Summary of Key Points
After facing public backlash over its pre-made food products and a large-scale closure of stores, Jia Guolong, the founder of Xibei, launched two new brands, "Tianbian Shaguo Mengmian" (Stewed Noodles in a Clay Pot) and "Tianbian Yangduo" (Mutton Dishes), which emphasize "fresh preparation on the spot" as a attempt to turn the company around. However, the article raises many doubts about the new brands' strategies, such as using the same brand name as Xibei. It also points out that Jia Guolong has had multiple failed attempts at launching new businesses before, making it difficult to replicate Xibei's success. If the new brands are to succeed or if Xibei is to be revived, he needs to break free from his reliance on past successful methods and truly reflect on past mistakes.
1. The New Brands' Focus on "Fresh Preparation": A Compromise with Consumers?
The biggest change in Jia Guolong's new brands is the emphasis on "fresh preparation on the spot," which is a complete shift from Xibei's previous pre-made food approach. Why this change? It turned out that when Luo Yonghao criticized Xibei's pre-made products, Jia's attempts at reasoning with netizens only led to more controversy. He finally realized that arguing with consumers won't lead to good results.
This move is a smart one: Consumers are becoming increasingly sensitive to pre-made food, and "fresh preparation" directly addresses their concerns, such as providing a more trustworthy and authentic dining experience. However, this is just the foundation; whether the new brands will succeed depends on other strategies, as "fresh preparation" is not a unique feature—many small restaurants already offer this.
2. Two Major Weaknesses of the New Brands: Using the Same Brand Name + Being Tied to Xibei
The article highlights two major issues with the new brands:
1. Why use the same brand name for products in completely different categories? Stewed noodles and mutton dishes are very different, yet both are called "Tianbian." If one of these products fails (for example, if the mutton is not fresh), consumers will lose trust in both brands. The current public opinion environment means that one failure can harm both brands, making it risky to share a brand name.
2. Why explicitly mention that these are Xibei/Jia Guolong's products? The purpose of launching new brands was to diversify and reduce the risks associated with Xibei (such as negative feedback on pre-made food). Instead, by associating them with Xibei, consumers may immediately associate the new brands with past controversies and be reluctant to try them. A third-party name could have helped separate the brands from Xibei's reputation.
3. Jia Guolong's Track Record of Failure: Is Xibei's Success Truly Unrepeatable?
All of Jia Guolong's other businesses besides Xibei have failed, including its subsidiary brands (Yamianmian, Yogurt House), independent brands (Maixiangcun, Super Roujiamo), and personal IP brands (Jiaguo Long Zhongguobao, Gongfu Cai). This suggests that Xibei's success might have been due to specific circumstances of the time (e.g., the early consumer upgrade trend that favored "Northwestern cuisine" and "healthy food"). However, these factors may not be applicable in other markets. Even the marketing company Huayuhua, which Jia hired, couldn't identify a replicable model for Xibei's success. Whether the new brands "Tianbian" can break this pattern depends on whether Jia Guolong can move away from his past approaches.
4. Xibei's Chance for Revival: Closing Stores is Just the Beginning; Rebuilding Trust Is Key
Despite facing numerous challenges, Xibei is not beyond redemption:
- It Still Has a Base: Even after the controversy, some consumers still prefer Xibei's children's meals, naked oats, and Northwest cuisine.
- Closing Stores Was a Good Move: The closure of over 100 stores gave Xibei the opportunity to adjust its strategy. However, this is just the first step; the remaining stores need significant improvements, such as adopting fresh preparation methods, adjusting prices, and improving service to regain consumer trust.
Focusing on transforming Xibei might be a more viable approach than launching new brands, considering Xibei's established brand recognition.
5. Jia Guolong’s Need for Reflection: Can He Let Go of His Arrogance from Success?
The article emphasizes that Jia Guolong's biggest problem is his reliance on past successful methods. After achieving success once, he tends to repeat the same strategies. But consumer preferences have changed; they now value cost-effectiveness and a genuine dining experience more than high prices or fancy concepts.
Jia needs to ask himself: "If I were starting from scratch today, would I approach Xibei in the same way?" If the answer is no, then there might be a chance for success with the new brands. This attempt with "Tianbian" represents a challenge; it's crucial for him to avoid past mistakes and adopt a more rational approach.
In summary, this analysis explains the key issues surrounding Jia Guolong and Xibei in plain language, making it easy for non-experts to understand the situation.