On June 27, the second day of the June 26 ceremony of Evergrande Group, Evergrande Kawaixiong formally launched the "Baby male Alliance" with 17 important agents and retailers, raising the relationship from "strategic cooperation" to the level of "alliance".
In the past two years, it is often heard that maternal and child retail stores have set up various purchasing alliances and channel alliances to force upstream manufacturers with orders as bargaining chips.
Factory play league? A slogan, or something else?
New demands of channel operators: products are just what they should be, but they also need marketing and financial support
In the past two years, with the rapid expansion of maternal and child channels, the competition of maternal and child retail stores has been further intensified. The customer flow of stores has declined, the commodity structure is similar, the promotion of activities is similar, the operating costs have increased, and the risks of various new policies have greatly affected the profits of the stores.
How to break through, how to innovate marketing techniques, has become a lot of maternal and child channel business must face important issues. "Looking for strong cooperation, become stronger" has gradually become the consensus of many channel business, those with high product quality, high profit space, high credit degree of the big brand, will undoubtedly become the channel.
Evergrande Group, which is the basis of Evergrande Kawaixiong, not only has a high brand awareness, but also has rich cross-border industrial resources, such as nearly 500 large real estate in China, which can provide more possibilities and guarantees for store traffic, customer gathering and consumer interaction.
More importantly, Evergrande is willing to guarantee its partners in the dairy industry with its own brand, take the initiative to help alliance partners dredge financing channels and obtain more financial support. This is tempting for the partners who have grown together with Evergrande Ka-wah Bear.
"At present, more than 30 channels, including Dongguan Lvchen and Sichuan Zhongyi, have all enjoyed credit loans endorsed by Evergrande with at least 5 million yuan (the sales of Evergrande's Kawaixiong products is one of the main indicators of the credit line)." Yu Weimin, deputy general manager of Evergrande Agriculture and Animal Husbandry Group, said: "Evergrande Kawaixiong credit loan is not capped, so channel operators can use less investment to cooperate with Evergrande Kawaixiong, speed up the rate of capital turnover, reduce operational risks, get greater returns."
Evergrande Ka-wah Bear's new chess game: Build roads first, then sports cars
From the perspective of the enterprise's macro development path, Kawabong did not adopt the conventional development path of market at home, step by step and gradually spread from the beginning. Instead, it began to play high and low. After a huge advertising campaign to tell Evergrande to enter the market, Kawabong quickly lowered its position and attacked the whole country with flood irrigation. Extensively recruit mother and child stores, then use comprehensive and in-depth distribution, and forcefully intervene and lead the promotion of the terminal.
Such a strong and aggressive approach has brought amazing results -- the sales of Evergrande Ka-waxiong surged to 700 million within one year after its listing, which can be said to have created a sales myth in the milk powder industry where competition is fierce and the market has entered an inflection point.
Starting from this year, Evergrande Kawaixiong will enter the second stage, from wide casting net to directional precision farming evolution, precipitation of core partners.
"One of the goals of the Baby Male Alliance is to bring together close, high-volume and other representative channel partners and deeply bind them together. They will play the role of think tank to actively advise on the development of the company. Meanwhile, the company will give alliance members the 'green right of way', including marketing resources support, financial support, priority connection, timely response to relevant issues and other rights, so as to achieve barrier-free cooperation." Yu Weimin said.
According to Chen, the greater value of the alliance lies in the fact that Evergrande Ka-wah Bear, with its strong upstream and downstream resource integration ability and brand endorsement, has found a large number of channel networks that are really willing to work together in the early stage. Through this basic network, more high-margin items and categories can be input later.
In fact, this from Evergrande Kawaixiong first choose to enter the market with high cost performance of mid-end milk powder products have an early indication.
In fact, the operation of Evergrande Kawaixiong over the past year has confirmed this point. From cost-effective terminal products into the market, precipitation channels, and then gradually launched high-end Kawabao super gold. Yu Weimin also revealed that Evergrande Ka-wah bear has already started cross-category integration, will soon launch the first product outside the milk powder category.
"What Evergrande and Evergrande Kawaixiong want to do is a platform." Yu Weimin said. The first road, then the sports car, this is the dairy industry's new player Evergrande Kawaixiong curve overtaking new pattern.
