Nowadays, we are seeing how fast new consumer brands are rising like Hey Tea, Perfect Diary, Huaxizi, etc. Most of them become popular in 2-3 years, and some become instant hits in a year.

The rapid development of those brands because they have grasped the consumption trends in China. In the meantime, according to the recent CBNData's 2021, there is a growing power of China's new consumer brands. The proportion of financing events in the consumer industry continued to increase in 2021, and the financing amount increased significantly by 147% year-on-year. Meanwhile, in 2021, the attention of domestic brands has been three times that of non-domestic brands. This clearly showed that new consumer brands are rising. How can we grasp the emerging consumer groups? The main group of new consumer brands is still young consumer groups, and businesses should pay special attention to the rise of Gen Z's consumption power.

According to the data of users who are interested in new brands, young people aged between 18-30 account for nearly half of the whole users. They are the most active adopters and promoters of new brands. More than 40% of the young generation users spend an average of 1000-3000 yuan per month, while the proportion of young generation consumers who have an average monthly consumption of more than 3000 yuan is close to 20%.

Some of the new consumer brands mentioned above have found a business model which is different from the traditional model of the industry.

Take Manner Coffee as an example, Manner Coffee does not follow the path of "third space" like Starbucks, nor does it repeat the path of Internet coffee such as Luckin and Lian coffee. It mainly opens small stores within 10 square meters and carries out online transactions, but insists on taking goods offline. For the sake of product taste, it does not involve takeout at the moment. Manner Coffee allowed consumers to buy a super tasty coffee for no more than 20 yuan and provide a great user experience. The small store model also makes its gross profit and net profit considerable, and it is easier to copy.

Of course, the difficulty of new consumer brands is to continuously increase the exposure of online brands to acquire organic traffic. Perfect Diary, Hey Tea, PopMart, Zhong Xue Gao and so on have captured a lot of followers in social media such as TikTok, Xiaohongshu, Weibo, WeChat and so on, and also caught the trend of social interaction consumption.
New consumer brands need to build a brand entry barrier. In addition to large-scale development and higher market share, brands need to continue to make efforts in the digital world, product innovation, supply chain and so on.

New consumer brands with strong capital will have strong power in market expansion, but the back end also needs to establish long-term entry barriers.

For example, Yuanqi Forest said that 95% of Yuanqi Forest's products have not been launched. Thus, 2021 will be the "product year" of Yuanqi Forest, and the personnel investment will be three times compared to 2020.

Similarly, as the representative of new drinks, Hey Tea launched 43 new products in 2020. Hey Tea has always placed importance on the digitization transformation process. For example, digitization, supply chain transformation digitization, store operation digitization, marketing digitization, etc.

Nevertheless, new consumer brands are now competing for long-term survival in the industry.