15/07/2020

Core products fell, and Hengshui Laobaigan, who “drinked nowhere”, was a little “upper”
Hebei Hengshui Laobaigan Wine Co., Ltd. (hereinafter referred to as “Hengshui Laobaigan”) has just become a hotspot in the industry with the joint incident of “Detective Conan”, and used the freshly released financial data on April 24 to cool down.In the two-level financial report data, in addition to the slight extension in the first quarter of 2020 and the impact of the new coronary pneumonia epidemic, the 2019 annual report has replaced the “Hengshui Laobaigan” series as the core product.Whether it is production or sales or operating income, it has become the “backward” among many products of the company.On the contrary, Fenglian Liquor, which had been scalped back and forth, became the highlight of Hengshui Laobaigan’s performance.In the first quarter of 2020, Laobaigan’s operating income continued to be 7.5.6 billion US dollars, an average of 34 years.19%, the net profit attributable to shareholders of listed companies was 6573.80,000 yuan, an average of 44 years.05%.Regarding the cause of the decline, Hengshui Laobaigan said that the new coronary pneumonia epidemic broke out across the country in January 2020, and governments across the country have issued new coronary pneumonia epidemic prevention and control measures.Affected by the epidemic, catering, parties were cancelled, liquor sales terminals were blocked, the new coronary pneumonia epidemic and the corresponding prevention and control measures had a certain impact on the company’s sales business.Specifically, Hengshui Laobaigan achieved operating income of 40 in 2019.3 ten percent, an annual increase of 12.47%, the net profit attributable to shareholders of listed companies is 4.4.0 billion, an annual increase of 15.38%.Hengshui Laobaigan said that the increase in sales of mid- to high-end products has led to growth in 2019 results.Hengshui Laobaigan’s main accounting data in 2019 is a rough look. This is just an explanation for the data and the company. Hengshui Laobaigan’s performance is not much different from other companies in the liquor industry that have issued performance announcements.However, after comparing Sauna and Yewang, Hengshui Laobaigan’s 2019 performance growth rate ranks behind, especially the growth rate of net profit attributable to shareholders of listed companies.It is lower than 48% of the willing wine industry.61%, 42 of Shuijingfang.60% and 19 of Yingjia Gongjiu.49%, only revenue growth rate is slightly higher than Yingjia Gongjiu.In fact, Hengshui Laobaigan’s net profit attributable to shareholders of listed companies in the first quarter of 2020 also changed faster than Shuijingfang12.64% and Yingjia Gongjiu 34.07% rate speed.It should be pointed out that, although the overall performance of Hengshui Laobaigan has increased in 2019, the “Hengshui Laobaigan” series of products, which are the core products of the enterprise, have been replaced.Including operating income income 3.63%, the gross profit margin temporarily decreased by 1.77 averages, and 36784.86 kiloliters of production and 42797.The sales volume of 28 kiloliters can also be exchanged for 9.02% vs. 9.41%.Hengshui Laobaigan belongs to the production and sales data of each brand and corresponds to Hengshui Laobaigan’s continuous decline.As of April 24, the stock price of Hengshui Laobaigan was 8.In terms of 99 yuan, compared to 8 in the media report in mid-March.The low level of RMB 1 has a certain degree of growth.However, the continuation of the lowest level of liquor stocks has caused too much voice to question the performance of Hengshui Laobaigan in the capital market.Sauna and Yewang saw on the investor relations interactive platform that some investors directly asked whether Hengshui Laobaigan’s continuous decline and whether the company’s operations were normal.In this regard, Hengshui Laobaigan only responded to the normal operation and changes in factors affecting the expected trend, and will improve the company’s performance through multi-dimensional brand communication and other methods.The trend of the subdivision of Fenglian Liquor’s “Hengshui Laobaigan” series of products against the trend has already been reflected in 2018.At that time, Hengshui Laobaigan realized the main business income35.8.3 billion, an increase of 41 from 2017.34%; net profit attributable to shareholders of listed companies reached 3.5 ten percent, an increase of 114 per year.26%.However, with such a high growth rate index, the “Hengshui Laobaigan” series of products has a growth rate of only 3%.31%.Sauna, Yewang noticed that in the 2018 annual report of Hengshui Laobaigan’s explanation of the substantial increase in performance, there is an article that the company completed the acquisition of Fenglian Wine Industry in April 2018 and consolidated the report of Fenglian Wine Industry.Come income, profits increase.This means that the high growth rate in 2018 is more related to the joining of Fenglian Wine Industry.By 2019, the importance of Fenglian Wine Industry in the composition of Hengshui Laobaigan will become more obvious.In fact, Fenglian Wine Industry, as a long-lost liquor company, was once regarded as a hot potato by the Soviet Union.Fenglian Liquor was established after Lenovo Holdings acquired Hunan Wuling Liquor, Shandong Confucian Family Liquor and a series of other regional liquor companies, carrying Lenovo ‘s ambition to enter the liquor market and becoming Lenovo ‘s “leading wine industry group in China”Testimony of broken dreams.After Hengshui Laobaigan took over Fenglian Wine, he also made the leaders question the pressure on his capital.Today, Fenglian Winery seems to be the main force to ease the pressure on the performance of Hengshui Laobaigan series products.Liu Xiaowei, a wine marketing expert at Rongze Consulting, analyzed that among the brands of Fenglian Wine, the revenue of Bancheng Shaogu Liquor increased by 58%.42%, reaching a scale of nearly 700 million, replacing the main brand “Hengshui Laobaigan” series in the home market, Hebei Province, and ultimately achieved a slight increase in Hebei market revenue3.33%; Wenwangong series revenue increased by 31.72%, driving sales growth in Anhui market; Wuling and Confucian family revenues rose 79%.96% and 65.6%, driving sales growth in Hunan and Shandong markets.Liu Xiaowei pointed out that the engine driving Hengshui Laobaigan’s 2019 annual performance growth is actually the brand of Fenglian Wine Industry.However, it is still unknown how long the dividends brought by Fenglian Wine can be released.Some industry analysts believe that, in addition to the Wuling series benefiting from the current soy liquor boom in the domestic liquor market, which is expected to continue to grow rapidly, brands such as Pancheng Shaogu Liquor and Wenwang Gongjiu need to face the squeeze from leading national and even regional wine companies, Continue to increase vulnerability.Sauna and Yewang also noticed that the Wuling series of wines have transformed their revenue growth rate among the brands of Fenglian Wine Industry, and the production volume is 88.The growth rate of 59% far exceeds that of 23 of Bancheng Shaoqiu series wine.19%, 8 of Wenwangong series wine.3% and 8 of the Confucian family wine.25%.This certain extent corroborates the industry’s analysis.However, it should also be noted that in terms of sales volume growth, Wuling Liquor is still lower than Bancheng Shaojiao series wines and Confucian family series wines.If the general marketing strategy of the “mystery” is to compensate for the decline in core brand performance and the improvement of Fenglian Wine’s performance, then Hengshui Laobai’s endless “strategic operation” on the brand strategy has also puzzled the industry.On April 21st, Hengshui Laobaigan posted a message on his official Weibo, which became a response from the netizens that Laobaigan and “Detective Conan” launched a joint model.In the response, Hengshui Laobaigan pointed out that the company did connect with the copyright owner of “Detective Conan” on the matter, and the other party refused on the grounds that Conan was a minor and was not suitable for liquor products.This incident was once a discussion triggered by the wine industry and even ordinary consumers.Drink marketing expert Cai Xuefei bluntly said that such an event is not a plus for Hengshui Laobaigan, because its core consumer group is for business and high-end consumers, and the influence of the animation image is extremely limited.In the view of leaders, the emergence of this scenic spot is related to Hengshui Laobaigan’s desire to reshape the brand image.Liu Xiaowei pointed out that the direction of Hengshui Laobaigan to reshape its brand image and achieve brand iteration and strategic upgrade is correct. However, in the process of realization, it still needs to continue to try and explore to truly find a suitable growth path for Laobaigan brand.Lao Baiqian also sees the potential for consumption growth of young consumer groups in the future and attempts to cultivate young consumer groups. This strategic direction is not a problem, but its methods and practices are open to question.Chinese food industry analyst Zhu Danpeng further pointed out that rejuvenation is something every Chinese liquor brand needs to do, but in the process it needs to face two challenges.The aim is that companies need to dig deep into their own wine culture and need to interface with the new generation.This has led to higher and higher market demands for liquor companies. Once new things are not well integrated with the brand’s tonality, it is impossible to establish a value orientation and even surpass the mainstream consumer groups in the future.This is certainly a huge challenge for Hengshui Laobaigan.In addition, the change of Hengshui Laobaigan’s advertising slogans also caused controversy.The brand new “Drink Lao Bai Gan, do not go above” advertising slogan replaces the well-known “drink out manliness”.There is a point of view to bluntly that this slogan replacement is not successful, it means that the brand image of Hengshui Laobaigan struggling for many years has been lost.Zhu Danpeng said that in view of the smaller base market of Hengshui Laobaigan, it is not suitable for change, because its “fans” are very concentrated.This situation determines that Hengshui Laobaigan cannot, like a true national brand, have multiple regional market dilution risks.Difficult high-end image is difficult to rise The risks brought by the “Magic” advertising changes have yet to be tested by the market, but why is Hengshui Laobai so eager to reshape its brand image?As a regional liquor company, Hengshui Laobaigan has been trapped in the “magic” of difficulty in upgrading its high-end brand image for many years.In particular, the Chinese liquor market is gradually becoming high-end, and establishing a firm foothold through high-end brand building to cope with the squeeze of national brands is currently an urgent task for Hengshui Laobaigan.It can also be seen from the 2019 annual report that Hengshui Laobaigan participated in more than 5,000 high-end tasting sessions to enhance the vitality of the brand, and sales of mid-to-high-end products are also regarded by the company as an important force to improve performance.Cai Xuefei pointed out that since the completion of Hengshui Laobaigan’s merger and acquisition of Fenglian Wine Industry, it has continuously raised the product structure to enhance the brand value of the enterprise, and even directly cut into the thousand yuan price band for sales.However, the lack of brand power and the old white dry category itself are regarded as synonymous with low-end and high-end liquors. Forcibly raising the price is accompanied by the risk of consumers being out of gear, and it has also caused unstable sales.Liu Xiaowei also believes that the failure of Hengshui Laobaigan’s high-end brand has resulted in the continued influence of Hengshui Laobaigan’s brand.”Hengshui Laobaigan” is the core brand and product of the company, and the company has also been making high-end attempts for the “Laobaigan” brand and category.However, from a marketing perspective, the high-end operation of the “Hengshui Laobaigan” brand has undergone substantial changes and innovations in terms of market operation model, consumer cultivation, channel optimization and construction, and terminal sales network construction.This led to the high-end brand of “Hengshui Laobaigan”, which evolved into an initial operation mode of “changing soup without changing medicine”.In terms of building a high-end brand image of “Hengshui Laobaigan”, the brand appeal of “drink Laobaigan, do not get above it” has also been criticized by the institute.Factors such as the unfavorable brand image of Lao Baqian, the reorganization of the market operation model and the reorganization of Lao Baqian have led to the failure of high-end Lao Baqian brand. Consumers do not pay for the high-end Lao Baqian products that are not in the top line, which directly leads to the continuous decline of Lao Baqian brand influence.This means that the “Hengshui Laobaigan” brand has insufficient influence in the high-end consumer group, and Laobaigan is still a mass consumer product of the mass consumer gear; while the market capacity of the mass consumer gear tends to be saturated, resulting in the lack of growth of the “Hengshui Laobaigan”.However, Sauna and Yewang also noticed that Hengshui Laobaigan achieved 33% of its operating income in other provinces outside Anhui, Hunan and Shandong, which are involved in Fenglian Wine.With a growth of 24%, the growth rate of the sales revenue of mid-range and high-end liquors also increased by 20%.However, compared with the higher price positioning of high-end products of other liquor companies, Hengshui Laobaigan uses 100 yuan as the demarcation point of mid-to-high-end products. It seems difficult to explain Hengshui Laobaigan’s achievements in the high-end segment.Hengshui Laobai, who is in the cultivation period of high-end products, still has a way to go.Sauna Night Net Trainee reporter Xue Chen Pictures Hengshui Laobai Guanwei, Jingdong Flagship Store, Oriental Fortune APP screenshot editor Xu Jingjing proofreading Li Xiangling