Industry Observation: Which Is More Important, Brand Power Or Channel Power?

In the first half of the year, Budweiser group's net profit declined by 64% in Asia Pacific region! The operating income and sales volume both declined year on year, and the decline rate exceeded the average level of China's beer industry. The biggest impact on its decline is the mainland market.

For the first time, the net profits of China Resources brewery and Tsingtao Brewery surpassed Budweiser Asia Pacific, the holding subsidiary of the world's No.1 brewery.

In 2020, domestic beer is regarded as the battle for high-end products. In the first year, 7 private or state-owned holding enterprises of 9 listed beer companies have increased their high-end products. But it's an accident to overtake the giant Budweiser so quickly.

Industry news, Budweiser Asia Pacific president is facing a change.

The night channel was damaged by the epidemic, but the decline was more serious than expected by the industry. The share of China Resources beer in Yunnan's night market also declined, but it fell by 1 / 3 year-on-year. Is the Budweiser brand not working?

Of course not. At the end of August, 21st century economic reporter interviewed in Yulin bar in Chengdu. Budweiser beer was the most popular among consumers.

The answer is that domestic beer works harder. Hou Xiaohai, CEO of China Resources beer, was the first one among the industry's top executives to go to the national market in February. Instead of going through the motions, he visited customers one by one, looking for problems and making suggestions. In the first half of the year, he concluded with his feet: "I have traveled through 80 cities, and none of them is not upgrading consumption."

It was later learned that he was the first beer executive in the industry to go to the market during the outbreak. In August, the beer sales team of Xuexue didn't go to work yet. In Chengdu, Wuhan and Yunnan, China Resources brewery delivered disinfectant water and masks to dealers, and cleared the inventory of its friends. After the epidemic, some dealers directly sold snow.

Hou Xiaohai said that when the epidemic is coming, when others are thinking about how to reduce losses, we think it is an opportunity to catch up with the epidemic, which is faster, harder and more accurate than before.

Tsingtao beer, especially the second quarter of the net profit unprecedented high growth, a year-on-year growth of 60%, also benefited from the rapid action ability. During the epidemic period, restaurants were closed and parties were reduced. Tsingtao Brewery moved the liquor into the community and climbed the stairs to deliver the wine to customers' homes.

Channel penetration ability, in the critical time, in short Force combat, plays a faster and more direct role than brand driven.

However, the competition with international brands is not short-term, but protracted. Just as Asahi Beer withdrew from the Chinese market, Heineken's market share in China has shrunk. Finally, Heineken sold its Chinese factories and authorized the brand license to jointly develop the market through the channels of China Resources beer. If only there were channels, the brand power was not strong, and the food was always low-priced.

In the first half of the year, he Sanyong will increase the share of high-end beer industry in China from 15% to 20% in the next five years. High end, diversification and individuation are the development trend of beer market in the future.

Therefore, there are a lot of opportunities for Budweiser Asia Pacific, Carlsberg, snow beer, Tsingtao beer, Zhujiang Beer and many other beer brands in the Chinese market of consumption upgrading. At the dinner table, first have a glass of Fujia white beer or Qingdao white beer, and drink a bottle of ingenious construction. After dinner, you can have some craft beer of Zhujiang Beer, or taste the fruit beer of Qingdao beer. Customers and customers will enjoy themselves and enjoy their own beauty. Such consumption scenarios can be expected in the future.

Here comes the troublemaker in Lijiang bar