Li Ziming has grown from a milk-drinking child to a primary school teacher, but Want Want milk remains the same can. China Want Want's main product, Want Want milk, has been on the market since the 1990s, with sales skyrocketing. A product sold for over 20 years, the continuous decline in recent years is not surprising. In the early years, Want Want milk dominated the reconstituted milk beverage market, but today, with abundant products, this former strong children's beverage IP has reached a greasy middle age. Since 2014, Want Want milk's performance has fallen below 10 billion yuan, and two years later below 8.5 billion yuan. For China Want Want behind this can of milk, the biggest pressure comes from weak new products. The number of new products launched is not small, but it is difficult to create a hit again. China Want Want should be eager to get rid of the declining performance trend, leading to exaggerated publicity in the advertising of Shawa Chicken Tail Wine and O-Pao Fruit Milk, which was punished by regulators. A can of Want Want milk sold for over 20 years In 1992, Taiwan-funded enterprise China Want Want came to the mainland, first setting up a factory in Hunan, and its main products, Want Want Snow Cake and Want Want milk, immediately became popular nationwide. It was then that the post-70s and post-80s began to see on TV the mother of Li Ziming, who constantly sent two cans of Want Want milk to school, and advertisements of a child eating snow cakes. Time has changed, Wahaha's Nutrition Express has stolen the limelight, Yangyuan's Six Walnuts has emerged, and Xiangpiaopiao's milk tea business is thriving. With intensified market competition, the two old products, Want Want milk and Snow Cake, still support China Want Want's performance. Who would have thought that a can of Want Want milk has been sold on the market for over 20 years? In 2013, Want Want milk sales reached its peak, with annual revenue of 10.8 billion yuan, accounting for 46% of China Want Want's total revenue that year. It then entered a downward trend, falling to 8.478 billion yuan in 2016, and to about 8 billion yuan in 2017 (12 months). This beverage uses milk powder as raw material, called reconstituted milk, which simply means mixing milk powder with water to restore it to milk. Therefore, fluctuations in milk powder prices directly affect product profits. Since 2013, the gross margin of the product has fluctuated between 38% and 45%. Among them, in 2016, due to a 33% drop in milk powder prices, the gross margin reached 50.7%. Zebra Consumption statistics found that from 2013 to the first quarter of this year, Want Want milk achieved total sales revenue of 49.417 billion yuan. The middle-aged Want Want is like an old ox showing signs of fatigue. Performance decline, weak new products In August last year, China Want Want suddenly made a decision - to change the fiscal year end date, modifying the 2017 new fiscal year to April 1 of that year to March 31 of the following year. The company stated that this move is to more accurately reflect the company's operating conditions. Small and medium investors did not buy this measure, thinking it was to make the financial report look better by covering ears and stealing a bell? In the 2017 new fiscal year (adjusted), China Want Want's revenue was 20.274 billion yuan, a year-on-year increase of 6.6%; net profit was 3.116 billion yuan, a year-on-year decrease of 6.6%. From 2013 to 2016, China Want Want's revenue was 23.630 billion yuan, 23.2 billion yuan, 21.389 billion yuan, and 19.710 billion yuan respectively, with net profits of 4.254 billion yuan, 3.813 billion yuan, 3.383 billion yuan, and 3.519 billion yuan in the same period. Compared with the same caliber 2017 revenue of 19.017 billion yuan and net profit of 3.337 billion yuan, China Want Want's decline trend is obvious. Starting in 2015, China Want Want launched a multi-brand strategy to cater to young personalized groups, launching new brands such as "Aiyo" and "Laren" for jelly and plum wine, but it did not reverse the company's revenue decline trend. Zebra Consumption found that in 2017 alone, the company launched 50 new products, involving juices, coffee, and energy products, but their market performance was not outstanding, with no well-known or viral products. Want Want milk was once unique in the children's beverage market, but later Yili QQ Star and Mengniu Future Star turned this market into a red ocean. Furthermore, with the rise of room-temperature milk, fresh, nutritious, and healthy products are more favored by consumers. Yili's Ambrosial (Anmuxi) took the lead in the room-temperature yogurt market. Nielsen data shows that in 2017, Ambrosial sales revenue reached 12 billion yuan, becoming the largest single product in the domestic dairy industry, and Yili also took advantage to enter the plant protein beverage field. What was missed? 26 years ago, China Want Want entered the mainland market, choosing milk and snack products with high daily consumption and low unit price, quickly occupying the market. But it missed the opportunity to adjust with changes in the consumer market. So until now, China Want Want still sells Want Want milk and Snow Cake, watching competitors enter this market. In 2008, Mengniu Dairy launched "Future Star", Yili followed with QQ Star, in 2012, Crayon Shin-chan Food launched flavored milk beverages, in 2013, *ST Yinmei invested 350 million yuan to enter this market, but returned in defeat... With the advancement of insulation technology and logistics development, room-temperature milk and low-temperature milk have become common products in third- and fourth-tier city market terminals, and the market space for reconstituted milk and formulated milk products has been compressed. Zebra Consumption noticed that in the existing market, most new products launched by China Want Want are just old products with changed names or packaging, relying on emotional appeal and nostalgia to attract consumers, but today's post-00s and post-10s main consumer groups obviously do not buy this. For a long time, China Want Want's market has been mainly concentrated in third- and fourth-tier cities, but with the diversification of young people's consumption channels, the influence of the previously strong offline channels has gradually weakened. Source: Zebra Consumption From August 22-24, the "2018 China Digital Innovation Conference (2018FDIC)" with the theme "Finding New Growth Engines" will be held in Shanghai, hosted by the China FMCG Industry Association and organized by New Distribution. The conference will last 3 days, focusing on two themes: marketing and supply chain, with six parallel forums on brand, channel, communication, B2B, same-city logistics, and innovative retail. We will invite industry experts, CEOs, and brand executives to deeply interpret the trends and drivers of digital transformation in the FMCG industry. We will invite more than 500 FMCG enterprise executives, 200+ B2B industry CEOs, and 1000+ FMCG industry major distributors to gather together to discuss how the FMCG industry can use digital tools to achieve rapid growth again in the digital era. This conference will build a bridge for brand owners, distributors, retail enterprises, and marketing agencies, helping FMCG manufacturers obtain the latest information, understand best practices, and master more transformation practical skills. Proposed invited companies Conference time August 22-24, 2018 Conference location Shanghai Baohua Marriott Hotel Conference content August 22: Full-day check-in Afternoon 14:00-17:30 Distributor same-city logistics parallel forum Evening 18:30-21:00 New Distribution Night Gala Dinner August 23: Theme: Marketing Digital Innovation Morning 9:00-12:00 Marketing Digital Innovation Main Forum Afternoon 14:00-17:30 Brand, Channel, Communication Parallel Forums August 24: Theme: FMCG Supply Chain Digital Upgrade All day: FMCG Supply Chain Conference Registration method Registration channel is now open. Long press the QR code below or click "Read Original" to register. The special early bird ticket countdown is only 2 days left, enjoy half-price discount, and return to original price on July 1! Registration consultation Ticket inquiries: Media cooperation inquiries: New Distribution previous conference style Click the link below to review the highlights of the first, second, third, and fourth FMCG + Internet conferences: -END-