The Chinese market is vast, typically characterized by its breadth and depth. Before the internet emerged, targeting mass demand and market characteristics, brands produced a small number of SKUs through mass production, advertised nationally via television media, and leveraged thousands of distributors and tens of thousands of sales representatives to distribute products to millions of mom-and-pop stores, thereby reaching consumers nationwide. Using this model of "big SKU + mass production + big channels + big retail," they completed the entire process from factory to consumer. But now, due to the disappearance of market growth, rising labor costs, internet disruption, technological changes, and shifts in consumer and terminal demand, every brand must re-examine how to face the ever-changing market environment. Want Want first entered the mainland market in 1992, gaining a large following and quickly rising to fame through products like rice crackers, small steamed buns, and crushed ice pops. In 2007, China Want Want Holdings Limited was established. Product innovation, coupled with quality assurance, allowed Want Want to overcome obstacles. Despite setbacks along the way, there were always turning points. Having weathered market competition and changes in consumption, "Little Want Want" has grown into "Big Want Want," but it seems he has never conceded defeat. Recently, Mr. Tsai Wang-chia, Executive Director and Chief Operating Officer (COO) of China Want Want Holdings Limited, accepted an exclusive interview with New Distribution. Yesterday's achievements are in the past. Today, Mr. Tsai Wang-chia wants to discuss with New Distribution: Want Want's "second venture." As the saying goes, without breaking, there is no establishing. Only by daring to innovate and reform continuously can one truly embrace market changes. Launching "Food Lab" (食技研): A Bold Break and Rebuild in the "Second Venture" Tsai Wang-chia revealed that Want Want has already established a second marketing group and launched the strategic new brand "Food Lab." Food Lab will be completely independent from Want Want's existing first marketing group. "For Food Lab to succeed, we must completely abandon the brand and channel accumulation built under Want Want's 20 billion scale. This will be a bold break and rebuild starting from zero. Without this, there is no possibility or hope of success." This is Tsai Wang-chia's strategic judgment on Food Lab. This decision by Tsai Wang-chia imbued Food Lab with a "breakaway" character from the traditional Want Want system from the very beginning, exuding a sense of determination. In fact, in recent years, many major brands have fallen into the "innovator's dilemma." The reason is certainly not technology or strength, nor the strategic vision of decision-makers, but rather that the vast majority of major brands lack the courage to "break away" or "separate" from their traditional systems. A huge organization has huge inertia. On one hand, this inertia is a competitive advantage; once the massive flywheel starts turning, its momentum is immense. But in the face of change, the side effect of the flywheel effect is that any larger innovation will be crushed by the massive flywheel. Clearly, Want Want, which has been on an innovation path in recent years, feels this deeply. Tsai Wang-chia said, "Although Want Want has been innovating and changing in recent years, under the inertia of the huge organization, market, and channels, our innovation can only be like pushing a stone up a mountain, step by step, slowly." In Tsai Wang-chia's view, within the original system, only incremental, improvement-style innovation is possible. But incremental innovation is too slow and only solves short-term performance issues, not strategic problems. To solve the negative effects of the flywheel effect, there is only one way: establish a completely new entity to undertake innovative business and tasks. Therefore, the independence of Food Lab is not just a formal separation or budget independence, but from internal organizational structure to brand strategy, product planning, and channel structure, it is completely independent from the original Want Want brand, starting from zero. In other words, apart from continuing to use Want Want's backend product R&D and manufacturing, Food Lab will have almost no relationship with the original Want Want system. Only an independent, special organization can undertake special missions. Tsai Wang-chia told New Distribution, "Want Want is a household name, a well-known brand. I think consumers, whether old or young, are very assured of Want Want's quality, so Food Lab will leverage Want Want's excellent product lines. But at the brand level, from the very beginning, Food Lab must take a path we have never taken before. This is also the huge mission Food Lab bears from its birth." The Path Food Lab Chooses: No Innovation Without Edge, No Special Without Doing Regarding the Food Lab brand, how exactly will it be played? Tsai Wang-chia said, "Food Lab's overall positioning will lean towards mid-to-high-end, and its business philosophy will follow the logic of 'no innovation without edge, no special without doing,' introducing new products. Of course, behind this innovation, based on different consumer categories, through deep insights into young consumer groups, combined with their dining scenarios, we will in turn guide our product characteristics, packaging design, and selling point development." For example, Want Want has many well-known and best-selling products, like QQ candy and milk candy. Food Lab will launch upgraded versions of similar bestsellers, "QQ Candy + Heart, Milk Candy + Heart." According to Mr. Lin Yu-bo, Vice President of Want Want Group and Head of Food Lab, Food Lab has already established two series directions: the "No Snack No Enjoy" series and the "I Feed Everyone" series. It is understood that these two series of products mainly cater to office workers and young consumers. The widespread "996" work system makes young consumers' daily work extremely saturated. They need appropriate relaxation during work breaks to help relieve and release stress, so they can devote themselves to the next phase of work. At this time, snacks are the best choice. In such office scenarios, snack pairings must not only be delicious and healthy but also have a story, making snacks a topic generator among office colleagues. Sharing snacks and pleasant communication can help them replenish energy while relieving stress. According to Lin Yu-bo, in addition to working on snacks, Food Lab will also launch a series of innovative beverages next year. In his view, the focus of the next stage of beverage innovation is how to effectively combine "taste" and "health," making drinks both tasty and healthy. Product R&D is itself Want Want's strength. The innovative development of beverages is currently in full swing. Breaking with Traditional Models: Everything Simplified, Digital Distribution Since this is disruptive innovation, in terms of organizational structure and sales management, the logic Food Lab follows is naturally different from traditional paths and frameworks. Tsai Wang-chia summarized three key differences for New Distribution:
1) Flat organization, fewer layers, rapid feedback;
2) Digital business, from headquarters to market, all links data-driven;
3) Empower partners, support distributors in managing their areas, so distributors "get more for doing more." In this regard, Lin Yu-bo explained, "Cisco's president John Chambers once proposed the fast fish rule, emphasizing that modern competition is no longer the era of big fish eating small fish, but fast fish eating slow fish! China is vast; traditional practices involve multi-layered division of labor, layer-by-layer review, many people, and high costs. By the time terminal information is reported and adjustments are made, the opportunity has often passed!" It is understood that currently, the marketing team at Food Lab headquarters, including finance and product marketing departments, totals fewer than 50 people. These 50 people are responsible not only for finance, administration, and product marketing but also for managing business teams across 8 major regions and 52 branch companies nationwide. Speed and efficiency will be the principles Food Lab adheres to in internal organizational management, because in Lin Yu-bo's view, only through rapid iteration and rapid feedback can Food Lab survive in the rapidly changing and fiercely competitive market. Large organizations and large teams were acceptable in the past, but they definitely won't work today. Fewer people, but no less work. Let people do the most critical tasks, and let data systems handle basic information transmission, aggregation, and organization. Lin Yu-bo told New Distribution, "As a 'breakthrough innovation' unit, having fewer people is inevitable, but we will also equip ourselves with the most 'refined' weapons and ammunition." To enable 50 people to efficiently manage the entire country, Food Lab has invested in multiple IT system suites. From headquarters to local markets, almost all market work will be online: orders online, expenses online, management online, inventory online... Let "data" speak and guide business management; this is the confidence behind Food Lab's 50 people managing the entire country. In selecting distributors, Food Lab has completely abandoned the distribution resources accumulated by Want Want in the past and is seeking new partners. Tsai Wang-chia told New Distribution, "Food Lab's search for partners is not necessarily for the largest or wealthiest, but for the most suitable distributors. What is most suitable? Food Lab is a brand-new venture, and we hope the distributors we choose will adopt an entrepreneurial mindset, follow Food Lab, and deeply cultivate the market." Lin Yu-bo added, "Our philosophy in seeking partners is 'speak practical.' Food Lab provides distributors not only with a product line and generous profits but also with a standardized, implementable operational methodology. We have introduced the SOCS business management system. Once distributors install the system, all terminal work, attendance, and ordering by sales representatives will be completed on the system. Through system management, Food Lab will send incentive bonuses to sales reps, helping distributors manage their business well." Fully automated, mobile ordering, systematic process management, and clear inventory and sales. Food Lab hopes that in a fair and standardized environment, distributors can get more for doing more, rather than sitting back and earning as before! Finally, Tsai Wang-chia frankly stated, "Want Want hopes to embrace market changes through an independent team. We may not be able to do revolutionary things, but we have never stopped moving forward. We will gradually reform and embrace the market. The current Food Lab may be more like Want Want's 'vanguard,' but in the future, Food Lab will definitely become Want Want's next strategic brand." New Distribution Commentary: Disruptive Innovation Requires the Courage to Break with the Existing How can an elephant dance? This is an extremely painful issue for all giant enterprises. When Nokia missed the entire smartphone era, they said, "We don't understand why we did everything right but still lost," tinged with bitterness and unwillingness. This is the lament of elite managers holding classic business management theories, standing between the past and the future. Not wanting to have the same regret as Nokia in the future, many giants like Want Want have embarked on disruptive innovation, even destructive innovation. But in the new era, this kind of innovation requires a unique courage: Can you completely break with the past? No need to argue; this is a boss project, not a manager project. Only the boss can truly break with the past; only the boss has sufficient authority and prestige to advance along the established path without interference; only when the boss takes charge can a firm belief in reform be conveyed to everyone. Therefore, Tsai Wang-chia personally leading Food Lab and speaking publicly proves that Want Want has sufficient courage to break with the existing and is fully prepared to innovate from zero. Without this, Food Lab's innovation would find it hard to prove its courage and conviction. Innovation by giants is not easy, but it also brings huge dividends. For the enterprise itself and for channel partners, this dividend is strategic. Currently, 90% of distributors' success comes from seizing brand opportunities. In the long run, we believe distributors' success will mainly come from seizing opportunities from the rise of strategic brands. Therefore, the complete separation of Food Lab from Want Want's traditional system is not only a necessary move in Want Want Group's strategic upgrade but also the release of a new wave of channel dividends. However, to seize this wave, higher demands are placed on distributors' own operational capabilities and professionalism.