Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer friends, gather in Fuzhou to jointly explore the internet transformation path of the FMCG industry. The water product Changbai Spring, launched with great fanfare by candy maker Yake earlier this year, has been quiet, but recently a large amount of promotional content about this product has appeared on many social media platforms. But does this product really have the advantages as claimed in the promotion? How is the product's market performance? A Beijing Business Today reporter's investigation found that Yake Changbai Spring, which once claimed to target the national market and key channels, is hard to find in major supermarkets in Beijing. In the view of industry insiders, the use of the Changbai Mountain water source concept, which has been hyped by other companies, and the awkward pricing make this product uncompetitive in the market. Judging from current market performance, it is difficult for it to become Yake's next super single product, let alone a "sweet spring" for Yake's self-rescue. Hard to Find in Market, Channels Lack Luster After launching the new product for more than half a year, Yake conducted a round of concentrated promotion for its Changbai Spring product. In the view of industry insiders, this is because Changbai Spring felt survival pressure. Zhu Danpeng, a researcher at the China Brand Research Institute's food and beverage industry, introduced: "Previously, Yake Changbai Spring mainly focused on traditional terminal placement without corresponding media promotion. Now, the heavy promotion is because Evergrande Spring, which also uses the Changbai Mountain water source, has previously reduced its price to 2 yuan, and Yake feels overall pressure. The heavy promotion is both to create momentum for itself and for investment attraction, because Yake has not truly established a national layout, only involving itself in local markets." Terminal market performance also confirms Yake Changbai Spring's initial difficulties in the water industry. When launching Changbai Spring, Yake stated that it would distribute the product nationwide and through key channels, positioning it as a mid-range product. However, a Beijing Business Today reporter visited multiple supermarkets and did not find the product. When asked, a supermarket employee said, "I haven't heard of this water." Compared to Baisuishan's numerous products on Taobao and sales of 22,000, Changbai Spring's performance is somewhat "shabby." Online platform sales are minimal. A Beijing Business Today reporter searched for Yake Changbai Spring on Taobao and found no relevant results; on JD.com, there was only one product with just 24 reviews. In the view of industry insiders, Yake Changbai Spring faced embarrassment at launch. First, its water source is Changbai Mountain, but before Yake, powerful companies such as Nongfu Spring, Master Kong, and Evergrande had already entered this water source and expanded the concept. For a latecomer like Changbai Spring, it can only follow the trend. Second, in terms of pricing, the market prices for Changbai Spring's 350ml, 520ml, 750ml, and 4.5L specifications are 2.5 yuan, 3 yuan, 5 yuan, and 15 yuan per bottle, respectively. In the mainstream 3-yuan price band, there are strong rivals like Baisuishan, and the price cut by Evergrande Spring also puts pressure on Changbai Spring. Limited Strength, Lack of Support Another water industry insider revealed that the domestic drinking water industry continues to grow rapidly, but it has become more difficult for new products to enter the market and become famous later. "First, companies need sufficient funds, mainly for two purposes: one is channel development, for example, to enter Beijing supermarkets, you need not only resources but also financial support; the other is advertising and promotion. Any water product needs a lot of exposure to increase brand awareness, otherwise consumers will find it hard to recognize new products, let alone accept them." In this regard, Yake appears stretched. It is understood that Yake once created annual revenue of 1.5 billion yuan with vitamin candy V9 and Yiya xylitol gum, but now it has lost its former glory, with annual revenue falling to 1 billion yuan. Not only Changbai Spring, but Yake's main candy products also perform poorly. A Beijing Business Today reporter visited multiple supermarkets and did not find Yake's related products, especially Yiya xylitol gum, which has little survival space under the pressure of products like Haoliyou xylitol and Extra xylitol. The candy market changes rapidly, and domestic candy products are frequently updated. After launching vitamin candy V9, Yake gained a lot of attention and sales in a short time, but no other manufacturers followed suit, leading to the gradual decline of the vitamin candy category. Facing the shrinking candy market, Yake also attempted diversification through jelly and bakery categories, but these attempts did not achieve the expected results. Choosing to enter the mineral water industry also carries a hint of helplessness. Zhu Danpeng introduced that Yake's annual revenue is currently maintained at around 1 billion yuan, with both revenue and net profit showing a declining trend year by year. "From Yake's current market situation, it has not laid out national channels, and even Beijing, a major market for mid-range water consumption, has not been stocked. This makes it less competitive in channels compared to other companies. Additionally, Yake has not conducted corresponding advertising for Changbai Spring. It only started marketing half a year after launch, and the promotion scope is narrow, so Changbai Spring has not gained enough exposure, and consumer product impressions have not accumulated. This is Changbai Spring's shortcoming," an industry insider summarized. Unknown Prospects, Yake Under Pressure Based on Yake's current performance, when Changbai Spring was launched, industry insiders regarded it as Yake's lifeline. Yake also invested considerable effort in the product. Yake once introduced that it took three years of deliberation and planning to enter the mineral water industry, then invested a total of 1 billion yuan to build a production line with an annual capacity of 900,000 tons. Such a large-scale investment shows the importance attached to it. However, judging from current market performance, Changbai Spring is unlikely to shoulder this responsibility in the short term. In recent years, the mineral water industry has developed rapidly in China, with more and more products appearing in consumers' view, partly due to huge profits and partly because it aligns with the current trend of big health. Although the mineral water industry has great potential, it also requires large upfront investment and a long return cycle. Industry insiders believe that to enter the mineral water industry, one must have a "dripping water wears through stone" spirit, and marketing cannot be relaxed. But half a year after launching Changbai Spring, Yake has done very little advertising, and its initial promise to enter the national market has not been fulfilled. Even Beijing, a huge market for mid-range water, has not been touched by Yake. What are Yake's next plans for Changbai Spring? How does it evaluate the current sales situation? With these questions, a Beijing Business Today reporter called Yake, but after revealing the interview intention, the phone was hung up, and subsequent calls were not answered. In Zhu Danpeng's view, Yake still has high expectations for Changbai Spring, given the huge investment. But in the fiercely competitive water industry, Changbai Spring's current positioning and performance do not have advantages, which will put pressure on Yake. "In addition to the pricing and water source issues mentioned above, Changbai Spring's positioning is also very vague and lacks distinctiveness. For example, the product promotes the concept of 'the first glass of water in the morning,' which is novel but lacks substance, not telling consumers what the advantage of being the first glass of water in the morning is. Second, although Yake has recently promoted through self-media platforms, the audience is too narrow and not targeted at any consumer group, which seems redundant. Additionally, the official website of Changbai Spring has not been updated since January, showing that Yake's effort is still insufficient," the above corporate insider further analyzed. If Changbai Spring wants to survive longer in the market and bring more practical profit contributions to Yake, it needs to reorganize from the product end to the channel end and then to the marketing end. This article is sourced from Beijing Business Today, authors: Fang Binnan, Wang Ziyang New Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels will transform under the general trend of Internet+ transformation Conference Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Transformation - Liu Zhao, CEO of Waiqin365 10:35-11:05 Alibaba Retail Link All-round Empowerment - Guo Kunkun, Alibaba Retail Link 11:05-11:25 Channel Efficiency in the Internet Era - Fu Xiaoyun, Vice President of Benlai Holdings 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Dealer Transformation: City Distribution Trend Development - Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum - Why Dealers Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off - Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's One Machine, Two Wings Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy - Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business - Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain - Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecology - Miao Dong, Vice President of Quanshi 16:30-16:50 The Next Decade: B2B is the Main Investment Battlefield - Well-known Investor (TBD) 17:00-17:30 Roundtable Forum - Who is the King in FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturer friends who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register. Registration: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]