Wahaha, once known for being close to the market, seems increasingly unable to reach consumers' hearts. Facing the heavy topic of recession and downturn as the keywords for the food and beverage industry in 2015, even this FMCG giant with 30 years of experience cannot stay aloof. The strategy of surrounding cities from rural areas is clearly no longer sufficient for Wahaha's next development pace. On the 27th, at its new product launch and Beijing partner appreciation meeting held at the Beijing National Convention Center, Wahaha again emphasized strengthening its focus on first- and second-tier city markets, showing a shift in its sales strategy. Although Wahaha's channel capabilities are outstanding, moving to the highly competitive first- and second-tier markets is not as simple as a slogan. For Wahaha, how can it break through in the hail of bullets? Turning to First- and Second-Tier Markets In the past 2015, beverage companies had a tough time. From industry giants like Coca-Cola, Huiyuan, and Master Kong, to tens of thousands of small and medium-sized enterprises, year-on-year sales all declined to varying degrees. Industry insiders believe that from the data analysis of domestic and international beverage giants, the overall decline of the beverage industry has arrived, and the beverage market in 2016 is still in the "deep winter." Before the Chinese New Year, Wahaha held its 2016 sales annual meeting and distributor conference in Hangzhou as usual. Although it did not publicly announce the 2015 sales data, the theme "Youth Acceleration, King's Return" clearly indicated its reform intentions. It is reported that Wahaha Chairman Zong Qinghou mentioned at the meeting that in 2016, Wahaha would shift its sales strategy, that is, strengthen its focus on first- and second-tier markets and recapture core city markets. Regarding this shift in sales positioning, a relevant Wahaha executive did not deny it in an interview with reporters, but as of press time, there was still no reply regarding the specific new sales model and product strategy for the new year. As is well known, Wahaha has been in the food and beverage industry for decades. Its predecessor was founder Zong Qinghou pushing a cart through the streets, a small business. Relying on the successful channel model of the associated sales system, it gradually grew into the current vast FMCG empire. It has always followed the "rural surrounding the city" route, continuously refining and sinking channel development, focusing on third- and fourth-tier markets. Now suddenly proposing to enter first- and second-tier cities is indeed surprising to the outside world. Public data shows that in 2012, Wahaha's operating revenue was only 63.6 billion yuan, a year-on-year decline of 5%, marking the first time Wahaha experienced a performance decline. In 2013, the company's turnover completed 78.28 billion yuan. In 2014, Wahaha's sales were only 72 billion yuan, a year-on-year decline of 8%, making it the year with the largest performance decline. With declining performance, Wahaha had to reconsider its positioning. As early as 2012, Zong Qinghou set a target of 100 billion yuan for Wahaha. However, the rapidly changing economic situation and Wahaha's own criticized diversification woes caused Wahaha to miss its sales targets of 80 billion yuan in 2013 and 102.3 billion yuan in 2014. An industry insider familiar with food and beverages analyzed that consumers have an increasingly wide range of choices, and the market capacity is limited. The emergence of new products will inevitably squeeze some original market share. In addition, the upgrading of consumption levels and changes in consumption structure make consumers more willing to choose products with high added value. However, the best-selling products of those giants are often mass-market products. These products are aging, lack innovation, and overall remain at the level of several years ago, ultimately leading to a decline in consumer willingness to choose, and thus a decline in performance. With consumption upgrading and the shift in mainstream consumer groups, Wahaha's series of beverages' market and channels urgently need to upgrade in line with market development trends. In Wahaha's view, "marching into cities" can strengthen Wahaha's brand position and enhance product image. Zhu Danpeng, a researcher at the China Brand Research Institute, told reporters that Wahaha has been deeply cultivating third- and fourth-tier markets in China, and its associated sales distribution system is also suitable for third- and fourth-tier cities. However, third- and fourth-tier cities are gradually being occupied by small brands, becoming an obstacle for beverages. But first- and second-tier markets are not markets that can be achieved overnight; they are difficult markets and require patience, because first- and second-tier markets have high requirements for product innovation, interaction, and promotion models. Difficult to Find Profit Breakthrough Points Wanting to shift sales focus to first- and second-tier cities is not a simple slogan; it involves the staffing of sales and market teams, as well as the repositioning of product positioning, taste, and packaging. Wahaha is also aware of the complexity of this work and has stated it will increase new product promotion and R&D efforts to adapt to the new normal and new mainstream consumption changes. It is understood that in 2016, Wahaha will mainly promote three major product series: bottled water, children's beverages, and light beverages, with high-end, fashionable, and innovative as the keywords for new products. After 20 years on the market, Wahaha purified water has been upgraded with a "crystal diamond bottle" packaging. Since its launch in 1995, Wahaha purified water has maintained good sales results, but the product has continued with its classic packaging unchanged. As competition in the packaged drinking water market intensifies, Wahaha has followed the trend of the times and, after more than a year of market research and design improvements, officially launched the new packaging. This time, the new packaging does not involve price adjustments; the ex-factory price and suggested retail price remain consistent with the original product. According to materials obtained by reporters from Wahaha's official channels, the launch of "Edison Cheese Yogurt" is one of the company's key initiatives in this new product promotion. According to reporters' observations, in the Beijing market, Wahaha's subway and other outdoor advertisements have been very active recently. Currently, Edison Cheese Yogurt has sponsored a variety show, starting a long-term variety show marketing campaign. Light beverages are springing up like mushrooms after rain. Even Zong Qinghou admitted that the current consumer group's preferences have undergone significant changes, and light-taste and light-functional beverages have become development trends. Therefore, at this Wahaha sales annual meeting, "Qing Tou Xiao Ju" (Light Tangerine) was unveiled, claiming to be "only a little more than water." In fact, Wahaha has never lacked new products, but the endless stream of new products has often met with failure. For example, previously launched Youyou Milk Coffee, P'er Tea Cool, and C You almost all failed. A Wahaha distributor admitted that current profitable products face fierce competition, and although new products have profit margins, customers do not recognize them. It must be said that under the leadership of Zong Qinghou, Wahaha is still running on the road of struggle. In addition to launching new products, diversification is also a breakthrough point for Wahaha to seek profits. In addition to previous attempts in clothing and shopping malls, last year, Zong Qinghou brought four robots to participate in the China International Industry Fair held in Shanghai. Wahaha has gone further and further on the path of diversification. Will this "marching into the city" path go smoothly? This article is sourced from: China Times -END- Su 8 Taurine Vitamin Functional Drink National Recruitment Company: Shandong Tu Bag Ge Group Co., Ltd. Reasons for recommendation: 1. Superb taste and quality. 2. International superstar Donnie Yen as image spokesperson, precise and powerful. 3. Patented packaging design. 4. Strong corporate strength. 5. High profits, professional operation team and after-sales service. Recruitment area: Recruiting for blank markets nationwide. WeChat: lp780611. For more information, follow the WeChat official account: Tu Bag Ge Food. 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