---
title: "From Wahaha's Declining Performance to the Development Landscape of the Beverage Industry"
description: "As consumption upgrades rapidly and the post-80s and post-90s generations become the mainstream consumer groups, consumer needs have fundamentally changed. When beverages are no longer just about taste and price but about quality, functionality, and coolness, Wahaha appears like a slow-moving elephant, unable to keep pace with the times. In 2014, Wahaha's performance declined by 7%, marking its worst year in recent times. How did Wahaha, which was growing rapidly in 2012, experience consecutive declines? This is extremely rare in its history..."
author: "窦林毅"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-03-29"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/nlilLYp_SYY_bnJhTNnDzA"
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# From Wahaha's Declining Performance to the Development Landscape of the Beverage Industry

> As consumption upgrades rapidly and the post-80s and post-90s generations become the mainstream consumer groups, consumer needs have fundamentally changed. When beverages are no longer just about taste and price but about quality, functionality, and coolness, Wahaha appears like a slow-moving elephant, unable to keep pace with the times. In 2014, Wahaha's performance declined by 7%, marking its worst year in recent times. How did Wahaha, which was growing rapidly in 2012, experience consecutive declines? This is extremely rare in its history...

Introduction: As consumption upgrades rapidly and the post-80s and post-90s generations become the mainstream consumer groups, consumer needs have fundamentally changed. When beverages are no longer just about taste and price but about quality, functionality, and coolness, Wahaha appears like a slow-moving elephant, unable to keep pace with the times.
In 2014, Wahaha's performance declined by 7%, marking its worst year in recent times. How did Wahaha, which was growing rapidly in 2012, experience consecutive declines? This is extremely rare in its history.
It should not be a problem in the marketing link. Wahaha still has the most extensive and dense sales network in China, and its entire business team still has strong practical capabilities and terminal control. Wahaha's brand promotion has been very strong, and it has been a major advertiser on CCTV for years. So where exactly is the problem?
China's entire consumer market is undergoing iterative upgrades. As consumption upgrades rapidly, the post-80s and post-90s generations become the mainstream consumer groups, and consumer needs fundamentally change. When beverages are no longer just about taste and price but about quality, functionality, and coolness, Wahaha appears like a slow-moving elephant, unable to keep pace with the times. Despite Wahaha's continuous attempts in the past two years, from "Kvass" and "Beer Tea Cool" to "Youyou Milk Tea," "Qili," and "Hello-C Grapefruit," none have achieved sustained popularity, and its main product remains "Nutrition Express," launched in 2005. In the era of consumption upgrades, Wahaha is not the only one losing direction; losing direction has become the norm.
So, what is the current trend in the beverage market, and how should the industry's landscape develop?
First, sports functional beverages will become mainstream. Just look at the popularity of marathons to see how rapidly China's sports market is developing. Previously, Chinese people's sports were mainly spectator and team-based. Now, they are gradually aligning with Europe and America, focusing on individual personalized sports. Running, badminton, cycling, swimming, and gyms are becoming important street scenes and mainstream activities in every city. For these groups, sports functional beverages are definitely the first choice, which is why "Mizone" has been able to hit new highs year after year.
Second, high-quality restaurant beverage delivery has great potential. Chain restaurants like "Pizza Hut" and "KFC" are launching personalized afternoon teas that are becoming the new favorite of urban populations, with rapid growth. The most representative is "Warm Hand Tea" launched by "Qi Ji Bakery." Nestlé has launched canned coffee. If one day Starbucks' canned coffee becomes popular, don't be surprised; that day may come.
At the same time, the battle in China's mid-to-high-end yogurt market is just beginning. Bright Dairy's "Mozzarella," Mengniu's "Pure Zhen," and Junlebao's "Kaifeier" show that there is still a lot of room for segmentation in the high-end yogurt market.
The mid-to-high-end water market will see explosive growth in the future. Water pollution affects everyone's nerves, and the pursuit of good water will soon become prominent. Kunlun Mountain, Baishuishan, glacier water, and other mid-to-high-end water markets will see explosive growth. Evergrande Spring Water, if it can change its lone-ranger approach, can still achieve something. In terms of price bands, the 5-yuan price band will gradually become mainstream, but the 8-yuan price band has unlimited potential.
Regional nutritional beverages will become a red ocean. Beverages with strong regional characteristics, such as coconut juice, wolfberry, red date, and loquat, will surge, and one should be prepared for long-term fierce competition.
Plant protein beverages represented by "Six Walnuts" and herbal tea beverages should be experiencing weak growth, like an arrow at the end of its flight. Thirty years east, thirty years west. You can't have all the scenery to yourself.
With these predictions, some are happy and some are worried. The key is that in an era of rapid consumption iteration, enhancing value perception is the hard currency of the market.
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