爷孙三代创业70多年 年销上亿 “99%的人看不懂”

The article explores the development of Yongchun's incense industry in Fujian, focusing on the family entrepreneurship story of Xingquan Incense Factory and industry shifts.

1. Incense production has evolved from traditional religious uses to modern lifestyle applications like office use, yoga, and sleep aids, spawning new products such as incense beads and sachets.

2. Xingquan addressed consumer trust issues via live-stream e-commerce, using traceability broadcasts to showcase raw materials and craftsmanship, leading to significant sales growth—nearing ¥100 million in 2025, a 30% year-on-year increase.

3. Consumption trends are driven by TV dramas (e.g., Empresses in the Palace), with women becoming the core consumer group; incense is now seen as an emotional accessory, boosting repurchase rates and lowering returns to 7%.

4. Practical insights include product development strategies (monthly launches), supply chain adaptation (flexible production), and lessons from past e-commerce failures (e.g., non-standard products, information asymmetry).

The article reveals evolving branding and consumer trends in the incense industry, offering strategic insights for brands.

1. Branding efforts: Xingquan initially experimented with cultural venues (e.g., Sandao Xingguan) with limited success, then pivoted to live-stream e-commerce (via Taobao Factory and traceability broadcasts), boosting brand recognition—selling hundreds of bracelets per minute and nearly ¥500,000 per session.

2. Consumer trends: Incense has shifted from ritual use to lifestyle products tied to emotional value, with female consumers driving demand for floral scents; Taobao Factory data shows a 280% growth in stick incense and 700% growth in incense beads by January 2026.

3. R&D: Xingquan partnered with China Medical University to establish a lab analyzing scent mechanisms, developing new fragrances (e.g., harmonized incense beads) and launching monthly products tailored to female consumers.

4. Channel strategy: Transitioned from reliance on distributors to online sales, using third-party operators to strengthen user engagement; pricing must account for non-standard product attributes (e.g., price variations in agarwood).

The article analyzes growth opportunities, risks, and countermeasures in the incense market, offering practical guidance for sellers.

1. Market growth: Diversified usage scenarios (e.g., office, gifting) have spurred demand for derivatives like incense beads and sachets (700% growth on Taobao Factory), with Yongchun’s industry cluster seeing an 800% quarterly transaction increase; targeting female consumers is key.

2. Risks: Information asymmetry (e.g., false origin claims) and non-standard products challenge online sales (long repurchase cycles); Xingquan initially missed high-growth periods due to e-commerce failures. Solutions include traceability livestreams to build trust and semi-hosted models for operational support.

3. Takeaways: After relaunching online, Xingquan used live streams to clarify product value, reducing return rates to 7%; collaborations with platforms (e.g., Taobao Factory) and third-party operators aided branding.

4. Business model update: Shifted from traditional distribution to new product-driven supply chains (monthly launches); sellers can adopt flexible response strategies (preparing 200–300 SKUs within 2–3 months).

The article outlines optimization directions and commercial opportunities in incense production, offering direct insights for factories.

1. Production and design: Xingquan’s modern factory (50-acre site) uses automation (e.g., mixing) but retains manual processes for key steps (blending, shaping) to preserve scent quality; designs target female consumers (e.g., cloud-shaped coils, Year of the Horse editions).

2. Opportunities: Consumer trends drive demand for new products (beads, sachets); flexible supply chains enable rapid customization (e.g., for influencer collaborations). Yongchun’s industry cluster transacts ¥13–15 billion annually, with potential in multi-scene applications.

3. Digital and e-commerce: Early e-commerce failures stemmed from a factory mindset (e.g., unsuitable specifications); relaunch succeeded via traceability livestreams building trust. Insights include boosting efficiency via automation (peak daily output: 10 tons) while preserving craftsmanship (e.g., plans to sustain 18 manual techniques by 2030).

The article examines pain points and solutions in the incense industry, providing trend insights for service providers.

1. Industry trends: Incense has transitioned from traditional uses to lifestyle products emphasizing emotional value, with significant data growth (280% YoY for stick incense); Yongchun’s cluster transacts ¥13–15 billion annually.

2. Client pain points: Information asymmetry undermines trust (e.g., opaque raw materials); non-standard products complicate online sales (99% of consumers lack expertise). Xingquan previously missed opportunities by pausing e-commerce.

3. Solutions: Xingquan collaborated with China Medical University to establish industry standards, quantifying scent mechanisms; traceability livestreams showcase craftsmanship, reducing return rates to 7%.

4. Tech implications: Live-stream e-commerce (video explanations) is transformative; automated supply chains (machine precision) combined with manual techniques offer models for service providers to build trust in industrial clusters.

The article clarifies platforms’ roles in addressing industry needs, offering guidance for marketplace operators.

1. Merchant needs: Non-standard industries (e.g., opaque, high information asymmetry) require trust-building channels; Xingquan leveraged platform livestreams (Taobao Factory) to overcome sales gaps, using semi-hosted models for operational support. Needs include user education (e.g., search-to-repurchase conversion).

2. Platform strategies: Traceability livestreams (e.g., Quanzhou’s "Tea, Ceramics, Incense" broadcasts) display raw materials and processes, generating nearly ¥500,000 per session; partnership opportunities exist with third-party operators to help brands reach consumers amid cluster growth.

3. Operations: Platforms must mitigate risks like information asymmetry; data shows strong engagement (hundreds of items sold per minute). Emphasis is on building pathways for entire industries—Taobao Factory drove an 800% quarterly transaction increase.

4. Merchant recruitment: Opportunities lie in flexible supply chains (preparing SKU portfolios in 2–3 months); platforms should target trends (female-led demand) and avoid inertia (e.g., over-reliance on distributors).

The article reveals new developments and challenges in the incense industry, providing a foundation for academic analysis.

1. Industry shifts: Traditional incense production modernized, with supply chains moving from order-based to new product-driven flexibility (monthly launches); Yongchun’s cluster transacts ¥13–15 billion annually, holding a significant national share. Consumption psychology changed—incense became an emotional accessory, spurred by TV dramas (e.g., Empresses in the Palace) diversifying usage scenarios.

2. Challenges: Talent shortages (aging workforce, lack of e-commerce skills in Yongchun), information asymmetry (opaque sourcing), and slow standardization (non-standard products); Xingquan’s lab with China Medical University analyzes scent mechanisms, but industry-wide progress remains limited.

3. Policy implications: Building standards (e.g., scientific testing of alcohols) and quantifiable traceability livestreams are needed; business models shifted from distribution-dependent to brand-driven (product-content integration). Researchers could explore path dependency resistance.

4. Data support: Xingquan’s 2025 output value reached ¥100 million (30% growth), with a 7% return rate; Taobao Factory data shows a 280% increase in stick incense, indicating significant trend evolution.