There is no winner in the herbal tea market, the battle between Wang Lao Ji Jia Duo Bao

"Miss the golden age.
"

In 2018, JDB President Li Chunlin once announced ambitiously that JDB will be successfully listed in three years.

Three years later, Jiaduobao also reported the listing of Hong Kong stocks.

On March 8, JDB Group plans to conduct an IPO in Hong Kong as early as this year, raising at least US$300 million.

According to the latest exposure of Jiaduobao, its net profit in 2015 and 2017 were losses, especially in 2017, a substantial loss of 583 million yuan, and net assets of -345 million yuan.

In people's eyes, herbal tea is already cold.

The dispute between Jiaduobao and Wanglaoji made them miss a golden age, and the herbal tea market has no winners.

The Rise and Glory of Wanglaoji

The Rise and Glory of Wanglaoji

The main ingredient of herbal tea is Chinese herbal medicine, which is made into herbal tea after torment.

Affected by the geographical environment, the temperature in Guangdong and Guangxi is high all year round.
The locals love to drink herbal tea, especially in the hot season, herbal tea can achieve the effect of clearing away heat and reducing heat.

With the prevalence of herbal tea, drinking herbal tea has gradually formed a traditional cultural habit in Guangdong and Guangxi.

Wanglaoji herbal tea is known as the ancestor of herbal tea.

It originated in the late Qing Dynasty.
It is divided into two factions and has a history of nearly 200 years.
It is called the king of herbal tea by local people.

In 1990, Hongdao Group, the parent company of Jiaduobao, obtained the authorization of Wanglaoji herbal tea formula from Hong Kong Wanglaoji descendants.

However, Wong Lo Kat still had his descendants staying in Guangzhou.
This branch also holds the Wong Lo Kat brand and was classified as a state-owned enterprise Guangyao Group in 1990.

The war between the two trademarks seems to have long been buried.

In order to promote in mainland China, Hongdao Group leased the Wanglaoji herbal tea brand from Guangyao Group, thus starting to produce, promote and sell red pot herbal tea in China.

The red canned Wanglaoji herbal tea first appeared in the eyes of consumers in 1995.

Four years later, Hongdao Group set up a production base in China and built the base in Dongguan, Guangdong.

With the gradual development of the herbal tea industry, Hongdao Group has set up multiple production bases across the country in line with the national marketing strategy.

Why Wong Lo Kat was successful? First of all, it positioned the product-"beverage", which is no longer between medicines and beverages and cannot be clearly defined.

At the same time, it pointed out its function.
Wong Lo Kat can not treat fever, but it can be prevented.
If you are worried about yourself People’s diet or living habits can cause one to get angry, so you can drink this product, which just hits people’s desire for fire fighting for fear of getting angry.

This has also established the foundation for Wong Lo Kat's national promotion.

At the same time, Hongdao Group not only invests hundreds of millions of yuan each year to strengthen advertising, so that the brand’s slogans are echoed across the country.

The company also invests funds to expand production bases and expand sales channels in the terminal.
In order to deeply explore the brand connotation, Hongdao Group He even invested in the filming of the TV series "Lingnan Medicine Man", which specifically talks about the experience of the founder of Wong Lo Kat herbal tea in practicing medicine.

Hongdao Group also donated 100 million yuan in the 2008 Wenchuan earthquake.
A series of performances made Wanglaoji's performance in the market steadily rising.
Sales doubled from 2002 to 2006, and sales from 2007 to 2008.
It has risen sharply, with sales reaching nearly 20 billion yuan in 2011.

Unexpectedly, Hongdao Group raised other people's children, and eventually they would be forced to send them out.

Controversy between King Lao Ji Jia Duo Bao

Controversy between King Lao Ji Jia Duo Bao

Beginning in 2009, there were different voices within the two major groups regarding the use of the Wanglaoji trademark.
The Guangzhou Pharmaceutical Group first initiated the legal process, and it finally got a result on May 12, 2012.
The Hongdao Group lease contract When it expires, the supplementary agreement signed subsequently will not be recognized by the law.

Since then, Wanglaoji herbal tea, which originally occupied an absolute dominance in the industry, was divided into two-the trademark belongs to Guangyao, but the herbal tea formula is owned by Hongdao Group.

No permanent friends, only permanent interests.

Hongdao Group can no longer use Wanglaoji's trademark.
The conclusion of this trademark case means that Hongdao Group will lose the core of the company.
The Wong Lo Kat brand that has been carefully cultivated for many years is no longer its own.
The company has to accept this situation that it least wants to see.

The wise point of Guangyao Wanglaoji is that it fully recognizes the importance of brand, positioning and consumer awareness.
Through the delay of the lawsuit, the consumer mind registration of authentic herbal tea or Wong Lo Kat was completed.

Under this circumstance, Hongdao Group also began to save itself and launched the brand Jiaduobao.

Guangyao Group took back the "Wanglaoji" trademark, but the herbal tea formula is unique to Hongdao Group.
The newly launched Jiaduobao herbal tea has no changes in its craftsmanship, taste, taste, etc.
, which retains loyalty to a certain extent The old customer base is the most direct connection point between products and consumers.

The system from raw material supply, processing, production bases, distributor channels and terminal sales channels is very complete.
JDB has been very solid in the construction of traditional channels.

If Hongdao Group uses its existing channels to promote another beverage product, it can be seen everywhere in the market.
This is the advantage of Hongdao Group.

After Guangzhou Pharmaceutical Group took over the red cans of Wanglaoji, it recruited troops to build sales channels in various markets.
This not only required a large capital investment, but also required time and relationship maintenance, which was also an important factor affecting Wanglaoji.

After the name change, Jiaduobao established itself as an image of a weak person to gain the sympathy of consumers and connect the public with Jiaduobao emotionally.

After all, such a product with the concept of TCM health preservation can completely defeat the so-called carbonated beverages like Coca-Cola.
As a result, Wang Lao Ji Jia Duobao has engaged in infighting.

After losing the brand trademark, Jiaduobao completed the brand conversion from Wanglaoji to Jiaduobao.

In 2012, the Voice of China set off a frenzy of ratings in China.
The audience remembered not only the voices of each student and the stories behind them, but also Jiaduobao herbal tea.
The Jiaduobao Group paid 60 million yuan and 200 million yuan won the naming rights for the first and second seasons of The Voice of China.

Wanglaoji is just a brand of Jiaduobao, and Hongdao Group is really powerful.
The battle between Wang Lao Ji Jia Duo Bao vividly demonstrated how the brothers turned against each other.
The older brother who had a backer but was of average ability put the younger brother who was not capable of backing on the ground and rubbed the scene.
The ending was obvious and the family declined.

For the sake of this lawsuit, the two parties exposed each other's secrets, accusing each other of formula problems and discomfort caused by the ingredients of Chinese medicine.
This is the only magic weapon for competition, but it is also a weapon for digging and burying yourself.

The decline of the herbal tea market

The decline of the herbal tea market

The development of China's beverage market has undergone a relatively long development process, from a single beverage product soda to gradually increasing beverage categories such as cola, mineral water, and dairy products.

With the development of China's economy, simple beverages cannot meet the ever-changing needs of consumers.

At the end of the 20th century, tea beverages entered production and entered the Chinese market, and occupied a place in the Chinese beverage market, setting off a wave of consumption of tea beverages, with an explosive growth in annual sales, and its market position in the beverage industry was only ranked in the water and Qiao market.
After sour drinks, its market share is also firmly occupying the third position in the beverage industry.

The development of tea beverages in the domestic market has exploded.
International companies that have entered the Chinese market for many years have also keenly captured the development prospects of China’s tea beverages, and have begun to gradually invest in funds to take a share in the tea beverage market.
It is precisely to spot the huge development potential of the tea beverage industry.

However, China's herbal tea industry has fierce competition in the market.
The herbal tea industry is developing rapidly in China.
There are already many herbal tea categories on the market, and the herbal tea categories are basically similar in taste and consistent in efficacy.
It is difficult for consumers to form the distinctive characteristics of the product.
They can only choose herbal tea brands from the perspective of authenticity.

It is precisely because of its weak brand personality that many sub-brands occupy a certain low-end market in the market.

The promotion of Wanglaoji has always lagged behind that of Jiaduobao.
Slowly Wanglaoji lost his goal and continued the previous advertising slogans.
Later, the market was gradually eroded by Jiaduobao and eventually surpassed by Jiaduobao.

But Jiaduobao also has problems, the product is single, and the scale is small.
Jiaduobao has been focusing on building a dedicated brand and has not diversified its products to win a place in the highly competitive fast-moving consumer goods industry.

Compared with other large-scale beverage companies at home and abroad, JDB has a certain gap in terms of production scale and internal resources.

The Coca-Cola Company, Pepsi-Cola Company, Uni-President Group, and Wahaha Group are all diversified large-scale production companies.
These companies have relatively strong market share and competitiveness, and the domestic herbal tea beverage market needs to continue to develop.

In the fast-moving consumer goods industry, there are many domestic and foreign beverage brands, and beverage branding is becoming more and more concentrated, gradually squeezing the living space of small beverage brands.

International beverage giants are dominated by Coca-Cola and Pepsi, occupying more than 90% of the market share of carbonated beverages and soft drinks.
The domestic beverage giants dominate the four major beverage brands of Master Kong, Uni-President, Wahaha and Nongfu Spring.
They have a wide range of categories and a full range of beverages, occupying more than 80% of the market share of tea beverages.

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