In recent years, Jinmailang has been a benchmark for growth in the FMCG market, ranking first among large and medium-sized beverage companies for six consecutive years. Its 'Four-in-One' distributor operation model is also an industry benchmark for learning and imitation. Recently, at the invitation of a brand owner, I visited markets in Shanxi, Henan, Shandong, and Hubei, and took the opportunity to observe the market situation of Jinmailang beverages. Today, I will share my observations and thoughts on the current crises and opportunities for Jinmailang beverages.

-01- The Four-in-One Model Needs Iterative Upgrading During my market visits, I encountered an interesting phenomenon: in tier 4-6 markets, Jinmailang beverages often dominate, leading in display presence, number of SKUs, placement, and inventory. However, on these well-stocked shelves, the age of products is generally high, especially for new products, which are at least 2-3 months older than competitors'. This directly reflects a sell-through problem. What causes this? Is it the product itself? Brand power? Natural disaster or man-made?

Let's revisit the core philosophy of the Four-in-One model. The current model is based on decentralizing distribution rights to stimulate the initiative of small shop owners in the area, shifting from an employee mindset to an owner mindset, so they will fight hard to carve out their own territory in the red ocean market.

But grassroots personnel are, after all, grassroots. They only have sales and maintenance rights in the market; they can fight in the micro-market, but their grasp of the macro picture is not satisfactory. What they think is right may be wrong, or only right at a certain moment.

At this time, what is most lacking is guidance from frontline management. In Jinmailang, this position is called 'county-level director.' However, the role of this position is mostly still an employee mindset. Their income depends on the company's base salary, performance bonuses tied to meeting sales targets (which heavily overlaps with the functions of city-level directors), and commissions settled by distributors. This model has persisted for a long time.

When the market sees slow-moving products and high product age, the first reaction is to report to the city-level director and inform the distributor to sell at low prices. More often, they cooperate with company leaders to push for payments and shipments. How much energy can such a position devote to operations? This is not the problem of the county-level director; it is a flaw in the model.

If we delve deeper, we find that excellent distributors, in the recent years of economic slowdown, have continued to grow their business scale and improve their operational capabilities, forming their own distribution systems. The boss, manager, and sales staff are no longer in a dependency relationship but a partnership model:

The boss provides product rights (responsible for finding good products, researching how to sell them, pricing systems, payment and warehousing, everything revolves around the product);

The manager provides management rights (based on the product, guiding business operations, solving market problems, everything revolves around personnel and market management);

The sales staff provides sales and maintenance rights (responsible for implementing sales and tactics, everything revolves around outlets).

The separation of three powers is organically combined through data-driven tools. All are owners of the business, sharing the fruits of labor through a consensus-based profit-sharing model.

The Four-in-One model, however, has only excelled at the small boss level, with a clear weakness in the middle tier. Just as a farmer harvesting crops needs to use the waist to lift a large bag of grain, the small boss's duty is to sell and maintain products according to requirements; that makes them an excellent small boss.

The logic of product sell-through depends on: product + tools + methods. Regarding the above issue, if sell-through is hindered, is it a problem with product selection? Tools? Or methods?

In any case, it is definitely not the small boss's problem. The small boss's job is to follow the operating standards; if they do, they should be rewarded. The person managing the small boss must be responsible for the results of the process. At this point, the problem lies with the 'superiors' of the small boss. The core of solving the problem is to turn the 'superiors' of the small boss into partners.

-02- Liangbai Kai Needs to Accelerate Consumer Education As the largest category in China's soft drink market, the bottled water market's growth rate is astonishing. According to data from market research firm Zenith Global, from 2007 to 2017, packaged water consumption grew by 92%, while all soft drinks grew by only 24% during the same period. By 2020, the market size of China's packaged water industry is expected to exceed 200 billion yuan, with vast market prospects.

Riding on this trend, Liangbai Kai has a foundation for its rise. In 2016, Liangbai Kai was launched in 500ml, 1*15 carton packaging, carving a new path in the red ocean of 2-yuan water, finding a foothold and rapidly growing, achieving explosive growth.

When it comes to bottled water, only the source concept of mineral water has marketing value. As for production processes, the differences among leading companies are not significant. In terms of subcategories, Nongfu Spring, C'estbon, and Ganten have strongly represented the three subcategories of mountain spring water, purified water, and mineral water, respectively. Other water companies are likely to become pawns in the promotion of a giant.

The only concept that Jinmailang can use to differentiate itself from these three giants is the 'cooked water' concept. Jinmailang, combining the Chinese habit of drinking boiled water, boils water and then cools and bottles it. Theoretically, after natural cooling, the physical and chemical properties of boiled water, such as density and conductivity, change, making it easier for the body to absorb and promoting metabolism.

Moreover, as water that has been heated to boiling, its nature changes from raw to cooked, greatly reducing its cold nature. Drinking it is mild and does not cause bloating or irritate the stomach. Thus, Liangbai Kai was born. More importantly, it positions itself differently from traditional 2-yuan bottled water, which is all 'raw water.' These are the winning strategies for Liangbai Kai's initial success.

On January 1, 2016, the 'National Food Safety Standard for Packaged Drinking Water' was officially implemented. In 2017, with Jinmailang's strong push, the 'Cooked Water Packaged Drinking Water' group standard, which is stricter than the national standard for packaged drinking water, was officially released and implemented in September of that year, along with the 'cooked water label,' on the 'National Group Standard Information Platform.'

The 'Cooked Water Packaged Drinking Water' group standard clearly defines: using production water that meets the raw material requirements of GB19298 as the source water, processed through membrane filtration technologies such as ultrafiltration, nanofiltration, and reverse osmosis, and only through a physical heating sterilization process at no less than 100°C, to produce packaged drinking water.

Here, I need to introduce GB 19298-2014 National Food Safety Standard for Packaged Drinking Water: This standard applies to packaged drinking water for direct consumption. This standard does not apply to natural mineral water. Clauses 4.1 to 4.2 of this standard were implemented on January 1, 2016.

So the question arises: according to the new national standard, bottled water is clearly divided into three categories: natural mineral water, purified water, and other drinking water.

Currently, consumers generally perceive that natural mineral water is superior to other drinking water and purified water. Liangbai Kai is currently perceived as an upgraded version of purified water or drinking water (artificially processed water), and its category is weaker compared to natural mineral water.

Secondly, from the user profile of Liangbai Kai, the post-70s and post-80s are the main bottle holders. It is important to note that from 1995 to 2002, 150 million people were born, and they will inevitably be the main force of bottled water consumption. However, this group's awareness of the term 'Liangbai Kai' is far from sufficient. For them, 'cooked water' has not formed a colloquial expression. Without entering colloquial expression, it is difficult to retain the concept in consumers' minds.

Finally, the battle in the 2-yuan water segment is too fierce. Nongfu and C'estbon are in a price war, and Ganten has joined the fray. This cake will become even more bloody. The Chinese market has always struggled to escape low-price competition. Liangbai Kai's current volume is relatively small. Once it grows to a certain stage and is perceived as a threat by the 2-yuan water giants, it will be a different scenario. Therefore, the next focus for Liangbai Kai must be consumer education for the younger generation, building new awareness, with speed and efficiency.

-03- The Follow-the-Leader and Low-Price Strategies Should Be Gradually Abandoned Within Jinmailang, there is a consensus that following is the lowest-risk entrepreneurship. This is evident from the product structure of Jinmailang beverages. In recent years, except for Liangbai Kai and Manton Town, most products have 'prototypes' in the market, imitating Mizone, imitating tea π, and all have ended in failure.

Previously, limited strength left no choice. But now it is different. As a benchmark enterprise in the north, Jinmailang has a say in product innovation, R&D, food technology, and brand influence. It should invest heavily in new product development to meet the desire of the younger generation, the post-90s consumers, for novelty and change every day. With more care and innovation, life can be filled with small joys and ordinary life can have extraordinary value.

Final Thoughts: 'If you decide to try, go all out' is the creed practiced by all Jinmailang people and the belief they steadfastly uphold. This belief has opened the journey of Jinmailang's forward development.

I once served Jinmailang Beverages for three years and deeply felt this corporate culture. I also witnessed the birth and rapid development of Liangbai Kai and Manton Town. As a national brand, Jinmailang has many aspects worth learning from for the FMCG industry. I sincerely hope Jinmailang grows stronger and brings more valuable things to the entire FMCG industry.

Tips will be paid 400-2000 yuan once adopted.