The author Yan Yue
On May 20th, Evergrande Ka-waxiong held the 2019 National Distributor Conference, which not only marked the rapid growth of the supply chain and brand of Evergrande Ka-waxiong, but also highlighted the brand's efforts to find a new path of differentiation in the fierce competition in the infant milk powder market.
The first quarter of the market decline, cattle milk powder market to stock structure change
Here comes the inflection point!
In the first quarter of 2019, the peak season for milk powder, the most important category in retail stores, sales dropped by an average of 10 percent year on year, and in some cases by 50 percent.
On the surface, this is the result of a declining birth rate, but in essence it is a major change in the industrial logic and industrial pattern of milk powder. "The stock structure of the milk powder market is changing dramatically," Mr. Luo, founder of Zhongtong Media, noted at the Evergrande Kawabao national distributor conference.
1. The four traditional international brands are slowly penetrating into the third and fourth tier markets. These milk powder brands specializing in first - and second-tier cities have preliminarily formed their influence in third - and fourth-tier cities by advertising every day. Originally, because these brands left relatively little profit space for the channel, and lack of goods control, the channel operation willingness is very low. But now, customers come in and buy by name.
2. The earliest brand of the second camp rapidly diverged. In the past three years, Feihe has launched in both brand and channel, with in-depth distribution and a large amount of advertising at the same time, driving the market at a high speed. This expansion method is followed by other brands at the same time, the formation of a strong second-line brand pattern represented by the new four major powder.
3. Brand concentration has increased, but the requirement for such rapid growth has not decreased at all. The total market of the four big users is close to 25 billion yuan. If the growth rate is 30% at the same time, the increment will reach 7.5 billion yuan. This puts enormous pressure on other brands.
At the same time, the discourse power of stores has become weaker among consumers, and the pressure of name buying and big brands has greatly compressed the overall margin.
Channel business face milk powder "second reincarnation", who is the potential stock?
Milk powder brand structure began to become more and more solidified. When milk powder brands become big powder like Coca-Cola, they will have a strong self-flow capacity, and at the same time can provide stores with a greatly reduced gross profit. This is fatal for stores that rely on milk powder as their main source of profit. When business is good, as long as the milk powder is done, on the line. When business was down, margins were cut in half, making it hard to keep the store going.
In the face of declining profits and the rapid decline of the brand situation, the channel business is facing the "second reincarnation". In the store brand structure, it is necessary to form a group army of second - and third-tier brands to balance the profit pressure brought by the new four big fans. So, what? How to choose? It should be said that the national dealer conference of Evergrande Kawaixiong provides a new possibility for channel operators to choose.
Dormant Ka-wah bear light, new ideas outline the dark horse phase
This two years dormant milk powder brand, with a new idea to outline their dark horse look, light, ready. Through the 2019 National dealer conference to do all-round release.
Endorsement of the whole industry chain.
New Zealand origin as the initial end of the supply chain, continue to provide value to the market. As the parent company of the brand, Wang Yufeng, president of Evergrande Agriculture and Animal Husbandry Group, said frankly that the brand would have bends in the past, but no matter what stage of development it was in, the brand always deeply cultivates the high-quality food industry, adheres to the pursuit of original ecology and original variety quality, and intensifies the investment of the whole industry chain. This is the attitude to do the market, and is also the most direct basis for Kawa-bear to have the opportunity to carry out the new brand strategy and continuously improve its popularity and reputation.
Shape the value chain of commodities.
Constantly strengthen product advantages and brand image, improve the enabling ability of Evergrande Dairy, and shape the brand value chain. As a brand promoter, Gan Ticheng, executive deputy general manager of Evergrande Dairy Group, elaborated on his three-year market plan.
The three-year plan starts with the establishment of a mother-child channel-driven system. Obviously, today's mother-child channel cooperation needs a new way to play. This should start from the creation of strategic alliance agent cooperation system, to adapt to the new market demand, improve the information system in the core data; It is necessary to reconstruct the optimization and enablement of the sales organization and enhance the professional ability of the team members. At the same time, constantly develop new channels, through the launch of new products to occupy channel opportunities.
The key point of the new play: overall power
All strategies need execution support, which is also the key to Evergrande's new approach. The 2019 Carba Bear National Dealer Convention launched an integrated brand support system. Yang Xunyu, brand director of Kawabong, explained how to build differentiated brands through social media integrated marketing.
This brand support, combined with 14% profit margin for dealers in the channel policy, is just in line with the general trend of third - and fourth-tier market branding in this round of market cleansing.
The new brand layout of Ka-wah Bear, with a strong forward-looking. It integrates the new brand image, content marketing and new promotion forms, builds a comprehensive value support system, and delivers the overall empowering way of a brand to the market from channel providers to customers.
There is a whole new market concept presented.
With fresh and pure atmosphere to set off the concept of "natural feeding". Natural feeding, as the main brand concept, jumps out of many "Chinese" brands and becomes the basic element of differentiation.
There is a social communication system.
Social communication of brands has become a consensus. From its own public account to the choice of value media, from celebrity Zhang Liang to a number of big V, this integrated communication system has become the precise coordinate of brand promotion of Kawabong.
Have an international image building.
A touching short video shows the most authentic family relationships through the lens of love, conveying shared human emotions from New Zealand to China.
There is a holistic approach to content marketing.
To start the content construction of the professional system of child-rearing nutrition, build the "Baby-friendly Academy" in its own public account, show the brand communication ideas and offline channels for mother and child, and continue to promote the frequent offline promotion and child-rearing education.
The sense of wholeness, identity and socialization make the existing tension of a brand immediately prominent.
Why is Evergrande Ka-wah Bear worth choosing?
Guangdong Lvchen, Sichuan Zhongyi these regional strong channel business, why will choose carbawan bear continued cooperation?
In fact, in the eyes of many channel operators, Evergrande Kawaixiong may be far more competitive than 500 to 600 million brands. Especially for the big channels, they have a fixed set of criteria:
One is to consider whether the brand is stable, whether it can continue to operate, whether the product quality is stable, whether it will be out of stock. The impact on stores is very big.
The second is to consider whether the company held by this brand has enough strength and enough capital, and whether it will collapse after a sudden change.
Third, consider whether the brand can be differentiated. Channel providers, including customers, usually recognize the source of milk specifically. For example, there should be a Swiss brand, a German brand, and a New Zealand brand.
The fourth is to consider whether large and medium-sized chain chambers of commerce will not accept naked price operation, whether there is strong enough service support for moving pin, whether there is an independent team and market, and whether there is the ability to constantly develop new creative planning.
In fact, the last thing the channel operators care about now is gross profit.
A good chess player is a mastermind. This is the basic principle that a brand business can be sustainable in the long run.
