Fascinating breakdown of how value migration works in practice. The BeFood case is particularly clever since they basicaly created derived demand by becoming the standardized ingredient for a whole category. That indirect capture of pricing power through formula ownership is something most consumer brands completley miss when they obsess over direct brand building.
Hi — glad you found it interesting! Agree —. The BeFood case really shows how derived demand can also create pricing leverage — not sure — maybe this type of innovation sometimes unique to China? — a product built around only a single recipe surely needs the scale of such a huge market to make mass production viable. I wonder how many other categories could benefit from a similar approach—it’s often overlooked.
Fascinating breakdown of how value migration works in practice. The BeFood case is particularly clever since they basicaly created derived demand by becoming the standardized ingredient for a whole category. That indirect capture of pricing power through formula ownership is something most consumer brands completley miss when they obsess over direct brand building.
Hi — glad you found it interesting! Agree —. The BeFood case really shows how derived demand can also create pricing leverage — not sure — maybe this type of innovation sometimes unique to China? — a product built around only a single recipe surely needs the scale of such a huge market to make mass production viable. I wonder how many other categories could benefit from a similar approach—it’s often overlooked.