--- title: "Founded 18 Years, Single Product Exceeds 1 Billion: How Did 'Zhongwo' Become a 'Grassroots Beverage' Breakout in Henan?" description: "Zhongwo Beverage, a Henan-based company founded in 1999, has achieved a rare feat in the region's beverage market by surpassing 1 billion yuan in annual sales for a single product. This article analyzes its market breakthrough strategies, including targeting township markets, offering high channel profits, and combining push-pull marketing, as well as its future growth plans." author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2017-09-10" language: "en" canonical: "https://xinjignxiao.com/en/articles/founded-18-years-single-product-exceeds-1-billion-how-did-zhongwo-become-aa6b9e01/" markdown: "https://xinjignxiao.com/en/articles/founded-18-years-single-product-exceeds-1-billion-how-did-zhongwo-become-aa6b9e01.md" original_source: "https://mp.weixin.qq.com/s/iyXmqqwmng49WYBaQFKPZw" translation: "https://xinjignxiao.com/zh/articles/%E6%88%90%E7%AB%8B18%E5%B9%B4-%E5%8D%95%E5%93%81%E7%A0%B410%E4%BA%BF-%E4%B8%AD%E6%B2%83-%E5%87%AD%E4%BB%80%E4%B9%88%E6%88%90%E4%B8%BA%E6%B2%B3%E5%8D%97-%E8%8D%89%E6%A0%B9%E9%A5%AE%E5%93%81-%E7%AA%81%E5%9B%B4%E8%80%85-aa6b9e01.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/founded-18-years-single-product-exceeds-1-billion-how-did-zhongwo-become-aa6b9e01/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Founded 18 Years, Single Product Exceeds 1 Billion: How Did 'Zhongwo' Become a 'Grassroots Beverage' Breakout in Henan? > Zhongwo Beverage, a Henan-based company founded in 1999, has achieved a rare feat in the region's beverage market by surpassing 1 billion yuan in annual sales for a single product. This article analyzes its market breakthrough strategies, including targeting township markets, offering high channel profits, and combining push-pull marketing, as well as its future growth plans. Click the image for details. Not long ago, we analyzed a piece about the "big guy" in Henan's beverage market—Zhongwo Beverage. Why talk about it? Because Henan's beverage industry is jokingly called a "grassroots beverage" cluster, where for years beverage companies have not achieved major breakthroughs: generally small scale, low industry concentration, and few beverage single products with sales exceeding 100 million or even 50 million. Yet Zhongwo Beverage has reached a scale of over 1 billion yuan in annual sales for a single product, which is truly rare! Today, we systematically examine the secrets of this company's market breakthrough and its overall product situation this year. ******Starting with Functional Beverages, 18 Years Since Establishment****** Henan Zhongwo Industrial Co., Ltd. was founded in 1999, a private enterprise specializing in the production and sales of functional beverages. In 2006, it successively opened new factory areas covering over 300 mu in the Lilin and Potou Industrial Parks, laying the foundation for higher corporate goals. In 2008, it signed film and television stars Tong Dawei, Huang Shengyi, and the Chinese National Men's Basketball Team as endorsers, and placed advertisements on CCTV and major satellite TV channels. In 2010, the company's new factory started in Yuquan Industrial Park, covering over 400 mu, with the first phase acquiring six high-speed aseptic cold-fill production lines and three European imported can production lines. Now, the company has over 4,000 employees, 6 factory areas, 40 modern production lines, an annual production capacity of over 1 million tons, and annual sales of a single product exceeding 1 billion yuan. ******Three Steps to Help Products Quickly Break Through the Market****** As mentioned above, Zhongwo started with functional beverages, and the product with annual sales exceeding 1 billion yuan, Tizhi Nengliang (Physical Energy), is its breakthrough weapon. So, what did Tizhi Nengliang do right on its growth path? 1. Racing into Township Markets As early as around 2000, Zhongwo launched functional beverages, but it wasn't until 2010 that the market developed. Due to the relatively high price of functional beverages, early functional beverages had a better market foundation in first- and second-tier cities, with lower penetration in township markets; as a company with over a decade of history, Zhongwo's township channel network is also relatively strong, so it entered township markets at a lower price, making this a key focus for Tizhi Nengliang. 2. High Profits to Stimulate Distributors and Terminal Stores Profit is the best way to drive the market, and higher channel profits are the confidence of distributors. However, generally, the channel profits of first-tier brands are lower than those of second- and third-tier brands. Therefore, while ensuring product quality, Tizhi Nengliang uses high profits to attract distributors and terminal customers, enhances product utility with high cost-performance, gives consumers a sense of value for money, and thus builds brand loyalty. 3. Combining Push and Pull to Enhance Brand Influence Zhongwo's ability to gain a place in fierce market competition is not only due to the product's own advantages but also the manufacturer's policy promotion. After establishing a certain market foundation, Zhongwo used channel promotions, terminal promotions, "one more bottle" campaigns, sports marketing, and high-altitude advertising, concentrating efforts and resources on promoting Tizhi Nengliang. ******Single Product Sales Exceed 1 Billion, Multi-Product Portfolio for Breakthrough****** The breakthrough of Tizhi Nengliang drove Zhongwo's overall explosion. Afterward, the company focused on tea drinks, fruit orange juice, bottled water, and soda water, with a full range of beverage products. Although the company currently regards soda water and Tizhi Nengliang as its "strategic products," it still does not affect its ambition to expand its product line. This year, Zhongwo has continuously extended its product line, launching sour plum soup, coconut water, and mango pomelo sago. ******Planned Annual Growth of 20%, 2020 Target of 6 Billion****** Wang Huaixuan, chairman of Henan Zhongwo, once stated that the company plans to achieve an annual growth rate of 20%–30% in the future, striving to achieve sales revenue of 6–8 billion yuan by 2020. To achieve sales targets, the company continues to expand the market with three strategies: celebrity endorsements, advertising, and dual online-offline operations. It is understood that offline, Zhongwo fully implements a "regional manager + area manager" system, requiring sales to go deeper into the front line, effectively serve customers, and make targeted market development plans based on different market development stages and time periods, with "one household, one time, one product, one policy" to promptly help distributors sink sales, refine channels, and accelerate product turnover. Source: Food Business (tyjzksp) Click the image for details. The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. The conference will closely focus on the theme "New Forces, New Ecology," inviting domestic 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to jointly explore a new chapter of cross-border integration! **Core topics of this conference:** > * How can the FMCG industry leverage B2B to achieve new growth opportunities? > > > > > > > * How should the new supply chain behind new retail be built? > > > > > > > * How can intra-city logistics help B2B achieve leapfrog development? > **Highlights of this conference:** > * The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper" > > > > > * ****Excellent transformation and upgrading distributor case sharing**** > > > > > * ****Conference + Exhibition Upgrade, Hall 6 Internet Technology Exhibition Strengthens Networking**** > > > > > * **Alibaba Retail Link, Puhua Logistics Finance, Eternal Asia Supply Chain, Best Dianjia, Yijiupi, Unilever, Haiding Technology, Yunmei Shares—leaders from various fields will give speeches and share pioneering views.** > > October 17-18, 2017 Chongqing International Expo Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend and note "Conference Registration" Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum 2017 (2nd) China FMCG + Internet Conference Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: [2016 "FMCG + Internet" Summit Forum]() -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671