As summer arrives, the atmosphere of the season is officially here. Night markets are bustling with烟火, and the summer night essentials include crayfish, barbecue, and that indispensable sip of coolness. This coolness isn't just about ice-cold beer; it also includes carbonated drinks that go 'pop' when opened and fizz in the mouth. In China's beverage market, besides the fierce competition in coffee and milk tea, the battle among domestic carbonated drinks, often described as 'one soda per city,' is heating up with the temperature. However, looking back at the past few decades, the domestic carbonated drink market hasn't always been as diverse as it is today, and its development has not been smooth sailing.
National Sodas: Rebirth Amidst Hardship Soda, or carbonated drinks, as the name suggests, are beverages infused with carbon dioxide gas. They are loved by consumers for their flavor and the stimulating, refreshing sensation of bubbles. China's carbonated drink industry started relatively late; it wasn't until the early 20th century that soda equipment and production technology entered China. Domestic soda factories were established around that time, but they lagged in technology and management. After the reform and opening-up, more foreign beverage brands entered China, and Coca-Cola and Pepsi experienced rapid growth. Domestic sodas struggled against these formidable competitors, losing market share. For example, Shanghai Zheng Guanghe Soda Factory's market share fell from 62.5% in 1985 to 23.1% by 1988. It wasn't until the mid-1980s that domestic soda brands like Beijing's Beibingyang, Wuhan's No. 2 Factory, Chongqing's Tianfu, and Qingdao's Laoshan began to fight back. For a time, these brands became symbols of local identity, leaving an indelible mark on China's beverage history. Unfortunately, the good times didn't last. With the wave of joint ventures, many brands faded away, becoming memories for a generation. For a long time, Coca-Cola and Pepsi dominated the Chinese carbonated drink market, leaving domestic brands struggling to survive in the cracks. It wasn't until recent years, with the rise of the 'guochao' (national trend), that domestic sodas made a comeback. These domestic sodas can be roughly divided into two categories: one is the revival of old brands, and the other is emerging young brands. Old brands like Wuhan No. 2 Factory and Beibingyang, known as 'one soda per city,' leveraged their classic products and brand foundations to reconnect with consumers through culture and nostalgia. New brands, on the other hand, quickly captured market share by focusing on new consumer groups and creating new categories, with Yuanqi Forest being the most typical example. After riding the wave of guochao, the popularity of domestic sodas has only increased. Both old and new brands have embarked on a new round of evolution. At this time, Dayao from Inner Mongolia made a name for itself with annual sales of 3 billion yuan, becoming a leader in the industry.
Beyond the National Label How 'Big Soda' Wins Hearts In recent years, with the rise of the guochao trend, domestic sodas have used nostalgia to win over consumers. Dayao's brand renewal also rode this wave, as stated on its official website: 'Against the backdrop of national rejuvenation, national confidence, and the revival of national trends, Dayao is developing rapidly.' But many domestic sodas have leveraged guochao, and brands like Beibingyang, Laoshan Cola, and Hankou No. 2 Factory are no less famous than Dayao. So why did Dayao become the sales champion? What makes Dayao different from other domestic sodas?
Specific Scenarios, Differentiated Positioning Dayao's predecessor was the earliest military-run enterprise in Inner Mongolia—the Bayi Beverage Factory. However, due to the pressure from Coca-Cola and Pepsi, the joint venture wave, and other factors, the Bayi Beverage Factory remained lukewarm until Wang Qingdong appeared. He brought new life to the factory and officially began Dayao's legendary story. Wang Qingdong initially worked in the liquor business, where he noticed that there wasn't a particularly good beverage in the foodservice channel. The seed for 'foodservice beverages' was planted. After Wang Qingdong shifted to the soda track and acquired the Bayi Beverage Factory, he drew on his experience in the liquor business, where beer sold best in foodservice channels, and decided to create a soda in a large glass bottle like beer. Thus, Dayao was born. What else can you drink with a meal besides alcohol? Dayao provided the answer: 'If you're not drinking alcohol, drink Dayao.' Dayao used 'big beer bottles' of 500ml or more, giving the pleasure of drinking beer while not getting drunk. This immediately opened up the market for Dayao. Dayao's success is inseparable from its focus on specific scenarios. It avoided the conventional sales channels for sodas, starting with the foodservice scene, and strongly associated Dayao with barbecue, night markets, food stalls, and small restaurants. This differentiated positioning effectively avoided competition with many similar products. Dayao's official report shows that 78.4% of consumers often buy Dayao from foodservice outlets. Today, Dayao's official website proudly states, 'Be the leading brand of Chinese foodservice beverages.'
Low-Price Strategy, Real Value Becoming the top beverage in the foodservice industry is no easy feat, especially since beverage prices are transparent. Consumers won't choose a beverage if restaurants mark it up too much, and distributors and restaurants lose interest if profit margins are low. To address this, Dayao implemented a strategy that makes consumers feel they're getting value while ensuring distributors and sales terminals profit. A netizen once said, 'I want to support domestic sodas, but Coke is 3 yuan a bottle, while domestic sodas are 8 yuan for a small bottle. My wallet won't allow it.' Looking at the market, Coca-Cola and Pepsi's sodas average 3 yuan per 500ml, with larger packs offering better value, while domestic sodas cost 6-7 yuan for 200ml. The high prices deter many consumers. So Dayao adopted a low-price, high-volume approach, controlling costs through production efficiency and building production bases nationwide to reduce logistics costs. This allowed Dayao to offer 520ml for 5 yuan, making it a high-value choice for consumers. Beyond providing real value to consumers, Dayao used a 'bare price operation' to stimulate enthusiasm among distributors and sales terminals, accelerating market expansion. According to reports, Dayao Jiabin's landed price to distributors is 17.5 yuan per case (12*550ml), distributors sell to secondary wholesalers at 21.5 yuan per case, and the terminal arrival price is 25 yuan per case, with a retail price of 5-6 yuan per bottle. This yields a gross profit of 3-4 yuan per bottle. Compared to sodas that earn only a few cents per bottle, it's clear which one merchants would rather sell.
National-Level Endorsement, National-Level Advertising The importance of influential endorsers and catchy slogans cannot be overstated, but when you think of domestic soda brands, few have well-known endorsers or viral slogans. Partnering with a national-level endorser and comprehensive advertising became key to Dayao's successful breakthrough. Actor Wu Jing, known for films like 'Wolf Warrior' and 'The Wandering Earth,' has surpassed 30 billion yuan in personal box office, making him a household name. In early 2022, Dayao announced Wu Jing as its spokesperson, and the news quickly topped Weibo's hot search. Dayao gained the nickname 'the soda endorsed by Wu Jing.' This year, Dayao renewed its contract with Wu Jing, and the Spring Festival movie season further boosted Dayao's popularity. While some soda brands are still racking their brains to tell old stories in new ways or stimulate impulsive consumption, Dayao, in addition to its endorser, also strives for comprehensive advertising coverage, surrounding consumers' minds from all angles. It shot a TVC with Wu Jing that aired on CCTV, set up billboards in subway and business districts, and placed elevator ads... This multi-channel promotion subtly captured consumers' attention and gradually increased brand awareness. Recently, Dayao launched a new slogan, 'Big soda, drink Dayao,' matching its brand's bold, generous, and refreshing characteristics, once again 'brainwashing' consumers. With precise scenario targeting, high cost-performance, endorsements, and advertising, Dayao stood out among domestic sodas. But now, selling 3 billion yuan a year is old news, and domestic sodas are increasingly competitive. Can Dayao maintain its leading position?
Dayao: Actively Seeking a Second Growth Curve For a company or brand to achieve lasting success, it must find a second growth curve before the first curve peaks; otherwise, it will inevitably decline or even die after its glory days. If Dayao's current development under the guochao trend represents its first takeoff, then continuing on the old path without innovation will lead to numerous problems. To keep breaking through and upgrading, what aspects should Dayao focus on?
From Focusing on a Single Product to 'Casting a Wide Net' Dayao's most famous product is undoubtedly Dayao Jiabin. Jiabin perfectly blends honey and fruit flavors, making it unique among sodas. For a long time, Jiabin has been Dayao's flagship product. But now, Dayao is not only sticking to its single-product strategy and continuing to promote Jiabin but also innovating with more products, striving to become a more 'comprehensive' soda. Dayao Orange Promise and Li Ai are in the same series as Jiabin, with orange and lychee flavors that are classic and easily appeal to consumers. Fan Ban'er and Sour Plum Drink also target foodservice scenarios: 'What to drink with a meal? Drink Fan Ban'er.' 'For spicy and greasy food, there's Sour Plum Drink.' Additionally, Dayao creatively combines soda and tea with Chayuanxiang Sparkling Tea, offering a refreshing tea aroma and a fizzy kick. Furthermore, in response to consumers' growing health needs, Dayao launched a zero-sugar series, and to meet young consumers' demand for sophistication, it introduced the Xiao Yao Guo Qi series.
Stepping Out of the Dining Table, Heading to Supermarkets Recent moves by Dayao show it is stepping out of its comfort zone in foodservice to explore broader markets, with the supermarket channel being its next target. The 'beer bottle' packaging targets foodservice channels, while PET bottles can serve multiple channels like supermarkets. Dayao is also creating various gift boxes to integrate into more scenarios. Industry insiders say that since last year, Dayao has increased financial support for supermarket channels and created creative displays in prominent positions.
Dayao Ge: Super IP In March, Dayao officially launched its new IP image for Dayao Big Soda—Dayao Ge—injecting youthful and trendy genes into the national big soda. Dayao Ge comes from Hohhot, Inner Mongolia, where the grasslands have endowed him with a warm, hospitable, and bold personality. Dayao Ge has already traveled to all 31 provinces, autonomous regions, and municipalities across the country. In the future, Dayao Ge will appear in more cities and scenarios. From soda to 'happiness water' and 'magic water,' Coca-Cola has become a hard currency and a popular IP. When Dayao Ge can become an IP like Coca-Cola, then 3 billion is just a small goal. From the current situation, Dayao has set a successful example for domestic sodas, proving that success comes from scenario targeting and genuine innovation, not just selling nostalgia or playing retro. However, the reality that Coca-Cola and Pepsi dominate most of the domestic soda market remains unchanged. Becoming a model for domestic sodas is just the first step; catching up with and surpassing the 'two Colas' is the real test for Dayao and all domestic sodas.