2024 was an extremely challenging year for the FMCG industry. In November 2024, New Distribution conducted a survey of 121 listed FMCG companies' first three quarters' reports, and more than half of them showed unsatisfactory performance. Over the past year, the Chinese FMCG market experienced slowing overall growth amid internal and external economic challenges. According to a report by Bain & Company, the FMCG market only achieved a modest growth of 0.8% in the first three quarters of last year. However, despite the overall pressure, some leading companies rose to the challenge and achieved growth against the trend. New Distribution recently observed that JDB Group President Li Chunlin released positive signals of steady corporate development at the internal annual meeting: in 2024, the group's operating performance exceeded expectations, achieving substantial profitability for six consecutive years, maintaining a high-quality development trend, and continuing double-digit profit growth in 2025. In the current global economy full of significant challenges, enterprises still face risks and crises of operational difficulties and even bankruptcy. "Survival" remains the fundamental goal for many companies. Where does JDB's confidence come from?
Internal Strengthening: Cost Reduction and Efficiency Enhancement, Market Refinement
Many companies admitted at the end of the year: "2024 was too difficult." The global economy and market environment have become increasingly uncertain, with domestic deflation, consumption downgrading, and severe lack of confidence putting unprecedented pressure and challenges on all industries. A large number of enterprises have fallen into operational crises, with frequent bankruptcies, salary cuts, and layoffs. But the harder the times, the more it tests a company's internal strength. Whether and how to adapt to challenges is the core issue. Judging from market feedback, JDB chose to move against the wind, focusing on internal strengthening through management optimization and efficiency improvement to solidify the foundation for corporate development.
- Supply Chain Optimization: Dual-Wheel Drive, Cost Reduction and Efficiency Enhancement
In the FMCG industry, the stability and efficiency of the supply chain are the foundation of a company's competitiveness. In 2024, JDB optimized its supply chain system comprehensively, stabilizing cost lines and profit margins, giving it an advantage in fierce market competition. On the cost side, to address the challenge of rising raw material costs, JDB effectively reduced cost pressure through scientific decision-making and precise procurement. On the efficiency side, it continued to promote digital upgrades, achieving full-chain digital management from production to operations, effectively improving operational management efficiency and quality. The Henan Luohe factory project was efficiently advanced and successfully put into operation within a year, not only improving production efficiency but also reducing logistics costs.
- Deepening Downstream Markets: Precise Layout, Seizing Growth Space
Amid the intensifying segmentation of the Chinese FMCG market, downstream markets have become a battleground for companies seeking incremental growth. However, for companies, entering downstream markets may seem to offer large market space, but actually seizing incremental growth is much harder than imagined. On one hand, the channel structure of the Chinese market is extremely complex, with consumption chains involving multiple levels of distributors and dealers. On the other hand, consumers in first- and second-tier cities differ significantly from those in fourth- and fifth-tier cities and counties in terms of living habits, consumption behavior, and purchasing power. Therefore, while consolidating existing consumer groups, finding incremental growth in downstream markets requires identifying the right "entry points." At the beginning of 2024, JDB clearly defined its marketing strategy: "Deepen the 3.5-6 tier markets and accelerate the successful implementation of new marketing models." To ensure the implementation of this strategy, JDB held two meetings for the entire marketing team in March and June, fully mobilizing the initiative, enthusiasm, and creativity of marketing personnel, injecting strong momentum into the company's market breakthrough. In 2024, through supply chain optimization and precise market strategies, JDB not only successfully coped with the overall downward pressure in the industry but also laid a solid foundation for high-quality development in 2025. This year, JDB demonstrated not only the resilience to "survive" but also the ability to "thrive." By strengthening internal capabilities, the company's internal efficiency and resource allocation capabilities were comprehensively improved, laying a solid foundation for future growth.
External Enhancement: Brand Youthfulness Upgrade
Seizing Consumer Mindshare
Recently, Douyin Life Services, in conjunction with CBNData, released the "2025 Spring Festival Consumption Data Report - Young People Take Over as New Year Chiefs," which uses data to depict the consumption landscape of food, beverages, entertainment, and various preparations during the Spring Festival. The report shows that during the 2025 Spring Festival, young people aged 18-30 were already the main consumers of food, beverages, and entertainment on the Douyin Life Services platform. This reflects the fact that in today's consumer market, young people are gradually becoming the main group. For FMCG companies, how to capture the needs of young consumers has become key to sustained growth. This group not only has strong purchasing power but also exhibits high levels of personalized needs and a strong tendency for emotional identification. Compared with the previous generation, young people no longer focus solely on functionality and price when choosing products; they pay more attention to the values, cultural connotations, and unique experiences that brands convey. JDB also deeply recognizes that functional appeals alone cannot satisfy young consumers; they need deeper emotional resonance and cultural identity. In 2024, JDB carried out multi-dimensional innovations in brand culture to empower brand youthfulness. From cultural empowerment to cross-border cooperation, from IP creation to scenario marketing, to deep social media operations, JDB not only deeply integrated with cultural tourism, catering, and other industries, "playing together" with consumers, but also achieved cultural co-creation. This approach of inheritance and innovation has won JDB significant market results. JDB has precisely grasped the dual consumer sovereignty of "cultural identity + experience upgrade" to achieve new growth in the traditional herbal tea track. On one hand, by exploring traditional culture and combining it with modern life, it strengthened the brand's unique cultural attributes; on the other hand, through innovative scenario marketing and interactive methods, it enhanced consumers' sense of experience and participation.
Aiming for 2025: Double-Digit Performance Growth Target
In the view of New Distribution, JDB's better-than-expected performance in 2024 is the inevitable result of the company's comprehensive strength and long-term strategic layout. "Internal strengthening" has solidified the foundation for the enterprise, while "external enhancement" has opened up greater incremental space for the brand in market competition. The two complement each other, forming the core driving force for JDB's strong growth in adversity. The achievements in 2024 have also given JDB greater confidence for 2025. JDB President Li Chunlin stated that the JDB team is one that "dares to fight, is willing to fight, and can win battles," and is confident of achieving greater victories in 2025. To achieve this goal, JDB needs to make efforts in multiple dimensions, including scenario penetration, all-staff marketing, international layout, and product innovation.
First, anchor 2025 as the year of return for the ready-to-drink market, starting from the industry's "water head battle," running through the year and focusing on implementation. Achieve major breakthroughs in the ready-to-drink market, promote penetration growth in the gift and banquet markets, achieve synergistic development of multi-scenario consumption, and help the company rise against the trend.
Second, further strengthen the strategic measures to penetrate the 4-6 tier downstream markets, further consolidate the leading position in downstream markets, and lay a solid foundation for achieving the strategic goal of becoming the number one beverage brand in downstream markets. At the same time, Kunlun Mountain Mineral Water should deeply cultivate national special channels, continue to increase promotion and expansion of online channels, focus on core base markets, achieve major breakthroughs in sales performance and market foundation, and comprehensively lead the healthy development of China's high-end water market.
Third, accelerate the layout of the international market and promote the brand internationalization strategy. Build a complete sales team and customer system in target markets, accelerate market infrastructure construction and brand promotion, and achieve new major breakthroughs and growth points.
Fourth, promote product innovation to meet diverse consumer needs. Launch new products that meet the needs of young consumers and promote product upgrades. Kunlun Mountain Mineral Water plans to launch glass bottle packaging to further expand into the high-end consumer market.
Fifth, further deepen organizational reform, build an agile organization, improve management efficiency, and fully release organizational vitality. As Li Chunlin said, to break through difficult situations and grow resiliently, the core essence is that the marketing team must be able to fight hard battles and win, capturing one hill after another and gnawing through one hard bone after another. Only when the team is strong enough and full of vitality can there be sufficient confidence and courage to deal with all external uncertainties.
Sixth, continue to promote the digital transformation and upgrading strategy and consolidate initial results. Further expand the fields and scope of digitalization, intelligence, and system platform applications, maximize the automation and intelligence of various basic and repetitive manual tasks, greatly release human resources, invest more time and energy in thinking about business, improve JDB's overall operational efficiency and effectiveness, and further compress operating costs.
Final Thoughts:
Revitalizing with the Way of Upholding Integrity and Surprising Innovation
JDB has proven with practical actions that in the face of a complex market environment, as long as the direction is clear and actions are decisive, it can find its own growth space. By "upholding integrity" to strengthen internal capabilities, adhering to the health attributes of herbal tea and supply chain advantages, this is the foundation of the brand; while "surprising innovation" is reflected in activating the vitality of the herbal tea category through cultural empowerment, scenario innovation, and omni-channel operations, giving this traditional beverage new vitality. Looking ahead to 2025, the story of this can of herbal tea is still being written. The environment and market development of the entire beverage industry are also worth watching.