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Articles by 读懂君

Browse 8 New Distribution articles by 读懂君.

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Capital, Earnings & M&A

The Return of the 1-Yuan Water: Consumption Falls into the Quagmire of Low-Price Competition

A few years ago, many investors predicted that China would produce its own luxury brands, reflecting a belief in consumption upgrading. This led most consumer goods, including bottled water, to pursue premiumization, pushing prices to 2 yuan and nearly eliminating 1-yuan water. Recently, however, 1-yuan water has made a comeback, with promotional prices for brands like Jingtian, C'estbon, and Nongfu Spring's green bottle dropping to around 1 yuan, signaling a shift in industry logic and a descent into low-price competition.

读懂君
Capital, Earnings & M&A

Consumer Downturn Begins with the 'Elimination' of Mid-Range Baijiu

In China's consumer narrative, baijiu holds a special place, often seen as a barometer of the consumer sector. Since 2016, baijiu has been the classic case of consumption upgrading, with industry profits driven by mid-to-high-end upgrades. However, this year, the mid-range baijiu segment is facing a downturn, with declining sales, rising inventory, and broken premiumization logic, leading to a shift toward a 'dumbbell' market structure.

读懂君
Capital, Earnings & M&A

Chongqing Brewery: Falling into Carlsberg's Premiumization Trap?

After the relaxation of COVID-19 control policies, the market expected a strong recovery in beer sales and premiumization, with Chongqing Brewery being a top pick due to its past success. However, its 2022 annual report and 2023 Q1 results showed a slowdown in premium product growth, leading to a 28.96% stock price decline, the worst among A-share beer companies. This article argues that Chongqing Brewery's premiumization strategy is faltering due to high dividend payouts and frequent management changes under Carlsberg, which may hinder long-term development.

读懂君
Consumer & Categories

Beverage Mega-Brands Are Aging, While Baijiu Mega-Brands Remain Young

In the beverage industry, the era of relying on a single mega-brand has passed, with once-dominant products like Nutrition Express and Red Bull shrinking from billions to hundreds of millions in scale. In contrast, baijiu companies like Moutai and Wuliangye still thrive on their mega-brands, which remain their core competitiveness and are even strengthening.

读懂君
Capital, Earnings & M&A

Dali Foods' 53 Billion: Flabby, Not Strong

Dali Foods, known for its imitation strategy, has launched seven sub-brands since 2002, but its growth has slowed significantly in recent years. Despite holding seven brands and billions in cash, the company appears flabby rather than strong, as it has lost its innovative edge and faces a deteriorating competitive landscape.

读懂君
E-commerce & Instant Retail

Community Group Buying: A Gladiatorial Arena for Tech Giants

Community group buying is not just about a couple of cabbages. After years of development, the Chinese internet industry seems to have run out of stories, with major players dominating their own territories and platform opportunities nearly vanishing. Giants like Alibaba, JD.com, Meituan, and Pinduoduo are now engaging in fierce competition in this new arena, which represents a super strategy for penetrating lower-tier markets.

读懂君
Capital, Earnings & M&A

A Bottle of Yanjing Beer, Full of Bitter Tears

Since 1989, Yanjing Beer has experienced a rise to prominence and subsequent decline, marked by missed opportunities in market expansion and premiumization, as well as persistent management issues. By 2019, its revenue and net profit had fallen to 83% and 32% of their peak levels, respectively.

读懂君
Capital, Earnings & M&A

TaoLi Bread's Nationwide Expansion War

TaoLi Bread, a leading Chinese short-shelf-life bread maker, faces challenges in its nationwide expansion despite industry growth. The company's revenue growth has slowed for four consecutive years, and its southern subsidiaries are mostly loss-making due to intense competition and regional differences.

读懂君