Abstract: The gradual awakening of post-90s health awareness and the increasing demand for health preservation will continue to influence the subdivisions of the dietary supplement market towards light-functional food, fast digestion, and high frequency. As a generation that is more receptive to new things, the consumer demand of the post-90s generation will prompt all dietary supplement companies in the industry to develop young and diversified products in product research and development ideas and packaging theme design.
Recently, the Ali Institute of Health released “New Insights on Tmall Health Trends in 2021”. Insights show that people in contemporary workplaces generally face sub-health problems such as hair loss and insomnia. “Health preservation” has gradually become the consumption rigid demand of the new generation of young people. According to the “Post-90s Health Report” of Sutu Research Institute, 32.7% of post-90s respondents spend between 100-200 yuan on dietary supplements per month, and 21.9% of post-90s said they “have long-term use of dietary nutrition.” The habit of supplements.”
As a leader in the health care product industry, for the growing post-90s dietary supplement market, By-Health said: “The gradual awakening of post-90s health awareness and the increasing demand for health preservation will continue to affect the segmentation of the dietary supplement market. Moving closer to the direction of light-functional food, fast digestion, and high frequency. As a generation that is more receptive to new things, the consumer demand of the post-90s generation will prompt various dietary supplement companies in the industry to develop ideas and packaging theme design. All of them are young and diversified.”
1 The rapid growth of China’s dietary supplement industry
According to statistics from Ping An Securities, from 2015 to 2020, the global healthcare market grew slowly, with a 5-year compound growth rate of only 3.4%. During the same period, China’s healthcare market grew rapidly, with a compound growth rate of 9.4%. As of May 2021, the total size of China’s dietary supplement market has reached 231.7 billion yuan, making it the world’s second-largest dietary supplement market.
Foresight Industry Research Institute’s dietary supplement industry investment planning analysis report pointed out that the strong consumer and high premium attributes of dietary supplements have attracted the participation of a large number of pharmaceutical and food companies, which has led to the concentration of my country’s dietary supplement industry. Low. In recent years, as the regulation of the dietary supplement industry has been tightened, the number of companies in the industry has shown a downward trend. As of May 2021, my country’s dietary supplement industry has a CR10 of 28.9%, an increase of 3.4% from 2015.
“Essentially, dietary supplements have the dual attributes of food and drugs and are a fast-moving consumer product subject to strict supervision. From the perspective of consumer psychology, consumers are generally willing to pay a premium to purchase the dietary supplements they are familiar with. Brands. In the long run, the dietary supplement industry is prone to a pattern of strong ones, and small brands will become more and more difficult to survive in the market.” Liu Wen from the Food Science and Processing Research Center of Shenzhen University told reporters.
“After a graduate student enters an investment bank, the daily workload is very large, and overtime is a frequent thing. Therefore, there is no time to compare brands one by one. Generally, choose the top-ranked health care products according to the e-commerce ranking.” A post-90s financial post Practitioners told reporters.
Regarding the integration trend of the dietary supplement industry, By-Health said: “With the gradual introduction and implementation of relevant national policies, industry regulations, and standards, the dietary supplement industry has become increasingly stricter. The level of industry standardization and entry barriers have further increased, which has had a significant impact on the long-term development of the industry and the competitive landscape, and has provided policy guarantees for the healthy development of the industry.” During the period 2010-2020, the company’s operating income increased from 340 million yuan to 6.09 billion yuan, a compound growth rate of 33.2%. Parent net profit increased from 90 million yuan to 1.52 billion yuan, a compound growth rate of 32.4%.
Product quality is the root of brand power. In order to meet consumers’ increasing demand for dietary supplements, BY-HEALTH has invested a total of 370 million R&D expenses from 2018 to 2020.
“The dietary supplement industry has moved from the first half of marketing to the second half of R&D. With the improvement of consumer health awareness and the popularization of nutritional knowledge, the strategy of focusing on marketing and light products has begun to fail. People of different age groups and different physical conditions Consumers have different needs for health care products, and the way a product hits the world is destined to be eliminated by the market.” BY-HEALTH said.
2 Post-90s consumers drive e-commerce branding
With the entry of post-90s consumers, e-commerce channels have gradually become one of the main consumption channels for dietary supplements. According to data from the Prospective Industry Research Institute, from 2008 to 2020, the proportion of e-commerce channel revenue in China’s dietary supplement industry will increase from 0.2% to 30.6%.
The rapid development of online channels for dietary supplements is related to the three characteristics. First, the unit price of dietary supplements is high but the quality is low. This is very similar to 3C products. At present, the e-commerce rate of domestic 3C products is already very high. Second, the immediacy of consumption of dietary nutritional supplements is weak. Consumers do not have to buy them today and have to eat them tomorrow, but they can have a waiting time. Third, early consumers relied on online cross-border e-commerce to purchase overseas big-name dietary supplements, which to a certain extent also promoted the trend of online dietary supplements in my country.
According to the Ping An Securities report, By-Health’s early expansion mainly relied on offline channels. The number of the company’s pharmacy terminals has increased significantly from 3,400 in 2007 to nearly 20,000 in 2012. Before 2013, pharmacy terminals accounted for more than 90% of the company’s total operating income.
However, offline pharmacies are not the first choice for post-90s healthcare consumers. According to the latest data, more than 50% of pharmacy consumers are over 60 years old, and consumers under 40 account for less than 30%.
According to the insight report on the health and wellness consumption trend of the post-90s generation: Among the 3,215 post-90s surveyed, nearly 80% of the post-90s said they had purchased dietary supplements online in the past year, and 31.26% of the post-90s said that they only After buying dietary supplements online, only 5.6% of the post-90s generation said that they have the habit of regularly buying dietary supplements from pharmacies.
The report also pointed out that currently, only 13.5% of post-90s generations prefer foreign dietary supplement brands. “The new generation of young consumers, represented by the post-90s generation, has become savvier. We are no longer willing to pay higher brand premiums for so-called foreign goods and pay more attention to cost-effectiveness. When shopping online, we will also shop around. Choose the product that best matches your needs.” A post-90s consumer of dietary supplements told reporters.
In the face of changes in the times, BY-HEALTH has implemented an e-commerce branding strategy since 2017. “The so-called e-commerce branding strategy refers to the process of developing an independent e-commerce brand system and implementing a differentiated brand strategy to promote brand rejuvenation and provide value to young dietary supplement consumers. Our e-commerce products In terms of characteristics, it emphasizes lightness, fashion, and taste. In terms of demand, it also focuses on the needs of young people, which is different from conventional dietary supplement products.” The company said.
In 2020, BY-Health’s domestic online revenue accounted for nearly 30%, a year-on-year increase of more than 63%. According to JD Business Intelligence data, in 2020 JD’s “medical and healthcare industry”, BY-Health’s market share is 15.5%, ranking first.
BY-HEALTH has established a user-centric e-commerce digital system construction and established an efficient e-commerce R&D and promotion system. Each e-commerce exclusive product has a dedicated product manager to follow up the entire life cycle. At present, in terms of product production, the company has launched some e-commerce tailored for young consumers, represented by YEP, for ordinary food to meet the nutritional needs of young people. The company’s e-commerce platform expects to use attractive and informative products to deliver a personality and positive lifestyle to young and energetic fresh people in the workplace and the new generation of cities with fashion and attitude.
