World’s Leading Innovative Products: Probiotics and Prebiotics ----Grace Lin Xu, CEO, VIVA NUTRITIONAL PRODUCT LLC USA and China

1. World’s Leading Innovative Products: Probiotics and Prebiotics
----Grace Lin Xu, CEO, VIVA NUTRITIONAL PRODUCT LLC USA and China
Why do we choose to engage in the probiotics and prebiotics industry?
In contemporary times, there are three reasons exerting influence on the
health of human body.
The first reason is gene, which is hard to explain. For example, the
politician in political field who tends to suffer from Alzheimer’s vaccine
and senile cardiovascular disease in declining years, which is related to
genes. Even if they attach more importance to nutrition and movement,
including powerful enlightenment of brain, they are still attacked by
similar diseases; therefore, gene is of great importance.

2. The second point determining health is lifestyle.
The third reason is enteric microorganism. More and more researches
show that the intestinal flora not only affects all health index of human
body, but also is related to chronic disease, “three-high”, cancer and
diabetes etc. According to global researches made in recent years,
personal emotion is closely related to enteric environment inside of body.
A great number of surveys with respect to Autism, Alzheimer’s Vaccine,
Parkinson and melancholia were made in oversea countries, which
demonstrates that their intestinal flora are extremely imbalanced, thus
leading to a series of chronic diseases. Intestinal flora has tremendous
connection with the cooperative effect of probiotics and prebiotics.
Therefore, we will spend some time here in introducing probiotics and
prebiotics that determine physical health as well as the trend of relevant
products.
First, we will show you a couple of products. We always try to start from
the perspective of women and children when regarding to probiotics as a
whole.

3. Product: yoghurt beverage containing excessive probiotics
Nation: Japan
Description: 10 billion probiotics are involved in each bottle of product,
with special added collagen and zero fat.
This product is of great feminization, which is a kind of probiotic yoghurt
itself, representing the type of “probiotics + acidified milk” product.
What I call this kind of product is functional beverage and functional
water. Raw ingredients with diverse functions are added together on the
basis of water. Such as the coconut water of Stephen, which gains great
prevalence in recent years. Though no viable bacteria exist there, dead
Product: yoghurt beverage containing excessive probiotics
Nation: Japan
Description: 10 billion probiotics are involved in each bottle of product, with special added
collagen and zero fat.

4. bacteria are a good source of prebiotics; therefore, it is an irresistible
development trend to add probiotics and prebiotics, even the collagen
peptide, into functional water. Apart from in the west, this kind of
product remains the same popular in China. Why can the old in Bama
keep a long life? Relevant studies demonstrate that the amount of
probiotics within local people is 75 times more than that within common
people living in other areas, which shows that a series of probiotics
products are beneficial to detoxification and prolonging lifetime.
Another type of product is probiotics nutrition bar. This is absolutely a
tremendous trend, especially in China in which relevant rules and
regulations make it not a sensible choice to manufacture probiotics and

5. prebiotics into capsule. Similar products are prevailing in the market of
New York, US. However, from my perspective, impeccable products of
nutrition bars made of prebiotics and probiotics are pretty rare in China.
This is a kind of product specially designed for women health. The
incidence suffering from colpitis disease of Chinese women has reached
75%. Actually, what improves colpitis is not depending on sterilization
products, but the prebiotics which can ameliorate the balance of vaginal
bacteria flora. This kind of products has been very prevalent in Japanese
market, and will become popular in China as well.

6. There is another section of probiotics products targeted for kids. This
kind of products will be labeled as specially designed for kids. Priority
shall be given to tastes, so soft sweets or palatable probiotic series are
made for kids. The products have high span for target customers,
ranging from infants to juveniles. Such a kind of products needs
particular attention, for not all probiotics released by ministry of Health
can target for infants. Therefore, we need to consider the specialty of
bacterial strain. This type of product is mixed powder, with various
bacterial strains mixed together. Perhaps there are some carriers,
including milk powder, albumen powder or protein specially designed

7. for lactose.
This type of product is the best probiotics commodity in contemporary
market, a BB12 single bacterial strain specially designed for children.
What gradually become competitive in the market will not be the total
amount of viable bacteria, but the key element, the crown bacterial strain,
then the security, and finally the amount of viable bacteria in crown
bacterial strains.

8. This kind of product belongs to probiotics series, which represents the
category of a probiotics series; what it emphasizes is not only the
intestinal balance, but also the beauty effect.

9. The probiotics products shown on the photo is taken from a shop in New
York, with abundant types and extensive target customers and uses.
The problems to be addressed by this product range from children,
middle-aged people, intestinal health, vagina health to peculiar smell of
Breath etc. We can see that the probiotics products in foreign countries
have been divided into different parts, while occupying huge shelves
with a series of products line extended.
When probiotics information has been introduced, we will talk about the
concept of prebiotics next. The prebiotics is the key element of probiotics,
and they are couple partner either. Therefore, it is common to catch sight
of foods added with super dietary fiber. As far as I am concerned, there
will be two dosage forms that will have a bright future in China. One is
the meal replacement powder form. In the weight loss and body shaping
industry, meal replacement powder is a booming industry in China.
Currently, the milkshake of Herbalife performs well in domestic market,
and there will be more and more meal replacement powder products.
The raw ingredients play a significant role, and the source of prebiotics,
such as oat bran, herb and extractive from sugar, determines the quality
of prebiotics.

10. Another one is the form of nutritional bar, which is laggard in China.
Different kinds of nutrition bars are displayed on commodity shelves in
foreign countries, while there are only several kinds of nutrition bars with
high sugar content in Chinese market. As a result, the meal replacement
powder and nutrition bars will be an irresistible and impeccable trend. In
addition, prebiotics can be put into a carrier. For example, milk is a
wonderful carrier. To add diverse extractives of oat bran into milk will
produce a delicious and healthy food, for these two ingredients are
complementary in taste and nutrition. This kind of products is common,
for various functional products can serve as three meals themselves and
can be made into the form of oral dissolution bars either. What is shown
on the figure is cereal products. Cereal itself is a breakfast food, a
necessity abroad. Some domestic famous brands initiate producing grain
series products. However, most grains have been processed precisely, so
extra dietary fiber and prebiotics should be added into the products,
which is one of advantages of prebiotics.

11. What’s more, bread is an excellent main food for prebiotics carrier. A
great number of bread in domestic market merely contain calorie, but
without nutrition. Hence, bread can be made into a good functional food
through adding all kinds of dietary fibers, so does the biscuit. There are a
lot of biscuits added with prebiotics in European market. Manufacturers
add various dietary fibers which are conducive to body health. What our
products emphasize is not merely the dietary fiber, for functions of most
products are also developed for lowering three highs.
How to develop a type of truly incomparable probiotics products or
prebiotics products in China? When I go back to China after traveling
abroad, I realized that the greatest challenge is marketing. Brand

12. marketing is a challenging thing. Naobaijin brand has spent 200 to 300
million yuan on advertisement, so does the By-health. Under this
condition, for Viva, a new functional brand without any basis, how can we
gain the biggest output with minimum investment in a totally different
way. Actually, a true breakthrough point is how to utilize social media
and new media. As for Viva brand, its acting point is to start from social
media. However, in the whole industry, the major problem to be
addressed is food safety, while other elements are icing on the cake. If
one functional food cannot free itself from safety problems, it has no
future.
What our advantage is? At the initial start, our company has develop
close cooperation with Chr Hansen and Royal DSM, two huge enterprises,
and our raw material and production plant have been certified by them.
This is a bottom line for addressing food safety issues. Another one is to
solve the issue of products certification. It is extremely complicated for a
functional product overseas to enter into Chinese market, for it should
meet not only the rules and regulations of Europe and the US, but also
that of China. Why so many excellent functional foods and dietary
supplement cannot gain access to Chinese market is a problem that
cannot be solved on the basis of laws.

13. Another point lies in the products orientation. According to observation
and consideration on overseas and domestic markets, we set women
aging from 25 to 45 as a target group. For women in this section have a
keen insight for accepting new things, while grasping the economy of
the whole family. As a result, only by making our products aimed to
women and letting them consume for her kids, husband and herself can
we truly catch all consumers in China. Therefore, the design and
orientation of our products are developed from the perspective of
women all the time.
As everyone notices that we have grasped the probiotics series when
producing the whole series products. The first product orientation is
probiotics series and probiotics+ series products, which have been
divided into different segments, including target for infants, women,
whole family members and middle-aged and elder men. Meanwhile, the
safety of bacterial strains is based on the BB12 royal bacterial strain of
Chr Hansen, which attains prominent effects.
Here, we will stress that BB12 is a bacterial strain co-produced with Chr
Hansen, a famous brand with over one hundred year history. At the same
time, we will tell consumers that there are 6 billion viable bacteria and
stress that it is imported form Danmark. At last, we can instruct that the

14. oral dissolution liquids taste good and can be drunk directly. Therefore,
whether from the security or the viable bacteria, bacteria strain and
tastes have all reached the best binding point. Meanwhile, we keep
contact with insiders of social media to ensure our products to have
frequent exposure not merely in Chinese social media, but also in
American media. Actually, the market in American is very limited; that’s
why we do not place much expectation to it. We only have research and
development group and social media team in America, instead of
salesperson.
Then why do we operate social media in the US? That’s because
everyone wants to know the exposure degree of overseas brand, so we
employ a great number of experts, hot moms and bloggers. To increase
brand exposure frequency, we sell our products in core drugstore in New
York.

15. Next, we will talk about how to work with social media of China. To say
not in a shy way, I build myself into a net star in nutrition field. I have 25
million audiences in Himalaya App in which I am used to spend 10
minutes in talking about topic involving nutrition, exercise and positive
energy. We have tens of thousands of fans in Facebook on which I write
stories about entrepreneurship. The price of our lessons is 99 yuan on
Ganliao/Ganhuo Forum, and 1700 people buy that each time. Meanwhile,
an answer on Baby Tree website values 50 yuan. We have got several
millions of fans within 2 years, which is attributed to social media and
“we media”. In this process, we get plenty of incomes from these
platforms without any monetary investment. Before our products going
to the market, I insist on eating my own products every day, punching

16. the clock every morning and sharing breakfast and morning exercise
moment with 50 thousand of female elites from over one hundred fans
QQ groups. Furthermore, I participated in many TV shows last year. For
example, I won the champion of Who’s still standing.
In china, we come to realize that we must have an opinion leader in
building a brand, so we initiated a crowdfunding campaign in 2014.
Apart from institutions, we need to rely on crowdfunding model to
transform ordinary female elites into shareholders, for they have their
own fans and will influence a group of people. Nowadays, to develop the
fans from 60 people to tens of thousands or millions of people is achieve
through constant efforts by each member. By spreading the concept of
nutrition and health, we have persuaded more and more people into
joining us.
The traditional marketing way is resorting to advertisement, which is
hard to win the heart and passion of the 80, 90 and 00 generation. What
they care about is social media and new media, so we need to attempt
different ways on new social media. That is to say that nowadays we
must overturn the traditional ideas and adopt a new method to build a
brand in China.

17. Finally, I would like to share my views on future development. I believe
that functional food will be absolutely a ten billion level market. In the
primary stage, there is no really good brand. Viva is determined to be a
nutrition brand with one-hundred year functional food. The main reason
lies in that we grasp the key points of time.
In summary, today we have talked about diverse forms, the significance
of probiotics of star single fungus, the baby and mom group and new
media marketing.
Meanwhile, some small brands come into view, whose promoting way is
net celebrity economy, just like the way of Viva today. Another point to
mention is that there are great potential in the whole market, so I advise
you not to start from first-tier city. We will set target for second-tier city,
even the third-tier or fourth-tier city, for these cities are in need of
nutritional products and corresponding education market while their
optional choice is limited. In addition, we are working to conclude the
summit seasons over the past years. For e-business, including T-mall,
Jingdong and global shopping, we invest more money to it than off-line
business. What actually help us to build a steady market are the social
groups and VIP customers groups. For example, our previous product
have gained attention of 200 people in social communication groups

18. within several hours, received responses within one week and go to
market within one month. Such a rapid speed is impracticable through
traditional way of big company.
At last, I think that the one-hundred-year nutrition brand appeared in
Chinese market is likely to be Viva, or a small middle-sized brand similar
to Viva. But please remember that innovation is different from creation
for the former is a new model based on original sources, which is the
condition of Viva and the whole industry.