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My impression of Yedao Lujiu wine is extremely profound. Between 2000 and 2003, I was engaged in sales work in Guangxi, Jiangxi, Hunan and other places. At that time, I was a very young beer salesman (time flies, I have aged in the blink of an eye, hehe). Although I was not selling health wine, our distributors often overlapped. Around 2000, the sales of Jing Wine were still in their infancy. At the same time, in the coastal market of Guangxi, there was a health wine from Liuzhou called Guling Shenjiu, which also sold well in the coastal catering market of Guangxi (rarely seen now). Among these health wines, Yedao's sales should have been the best. I especially remember clearly that around 2002, in the Hunan market, Yedao's market performance was very strong. At that time, I was in the Shaoyang market. In Shaoyang County, there was a distributor for Wahaha. The manufacturer had salespeople stationed there, and the distributor also had salespeople. They covered the local market airtight and watertight. All supermarkets, restaurants, hotels, small shops, and even communities were seized by them. The cooperation between the distributor and the manufacturer's sales staff was also very good, which I envied greatly. I was alone in the Shaoyang market at the time, and I often used Yedao's distributor resources and personnel for distribution and market development. Here, I want to thank that big fat brother who ate 3 packs of betel nuts and 2 packs of Baisha cigarettes a day; he helped me a lot. In recent years, Yedao Lujiu's sales have plummeted. In the first half of this year, liquor sales were only over 70 million yuan, while Jing Wine's sales in 2015 were 8.499 billion yuan. The former number one in health wine, with sales exceeding 1 billion yuan in 2003, while Moutai's annual sales were only 2.4 billion yuan at that time. Now, Moutai's annual sales exceed 40 billion yuan, and Jingpai Group is also approaching 10 billion yuan, while Yedao is precarious, which is lamentable. This article mainly presents a few viewpoints; please point out any shortcomings. 1The main problem of Yedao is brand aging Yedao Lujiu is positioned as a gift for the elderly. More than 10 years ago, this was certainly correct; in that era, Nao Baijin was also the hottest. But now, do you think these products still have vitality? Yedao also wanted to transform and attempted transformation, such as launching a 125ML product for the catering channel and conducting deep distribution. The pilot in Yixing was very successful, with 3.05 million yuan collected in over 3 months, but replication in other places failed completely. Based on this, senior management concluded that it wouldn't work. It is said that the person in charge of the Yixing pilot market was a veteran, with strong execution. Yedao's senior management believed this was "very special" and that other places couldn't do it. But shouldn't "can't do it" be the problem? Should this veteran named Gu Yong cry or laugh? Later, senior management instead believed that the success of this pilot was "blind imitation of Jing Wine," which misled the company's judgment. They thought they should persist in the elderly market, emotional communication, community maintenance, and make themselves an elderly medicinal wine. Words like misleading, lost, and imitation became "reasons for not doing well," so how could they not fail! I believe that this return to the mainstream is definitely correct strategically. Making a wine for the elderly has no future; gift wine is also a dead end. We must return to the mainstream and fundamentals of health wine: let the masses consume it; make health wine fashionable. Jing Wine did not rise through "deep distribution," but through accurately grasping consumer demand and meticulous cultivation. It also deeply understands Chinese market consumers, trends, and the future. That kind of reliance on meeting sales, community promotion, and one-on-one maintenance can start the market in the short term, but at a higher level, what way out is there?! Brand aging and consumer group misalignment naturally lead to declining sales each year. Only brand rejuvenation and product personalization have a way out. 2Unclear property rights are the nightmare of state-controlled enterprises It is not scientific to judge the success or failure of an enterprise solely based on whether it is state-owned or private. Some say state-owned enterprises are inefficient and cannot do well in brand, market, and management. Of course, such situations exist, but it is not entirely the case. Jianlibao is like this, Yedao is like this, and Liangmianzhen is also like this; but China Resources does well, and Cold Sore Ling is not bad either. There are also those who play a good hand badly, those monopoly enterprises that loudly claim annual losses, such as highways or the two oil companies. This is extreme, and after being shameless to the limit, it makes people's IQ drop! Some state-controlled enterprises start well but then decline, basically due to unclear property rights, everyone fighting for control, severe internal friction, and outsiders managing insiders. Naturally, the worse it gets. Even if the enterprise has capable people, the power side would rather give to outsiders than to their own servants. There are too many such examples. The example of Jianlibao is still vivid, and Li Jingwei's sigh to the sky is so tragic. Some say that the incentive problem is difficult for state-owned enterprises to solve. I think this is not a problem; incentive mechanism design can solve it. 3Capital is a double-edged sword Wahaha is not listed, Laoganma is not listed, and they still do very well; Huawei is not listed and has become the world's number one in communications. There are not a few people who want to list to raise money and cheat shareholders and users. At least many internet companies think this way now; who cares whether there is real value! Capital can buy enterprises, build factories, buy brands, buy a team, buy, buy, buy. There are countless cases where capital speaks or is spoken for. In the distant past, there were domestic famous brands like Tianfu Cola, Huoli 28, Baimao Detergent, Xiaohushi, Dabao, Robust Pure Water; in the near term, there is Vanke, which was hijacked by capital. Boss Wang almost been ousted by Boss Yao, Boss Xu, and central enterprise bigwigs. This is the power of capital. Wang Shi called them "barbarians at the gate." But many things bought by capital are not done well. If buying could really make it good, I think Boss Wang should have been dismissed without suspense. But no matter how powerful capital is, it cannot solve the brand problem, nor the relationship between brand and consumers. A while ago, Kela Coffee, which was crowdfunded in Shenzhen, announced closure 18 days before its first anniversary. Public information shows that Kela Coffee was a national chain crowdfunded coffee shop initiated by Kelabo and many internet finance giants, providing a third-party platform for internet finance enterprises to exchange, roadshow, and promote. Kela was positioned as "the first 'Internet + Finance' themed coffee shop in the country," located in the bustling CBD of Futian, Shenzhen. The daily rent and operating costs exceeded 30,000 yuan, with annual operating costs exceeding 10 million yuan, and the daily cost exceeded the monthly operating cost of an ordinary coffee shop. But it was useless; capital bigwigs were also helpless. Of course, capital can still remove you from your enterprise, and the territory you worked so hard to build suddenly has nothing to do with you. In the near term, there are Wang Shi, who is in jeopardy, and the founders of No.1 Store; in the distant past, there is He Boquan of Robust... It feels like it's not finished, but it's very late. I'll continue in the next article. Stay tuned. New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels will change under the general trend of Internet + transformation Conference Agenda 09:00-09:30 Registration 09:30-09:35 Host opening 09:35-10:05 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 10:05-10:25 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:25-10:45 Opportunities and Challenges Brought by FMCG Channel Reform - Liu Zhao, CEO of Waiqin 365 10:45-11:25 Alibaba Retail Link All-round Empowerment - Guo Kunkun, Alibaba Retail Link 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? (Guests to be confirmed) 12:00-13:30 Lunch 13:30-14:00 Distributor Transformation: City Distribution Trend Development - Wang Qi, CEO of Weijie City Distribution 14:00-14:30 Roundtable Forum - Why Should Distributors Do Logistics in Transformation? 14:30-15:00 Detailed Explanation of Zhongshang Huimin's One Machine, Two Wings Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:30 Detailed Explanation of Zhanghe Cloud Factory Strategy - Yang Lixiang, Zhanghe Tianxia (speech content to be confirmed) 15:30-16:00 Supply Chain Finance is the Lubricant for B2B to Drive Traditional Business - Chen Xian, CEO of 51 Order 16:00-16:30 2B Investment Principles and Ideas - Xu Xiaoping, Founder of ZhenFund (guest to be confirmed) 16:30-17:00 Small Retail, Big Business Opportunities: Transformation and Upgrading of China's Retail - Wang Jianfeng, General Manager of E-commerce Department of Yurun Group 17:00-17:30 Roundtable Forum - Who is the King of FMCG B2B Models? (Guests to be confirmed) 18:00-20:00 Dinner For manufacturers and distributors who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register. Registration Method: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register] ↓↓↓