Why does Zong Qinghou, 75, need to get a fund qualification certificate?
Can entering the venture capital circle help Wahaha "get out of trouble"?
Text / Yangcheng Evening News reporter Sun Qiman
Wahaha is about to enter the private equity industry?
Recently, a reporter from the Yangcheng Evening News found from the official website of the China Securities Investment Fund Association that Zong Qinghou, the founder of Wahaha Group, who was born in 1945 and is now 75 years old, has obtained the qualification certificate for fund practice on July 12 this year. The employer is Zhejiang Wahaha Ventures. Investment Co., Ltd. (hereinafter referred to as "Wahaha Venture Capital").
This means that Wahaha has sounded the clarion call to enter the venture capital circle. The reporter has noticed that despite Wahaha's continuous measures in recent years, its performance has still shrunk significantly. Entering the venture capital circle can help Wahaha save itself?
Wahaha has a clue to enter the VC/PE circle
Wahaha sounded the clarion call to enter the VC/PE circle.
According to the official website of the Fund Industry Association, Wahaha Ventures completed the registration of fund managers on July 9 this year. According to relevant regulations, after successful filing, the managers need to issue products within half a year.
In fact, Wahaha Venture Capital has been established for more than ten years.
The Tianyancha APP shows that Wahaha Venture Capital was established as early as November 8, 2010.
The reporter noted that since 2016, Wahaha Ventures has made 6 foreign investments, including investments in Qirui Equity Investment Center (Limited Partnership) in Ningbo Meishan Free Trade Port Zone, Hillhouse Zhicheng Changjiang (Hubei) Artificial Intelligence Equity Investment Fund Partnership Wait.
The completion of the filing this time is the clarion call for Wahaha Venture Capital to enter the VC circle, and before the filing and registration is completed, the layout has already begun to take shape.
On April 30, 2021, the company changed the business scope in the industrial and commercial information from "industrial investment, investment consulting services, corporate management service consulting" to "equity investment; venture capital (limited to investment in unlisted companies); private equity investment funds Management" and so on.
At the age of 75, have passed the fund practice qualification certificate? Qualification Department Recognition
Wahaha Venture Capital officially debuted, and Zong Qinghou, who has just obtained the fund practice qualification certificate, will personally take charge as the legal representative and executive director of Wahaha Venture Capital.
Many people questioned: "Zong Qinghou is 75 years old and still preparing for the fund practice certificate?" Yangcheng Evening News reporter combed and found that this time Zong Qinghou obtained the fund practice qualification through qualification certification, not through examination.
The Fund Association previously stipulated that senior managers of qualified private equity investment fund managers (including venture capital fund managers) can apply to the Association’s Qualification Accreditation Committee for the qualification of fund practice, one of which is that they have served as a listed company or paid-in capital. Senior managers of large and medium-sized enterprises with no less than 1 billion yuan and have been in the business for 12 years or more, and Zong Qinghou obviously meets this condition.
How can Wahaha save itself when its performance has shrunk sharply?
Zong Qinghou is a legend in the history of Chinese business.
Starting from scratch at the age of 42, he created China's largest food and beverage processing company and led Wahaha to once become a leader in the domestic beverage market.
The glory of Wahaha has allowed Zong Qinghou to become China's richest man several times.
Public data shows that from 2013 to 2016, Wahaha's operating income was 78.28 billion yuan, 72 billion yuan, 49.4 billion yuan, and 52.9 billion yuan respectively. During this period, Zong Qinghou has been the richest man in China three times.
However, since 2017, Wahaha's performance has begun to decline.
Its business contraction that year was reduced to 45.6 billion yuan-more than 30 billion yuan less than in 2013.
In 2019, revenue reached a new low.
How long have you not had Wahaha?
Why has Wahaha stayed away from the core consumer groups from being a national drink to now?
Perhaps the answer can be found in its product line.
Wahaha once won the world with several star products such as AD calcium milk, nutrition express, and purified water. However, with the continuous emergence of competing products, the market performance of these products has also been much lower than before.
Take Nutrition Express as an example. In recent years, its performance has shown a cliff-like decline. From 2014 to 2016, sales were 15.36 billion yuan, 11.54 billion yuan and 8.42 billion yuan.
Wahaha has also tried to innovate and break the circle: creating a new brand of Kelly One, making AD calcium milk-flavored milk heart mooncakes across borders, and launching a colorful version of Nutrition Express.
These changes were all made by Zong Qinghou's successor-daughter Zong Fuli.
Since Zong Fuli became the Minister of Public Relations of Wahaha in 2018, Wahaha has not only made a lot of attempts in cross-border marketing, but also cooperated with Zhong Xuegao, Bubble Mart, and League of Legends professional leagues and other brands and IPs that are widely sought after by young people. Jointly, try to communicate effectively with young consumers.
After Zong Fuli's drastic reforms, Wahaha's decline stopped the car with 46.89 billion yuan in revenue in 2018.
But the good times did not last long. In 2019, it fell again, and the revenue fell more than 40% from the peak period in 2013.
Diversified layout effect is not good, products are aging, new products are not good
A reporter from the Yangcheng Evening News noticed that Wahaha had tried many diversified layouts, including investing in children's clothing, milk powder, shopping malls, and liquor, but the results were not satisfactory.
In terms of product iteration speed, Wahaha has obviously not kept up with the pace of competing products.
Entering the official flagship store of Wahaha Online, you can see that the top three sales are still AD calcium milk, eight-treasure porridge and lactic acid bacteria drinks.
At the same time, its product matrix includes milk drinks, water drinks, tea drinks, functional drinks, carbonated drinks, eight-treasure porridge, goat milk powder, health food, fruity teas, low-sugar drinks, etc.
Although the product matrix seems to be diverse, not many can occupy the market.
A reporter from the Yangcheng Evening News visited many supermarkets and convenience stores in Guangzhou and found that in addition to the leading products such as AD calcium milk, Nutrition Express, and Shuangwaiwai, other Wahaha products are hard to find, and most of the products are also placed on the opposite edge. Location.
At the same time, the AD calcium milk and nutrition express that support Wahaha are still showing up in the packaging of "childhood memories".
"For so many years, the packaging of Nutrition Express has not changed much. Among the beverages with exquisite packaging and outstanding selling points, it is indeed unattractive." During the visit, a purchaser of a supermarket told reporters that these Products are indeed the childhood memories of some consumers, but it is difficult to reach new consumers without nostalgia.
Is it difficult for a single product innovation to work? Wahaha urgently needs chain innovation?
After 2014, the new generation of China has become the mainstream consumer group. Their consumption thinking and consumption behavior have profoundly affected the direction and speed of innovation, upgrading and iteration of the entire Chinese industry.
China’s food industry analyst Zhu Danpeng analyzed to a reporter from the Yangcheng Evening News: “Wahaha’s problems are systemic, from the boss’s business philosophy to overall location disadvantages, product innovation and upgrade iterations, and brand tonality. Zhu Danpeng said that although Wahaha has made innovations in recent years, these innovations cannot solve fundamental problems for Wahaha, whose core market is the third-, fourth- and fifth-tier cities: “The problem with Wahaha lies in the system. Chain innovation from the inside out as a whole is good, otherwise, the innovation of a single product and the innovation of channels will be useless."
Zhu Danpeng analyzed that first- and second-tier consumers have a relatively large demand for milk tea, and their consumption frequency is also relatively high. Wahaha, which has long been rooted in third-, fourth- and fifth-tier cities, lacks brand tension in first- and second-tier cities, nor does it have brand tonality. "In addition, Wahaha milk tea is made by a third party and is not directly operated. Therefore, there are also major shortcomings in terms of resources and the entire supporting facilities." Zhu Danpeng said.