Click the image above for details The entire beer market has long been controlled by five major beer giants: Snow, Tsingtao, Budweiser, Carlsberg, and Yanjing, which together hold an 83% market share. Although the market is monopolized by giants, it is not without change. As consumers' spending power increases and they aspire to a better, higher-quality, and more diverse life, more and more consumers are seeking beers with better flavor and taste. Based on this, a new force has emerged in the beer industry—craft beer. According to industry data, in 2013 there were 17 craft beer enterprises in China, 33 in 2014, 74 in 2015, 293 in 2016, and by 2019, nearly 2,000 craft beer enterprises. In just six years, from scratch, from a dozen to thousands, domestic craft beer has rapidly completed its embryonic stage and entered a new phase of development. However, the five major domestic giants have also all entered the craft beer field. Under the watchful eyes of industrial beer giants, how should innovative craft beer be done? Panda Craft Brewery, as a leading brand in the craft beer field, from the launch of its first bottled product in October 2013 to securing 119 million yuan in Series A funding in May 2017, has now reached the forefront of craft beer. How did they do it, and how do they understand this new market of "craft beer"? -01- Craft Beer Positioning Craft beer brands are springing up, but their marketing strategies vary greatly. Some focus on online channels, using social media and e-commerce platforms to complete consumer awareness and transactions; others focus on offline, expanding through restaurant and retail store openings to achieve consumer brand recognition and purchase. For Panda Craft Brewery, Pan Dinghao told New Distribution, "Craft beer is not like red wine, where a friend brings a good bottle from abroad and you share it with three or five friends. It's also different from the loyalty of baijiu. If you want to drink beer, you want it right away. If you can't get Panda Craft Brewery, you might consider Snow or Yanjing. Even a craft beer enthusiast can lower their standards infinitely and choose something else." Looking at Panda Craft Brewery's past sales proportions, the restaurant channel accounts for the majority. Therefore, Panda Craft Brewery positions itself as a fast-moving consumer goods brand that emphasizes offline presence. As a completely new thing, consumers cannot simply understand the cultural story behind a bottle of craft beer. In the early stage, the only way is to open stores to let consumers experience how to drink craft beer and what food to pair with it. Tell consumers that craft beer not only represents beer, but also represents a new, higher-quality lifestyle that emphasizes ritual, rather than "stepping on a case of beer and not leaving until it's all drunk." So Panda Craft Brewery hopes to use its stores to popularize and educate about craft beer culture, and also as a form of brand promotion. -02- The Future of Craft Beer There will definitely be a place for craft beer in the future of beer, but how much is still unknown. Some may compare China's craft beer market to the United States, which is currently in the mature stage of craft beer, with more than 8,000 brands, and craft beer can be seen sold in almost any region or corner. So, what will happen in the Chinese market? Pan Dinghao frankly stated that the window period for China's craft beer development will be very short, and the entry of industrial beer giants will affect the entire craft beer development. These giants have already entered the layout stage, and it may take only 3-5 years for them to fully expand. But innovative craft beer brands still have many opportunities. After all, it has just entered the development stage, and it is an inevitable trend for consumers to choose. There are opportunities and market capacity, but how much share they can get depends on how innovative craft beer brands strive.