Follow and star ↑↑ 「New Distribution」 to see how many friends are with you in following industry trends Every morning, Wang Qiang, a young man in Beijing, drinks a cup of Yili Shuhua milk. Previously, due to lactose intolerance, he couldn't drink milk. Zhang Rui, a white-collar worker in Sichuan, drinks a cup of room-temperature yogurt Ambrosial on her commute. In Hangzhou, baby Kele drinks the Jilinguan formula milk his mother prepares for him every day; compared to imported formula, this one better suits the needs of Chinese babies.

Driven by innovation, Yili goes further On supermarket shelves, Ambrosial, Jinhui, Changqing, Shuhua milk, and Jilinguan are the most popular products among young consumers, all thanks to Yili's continuous product innovation. Yili's innovative products not only secure its leading position in the Chinese dairy market and provide consumers with more choices, but also showcase the quality of "Made in China" to the global dairy industry.

Recently, Yili once again appeared on the "2019 Top 500 Chinese Enterprises" list. At the same time, Yili delivered an impressive report card: in the first half of 2019, Yili Group achieved total operating revenue of 45.071 billion yuan, net profit of nearly 4 billion yuan, and led the industry in core indicators such as comprehensive market share and market penetration, firmly ranking first in Asia.

In the context of China's consumption upgrade and the slowdown in global dairy growth, Yili's achievements are inseparable from its continuous innovation. Russian writer Chernyshevsky once said, "Without a goal, where does the drive come from?" For a company, goals are the driving force for sustainable development, and Yili's current goal is to achieve "Top Five and 100 Billion." Innovation continuously drives Yili toward higher goals. "Top Five and 100 Billion" is a goal proposed by Yili Chairman Pan Gang in 2014. With the release of Yili's first-half 2019 financial report, it is clear that Yili's goal of reaching 100 billion is within reach.

As consumption upgrades accelerate, consumer demand for dairy products continues to grow, and Yili has accelerated its innovation pace accordingly. Pan Gang once proposed "No innovation, no future." Yili not only integrates innovation into every step of corporate development but also reflects it in its products. Room-temperature yogurt Ambrosial, Jilinguan formula developed specifically for Chinese babies, and Shuhua milk for lactose-intolerant individuals—each of Yili's innovations meets consumer needs. In addition, Yili has launched new products such as "Changyi 100% Global Select Series Lactic Acid Bacteria Beverage" and "Jinhui Jersey Pure Milk."

Beyond product innovation, Yili also innovates in channels. While focusing on building sales channels in third- and fourth-tier cities and even village-level outlets, Yili actively expands new channels such as e-commerce, mother-and-baby stores, and convenience stores. In 2018, e-commerce business grew 61% year-on-year, mother-and-baby channels grew 32%, and convenience store channel market share increased by 3.7 percentage points; in the first half of 2019, the company's e-commerce business grew 31.94% year-on-year. Channel innovation not only allows Yili to reach more consumption scenarios but also strengthens its brand power.

Going global: Building a "Global Health Ecosystem" As the number one brand in China's dairy industry, Yili has actively expanded into global markets in recent years, promoting industrial synergy and expanding international markets. In April 2019, Pan Gang first proposed the concept of a "Global Health Ecosystem," which is both Yili's strategic layout and a reflection of its values. From 2014 to 2018, Yili made comprehensive layouts in New Zealand, Indonesia, Thailand, and New Zealand, from building production bases to acquiring local brands. These actions indicate that Yili is accelerating its global market layout. In Pan Gang's view, Yili's globalization should integrate not only high-quality natural resources globally but also global intellectual resources such as technology and talent, establishing a "Global Wisdom Chain" to enable cross-border sharing and collision of wisdom. In building the "Global Wisdom Chain," Yili shares Chinese standards, Chinese management experience, and advanced technology with global partners.

From pioneering the liquid milk era to becoming a "Double Olympic" health food enterprise serving both Summer and Winter Olympics; from establishing a global wisdom chain to exporting Chinese standards, Pan Gang's foresight has set Yili on an internationalization journey. Dairy brand expert Hou Junwei believes that Yili's "Top Five and 100 Billion" goal benefits from its sales growth momentum in recent years and is also the result of large-scale brand marketing. The relationship between brand and sales is complementary; only big brands have big sales, and better sales mean greater brand influence, ultimately forming a virtuous cycle. The rise of domestic dairy brands cannot be separated from companies like Yili, which, through participating in the Olympics, leveraging celebrity effects, and strengthening terminal brand building, enable Chinese consumers to enjoy world-class brand products.

It is precisely because of Yili's strict adherence to product quality that consumers can drink safe milk; its adherence to corporate goals allows Yili to go from China to the world; and its adherence to "Made in China" allows the world's dairy industry to look to China.

Innovation is the gene that determines Yili's strength. Substantial investment in R&D teams enables Yili to meet consumers' ever-changing needs; continuous innovation in organizational management ensures lasting competitiveness; and continuous innovation in corporate development is the core driving force for Yili to rank among the global top. If Yili is compared to a ship setting sail, Pan Gang is the navigator, leading Yili globally with strategic foresight and boldness.

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