustworthy.

The finishing touch is the innovative packaging design of Tianrun yogurt. This design is called "Eclean Packaging Design". The main component of the packaging is calcium carbonate, which has no packaging pollution. The particularity of the material makes the yogurt after filling have a unique taste and outstanding aroma, and has a good preservation effect on the yogurt. Moreover, the packaging has a unique inflatable handle that can stand, making it easy to place and carry, and is widely praised by the public.

Tianrun can be said to have devoted the entire company to the development of this yogurt, and has made great efforts in innovation, creativity and reputation. Starting from the launch of the ripe yogurt flavor in 2015, rose red was launched on Women's Day in 2016, chocolate chip was launched on Children's Day, and ice cream was launched in summer; Tomb Raiders hit the launch of Tomb Raiders themed yogurt; and white fruit flavor was launched in June 2017. , In October, bananas were launched, in November, cheese power triangular bags were launched, and on Singles’ Day, Hawthorn Love was launched; in January 2018, on the eve of Valentine’s Day, Bewitched by Pomelo was released. So far, more than ten flavors have been launched, which are widely sold all over the country. It was so popular that it became a well-known Internet celebrity yogurt and achieved unprecedented success.

From the analysis of Tianrun’s financial reports in recent years, we can see the amazing changes brought about by Tianrun yogurt.

In 2015, the revenue in Xinjiang was 568 million, while the revenue outside Xinjiang was 17 million, accounting for 3%;

In 2016, the revenue in Xinjiang was 705 million, and the revenue outside Xinjiang was 168 million. , the revenue outside Xinjiang accounted for 19.3%;

In 2017, the revenue within Xinjiang was 787 million, and the revenue outside Xinjiang was 445 million, accounting for 36%;

In 2018, the revenue within Xinjiang was 36%. The revenue was 901 million, and the revenue outside Xinjiang was 557 million, accounting for 38%.

Driven by this magical yogurt, Tianrun’s sales in markets outside Xinjiang have experienced explosive growth, and Xinjiang milk has really become popular all over the country.

Today, Tianrun Dairy has established a sales system in more than 20 provinces and cities in China. In 2018, its annual revenue reached 1.5 billion, which has created a sales miracle. The situation can be described as It's great.

But behind the scenery, hidden dangers still exist. From the above data, we can analyze that from 2015 to 2018, Tianrun Dairy’s revenue growth rates were 80.26%, 48.7%, 41.7%, and 17.9% respectively, and its net profit growth rates during the same period were 304.9% and 53.9% respectively. , 26.64%, 15.2%.

Both revenue and net profit growth slowed down significantly.

It is a feat for Tianrun to develop markets outside Xinjiang, but the high cost of transportation management is always a problem. The gross profit margin outside Xinjiang is much lower than that inside Xinjiang, which shows that this road is not easy to follow. Actively expanding the market, optimizing channels and reducing costs are also top priorities.

Secondly, Tianrun focuses on differentiated low-temperature yogurt. It started from scratch and took advantage of the chaos to occupy a place in the mainland market. But when Tianrun develops to a certain scale, other dairy companies will also pay attention. Tianrun, which lacks core competitiveness, will face fierce competitive pressure.

Take Yili and Mengniu, for example. Last year, the advertising expenses alone were 10.7 billion each and 7 billion respectively. However, Tianrun's investment in advertising and distribution is still a fraction of theirs, and it only relies on good reputation to support itself. If things go on like this, it will not be easy to win over these giants.

Moreover, Tianrun Yogurt has reached its extreme, and it is difficult to achieve explosive growth like before. The product is too single, which has caused Tianrun to fall into a bottleneck period, which can be seen from the slowdown in revenue growth.

Based on the core position of low-temperature yogurt, Tianrun should also strengthen its publicity efforts and establish product development ideas to strengthen normal temperature and break through milk drinks.

We will wait and see whether Tianrun from Xinjiang can withstand the pressure, strive for progress while maintaining stability, and realize the company's ambition of "building a prosperous China from the north to the south of the Tianshan Mountains" and make Xingtuan milk fragrant all over the world.