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Consumer & Categories

Widespread Price Inversion in Baijiu: How to Break the Deadlock?

China, as the world's second-largest consumer market, has a vast and deep domestic unified market. Since the reform and opening-up, it has maintained nearly 40 years of rapid growth, with the advantage of its super-large market scale being particularly prominent. Starting in 2012, consumption surpassed investment and exports to become the strongest driver of economic development, with total retail sales of consumer goods doubling in eight years. In the first half of this year, consumption contributed 77% to GDP growth. The baijiu industry, as a traditional food and beverage sector highly dependent on domestic demand, is now facing a deep adjustment period due to multiple demand-side factors, leading to widespread inventory buildup, price inversion, and weakening confidence. This article offers three suggestions for price management: source governance, manufacturer-dealer collaboration, and BC integrated marketing.

王丹华
Consumer & Categories

The 'Commercial War' Turns to Sugar-Free Tea

A new 'commercial war' is unfolding. Recently, consumers posted photos of Suntory oolong tea priced at 3.8 yuan per bottle on supermarket shelves, sparking speculation of a price war and trending on Weibo. However, Suntory denied any price adjustments. Despite the rumor, sugar-free tea is gaining popularity among young consumers for health reasons, with brands like Suntory and Oriental Leaf expanding their presence.

燃次元工作室
Capital, Earnings & M&A

Who Will Rule the Billion-Yuan Compound Seasoning Market?

Workers have long puzzled over why chain restaurants are proliferating while wok-fired dishes are disappearing. Around five or six years ago, street-side stir-fry shops were everywhere, and people believed this business would stay hot. But times have changed: chain restaurants and pre-made dishes have rapidly replaced stir-fry shops, and compound seasonings have played a key role in this shift. They overturn the old habit of adding seasonings multiple times during cooking, allowing a single sauce packet to easily complete a dish—convenient, fast, and standardized.

陈晓京
Brand Marketing

The Agency Model of Making Money from Backend Fees Has Reached Its End

The author recently visited distributors in Southwest and South China to discuss their business situations. These influential distributors shared their feedback and feelings, which are recorded for discussion. Cases include a leisure food distributor in Southwest China with annual sales of 130 million yuan, who relies on backend rebates for profits and has exited the KA system, and a top distributor of a famous liquor brand in South China facing severe price inversion and high growth targets.

赵波
Brand Marketing

Nationwide Stores Exceed 3,300: Wanchen's Four Snack Retail Brands Merge Under 'Haoxianglai'

On September 12, 2023, Wanchen held a media conference in Beijing to announce the merger of its four snack chain brands—Haoxianglai, Laiyoupin, Luxiaochuan, and Yadiyadi—under the unified name 'Haoxianglai'. This move aims to accelerate synergy and integration in brand image, market expansion, operations, digitalization, and culture, further consolidating Wanchen's leading position in the snack hard-discount industry.

任文青Andy
Consumer & Categories

Has the Snack Collection Store 'Bubble' Burst?

Snack collection stores, once ubiquitous and favored by young people, are now closing in large numbers. A 95s consumer noticed many nearby stores shutting down, and brands like 'Mrs. Rice' and 'a1 Snack Research Institute' have faced closures or disputes with franchisees, raising questions about the sustainability of this retail model.

燃次元工作室
Consumer & Categories

Instead of Letting Others Steal 30% of Their Business, Why Don't Distributors Open Their Own Snack Stores?

A distributor once asked me if he should open his own snack store after seeing snack stores cause 30-40% sales declines in their vicinity. Rather than letting others take the business, why not do it themselves? They already have supply chain advantages. This article explains three concepts—hard discount, chain franchising, and distribution-retail integration—to help distributors understand the industry transformation and decide whether to open stores.

任文青Andy
Consumer & Categories

Snacks Are Booming, But Beverages Are Crying!

Bulk snack stores have grown rapidly over the past year, attracting significant capital. For example, Snacks Are Very Busy completed a 240 million yuan Series A financing in April 2021, while Zhao Yiming secured 150 million yuan in Series A funding this year. These stores use low-priced beverages and branded snacks as traffic drivers, which has severely impacted traditional beverage sales channels, forcing manufacturers and distributors into a difficult position.

赵胜男
Capital, Earnings & M&A

Traditional Snack Companies Are 'Fleeing' the Internet

As cities rush to revive consumer sentiment, snack stores with minimalist decor and footprints rivaling Miniso stand out. Bestore recently opened a 1,200-square-meter superstore in Wuhan, its largest nationwide, drawing over 10,000 visitors and sales exceeding 760,000 yuan in three days. Despite lackluster performance, including capital reductions and store closures, Bestore is doubling down on offline channels, reflecting a broader industry shift as online growth stalls.

罗弋
Capital, Earnings & M&A

Flavored Milk: Gathering Dust on the Shelves

While ambient white milk has regained consumer attention through functional additions and milk source innovation, and low-temperature fresh milk continues to win over consumers with its nutrition and freshness, flavored milk has been underperforming, with its market share shrinking since 2012. This downturn is also reflected in brand financial reports, such as in 2022 when China Want Want saw growth in all categories except its dairy and beverage business, which declined by over 10%, with Want Want Milk accounting for 90% of that segment; similarly, Li Zi Yuan, known for its 'sweet milk,' experienced declines in both revenue and profit in 2022.

青翎
Consumer & Categories

20 Perspectives on Moutai Coffee by Luckin Coffee

1. The Moutai+Luckin collaboration is a game played by top-tier brands, not complicated, and small brands can only participate but not truly play. 2. It's a pattern, with many similar topics like Porsche-version Huawei, Six God RIO, etc. 3. A good PR event should be big, sweet, crisp, unique, and cheap.

赵波
Consumer & Categories

Xinchao Media Zeng Jian: Everything for Growth, Everything for Winning!

On August 18, at Xinchao Media's Shanghai headquarters, New Distribution interviewed Zeng Jian, co-founder and senior vice president of Xinchao Media. As China's largest community media platform, Xinchao Media serves as a barometer of the FMCG economy's prosperity. The interview provides a comprehensive perspective on the 2023 FMCG economy. Zeng Jian, a serial entrepreneur, led the company's expansion from regional to national, building the largest advertising sales team in China's offline media industry. Since 2020, he has built the KA team, serving nearly 300 well-known brands and creating several classic brand cases.

陈思廷
Brand Marketing

Fan Shikai: Jinsha Distillery Integration Proceeds Smoothly, Will Achieve Set Goals as Planned

On September 2, the third 'Celebrate Harvest, Promote Harmony: Jinsha Red 2023 Harvest Celebration' was held in Jinsha County, Guizhou Province. Since 2021, Jinsha Distillery has held this event for three consecutive years, making the 'Jinsha Red Sorghum Festival' a unique annual brand IP event. In the afternoon, Jinsha Distillery also held a symposium with nearly a hundred media representatives. This year, after China Resources Beer officially took over Jinsha Distillery, the industry and media have paid close attention, with various opinions circulating. At the symposium, Fan Shikai, Vice President of China Resources Beer and General Manager of Jinsha Distillery, responded positively and in depth to many industry concerns for the first time.

陈思廷
Consumer & Categories

Is Attacking the Lower-Tier Market a False Proposition for New Consumer Brands?

In 2023, the most discussed topic in FMCG is offline terminal construction, with the lower-tier market being the hottest point. Many recognize it as a future channel and growth opportunity, but results are minimal. The author argues that the lower-tier market is not a false proposition; rather, the issue lies in strategy management and a lack of precise marketing and operational capabilities. The so-called lower-tier market refers to the distribution business in third-, fourth-, and fifth-tier cities, including prefecture-level cities and county/township networks.

程英奇
Capital, Earnings & M&A

Weiwei's Substance and Image

After a long detour, Weiwei shares found that soy milk is its ultimate destination. In the 1990s, Weiwei Soy Milk emerged in the wild consumer market, with the slogan 'Weiwei Soy Milk, Happy and Joyful' deeply rooted in people's hearts. However, after listing as the 'first soy milk stock', the company focused on diversification, trying dairy, coal, liquor, real estate, and pharmaceuticals, only to end up empty-handed after more than a decade in the liquor industry. In recent years, the prodigal son has finally returned, divesting loss-making assets...

陈晓京
Brand Marketing

“Going Premium, Winning Battles”: A Brand Sample That Penetrates Fujian's Premium Beer Market

Focus and forging swords are the two magic weapons for breaking through in a weak market. The landscape of Fujian, a key battleground for premium beer, is changing. With a population of 41.88 million and a total beer capacity of 1.55 million kiloliters, Fujian has the highest premium structure among the three major markets, making it a must-win region for premium beer brands.

陈思廷
Consumer & Categories

Snack Stores Take Away 30% of Business, 200,000 Distributors Face a 'Life-or-Death Race'!

In June, a friend added me on WeChat and said that distributors, especially those handling big brands, are struggling to survive. He is a distributor in a county-level city in Hubei, mainly supplying leisure food to supermarkets, but his business has been hit hard by the rise of snack discount stores, which have opened about 50 stores in his area and caused a 50% decline in his main client's sales. This article analyzes the phenomenon of snack hard discount stores, their impact on traditional distribution, and offers strategic advice for distributors.

任文青Andy
Capital, Earnings & M&A

Yili, Uni-President, Coca-Cola... 16 Beverage and Dairy Companies Release Financial Reports, 15 See Revenue Growth

In the first half of 2023, well-known domestic and international beverage and dairy companies reported frequent good news! Companies such as Dongpeng Beverage, Uni-President Group, Swire Coca-Cola, Liziyuan, Coca-Cola, Nestlé, PepsiCo, Danone, and Huanlejia all achieved performance growth. Besides the gradual improvement in the global economic environment, the main reasons for the performance growth of some beverage companies also include the expansion of new products and new business areas, injecting new vitality into the company's long-term development through diversified development strategies. In addition, some companies raised product prices, which also contributed to performance growth. This...

勾勾
Consumer & Categories

2023 Beverage Market Single-Point Surprise: Nongfu Spring's Oriental Leaf Unsweetened Tea Growth Exceeds 100%

This is the third consecutive year of high growth for Oriental Leaf. On the evening of August 29, Nongfu Spring announced its first-half 2023 results: revenue of 20.462 billion yuan and profit of 5.775 billion yuan, up 23.3% and 25.3% year-on-year respectively; the tea beverage segment (Oriental Leaf and Tea π) achieved revenue of 5.286 billion yuan, up 59.8% year-on-year. Based on the financial data in the announcement, it is estimated that tea beverages may have contributed nearly 30% of profits in the first half. Tea beverages have become Nongfu Spring's second growth curve and new profit source.

New Distribution
Brand Marketing

Man Xiaobao: Going Offline Is a Difficult but Right Move

This article analyzes how Man Xiaobao, a new consumer brand, achieved rapid growth by expanding into offline channels, reaching nearly 1 billion yuan in sales last year and 150 million yuan in offline business within half a year. It highlights the brand's product innovation, marketing strategy, and partnership with distributors.

冯瑶
Brand Marketing

A Battle Between Bestore's Premium Strategy and the Snack Discount Track

The rise of bulk snack stores has triggered a new round of channel transformation in the industry, with 'low price' and 'discount' becoming key words. In this changing environment, can Bestore's premium route still work? Upon reflection, the high-end market of an industry will never completely disappear. Although consumers' shopping intentions have become more rational after the pandemic, this does not mean their interest in high-quality products has waned.

勾勾
Capital, Earnings & M&A

Food, Beverage, and Liquor Listed Companies Release 2023 Semi-Annual Reports!

In the food sector, falling raw material costs boosted revenues, with康师傅 (Master Kong) leading in revenue at 40.907 billion yuan and 亲亲食品 (Qinqin Food) seeing the highest net profit growth of 481.79%. In beverages and dairy, core products drove growth, with东鹏饮料 (Dongpeng Beverage) leading in revenue and profit. Beer companies all achieved positive growth, with华润啤酒 (China Resources Beer) leading, while in the baijiu sector,贵州茅台 (Kweichow Moutai) outperformed with over 20% growth in both revenue and net profit.

杨玉琳
Consumer & Categories

Leaving 7-Eleven and FamilyMart Behind, Lawson China Marches Toward 10,000 Stores

When foreign convenience store chains lower their proud heads. The term '10,000 stores' is no longer rare, with Mixue Bingcheng in tea drinks, Luckin Coffee in coffee, and Meiyijia in convenience stores. But for foreign brands, cases of setting and steadily pursuing a 10,000-store goal are few. Lawson is one, aiming for '10,000 stores in China by 2025.' Despite the pandemic's impact on offline retail, Lawson has maintained rapid expansion, adding 1,175 stores in 2022, second only to Meiyijia among top 10 brands, and achieving its first profit in China in two years.

任彩茹
Consumer & Categories

Snack Stores Are Busy, FMCG Manufacturers Are Panicking!

“Now many are proactively coming to discuss cooperation, including top-tier brands, and they bring their CFOs—sales directors are useless, as it ultimately involves cost accounting,” said a founder of a snack discount store brand about upstream manufacturers. In 2017, Snack Busy appeared on the streets of some Hunan cities. “Selling snacks at low prices—can that be a good business?” “Just a passing fad!” Many were pessimistic, including upstream FMCG brands. But the market is like this: consumers are the real players with the final say...

任文青Andy