Analysis on Chi Forest's Market in China

Research Article
Open access

Analysis on Chi Forest's Market in China

Zhuoyao Li 1*
  • 1 Xi'an Tieyi High School    
  • *corresponding author Lizhuoyao2024@163.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/24/20230423
AEMPS Vol.24
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-91-1
ISBN (Online): 978-1-915371-92-8

Abstract

With the rapid development of technology in the new era, social media has become an indispensable part of everyone's life, and the Internet has penetrated into the lives of people of different ages. At the same time, many products are promoted through the Internet. Of course, this also has certain disadvantages -- rapid popularity but short life cycle. However, this marketing method also saves many endangered brands, such as "Huaxizi air honey powder", "Ke Qi lip glaze", "Hongxing Erke". In 2020, the Chi Forest took "sugar free" as the name of the beverage brand to attract a lot of people's eyes and attention. It only took 4 years for Chi Forest to enter the market and occupy the market, so this paper used MLA model to study and analyze the marketing methods of this brand.The significance of this research is to analyze the marketing method of Chi Forest to determine whether this marketing model can be applied to the same type of products, or whether the unique marketing method can teach us anything from it.

Keywords:

zero sugar, zero fat, new marketing, MLA model

Li,Z. (2023). Analysis on Chi Forest's Market in China. Advances in Economics, Management and Political Sciences,24,107-113.
Export citation

1. Introduction

Chi Forest, founded in 2016, is an innovative beverage brand with independent research and design. The Chi Forest brand comprises products such as "soda bubble water," "milk tea," "tea," "full mark!" and "Alien".  Gensen is not only attracted to sweet, fruity carbonated water, but also zero-sugar, zero-calorie, and zero-fat items that young people crave. In addition to fulfilling people's desire for a healthy, low-sugar, and low-fat lifestyle, this brand also aims to promote green production and lifestyle through low-carbon drinks, environmentally friendly packaging, and intelligent production, and contribute to the sustainable development of health and the environment. In 2023, at the annual meeting of the Chi Forest, founder Tang Binsen published an internal letter in which he stated, "believe in young people, adhere to the creation of good products", "2023, survival, development" concept [1-3]. Because the healthy life, low carbon life concept is implemented in the hearts of young people, this type of product marketing crowd is also comprised of young people b y appealing to the youth and subsequently moving to the general population.

Similarly, for the interpretation and comprehension of other important studies, the direction of our research is quite distinct. To disrupt the "quick and short" survival style, some researchers intend to investigate the Internet's essence and why the Chi Forest can accomplish rocket growth, or how to develop a new way out for Internet star products. This paper's examination of Chi Forest's marketing model is intended to assist domestic rising industries with marketing strategies. When analysing the Chi Forest advertising, the author first utilised the MLA analysis model, shown in figure 1. The MLA model consists primarily of four modules: source, message content, recipient, and channel. There are additionally more granular subdivisions for specific analysis within each module. Through an examination of Chi Forest's marketing model, this paper contributes to marketing theory for growing industries in the post-pandemic age.

/word/media/image1.png

Figure 1: MLA model main branch 2022 [3].

2. Analysis

2.1. Source

2.1.1. Attractiveness

Table 1 demonstrates that regardless of the type of beverage produced by the Chi Forest brand, its primary constituents are zero sugar, zero fat, and zero calories. As a compelling headline, the author believes these three themes are tempting to young women today. Hence, the first component of the source might be referred to as attraction.

Table 1: Chi Forest product series [4].

Product chart

Product name

Tagline

/word/media/image2.png

Soda Sparkling Water

zero sugar, zero fat, zero calories

/word/media/image3.png

Milk Tea

Low in sugar and fat

/word/media/image4.png

Burning Tea

Drink burnt tea without sugar

Product chart

Product name

Tagline

/word/media/image5.png

Full Mark!

collision of bubbles and juice

/word/media/image6.png

Fiber Tea

A day light drink fiber tea

/word/media/image7.png

Saucer Man

Hydrate! Drink alien electrolyte water

/word/media/image8.png

Mineral natural soft mineral water

Drink mine, more mine!

It can be noticed that advertising highlight zero calories, zero fat, and zero sugar as their slogans. This is appealing to Asian women, the majority of whom are young, white, tall, and slim. In spite of the lack of complete statistical data on female weight loss, sugar control, and fitness in Chinese culture, the considerable increase in purchasing power and extraordinary profits of slimming medicine companies over the past few years reflects this. Due to the advancement of science and technology, people are also paying more attention to their own healthy diet, healthy lifestyle, and low-carbon lifestyle, so they are more likely to purchase low-sugar, low-calorie, and low-fat foods when purchasing food. As a quickly popular Internet Internet celebrity product, Chi Forest did not follow in the footsteps of Internet celebrity products of the past, which had a brief and rapid lifespan. The author believes that the advertising selling words of Chi Forest with zero sugar, zero calories, and zero fat have garnered sufficient attention.

/word/media/image9.png

Figure 2: The number and growth rate of obesity in China from 2016 to 2021 [5].

As shown in Figure 2, these are the market statistics and growth rate for diet drugs in China from 2016 to 2021. In 2018-2019, the growth rate is the most pronounced, and in 2020-2021, the market size is the greatest [5]. Hence, Figure 2 demonstrates that the demand for weight loss has increased over time. Not only does Chi Forest quench people's appetite for beverages, but it also alleviates consumer anxieties. Thus, this product will be extremely popular with Asian women in the beverage industry. It satisfies people's appetites for soft drinks without causing them to gain weight or increase their bodily anxiety. Obviously, our clientele is not restricted to ladies alone. Several fitness-oriented males make the same decision.

/word/media/image10.jpeg

Figure 3: Gender proportion of sparkling water population [6].

In Figure 3, it is evident that the three stepped shapes have distinct heights. When  paying close attention to the title of this image, it may find out why many people choose Chi Forest Sparkling Water. Observations indicate that the majority of individuals chose it because it contains zero sugar, zero calories, and zero fat. This study also verifies in full that zero sugar, zero calories, and zero fat, as the marketing phrase for Chi Forest, has generated substantial marketing revenue for the brand.

2.1.2. Credibility

The author also decides to analyse the term credibility. The national food safety on the Chinese market is of utmost importance, so in the ingredient list for Chi Forest it can clearly see that the fat and sugar content is nil. Because of the country's high regard for food safety, no manufacturer would dare to fish in troubled waters in this regard, allowing consumers to purchase the product with confidence.

Table 2: Ingredients for a Japanese Forest soda with Sakura and grape flavor [7].

Items

Per 100g

NRV%

energy

OkJ

0%

Protein

0 g

0%

Fat

0 g

0%

Carbohydrates

3.8 g

1%

sugar

0 g

sodium

0 mg

0%

(Ingredients list of Sakura & Grape Flavor Sparkling Water in the Chi FOREST)

As seen at the bottom of the nutrition information page (table 2), which is a list of ingredients for Genki Forest's sakura grape-flavored soda, the fat and sugar amount that the majority of consumers are concerned about is in reality nil. Some individuals may question the veracity of the nutrition facts list, however China's food safety law and food labelling management are strictly regulated: If anyone violates the provisions of this Law in accordance with Article 86 of the Food Safety Law and commits any of the following acts, the competent departments shall, in accordance with their respective functions and responsibilities, confiscate the illegal gains, the food produced or sold illegally, and the tools, equipment, raw materials, and other articles used for such production or sold illegally.

Article 53 The State shall establish a system for food recalls. If a food manufacturer discovers that the food they produce does not satisfy food safety requirements, they must promptly cease production, recall the food currently on the market, contact the relevant producers, managers, and consumers, and document the recall and communication [8]. Article 17 When the words "nutrition" or "fortified" appear in the name or description of a food, the food's nutrients and calories must be labelled in accordance with the relevant provisions of the State standards and must conform to the quantitative labelling requirements prescribed by the State standards [8]. Article 30 Those who, in violation of Article 17 of these provisions, fail to label food nutrients, calories, or quantitative labels shall be compelled to make adjustments within a time limit; those who fail to make corrections within the time limit shall be fined up to 5,000 yuan [8].

2.2. Recipient

2.2.1. Gender

In the second section, the author selected the term gender. Each product has a unique target market and market positioning. The audience may have been predominantly female when Chi Forest first entered the market, but with the diversification of its products, the audience must be affected and changed. On the Chinese market, the author do not believe this beverage targets any one gender demographic. Nonetheless, it can still consider the distinct requirements of men and women: Men in society who pursue a healthy lifestyle or year-round exercise will prefer this sugar-free carbonated beverage. Ladies who have been dieting or exercising for years will also select this beverage because it is sugar-free.

Hence, the author believes that it is impossible to determine with precision whether this product is intended for the female or masculine market. We can only determine which side or market is more popular with this goods. 

/word/media/image11.jpeg

Figure 4: Choosing Chi Forest sparkling water three reasons [7].

Yet, according to official data given in Figure 4, 70% of Chi Forest consumption is accounted for by female consumers, indicating that women continue to represent the majority of consumers [7]. Because young people and women are more concerned with physical attractiveness, weight loss, figure, healthy living, and low-carbon living, their purchasing power will inevitably increase. Similarly, Today Finance, published by NetEase on January 20, 2022, reported that "Recently, Chi Forest released the 2021 Chi Forest Sparkling Water Consumption Insight Report." It was determined that 70% of sparkling water purchasers in 2021 were female, indicating that female consumers are more health-conscious while selecting beverages [7]. Generations born after 1995 have become the overwhelming majority of sparkling water consumers, accounting for nearly fifty percent of the market share. According to report statistics, zero sugar, zero fat, and zero calories would be the key factor influencing consumers to purchase Chi forest, which illustrates the perspective of youthful consumer groups towards the steady enhancement of the concept of sugar reduction [8]. This indicates the proportion of women who participate in this consumption.

2.3. Message Content

Thirdly, the author choose to use paralinguistic and nonverbal cues to convey meaning. By examining the marketing for Chi Forest's White Peach soda [8], one of many other types of beverages Chi Forest sells, it can determine that the brand's preferred colour scheme leans towards lighter, warmer tones. While the current advertising for white Peach soda features primarily pink and white colours, the rest of their flavoured sodas are still very pale. Water, soda, and the sound of opening a can are all audible in the video, suggesting that it is a sparkling water, and the song in the background keeps singing about having no sugar, no fat, and no calories, driving to the core of the ad and encouraging viewers to buy the product. Second, viewers do not only observe solid hues, there's also a white plate in the background, white peach powder, and clear water drops. These seemingly insignificant additions add up to a visual impact that makes the product seem cooler than it actually is.

2.4. Channel

In the final section, the channel is selected, which determines the medium's pervasiveness.  the paper examines three instances. The first is the time-honored practise of printing advertisements; these are ubiquitous in public spaces like airports, train stations, and bus terminals. The characteristics of advertising are distinct. Some businesses, for instance, can boost their sales by hiring spokespeople; consequently, many fans purchase these products in order to show support for their favourite endorsement brands. Yet this is just one possible approach. The second is similar to radio commercials, which are broadcast throughout the course of the evening. After a long day, when people are ready to unwind, they are more likely to buy these kinds of products; this is similar to how people are more likely to be influenced by ads when listening to the radio on a bus ride home, since the radio broadcast will inevitably include the insertion of advertisements. The consistent, rhythmic, and recognisable score makes it easy to recall. People watch television on a daily basis before tuning in to a TV series or movie feature, which naturally increases their immersion in the product over time. As a means of raising awareness of this fact, the Campaign uses the Genki Forest, which has no added sugar, fat, or calories. Simultaneously, Jackson Yi, Ni Ni, Gu Ailing, Xu Mengtao, etc., have all inked sponsorship deals with Chi Forest. Sales will skyrocket thanks to the support of athletes, streamers, followers of influential actors, and patriots [8].

3. Discussion

It was also very astute of you to break into the Chinese market. To begin, rather than enter the extremely competitive market for carbonated drinks, the company positioned itself in the Chinese market. Instead, China's low-sugar tea drink sector in the long-tail business was uncovered through research into international beverage markets. Curious young people will always be drawn to what's new on the market. After a market has been opened, marketing can begin through a variety of channels, based on the idea of producing quality goods that appeal to a wide variety of consumers. In addition, the expansion of the Internet has accelerated Chi Forest's rise to prominence among today's Internet celebrity products; yet, in order to "stay fresh," the company invests heavily in the exploration and creation of new lines of merchandise. Of course, the Internet does not constitute the sole place they advertise; traditional media like newspapers and magazines still have their uses. Meanwhile, The Times is capitalising on the trend by emphasising the absence of sugar, calories, and fat in their products. Other consumers, however, remain sceptical due to the fact that they believe the claims of zero sugar, zero calories, and zero fat are merely marketing ploys. In the author's opinion, it is not necessary to worry about the suggestions of individuals, but rather, to concentrate on retaining old customers through products and innovation, and acquiring new customers through old customers.

4. Conclusion

With a detailed investigation of the source, recipient, message content, and channel of the MLA model's Chi Forest marketing mode, this research determines if its adoption in the post-epidemic era's new generation of sectors is viable. In conclusion, the analysis reveals that Chi Forest enters the Chinese market with a distinctive and creative market positioning, and opens up new sectors by comparing the domestic and international beverage markets. The author believes that it is desirable for the next generation of businesses to enter the market via a fresh entry point. Second, Chi Forest ensures the product itself and retains its original intent. To keep old consumers and innovate to attract more new customers, many goods will lose their original purpose in the process of updating and iteration, thereby losing the trust of previous customers on the assumption that they will not attract new customers. Lastly, the power of Chi Forest advertising phrases to attract the public and its specific audience might reflect the enterprise's marketing strategy, which is a comprehensive examination of the benefits and drawbacks of their own products, rather than marketing based on the public taste trend.


References

[1]. Zhu Yu, Wang Zhongjue. From forest Internet deductive thinking new marketing 4 p [J]. Journal of the Chinese market, 2022, No. 1111 (12) : 178-181. The DOI: 10.13939 / j.carol carroll nki ZGSC. 2022.12.178. 178-179

[2]. Xu Haiqing, Yun Lexin. Enterprise Strategy Research in Different periods under the Internet Context: A Case study of Chi Forest [J/OL]. Business and management:1-8[2023-03-24].https://doi.org/10.16517/j.cnki.cn12-1034/f.20220620.003. 2-4

[3]. Yang Xiao. A Brief analysis of the reasons for the red burst of sparkling water in "Chi Forest" [J]. Today's Fortune (China Intellectual Property),2021(05):133-134. 1-1

[4]. The image of Chi Forest, 2022. https://baike.baidu.com/item/%E5%85%83%E6%B0%94%E6%A3%AE%E6%9E%97/55479096?fr=aladdin#2.

[5]. Paul chang. Internet marketing strategy analysis of innovative drinks from forest [J]. China business theory, 2021, No. 838 (15) : 56-58, DOI: 10.19699 / j.carol carroll nki issn2096-0298.2021.15.056. 1-1

[6]. Zhang S M. SWOT analysis and suggestions of Chi Forest -- taking soda sparkling water as an example.] Market in China, 2022, No. 1101 (02) : 128-129 + 136. DOI: 10.13939 / j.carol carroll nki ZGSC. 2022.02.128. 1-2

[7]. Li Ruipeng, Wang Dingzhou, Wei Zitong. Analysis of the Forest Marketing Strategy of New Consumer Brand [J]. Research on Propagation Power, 201,5(36):131-133

[8]. Zhang Tiantian, Liu Lin. Research on Brand Innovation of Qi Chi Forest [J]. Cooperative Economics and Technology,2022,(6):92-93


Cite this article

Li,Z. (2023). Analysis on Chi Forest's Market in China. Advances in Economics, Management and Political Sciences,24,107-113.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN:978-1-915371-91-1(Print) / 978-1-915371-92-8(Online)
Editor:Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.24
ISSN:2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Zhu Yu, Wang Zhongjue. From forest Internet deductive thinking new marketing 4 p [J]. Journal of the Chinese market, 2022, No. 1111 (12) : 178-181. The DOI: 10.13939 / j.carol carroll nki ZGSC. 2022.12.178. 178-179

[2]. Xu Haiqing, Yun Lexin. Enterprise Strategy Research in Different periods under the Internet Context: A Case study of Chi Forest [J/OL]. Business and management:1-8[2023-03-24].https://doi.org/10.16517/j.cnki.cn12-1034/f.20220620.003. 2-4

[3]. Yang Xiao. A Brief analysis of the reasons for the red burst of sparkling water in "Chi Forest" [J]. Today's Fortune (China Intellectual Property),2021(05):133-134. 1-1

[4]. The image of Chi Forest, 2022. https://baike.baidu.com/item/%E5%85%83%E6%B0%94%E6%A3%AE%E6%9E%97/55479096?fr=aladdin#2.

[5]. Paul chang. Internet marketing strategy analysis of innovative drinks from forest [J]. China business theory, 2021, No. 838 (15) : 56-58, DOI: 10.19699 / j.carol carroll nki issn2096-0298.2021.15.056. 1-1

[6]. Zhang S M. SWOT analysis and suggestions of Chi Forest -- taking soda sparkling water as an example.] Market in China, 2022, No. 1101 (02) : 128-129 + 136. DOI: 10.13939 / j.carol carroll nki ZGSC. 2022.02.128. 1-2

[7]. Li Ruipeng, Wang Dingzhou, Wei Zitong. Analysis of the Forest Marketing Strategy of New Consumer Brand [J]. Research on Propagation Power, 201,5(36):131-133

[8]. Zhang Tiantian, Liu Lin. Research on Brand Innovation of Qi Chi Forest [J]. Cooperative Economics and Technology,2022,(6):92-93