Reporter | Zhao Xiaojuan
Edit | Zan Huifang
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On December 27, the public account of Wahaha Group released the news that at the 2022 sales work conference and new product launch conference, it released important strategies for the company's products, brands, sales and other aspects in 2022, and released more than 20 new products.
On behalf of Wahaha Group, Zong Fuli delivered a speech at the 2022 National Sales Work Conference, which was also the first time that Zong Fuli publicly attended an important event of the Group after becoming vice chairman and general manager of Wahaha Group on December 9.
In the above-mentioned meeting, Wahaha released the 2022 brand marketing plan, proposing plans including starting a "water turnaround battle", two major IP to help brand rejuvenation, three major categories to lock in market segments, and four major products to continue to hematopoietic channels.
Specifically, in 2022, Wahaha will continue to help the brand rejuvenation through the two major IPs of AD calcium milk and very cola, and carry out more in-depth cross-border linkage from the level of taste, packaging, channels, and cultural significance, and extend and upgrade the connotation of brand IP.
In terms of new products, Wahaha is ready to focus on three categories: soda, sports drinks and "new tea and new juice", respectively, aiming at the e-sports crowd, sports scenes and urban new white-collar consumer groups under the background of the Asian Games, positioning the market segment, with the intention of achieving new product upgrades.
Interface News noted that before Wahaha Very Cola has jointly launched a sugar-free version of Dunhuang IP, AD Calcium Milk has launched a new packaging of Yin yang division IP, in addition to white refreshing packaging style milk beer (lactic acid bacteria drink), thick milk latte, low-sugar tea drink "into the tea" and other new products.
Wahaha new milk beer. (Image source: Wahaha Weibo)
New Wahaha coffee drink. (Image source: Wahaha Weibo)
This series of new plans is regarded by the outside world as an effort made by Zong Fuli to try to make Wahaha regain her vitality after taking up her new position.
Wahaha does need new motivation. According to the "2021 China Top 500 Private Enterprises List" released by the China Federation of Industry and Commerce this year, Wahaha's revenue in 2020 is 43.98 billion yuan. This figure is Wahaha's lowest revenue in a decade, comparable to its 2009 revenue level.
In the beverage market where new products are emerging in an endless stream, Wahaha has not had new star products for many years, and people still have the impression that only AD calcium milk, nutrition express, bottled water and eight treasure porridge and other explosive products from many years ago, but they have been overtaken by more and more competitors. Even in the township market, which Wahaha has always been proud of, its products can no longer be sold.
A beverage distributor told Interface News that compared with the "Kelly one" new products that were obviously benchmarked against the cutting-edge brands before, the new Wahaha products launched by Zong Fuli this time are more grounded and suitable for sale through the original channels of Wahaha. These new products have been upgraded compared to existing products, and the visual effects of the products are good, but they will not be too advanced, and the profit margins should also be improved.
In terms of product sales profits, according to the beverage distributor to interface news, usually the overall gross profit margin of the core product channels of first-line brands (such as Liangle and Kangtong) is 20%, and the gross profit of Wahaha new products is expected to reach 30%, if the overall gross profit margin of the core product channels of the brand is 40% for a smaller brand, the new product may reach 50%. Although wahaha's above-mentioned new products have not yet given a price, they should give dealers enough profit margins.
Wahaha proposed to start the "water turnaround battle" at the above meeting, hoping to increase the market share of its large items by virtue of its status as the official non-alcoholic beverage sponsor of the 2022 Hangzhou Asian Games. But it will not be easy to realize this vision.
The bottled water market is highly competitive, and Wahaha is not currently dominant. According to data provided to Interface News by consulting firm Euromonitor, Wahaha ranks fifth in the bottled water category, ranking behind Nongfu Spring, Yibao, Baishishan and Master Kong, and its market share has slipped from 3.7% in 2018 to 2.5% in 2021. In contrast, during the same period, the market share of Nongfu Spring rose from 10.6% to 11.4%.
In addition, Wahaha has to deal with the challenges in the field of ready-to-drink tea beverages. Data from Euromonitor shows that the market size of tea drinks is on an upward trend in the next five years, but Wahaha has failed to rank among the top five tea drinks in the sequence.
The above-mentioned beverage distributors also told Interface News that in the channels of lower-tier cities, Master Kong's ready-to-drink tea has absolute advantages.