The main products fall, Hengshui Laobaigan, which “does not drink anywhere”, is a little “superior” _ 东方 东方网

Original title: The main products fell, Hengshui Laobaigan, which “did not drink”, was a little “superior”

Summary

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Hebei HengshuiOld dry white wineIndustry Co., Ltd. (“Hengshui Laobaigan”) has just become an entry point in the industry with the joint event “Detective Conan”, and used data from the financial report just released on April 24 to cool down. In this series of financial reporting data, in addition to the sharp decline in the first quarter of 2020, which may be related to the impact of the new coronary pneumonia epidemic, the “Hengshui Laobaigan” series as a core product in the annual report of 2019 has decreased. Whether production or sales or operating income, it has become the “backlog” of many of the company’s products. On the contrary, Fenglian Liquor, who had been scalded from one side to the other, became the highlight of Hengshui Laobaigan’s performance.

The decadent Baiqian series

In the first quarter of 2020, Hengshui Laobaigan’s operating income was 756 million yuan, a year-on-year decrease of 34.19%, and the net profit attributable to shareholders of listed companies was 65.738 million yuan , an interannual decrease of 44.05%. Regarding the cause of the decline, Hengshui Laobaigan said the new coronary pneumonia epidemic broke out across the country in January 2020, and governments across the country have issued new measures to prevent and control the coronary pneumonia epidemic. . Affected by the epidemic, food and party services were canceled, the liquor terminal was blocked, the new coronary pneumonia epidemic and the corresponding prevention and control measures had some impact on the company’s sales business.

At the same time, Hengshui Laobaigan achieved operating income of 4.03 billion yuan in 2019, an increase of 12.47% year-on-year, and the net profit attributable to shareholders of listed companies was 404 million yuan, an increase of 15.38% YoY. Hengshui Laobaigan said the increase in sales of mid-range to high-end products has led to growth in 2019 results.

Hengshui Laobaigan main accounting data for 2019

Analyzing the two data sets and the explanation given by the company, Hengshui Laobaigan’s performance is not much different from that of other companies in the liquor industry that have issued performance announcements. However, the Beijing News reporter found that Hengshui Laobaigan lagged behind the 2019 growth rate of return, especially the growth rate of net profit attributable to shareholders of publicly listed companies, compared to several other liquor companies that had posted performance announcements. DownPour the wine48.61%,Shuijingfang42.60% andYingjia Gongjiu19.49%, only income growth rate is slightly higher thanYingjia Gongjiu. At the same time, Hengshui Laobaigan’s net profit attributable to shareholders of publicly traded companies fell faster in the first quarter of 2020Shuijingfang12.64% andYingjia GongjiuDecrease rate of 34.07%.

It should be noted that although Hengshui Laobaigan’s overall performance has increased in 2019, the “Hengshui Laobaigan” series of products, which are the company’s main products, have decreased. Among them, operating profit decreased by 3.63%, the gross profit margin decreased by 1.77 percentage points year-on-year, while 36,784.86 thousand liters of production and 42,797.28 thousand liters of sales also decreased by 9.02% and 9.41%.

Production and sales data of various brands under Hengshui Laobaigan

Corresponds to the continued decline in Hengshui Laobaigan’s share prices. At the close of April 24, Hengshui Laobaigan’s share price was 8.99 yuan per share, compared to the low level of 8.1 yuan per share, as reported by the media in mid-March, which It was a certain increase. However, the relatively low price of liquor stocks has caused many industry voices to question Hengshui Laobaigan’s performance in the capital market. The Beijing News reporter saw on the interactive investor relations platform that some investors asked directly if Hengshui Laobaigan’s share price continued to drop and if the company’s operations were normal. In this regard, Hengshui Laobaigan only responded to normal operation, there are many factors that affect the stock price trend, and will improve the company’s performance through multi-dimensional brand communication and other methods.

Fenglian liquor

The slowdown of the “Hengshui Laobaigan” series of products has been reflected in 2018. At that time, Hengshui Laobaigan had main business revenue of 3.583 billion yuan, an increase of 41.34% over 2017; Net profit attributable to shareholders of publicly traded companies reached 350 million yuan, an increase of 114.26% year-on-year. However, compared to such a high growth rate, the “Hengshui Laobaigan” series of products had a growth rate of only 3.31%.

The Beijing News reporter noted that in Hengshui Laobaigan’s 2018 annual report, there was an explanation for the substantial increase in performance.One element was that the company completed the acquisition of Fenglian Wine in April 2018 and consolidated the report of Fenglian Wine. Income and profits will increase. This means that the high growth rate in 2018 is more related to the union of Fenglian Wine Industry. For 2019, the importance of Fenglian wine in Hengshui Laobaigan’s performance composition will be more apparent.

In fact, Fenglian Liquor, as an unfortunate liquor company, was once considered a hot potato by the industry. ByLenovo HoldingsFenglian Liquor was established after the acquisition of Hunan Wuling Liquor, Shandong Confucian Family Liquor and many other regional wine companies.Lenovo HoldingsThe ambition to enter the liquor market has also becomeLenovo HoldingsEvidence of the broken dream of “China’s leading wine industry group”. After Hengshui Laobai took over Fenglian Wine, it also made the industry question its pressure on the funds. Today, Fenglian Winery appears to be the primary force in easing downward pressure on the performance of Hengshui Laobaigan series products.

Liu Xiaowei, a wine marketing expert at Rongze Consulting, analyzed that among Fenglian Wine brands, Bancheng Shaogu Liquor’s revenues increased by 58.42%, reaching almost 700 million, offsetting the decline of the main series of the “Hengshui Laobaigan” brand in Hebei local market Finally, achieved a slight 3.33% increase in Hebei market revenue; Wenwangong series revenue increased by 31.72%, driving sales growth in the Anhui market; Wuling and Confuciana family incomes increased 79.96% and 65.6%, boosting Hunan and Shandong markets Sales growth. Liu Xiaowei noted that the engine driving Hengshui Laobaigan’s annual performance growth in 2019 is actually a brand of Fenglian Wine.

However, it is still unknown how long dividends brought by Fenglian Wine can be released. Some industry analysts believe that in addition to the Wuling series benefiting from the current soybean liquor boom in the domestic liquor market, which is expected to continue to grow rapidly, brands like Bancheng Shaoguo and Wenwang Gongji must face pressure from the main national and even regional wine companies. Continuous improvement is more difficult.

The Beijing News reporter also noted that the Wuling wine series has the fastest growing revenue among Fenglian Wine Industry brands, and the production volume is 88.59%, which is much higher than the 23.19% of the series. of Bancheng Shaojiao wines. 8.3% of the wines in the series and 8.25% of the wines of the Confucian family. This to a certain extent corroborates the industry analysis. However, it should also be noted that, in terms of sales volume growth, Wuling Wine Industry continues to be inferior to Bancheng Shaojiao series wines and Confucian family series wines.

General marketing strategy “mystery”

If the decline in core brand performance and improved performance of Fenglian Wine Industry make up for it, then Hengshui Laobaigan’s endless “strategic operation” in brand strategy has also baffled the industry. On April 21, Hengshui Laobaigan was in his officerWeiboA message was posted on the website, in response to the fact that Lao Baiqian and “Detective Conan” launched by most netizens launched a joint model. In response, Hengshui Laobaigan noted that the company did connect with the copyright owner of “Detective Conan” on the matter, and the other party declined, arguing that Conan was a minor and inappropriate. for liquor products. This incident once sparked discussions between the wine industry and even ordinary consumers.

Beverage marketing expert Cai Xuefei bluntly said such an important event is not an asset to Hengshui Laobaigan, because its core consumer group is leaning towards high-end business and consumers, and the influence of the animation image is extremely limited.

From the point of view of the industry, the appearance of this hot spot is related to Hengshui Laobaigan’s desire to reshape the brand image. Liu Xiaowei noted that Hengshui Laobaigan’s leadership to reshape its brand image and realize brand iteration and strategic upgrade is correct, however in the process of realization, you still need to constantly try and explore to find a way of growth that is really suitable for the Laobaigan brand. Lao Baiqian also sees the potential for growth in the consumption of young consumer groups in the future, and tries to cultivate young consumer groups, this strategic direction is not a problem, but its methods and practices are questionable.

Chinese FoodIndustry analyst Zhu Danpeng further noted that rejuvenation is something that every Chinese spirits brand needs to do, but there are two challenges in the process. On the one hand, companies need to deepen their own wine culture, on the other hand, they need to connect with the new generation. This makes the market increasingly demanding for liquor companies. Once new things aren’t well integrated with the tone of the entire brand, you won’t be able to set a value orientation, or even stay away from mainstream consumer groups in the future. This is undoubtedly a great challenge for Hengshui Laobai.

Furthermore, the change in Hengshui Laobaigan’s advertising propaganda also caused controversy. The new advertising slogan “Drink Lao Bai Gan, not at the top” replaces the well-known “drink without virility”. There is a view that this slogan replacement is not successful, it means that Hengshui Laobaigan brand image has been thoroughly operated for many years. Zhu Danpeng said that, in view of Hengshui Laobaigan’s smaller base market, it is not suitable for change because its “fans” are focused. Such situation determines that Hengshui Laobaigan cannot, as a true national brand, have multiple dilution risks in the regional market.

High-end trapped image is difficult to raise “magic”

The risks brought about by the change in advertising have yet to be proven in the market, but why is Hengshui Laobai Gan so eager to reshape its brand image?

As a regional liquor company, Hengshui Laobaigan has been caught in the “magic spell” of difficult brand image enhancement for many years. In particular, the Chinese liquor market is becoming increasingly high-end. Hengshui Laobaiqian’s current job is to build a strong foothold through building high-end brands and to cope with the compression of domestic brands.

It can also be seen from the 2019 annual report that Hengshui Laobaigan held more than 5,000 high-end tasting sessions to enhance brand vitality, and companies view mid-to-high-end product sales as a major force for improve performance. Cai Xuefei pointed out that since the completion of the Hengshui Laobaigan merger and the acquisition of Fenglian Liquor Industry, it has continuously increased the product structure to enhance the company’s brand value and even directly narrow the price band of one thousand yuan for sales. However, the lack of brand power and the old category of dry white itself are considered synonymous with low-end and high-end spirits. By forcing prices up, there is a risk of being out of step with their original consumers, and it has also caused unstable sales.

Liu Xiaowei also believes that the failure of Hengshui Laobaigan’s high-end brand has led to the continued decline in Hengshui Laobaigan brand influence. “Hengshui Laobaigan” is the company’s main brand and product, and the company has also been making high-level attempts for the “Laobaigan” brand and category. However, from a marketing perspective, the high-end operation of the “Hengshui Laobaigan” brand has not undergone substantial changes and innovations in terms of market operation model, consumer cultivation, channel optimization and construction, and construction of terminal sales networks. As a result, the high-end brand “Hengshui Laobaigan” has evolved into the original “change soup without changing medicine” mode of operation.

And in the high-end brand image building “Hengshui Laobaigan”, the industry has also criticized the appeal of the brand “drink Laobaigan, not at the top”. Factors such as the unfavorable image of the Lao Baqian brand and the inability to complete the iteration of the market operation model have led to the failure of the Lao Baqian high-end brand. Consumers do not pay for high-end Lao Baqian products that are not at the top, which directly causes the continuing decline in Lao Baqian brand influence. This means that the “Hengshui Laobaigan” brand has insufficient influence on the high-end consumer group, and Laobaigan continues to be a consumer product of consumer equipment, while the market capacity of consumer equipment tends to become saturated, resulting in weak “Hengshui Laobaigan” growth.

However, the Beijing News journalist also noted that Hengshui Laobaigan has achieved a 33.24% increase in operating income in markets other than the three provinces of Anhui, Hunan and Shandong that participate in Fenglian Liquor, and liquor sales mid and high range. The growth rate has also increased by 20%. However, in connection with the higher price positioning of high-end products from other liquor companies, Hengshui Laobaigan uses 100 yuan as the demarcation point for mid-range to high-end products. Hengshui Laobai, which is in the period of cultivation of high-end products, still has a long way to go.

(Source: Beijing News)

(Editor in charge: DF529)