At the end of September, China Evergrande Group disclosed that it had rapidly sold its mineral water, grain and oil, and dairy businesses. This news caused a stir and surprised everyone! However, a piece of news today has left us puzzled! Today, the editor of Food Business saw a news article on the website of Changan District Government in Changbai Mountain, titled "Evergrande Spring Water Changan High-end Mineral Water Plant Groundbreaking and Signing". What? Evergrande Spring Water, which was sold, is building a new factory? This left us spectators bewildered... Below, let's first look at the news release from the government website: Evergrande Spring Water Changan High-end Mineral Water Plant Groundbreaking and Signing On October 30, Wang Zhongming, the new chairman of Evergrande Spring Water, led General Manager Yang Huafeng and Zhao Yunlong, Investment Director of Evergrande Agriculture and Animal Husbandry Group, to inspect the Evergrande Changan Water Plant project in Changan District. Cao Shuqing, Secretary of the Changan District Party Committee, met with Chairman Wang Zhongming and his delegation at the Changbai Mountain Tianmu Hot Spring Hotel. Wang Zhongming and his team inspected the site of the Evergrande Water Plant and the water diversion pipeline for Evergrande Spring Water, and then held a discussion with the leaders of Changan District. Chairman Wang Zhongming said that the sewage, power supply, and heating facilities built by Changan District for Evergrande Spring Water are complete, and Evergrande Spring Water already has a world-class low-sodium spring in Changan, so the conditions for the Changan Water Plant to start construction are mature. The Evergrande Changan Water Plant is to complete site leveling this year, start construction in April 2017, and build a high-end mineral water base for Evergrande, with construction and production in the same year. After the discussion, Evergrande Spring Water General Manager Yang Huafeng and District Party Committee Secretary Cao Shuqing held a signing ceremony for the construction of the Evergrande Spring Water high-end water plant. Chairman Wang Zhongming also reached a consensus with Secretary Cao Shuqing on developing the hot spring resources in Changan, deciding to build a hot spring hotel next year in the Snow Mountain Art Village by the Man River. After reading this, are you as confused as the editor? The news of the rapid sale of Evergrande Spring Water at the end of September is still fresh in our ears, and now at the end of October, there is news of building a new factory. What is Evergrande playing at? Some industry insiders say that Evergrande may just be making an equity change; in fact, the FMCG business is still in Evergrande's hands. From the current situation, Evergrande Spring Water is building a factory in Changbai Mountain, which means expanding production capacity. But after a series of changes, how Evergrande Spring Water will reshape its brand image, rebuild market confidence, and rebuild its marketing team are still questions worth considering. Regarding Evergrande's high-profile entry into the FMCG industry and subsequent retreat, renowned marketing expert Liu Chunxiong once said that Evergrande was too impatient! Below, the editor excerpts some of his views. Let us think from these perspectives: if Evergrande had slowed down, would it have succeeded? Evergrande Spring Water has the highest sales, why is it criticized the most? Evergrande was not the first to enter the mid-to-high-end water market; earlier entrants include Baishuishan, Kunlun, and Aikua. In terms of sales, they are not as good as Evergrande Spring Water, so why is everyone criticizing Evergrande Spring Water while ignoring the others? Take Uni-President's "Aikua" water as an example. It is also a retail 4 yuan product with almost no promotion, and its sales are much smaller than Evergrande Spring Water. With this water, Uni-President withdrew from the low-end mineral water market. Mid-to-high-end water basically adopts a "penetration strategy," gradually participating in cultivating a market. When distributing, they first target mid-to-high-end markets. Customers return because they identify with the product. From my observation, mid-to-high-end water is mainly sold in special channels, such as airports, high-speed rail stations, and supermarkets, and is far from being widely distributed in small shops. These mid-to-high-end brands adopt a gradual strategy, with modest investment as the market gradually grows. In contrast, Evergrande Spring Water made a one-time large investment, mobilizing channel distributors, with high distribution rates and volumes, but mid-to-high-end consumers are very rational. The two issues Evergrande Spring Water is now widely criticized for: first, terminal price chaos, which I think is due to improper terminal distribution, excessive distribution, and price reductions for near-expiry products; second, Evergrande invested too much, resulting in huge losses. Neither of these issues is fatal. Evergrande Spring Water, you are too impatient Distributing a mid-to-high-end water everywhere, do you think China has entered the mid-to-high-end market as a whole? Evergrande Spring Water's biggest mistake is being "too impatient." The market is not that big, but Evergrande Spring Water's marketing is so large, which is impatience. Impatience to occupy the market, impatience to build brand power through large investment and excessive communication, impatience to distribute everywhere, impatience to let all consumers drink good water. Too impatient, and the rhythm is disrupted. Too impatient, and the input-output ratio is not proportional. When "mainstream shifting" occurs, companies often fall into a dilemma: doing it too early, the market capacity is too small, seemingly not worth doing; doing it too late, the market is occupied by others. If Evergrande Spring Water gives us any reflection, I would say the following five sentences: Mainstream shifting is a trend; face the trend with cautious positivity; penetrate early when the trend emerges; quietly cultivate consumers as the trend develops; and when it erupts, ride the wave. Evergrande Spring Water still has time. As long as it distributes with restraint, as long as it no longer makes large investments, and as long as it has enough time to wait, this market will still be Evergrande Spring Water's. -END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brand | 016 Distributor B2B transformation | [Long press QR code to follow]