"Chi Forest, a beverage company founded in 2016, breathed new life into the long-unchallenged Chinese beverage market with its innovative, internet-focused approach. The company was renowned for rapidly creating differentiated blockbusters, including its signature Sparkling Water, Alien Electrolyte Water, R Tea, and Milk Tea Classic. Its Sparkling Water, launched in 2018, quickly took the market by storm and has since maintained its leading position. Over the next three years, Chi Forest saw its sales revenue skyrocket 15-fold from ¥160 million to ¥2.5 billion, making it a force to be reckoned with in China's beverage industry. Chi Forest's rapid rise to prominence captured the attention of entrenched industry leaders, prompting them to unite in an attempt to thwart its development. These industry giants introduced their own sugar-free sparkling water products mirroring Chi Forest's offerings, pressured distributors to exclude its products from their channels, and persuaded suppliers to cut ties with Chi Forest. Flush with financial and logistics resources, these large companies sought to disrupt Chi Forest's dominance in the market. Faced with these hurdles, Chi Forest recalibrated its operational approach. To mitigate its comparative disadvantages, this internet-based company began adopting strategies similar to those of traditional beverage companies, such as building its own production facilities, expanding its distribution networks, and restructuring its organizational framework. In addition, Chi Forest aggressively ventured into the cola sector, a segment long dominated by the duopoly of Coca-Cola and PepsiCo. By launching cola-flavored sparkling water, Chi Forest aimed not only to disrupt the market with another innovative product but also to demonstrate its boldness and readiness to take on the industry titans.

This case covers a common issue concerning traditional manufacturers in the digital era. As we know, Chinese manufacturers mainly focus on products and make profits by ramping up capacity and expanding dealer channels. As the Chinese economy shifts to a lower gear, this type of business model leads to overproduction and market saturation while also failing to meet consumer demand for more personalized products. In the digital era, therefore, traditional manufacturers need to change their business model to transform their business structure. While such a goal may be clear, how to reach it is a different matter. Founded in 2011, SAIC Maxus, a Chinese auto manufacturer, began exploring the C2B (Customer to Business) model in 2016, shifting from a product-centric approach to a user-centric one and from standardized mass production to personalization and smart customization. To this end, it had to adopt a new business model and digitize the entire manufacturing process and supply chain. With no precedent in the market to fall back on, how did SAIC Maxus figure out the C2B model from scratch? How did its C2B model help digitize the traditional value chain of the auto industry? What challenges would the C2B model face in the next step? What lessons does SAIC Maxus' exploration of the C2B model hold for other traditional manufacturing companies?