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Articles by 李振兴
Browse 19 New Distribution articles by 李振兴.
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Beverage Giants See Sales Rebound: Innovation Lacking, 2022 Still Needs a Big Push
In 2021, the beverage industry emerged from the 2020 downturn, with major players like Coca-Cola, Nongfu Spring, Wahaha, and Reignwood all achieving growth. Product innovation, particularly in sparkling water and functional drinks, drove the market, while companies like Eastroc Beverage went public and saw stock prices soar. However, industry experts note that innovation remains insufficient, and the focus for 2022 will be on health-oriented, segmented, and high-end products.
李振兴FMCG Distributors Are 'Quitting the Group' in Droves—Is Group Buying 'Killing' Traditional Channels?
FMCG companies now have too many channel options—traditional distributors, e-commerce, and emerging community e-commerce, community group buying, and livestream e-commerce—like five horses pulling a chariot. But if the horses pull in different directions, the chariot may be torn apart. A report on January 11 highlighted a franchisee's losses due to high channel prices, and many distributors in 2021 faced similar issues, leading some to 'quit the group' as emerging channels undercut prices and disrupted the traditional system.
李振兴Hershey's Deep Adjustment: Uncertain Future as Products Pulled from Supermarkets During Peak Season and Employees Unhappy with Compensation
During the Spring Festival peak season for candy and chocolate sales, Hershey's products have been pulled from many supermarkets while the company focuses on adjusting its sales channels and laying off employees. The adjustment, which includes handing over operations to a distributor, has led to employee dissatisfaction over compensation disparities and raised concerns about the brand's future in China.
李振兴Revenue Stagnates: Where Does C'estbon Go Next?
C'estbon, which had maintained revenue growth for years, saw a decline in 2019. The company's 2019 social responsibility report showed revenue of 10.396 billion yuan, a slight decrease year-on-year. Revenue has hovered around 10 billion yuan for three years without significant growth. C'estbon attributes the decline to industry conditions, but insiders note that while the industry downturn is an external factor, internally, C'estbon still relies heavily on water revenue, a saturated market with limited growth potential. Despite new product launches, they have yet to form a breakthrough.
李振兴Zong Fuli's First Brand Enters First-Tier Market, Wahaha 'Explores' High-End
Wahaha has begun exploring the high-end market. Zong Fuli, daughter of Wahaha Group chairman Zong Qinghou and head of the group's brand PR department, has launched her first beverage brand KellyOne, whose high-end tea product Yicha is now available at Beijing Yonghui supermarkets. However, industry insiders say KellyOne's limited product categories, insufficient channels, and numerous competitors may make it difficult to support Wahaha's high-end ambitions in the short term.
李振兴Entering the Instant Porridge Market: Where Is Shuanghui's 'Moat'?
Consumers' awareness of instant eight-treasure porridge is mainly concentrated on the two brands Wahaha and Yinlu, making it difficult for Shuanghui to compete with them. Shuanghui continues to make efforts in non-meat product areas. On June 14, a Beijing Business Today reporter found that Shuanghui launched an eight-treasure sausage instant porridge product on its Tmall flagship store. This is another layout by Shuanghui in the non-meat product field. Industry insiders believe that in 2019, the sales volume of Shuanghui's main meat products did not increase, and fresh meat sales even decreased. Shuanghui is actively seeking new growth points.
李振兴Is C'estbon's Diversification Revival Too Late?
After nearly a decade, C'estbon, known for its slogan 'Your and My C'estbon', has again emphasized diversification. Recently, while upgrading its 'Magic' sports drink, C'estbon stated that this move 'strengthens its layout in the sports drink market' and 'signals that C'estbon's plan to build a diversified beverage company is gradually taking shape'. Although C'estbon was a pioneer in many fields, it has been surpassed by Nongfu Spring in its main drinking water market, with Ganten close behind. Industry insiders believe that C'estbon's past achievements stemmed from first-mover advantages, channel advantages, and a focus on drinking water, but to stand out in the increasingly competitive beverage sector, turning 'diversification' into 'multiple business successes' will take time.
李振兴Danone Overhauls Mizone Beverage Line: Can Mizone 'Pulse' Back to Form?
Mizone has been 'out of state' for years; now it aims to 'pulse back'. On April 15, Danone announced a major overhaul of its vitamin beverage Mizone, upgrading brand positioning, formula, taste, packaging, and marketing. This is seen as Danone's first systematic adjustment to Mizone. Despite being a blockbuster product with annual sales in the billions, Mizone's market size has shrunk from nearly 10 billion yuan in 2015, suggesting it has been 'out of state'.
李振兴Imported Red Bull Appears in Beijing, Thailand's T.C. Pharma 'Plan B' Takes Shape
Imported Red Bull has landed in Beijing, but its future is uncertain. On April 8, Beijing Business Today reporters found that Thailand's T.C. Pharma's imported Red Bull Vitamin Flavored Beverage (hereafter 'Thailand Imported Red Bull') appeared in Beijing supermarkets. Previously, due to the unresolved dispute between T.C. Pharma and Hua Bin Group over Red Bull Vitamin, and the poor consumer acceptance of Red Bull Anji due to taste issues, T.C. Pharma established a branch in Beijing to operate imported products, which the industry calls 'Plan B'. The appearance of Thailand Imported Red Bull in Beijing marks the concrete implementation of this plan.
李振兴Reducing Reliance on Distributors, Can Pepsi Still Be "Cola"?
In recent years, Pepsi's investments have been directed towards increasing production capacity, expanding new market channels, product shelving, and freezing machines, rather than traditional distributors. Pepsi's Spring Festival advertisement "Bring Happiness Home, Enjoy a Fragrant New Year" has been widely shared across platforms. However, a distributor told Beijing Business Today that, unlike previous years, Pepsi has reduced its investment in the beverage sector's channels, even owing distributors nearly one million yuan in promotional fees. Industry insiders believe this is a key reason why PepsiCo Beverages has fallen behind in its competition with Coca-Cola.
李振兴Coca-Cola Enters Plant-Based Beverage Market for the First Time, Kicking Off a Battle
Coca-Cola has officially entered China's plant-based beverage market, launching its AdeZ plant-based drinks, including oat-based beverages, through B2B channels and online sales. This move creates channel competition with Swedish oat milk brand Oatly, which entered China in 2018. Industry insiders believe that while China's plant-based beverage market has existed for some time, many brands face bottlenecks, and with the support of major companies like Coca-Cola, the market may see another surge.
李振兴Orion's China Performance Struggles to Match Past Glory; Can Its Entry into the Drinking Water Market via Luckin Coffee Succeed?
Orion, facing innovation shortfalls and declining performance in China, is attempting a self-rescue by entering the high-end drinking water market. Recently, Orion announced a partnership with Luckin Coffee, China's second-largest coffee chain, to promote its Jeju Lava Water and other products through Luckin's online and offline channels, tapping into a market valued at 139.782 billion yuan.
李振兴Three Squirrels and Others See Significant Price Cuts; Nut Industry Faces Shakeout Amid Severe Homogenization
A major battle is inevitable. Recent investigations by Beijing Business Today found that nut products from snack brands such as Three Squirrels, Haoxiangni, and Qiaqia Food have seen significant price cuts, with the lowest discounts falling below 50% of the original price. Industry insiders say the nut industry has low entry barriers and severe product homogenization. As more companies enter the market, some small and medium-sized enterprises will inevitably be eliminated or acquired, and the nut industry is on the verge of a shakeout.
李振兴Coca-Cola Launches Two Sports Drinks in Six Months to Fill Market Gap
Coca-Cola is making a concerted push into the sports drink segment, launching its second product in less than six months. Industry insiders see this as a move to fill gaps in its portfolio and seize the market opportunity, though established players like Gatorade and Pocari Sweat have already taken the lead.
李振兴Mars China Appoints New President, Digital Transformation Becomes Key Focus
Mars China has appointed Clarence Mak as the new president, succeeding Bo Yian who is retiring. The move is seen as an effort to accelerate the company's digital transformation in China.
李振兴Pepsi Enters Energy Drink Market: What Are Its Chances?
Following Coca-Cola's announcement to launch its own energy drink in 2019, PepsiCo CEO Ramon Laguarta revealed plans to introduce a Pepsi-branded energy drink, intensifying competition between the cola giants in the energy drink market. As carbonated soft drink sales decline, both companies see growth potential in energy drinks, but they face the challenge of capturing market share from dominant brands like Red Bull.
李振兴Thai Tiansi Ends Cooperation, Is 'China Red Bull' on the Brink?
Red Bull Vitamin Beverage Co., Ltd., the joint venture authorized by Thai Tiansi to produce Red Bull energy drinks in China, may face revocation and liquidation as its controlling shareholder Thai Tiansi has decided to end cooperation with Yan Bin due to loss of trust. The company's business term is set to expire on September 29, 2018, and Thai Tiansi has already found new partners.
李振兴Red Bull China Trademark Dispute Progresses: Joint Venture Withdraws Lawsuit Against Thai Tiansi Over Trademark Ownership
Red Bull Vitamin Drink Co., Ltd. ("Red Bull Vitamin") withdrew its lawsuit against Thai Tiansi Pharmaceutical & Health Products Co., Ltd. ("Thai Tiansi") over the ownership of the Red Bull trademark on August 14, just before the scheduled hearing on August 16. Industry experts believe the withdrawal indicates a lack of strong legal grounds, and the ongoing dispute may harm the brand's market position.
李振兴Cost Pressure: JDB and Wong Lo Kat Raise Prices Simultaneously
Recently, a price adjustment notice from JDB indicated that products in five packaging specifications would see price increases of 2-3 yuan per case. Additionally, distributors revealed that Wong Lo Kat has also raised prices. Industry insiders believe that due to increased cost pressures and the near conclusion of the 'Wong Lo Kat' dispute, companies can focus on daily operations, hence the price hikes. However, since the increases are at the distributor level, they will inevitably pressure distributors, testing the operational capabilities of both JDB and Wong Lo Kat.
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