---
title: "Beverage Industry Hits a 'Turning Point' After 'Golden Decade'"
description: "After visiting terminal supermarkets in Chengdu such as Wangfujing, Ito Yokado, and Hongqi Chain, reporters found that unlike previous years when beverage brands attracted consumers with quirky products and created buzz-worthy items, this summer's beverage market has seen no 'hit' products."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-07-21"
language: "en"
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---

# Beverage Industry Hits a 'Turning Point' After 'Golden Decade'

> After visiting terminal supermarkets in Chengdu such as Wangfujing, Ito Yokado, and Hongqi Chain, reporters found that unlike previous years when beverage brands attracted consumers with quirky products and created buzz-worthy items, this summer's beverage market has seen no 'hit' products.

**Summary** Recently, after visiting terminal supermarkets in Chengdu such as Wangfujing, Ito Yokado, and Hongqi Chain, reporters found that unlike previous years when beverage brands attracted consumers with quirky products and created buzz-worthy items, this summer's beverage market has seen no 'hit' products.

Recently, after visiting terminal supermarkets in Chengdu such as Wangfujing, Ito Yokado, and Hongqi Chain, reporters found that unlike previous years when beverage brands attracted consumers with quirky products and created buzz-worthy items, this summer's beverage market has seen no 'hit' products.

**Peak Season Sales Flat; Extreme Weather a Factor**

"Try it, our juice is really pure, absolutely no preservatives or additives..." On July 17, at the beverage counter of Wangfujing supermarket, promoters from two different beverage brands pulled at consumers, competing to introduce their products. Reporters learned that the beverage counter displayed dozens of juice brands, priced from over ten yuan to several dozen yuan. As for sales, staff said: "Not great, just average." Similar situations existed at stores like Qunguang Department Store and Isetan Department Store.

Guo Chen, an agent for a beverage brand, told reporters: "This year's beverage sales are indeed not good, with supply volumes clearly lower than last year."

Moreover, in recent years, one or two 'hit' beverages have appeared each summer, such as Mizone with 8 billion yuan in sales in 2014 and Uni-President's rise in 2015 with 'Xiao Ming Tong Xue' cold-brewed tea. This situation has changed this summer, with 'hard-to-find hits' becoming a notable feature. Liu Hao, a person in charge at Hongqi Chain, told reporters: "Consumers' needs are now diverse, making it truly difficult for another hit to emerge. But relatively speaking, new products from major brands are certainly better than those from lesser-known brands, as it's directly related to brand awareness."

After a period of rapid development, the beverage industry has finally hit a bottleneck. From the early carbonated and tea drinks to juices and coffee, it's now difficult for any single product to dominate the market. Guo Chen said: "There are still many new products this year, but they all seem to 'lack staying power', with no major highlights and insufficient innovation. Coupled with weather impacts, some industry insiders have already shifted their focus to next year."

**Industry Growth Slows to Single Digits; Beyond Marketing, Internal Strength Needed**

In previous years, if a beverage was rated by consumers and netizens as 'undrinkable' or 'would never drink again', the brand would immediately step forward, either publicly explaining or quickly adjusting the product.

This year, 'alternative marketing' has become a strategy.

A product called Laoshan White Flower Snake Grass Water caused a stir among consumers due to its 'terrible taste', but the brand happily accepted this, and without almost any explanation, its visibility grew. Another unconventional player is Wang Laoji, a beverage traditionally known for 'cooling and reducing heat', which this summer partnered with Tianjin's time-honored brand 'Goubuli'. They also plan to launch a series of customized cans featuring 'China Story' time-honored brands, aiming to transition from a 'Guangzhou business card' to a 'China business card', completing overseas expansion and layout.

Judging from actual sales, these actions have not significantly boosted sales. During the investigation, reporters found that these 'online viral' marketing moves did not gain much consumer recognition in the local market. More citizens said, "It's just a drink, no need to be so particular."

In February this year, the China National Food Industry Association released the '2015 Annual Report on the Overall Operation of China's Beverage Industry', showing that in 2015, beverage industry enterprises above designated size achieved main business revenue of 615.733 billion yuan, a year-on-year increase of 6.21%. In terms of value, the beverage industry still maintained positive growth, but the growth rate has significantly declined. While competing in marketing tactics, manufacturers might also need to think deeply about product upgrades and industry transformation.

-END-

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