In the post-epidemic era, Shuijingfang's high-end products are selling well!
Text | Selling the drunkard team
| Yu Xiaomei
Among China's liquor companies, Shuijingfang is special, because it has always focused on "high-end" and "sub-high-end" products, the main price band of more than 300 yuan, the single product structure is obvious to all, and it is even jokingly called "walking on a lame leg" by the industry.
Previously, some people in the industry have always believed that the development balance of Shuijingfang is not enough, and it is inevitable that it will be unstable.
Moreover, the relatively single product structure is difficult to cope with market changes and meet the increasingly diversified needs of consumers.
However, with the release of Shuijingfang's third quarterly report this year, the industry's comments on Shuijingfang began to change, and "lame walking" was no longer a drag, but became a major competitive advantage.
On October 29, Shuijingfang released the "Third Quarter Report of 2021", showing that the operating income in the first three quarters was 3.423 billion yuan, an increase of 75.91% year-on-year; the net profit attributable to the shareholders of the listed company was 1 billion yuan, an increase of 99.35% year-on-year; and the net cash flow from operating activities was 1.445 billion yuan, an increase of 91.29% year-on-year.
Among them, Shuijingfang achieved operating income of 1.586 billion yuan in the third quarter, an increase of 38.93% year-on-year; net profit attributable to shareholders of listed companies was 623 million yuan, an increase of 56.27% year-on-year.
For the increase in revenue, Shuijingfang pointed out in its announcement that it was mainly due to the increase in revenue due to sales growth.
According to the announcement, in the first three quarters, Shuijingfang's high-end and mid-range products achieved operating income of 3.341 billion yuan and 78.6587 million yuan respectively, an increase of 76.03% and 67% year-on-year. In addition, the gross profit margin of high-end products is currently 85.67%, an increase of 1.57% year-on-year.
In terms of channels, new channels and group purchases achieved revenue of 231 million yuan, an increase of 43.3% year-on-year, while wholesale agents achieved revenue of 3.188 billion yuan, an increase of 78.75% year-on-year.
From the perspective of sales region division, in the first three quarters, Shuijingfang achieved operating income of 3.404 billion yuan and 15.6053 million yuan at home and abroad, an increase of 75.51% and 179.84% year-on-year.
In terms of sales expenses, Shuijingfang's sales expenses in the first three quarters increased by 59.38% year-on-year to 789 million yuan, accounting for 23.05% of the company's total revenue, which was mainly caused by the increase in advertising investment.
It is reported that the first three quarters of this year were the first time that Shuijingfang broke through the net profit mark of 1 billion yuan during the reporting period. Operating income is also the best result in the three quarters of the past 5 years.
At the same time, the emergence of the best report card in the past 5 years has also made many people in the industry begin to identify with Shuijingfang's "lame" development model.
Shuijingfang is inherently high-end, and can't take the low-end route!
People in the industry who have a certain understanding of Shuijingfang are well aware that Shuijingfang is a product that has been launched into the market with a high-end brand image, and it can be said that its high-end liquor attributes are innate.
In 2000, Quanxing Group registered the "Shuijingfang" brand. In the following years, Quanxing Group spent a lot of effort and funds to promote and plan and market the "Shuijingfang" brand, and the resources of the entire company were given priority to Shuijingfang.
In 2013, Diageo took control of Quanxing Group by acquiring the remaining 47% stake in Quanxing Group. Quanxing Group changed its name to Shuijingfang Group.
In 2014, Chen Shouqi, who was the managing director of Diageo Greater China, became the chairman of Shuijingfang Shares, that is, in the era of Chen Shouqi, it was established that Shuijingfang no longer produced low-end products, and embarked on the "lame" road of only producing more than 300 yuan of products.
According to the analysis of industry experts, behind Shuijingfang's choice of "lame" walking, in addition to wanting to match the market development trend, there may also be a reluctance to "reduce the value of self".
Of course, no one can deny that the lack of low-grade products of the "lame" Shuijingfang is indeed a drawback, but with the deepening and aggravation of the impact of consumption upgrading on the market, the drawbacks are getting smaller and smaller, and the market dividends that can be enjoyed are getting bigger and bigger.
This time, Shuijingfang was able to win 3.341 billion yuan in revenue in the "post-epidemic era" with high-end products alone, which is the best proof.
It is also worth mentioning that Zhou Yuanxin, chief marketing and innovation officer of Shuijingfang Co., Ltd., once revealed that Shuijingfang's vision is to become one of the preferred brands for liquor consumers of more than 800 yuan, and to strive for double-digit growth in revenue from high-end products every year, and the share of high-end aroma has reached the top five in the country.
Zhu Zhenhao, general manager of Shuijingfang, also said that it will increase investment in high-end products.
In the future, with the continuous progress of China's economy, the domestic consumption atmosphere of "drinking famous wine" will only get better and better, and Shuijingfang, which has no low-grade products, can go light, continue to focus on high-end, enjoy more market dividends, and then take more market share.