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2017 The Bottleneck Of The Food Industry And The 2018 New Prosperity

Feb 27, 2018

     2017 the bottleneck of the food industry and the 2018 new prosperity

In 2017, the food industry is China market performance of the most lackluster year!

In 2016, there was a bright spot of "tea Pi" in the farmer's mountain spring.

In 2015, there was a unified "small tea classmate" hot market.

In 2014, there was a sudden rise in the steamed cakes of Hong Kong.

In 2013, there were innovative explosive quantities on and under the line and line of the meat muffin.

In 2012, three squirrel food "super IP model" was born.

In 2011 Jiang Xiaobai China refresh traditional liquor new pattern..


    China food industry development in the past 20 years, there is a super star product was born almost every year, such as the back of "ripple vitamin beverage, Wang Laoji herbal tea, peach Kyi gelatin cake, Red Bull xiaoyangren wonderful vitamin beverage, milk drink, Yake V9 candy, Wahaha AD calcium milk, egg yolks, delicious Daliyuan some biscuits and so on, is not to lead the entire food FMCG industry like a raging fire and guide the development of power.


    In the end of 2017, China basic food industry in the past to extend the line to walk, in addition to Ali or Jingdong in the layout of the new retail action is expected for the real food enterprise innovation action is "lack of goodness, can highlight rare".


    In 2017, from the perspective of the food industry, it entered a huge strategic bottleneck stage. If we didn't realize this, if we could not reflect on the strategic level, we would continue to go on the historical extension line in 2018.


1. No longer discussion of Wahaha, which means the brewing of a new era


    Either, the rise of a great enterprise in the dispute; or the rise of a great era in the dispute.


    2014 - 2016, China food giant Wahaha performance decline, the industry and the media for three consecutive years of analysis and discussion of Wahaha's gain and loss, not Wahaha push everyone down the wall, but not deliberately mouthing Wahaha Wahaha, but because of a representative of the times, and its contemporary enterprise panic, once the eldest brother, once an example of crisis, then 90% of the learning mode of Wahaha food enterprises will decide on what path to follow?

For three years, the success and failure of Wahaha's success and failure is discussed. On the surface, no final consensus has been reached in the industry. But all of us, including Wahaha, have a common expectation: we should create a divine product to reverse Wahaha's decline and create a market miracle. In 2016 and 2017, Wahaha released a series of new products, regretfully that there was no miracle that was expected.


    The inner voice is the most truthful, the most true voice. Just when people continue to discuss Wahaha's third years, farmer's mountain spring, the old rival of Wahaha, successfully launched the strategic new product "tea Pi", and drew the attention of the industry at the same time. More and more food enterprises suddenly discovered that good products are the kingly way. All the crowds' expectations of Wahaha were "verified and realized" on the farmer's mountain spring.

In 2017, the craze for Wahaha was gradually receding. It also gave Wahaha a "breathing machine". It is imaginable that anxiety and pressure are too concerned. Chinese food companies began to turn their attention to their own, and then try to find the path of growth, this is a very good phenomenon, that the industry is in "from the climax to the bottom, from the bottom to the confusion, and from confusion to the eve of the new prosperity" in third stages, the golden age of new food is brewing.


2, the fatal bottleneck of all food enterprises: the lack of product innovation mechanism


    According to the observation of esteemfield strategic bottleneck consulting Guo Chenglin, product development ideas of small and large food enterprises Chinese, basically is "gambling model", "the boss is extremely strong head of individualism and opportunism", the product development is based on the market to sell what followed what to sell ", such as lactic acid bacteria category the influx of enterprises, like a swarm of bees, serious homogenization products launched a vicious price war in the market. For example, in the baking market, there is a "9.9 yuan death curse", a new product from hot to decline cycle is basically three years, and finally the supermarket "9.9 yuan promotional price" declared the death of category.


    "Product innovation mechanism" is a very strange word for 95% Chinese food enterprises, such as Wahaha is also lack of perfect product innovation mechanism, and all kinds of crises that come to today have deep causal relationship with the lack of product innovation mechanism.


    Wahaha's success represents an era, namely "big channel + + mass advertising copy", the core competence is derived from the huge amount of financing channels, ability of successful products "of the so-called" striking strategy escort for copying other people, this is the development of Wahaha's "business path", directly to the sales scale of about 80000000000. We can clearly see that Wahaha's business mode is "despising product innovation", and it is a "business logic" without a bottom line. The success of this logic is followed by millions of small and medium-sized food enterprises.


    The premise of Wahaha successful business model extension is "constantly successful products of other enterprises to provide copy", once the original products appear sluggish growth, the follow-up product does not keep up with the whole business model is facing "collapse", this is three years ago Wahaha root cause of crisis.


    The mechanism of product innovation is not only a kind of mechanism, is the founder of long-term culture of innovation, in the form of product innovation, so it's not Wahaha effect, the fundamental reason is this.


    Today, many companies see Wahaha on behalf of the "channel is king" era ended with dividend, financing means of failure, to the new consumer demand as the core of the "product innovation mechanism" is a golden age for the core competitiveness of the market, otherwise the strategic bottleneck encountered is hard "".


3, the new demand of homeopathic consumption and the closed loop of the new business logic


    Peach bread in 2017 third quarter net profit growth rate of 28.69%, super market expectations. Peach bakery market positioning short retention, continued growth and success of landing motherboard capital market, the market value of about 18000000000, in recent years the food industry highlights, after all is in line with the new trend of consumption demand.

Preservatives or food additives with the same functions are the core components of the prolongation of the shelf life and the sales cycle, and are the key elements of the industrialization of food. Over the past 20 years, China's 1 billion 300 million population has eaten an inestimable mass of industrial food and has an unpredictable risk to consumer health. Indeed, national purchasing power is a decisive factor. In turn, consumer upgrading needs a healthier "antiseptic food".


    There are a variety of baked food additive, beverage which has rich and colorful food additives, the list of ingredients in almost all industrial era has let consumers see various chemical components do not know the name, some enterprises, product quantity of additives is in line with national standards, but the question is why you don't eat your own products and your family?


    Whether or not the national standard, the consumer's trend of health needs can not be violated. It is now a public problem in front of Chinese food companies: how to produce "non industrial" industrial food. A peach bread focused product development and the production of short insurance sales outlets, to build a system of competitiveness unique, with new consumer demand agreement as the core, the formation of short supply network security products in the country to create a huge, very difficult, but once the scale, product development capabilities and distribution capability, service capability has become the enterprise market competitive moat.


    In the past, the standardization of the closed-loop industrial food, improve the sales network, the financing channels of support of advertising communication has become history, the era of the new starting point must be started from the "health food innovation", from the long channel and short channel into, from the investment channels of financing into financing from the capital market, to create a new closed-loop operation of food, this is the right business to break the traditional logic operation mode strategic bottleneck.


    A university professor challenged Green Tea drinks without tea time gone for ever, food marketing from the past "pictorial concept" era into a "realistic quality" era, the traditional mode of Wahaha represented completely ended, the establishment of a new business model to peach bread as the representative of the new food, so food enterprises from China today must "change the brain", starting from the growing consumer homeopathic IQ and strong consumption capacity, build innovation mechanism, build enterprise culture of innovation, the breakthrough time China food new prosperity.


4. The new era needs the new ability of the enterprise to test the boss's strategic ability


    From the angle of philosophy, all things that go through life cycle ", bad air," four stages, Wahaha, Master Kong, unified food industry powerhouse is entering the third "bad" stage, if you want to enter a new round of life cycle at the gate, we must reconstruct the enterprise growth logic development the landmark to meet the new demand of consumption of products, thus the enterprise into a new life cycle, it is very difficult, because these traditional enterprises team values and team ability, channel thinking on curing age, contrary to some small and medium sized enterprises of food is likely to turn around.


    Today, all the food enterprises, to tens of billions to tens of millions, or even only a very innovative Idea, standing in a new era of the starting line, the role of each different, the key is who can firmly aimed at new times demand consumption continues to build new capacity circle.

The fruit industry's largest store chain store, seduction community "fruit imports have accounted for 50% of turnover, consumers are not afraid of you, afraid of domestic fruit which contains a variety of preservatives, leavening agent, particularly concerned about pesticide residues exceed the standard. The consumer demand for healthy fruit origin, Baiguoyuan constructed "chain channel model, capital driven, global supply chain, the establishment of origin direct mining team partner motivation" new ability circle, completely cut with the traditional fruit dealer, market model, the new ability to meet the new trend, must beat the old model.


    The key to the success of the enterprise to drive the new track to the growth of the new track is the boss's strategic ability. A business success, 99% attributable to the boss; an enterprise failed, 99% blame the boss. Many founders do not dare to innovate, especially in the era of swing, I'm afraid the drastic change of enterprise risk, so every day watching others, muddle along, I don't want to in anxiety, enterprises are in old age lost edge.


    One of the strategic capabilities of the boss is the early insight into the needs of the new era and the adjustment of the direction of the operation of the enterprise in advance. The fundamental business strategy is to meet the new demands of consumers in large scale, change direction of food enterprises is very clear, is a revolutionary product packaging behind the "ingredients", the industrialization and chemical "ingredients" into "health ingredients", this is where the new consumer demand.


    After health ingredients is the establishment of the production process and product innovation mechanism and change, then the mechanism of communication and innovation of consumers, the middle channel model innovation and efficient docking, these must be driven by business owners, have no choice.


5, 100% visibility of the sun enterprise, is the future of food enterprises


    Let the sun shine into the corner of the enterprise, transparency, sunshine, legalization, is the future of the survival state of the enterprise. The biscuit flour from where, candy colors come from the taste of the drink, where you come from, how the processing production line, formula of how science, every detail must withstand scrutiny and public inspection, do these details of the sun, and ultimately the formation of the core competitiveness is the new era.


    A bottle of black soy sauce, what the inside contains, the enterprise dare not say, the consumer does not know. If there is an innovative food company to tell consumers I as clear as noonday, soybean is from the Northeast specific location to which the non GMO soybeans, my innovation preservation technology does not contain additives, ultimately reflected in the market, must be "visible" beat "invisible", "say" beat "said not clear".

So, the next 10 years, is China food industry innovation development and prosperity of the era, is the land of opportunities for innovation, each segment can be torn down, each elephant can be an ant thrown to the ground, the reason behind is that consumers and innovators by force ".


    Cloud computing is scientific, and science is but the consumer's calculation of health; large data is accurate, but also accurate, but the consumer is "good and bad" for good and bad. As a solid food enterprise, safety is greater than the day, management in the cause of conscience, "Internet +" is a means, not a strategy.


    The only unbeatable trend in this world is the trend, and the only one that can push the business is the trend. A new era of tide spurting from, destroyed the thinking frame of past in the brain, a free hand to reorganize the business model, to meet the new prosperity of the food industry with new product structure, channel structure, talent structure "gold for ten years.