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It is generally believed that Wahaha and Want Want have grown old and seem to have lost their vitality. But do we really understand them? In the past three to four years, Wahaha's revenue was about 45 billion yuan and its net profit reached 12 billion yuan, while Want Want's turnover was 21 billion yuan and its net profit was about 4 billion yuan.
The ability of these two companies to make money is astounding, and people in the new consumer industry are now stronger than Wahaha and Want Want, both in terms of technical thinking and capital. But do they really make as much money as they do? Choose the 100 Na mode as you like. In fact, this is because of what we call advanced, and in the eyes of others, there may be more advanced things to restrain you.
They did a better job of channel deep distribution and won lying down. They occupy a part of the consumer's mind, and then continue to lie down and win their practices is the key. Deep distribution and mind grabbing are the essence of consumer goods. These are the two keywords you need to get, one is channel penetration and the other is mental penetration.
If the product does not meet the 80 standard and does not allow consumers to have enough repeat purchases, then they are not eligible to play the game. What if your product has a certain value for innovation and differentiation, but once others learn from you? Explosive products will be quickly involuted, which is a breakthrough differentiation value that your product must have. Seize a window of time to saturate and then solidify that perception in the minds of consumers. This means a category or feature of your brand.
When you really do it, you can really be solidified, and your brand can have a certain moat and a certain right not to be involuted. So I think that's the real principle. So I think we should ask ourselves what makes consumers choose you over others. Have we carved out a niche in the minds of consumers? Second, we have to ask ourselves, have we done a good job of offline in-depth distribution, and why is it easy to make money offline? Because the offline mind and shelves are limited, while the online shelves and minds are unlimited.
And there's a giant platform behind you, and your algorithm will never be able to beat theirs. So if a real business wants to make money on the platform, only if you know the algorithm of the brand, you will know the algorithm of the heart, you can beat them. Only when you have mastered the hearts of the people and seized the minds can you have the real ability to premium.
So I think we should go back to the essence of consumer goods. The essence of consumption is not traffic, traffic is just the result of the brand winning people's hearts. We should spend our time on essential things so that our time can enjoy the compounding of time. Follow me to learn more about business thinking.
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Disclaimer: The information in the article is collected on the Internet, and does not participate in the operation of any analyzed project, nor does it invest in any project, nor does it charge to promote the project, and does not make a private evaluation of the project, and the above analysis does not constitute any investment advice. It is only used as a reference for the model case of the development demander, if there is any violation and infringement, please contact the author to delete! 】