"Low -priced war" anti -dairy company, how should Junlebao break through?

【Tide Business Review/Original】

Open the refrigerator door full of various dairy products in the supermarket, Tina is stunned! There are too many milk brands now, and I don't know how to choose for a while.

When Tina locks the milk grinding shelves, this "dazzling" feeling almost reaches the apex.

Presumably everyone in Tina will not be unfamiliar. In recent years, the brands of dairy companies have continued to rise, and the number of categories has increased sharply.

With market popularity, this year, many dairy companies have listed on the market as the most important goal in front of them.

In January 2022, hernis dairy announced from the New Third Board to the North Stock Exchange; in March 2022, the prospectus of the Fifth largest cow ranch operator in China disclosed in the Hong Kong Stock Exchange; Niu Yuexight instructions; in the same month, regional dairy companies Sichuan Jule Food Co., Ltd. again declared the prospectus. In addition, the regional liquid grandmother companies such as Tamama, Yipin, Junlebao, Huahuaiu, Wen's Dairy, and Weigang Dairy also joined the listing battle.

Figure/Junle Bao Guanwei

Among them, Junlebao is obviously one of the largest and most representative companies.

On July 4, 2022, Zhongyan, Vice President of Junlebao Dairy Group, revealed that in 2025, Junlebao strived to sell 50 billion yuan, and "has officially launched the IPO (first public offering) listing project, and strives to be in 2025 in 2025 Complete listing. "

It is worth noting that Junlebao's previous capital actions have been significantly accelerated.

On March 18, 2020, Sequoia Capital China Fund announced the completion of strategic investment in Junlebao Dairy, with an investment of more than 1.2 billion yuan, and became the largest shareholder of the enterprise with a shareholding ratio of 15.26%.

On June 19, 2022, Shijiazhuang Penghai Entrepreneurship Investment Fund withdrew from the shareholders of Junlebao. A total of 4 shareholders of investment partnerships and Shanghai Pakistan Investment Management Partnership.

At the same time, Chairman Wei Lihua's shareholding ratio changed from 40.93%to 44.62%.

However, in addition to capital operation, at the level of corporate operation, from Junle Bao's sales revenue in 2021 to 20.3 billion yuan, if you want to achieve the target of 50 billion yuan in sales in 2025, it will need to be in four years in four years. , Create 1.5 Junlebao. How easy is this?

01 Two -level springboard achievements 10 billion yuan revenue

Looking back at the history of Junlebao, you will find that the rapid progress of Junlebao in these years cannot be separated from the two springboards of Sanlu and Mengniu.

Junlebao was founded by Wei Lihua in 1995. According to media reports, at the beginning, Junlebao had only two tricycles, one yogurt machine and several bungalows. However, under the leadership of Wei Lihua, Junle Bao broke the sales of 10 million yuan in two years. This was obviously a great result at the time.

Wei Lihua once said, "At that time, it was really ignorant, and the technology, equipment, and craftsmanship were not really opened. If it was now, I dare not do it. One is the high threshold of the dairy industry, and the other is that there are so many difficulties in the back. But at that time I feel pretty good, just start a little bit. "

In 1999, Junlebao met the first nobleman in his life. At that time, Sanlu Group, the domestic dairy industry, wanted to enter liquid milk, so he acquired Junlebao in the form of "brand+700,000 yuan". 34%of the shares. After Junlebao, it began to produce yogurt products with the brand of "Sanlu Junle Bao", and the company still calculated independently.

And Sanlu brings to Junlebao to expand channel strength. Under the influence of Sanlu's brand, Junlebao's business has made rapid progress and entered Henan, Shandong and other places, and then conquered the market with red dates and yogurt. The business spread from North China to the north of the Yangtze River. The third place is good.

Figure/Jingdong Mall

However, the good times did not last long. In September 2008, the "melamine incident" shocked the whole country, and Junlebao's rapid development was quiet overnight.

After experiencing the rectification, Junlebao reorganized and reorganized. In October of the same year, in order to get rid of Sanlu, he spent nearly 40 million to buy back the shares from Sanlu's hands and operated step by step. But the hard work of Junle Bao is also difficult to get rid of the negative effects brought by Sanlu quickly.

By 2010, Junlebao met the second nobleman-Mengniu. According to Tianyancha, in 2010, Mengniu acquired 51%of Junlebao's equity with 469 million yuan in cash, becoming the largest shareholder of Junlebao. The way of Mengniu's cash acquisition has greatly relieved the pressure on Junle's funds, and also brought brand power to Junlebao.

In the nine years of cooperation with Mengniu, not only the Junlebao's normal temperature business department created the super single "Bai Xiaochun", the field of yogurt has also created pure nourishment of yogurt, simple mellow yogurt, "rising cheese" and so on to make consumers familiar with consumers. s brand.

In addition, Junlebao has also gained a lot in the field of milk powder. Starting from 0, brands such as Zhen, Le Platinum, and Youcuo gradually opened their popularity.

Wei Lihua once complained in his speech: "At the beginning, no one dared to drink our milk powder and could only be delivered for free. Some people said that they would eat the dog first, there was no one for the dog, and our employees listened to tears."

To this day, Junlebao Milk Fan, who started from the low -end, has opened the clouds, and has established a foothold in the sinking market with a high cost performance. Euromonitor data shows that Junlebao has already become a domestic brand that has statistics on sales based on sales, with market share second only to Feihe. Junlebao, who "wings gradually harder," began to want to fly alone.

Nine years later, in 2019, Mengniu's 4.01 billion yuan sold 51%of Junlebao's equity, and Junlebao resumed his freedom again. At this time, the brand strength of Junlebao White Milk, Yogurt, Milk Powder and other dairy industries has basically taken shape.

Two jumps have made Junlebao be well known to the public from unknown, but to achieve the goal of 50 billion yuan in sales in 2025, Junlebao may also need to complete another jump.

02 Being in a "low price dilemma"?

However, the obstacles of Yokohara on the road of Junlebao are also very obvious.

Taking the milk powder business as an example, as early as the day after the Junlebao milk powder was held in 2014, media reports such as "milk powder disrupted and Sanlu came again" and other media reports hit the sky.

On the third day of Junlebao Milk Milk Powder, Junlebao's sales website was hacked, and all orders were emptied within a day. The impact of the Sanlu incident made Junlebao very difficult to do in the field of milk powder.

However, at that time, Junlebao's strategy was low prices, and it swept the low -end milk powder market at a price butcher's attitude.

In 2017, Wei Lihua once said: "Some people suggest that President Wei, our so good milk powder will be sold at least 250 yuan and 280 yuan, and some people say that they sell 800 yuan. Children can drink the world's top good milk powder, 130 yuan a can. "

It is relying on the ultra -low pricing of 130 yuan, and it has opened up the domestic market with e -commerce models such as network and telephone marketing.

In 2021, the sales volume of Junlebao milk powder exceeded 100,000 tons. Based on this, the revenue of Junlebao milk powder business should be around 10 billion yuan. When this achievement, Junlebao took only seven years.

Figure/Junle Bao Guanwei

However, cost -effective products can win the sought after by consumers, but in turn, it also seriously affects the brand's premium.

At the same time, with the rapid spread of low -priced genes, its twin brothers "low profits" inevitably accompanied.

Judging from the financial report of Junlebao and Mengniu's cooperation period, in 2018, Junlebao contributed to Mengniu's revenue of 13.62%, but only contributed 9.58%of profits.

To this end, Mongolian Niu President Lu Minfang had publicly stated that Mengniu's gross profit declined was mainly dragged down by Junlebao. In the first half of 2019, if the influence of Junlebao was excluded, Mengniu's gross profit margin could be flat year -on -year. Guo Weichang, the financial director of Mengniu, also said: "The profit margin of the future acquisition must be higher than that of Junlebao. This is our principle."

In fact, Junlebao is also trying high gross profit products. In May of this year, it released the three major milk powder products of Zhenye, Zhenwei, and Xinle Zhen at a tide. The sword refers to the high -end milk powder market controlled by foreign investment and head domestic brands. But how the effect needs to be tested.

At the same time, under the incomprehensible "dilemma", the main battlefield of Junlebao's milk powder was also stared at by the giants. Overseas milk powder brands represented by Mead Johnson China are eager to open the door to China's sinking market.

Industry insiders have said, "Now the three to five line markets are already a state of dispute."

Junlebao wants to be closer to this, it can be said to be very difficult. With the market's unable to expand further, Junlebao opened the strategy of "bull and sheep".

03 difficult to pick up the burden of sheep milk powder?

According to data from the Foresight Industry Research Institute, the size of the Chinese goat milk powder market in 2021 has reached 11.1 billion yuan. It is expected to increase to about 20 billion yuan in 2026, and the proportion of the infant milk powder market will also increase from 6%to 8%.

Facing the new blue ocean in the industry, many brands have entered the game, and new products have continued to emerge. Junlebao also entered the goat milk powder on the first pure goat milk powder "Zhenwei Ai".

However, Junlebao has opened the market at a low price, and it has been easy to anchor the brand cognition of consumers in the low -end interval in the long run. Once this brand impression is widely recognized and accepted by the market consumers, then Junlebao wants to think about it The transformation and upgrading of mid -to -high -end milk powder brands will become extremely difficult, just like the high -end road of Xiaomi mobile phone brand.

Figure/Junle Bao Guanwei

In this case, Junlebao's previously unfavorable low -cost strategy may have become the biggest obstacle to its entry into the high -end market.

Although Junlebao's official introduction "Zhenwei Ai" is a "top -equipped" goat milk powder, and Junlebao is also preparing to use it as a weapon for subverting industries and opening a new era of sheep milk powder.

But goat milk powder is not necessarily the perfect choice for Junlebao to enter the high -end.

Before Junlebao entered the game, there were already leaders in the field of goat milk powder, and Jiabei Eit, a subsidiary of Australia, occupied the leading position of Chinese goat milk powder.

According to the Nielson market research report, Jiabei Aite's sales have accounted for 4 consecutive years since 2018 accounted for more than 60%of the total imports of Chinese infant formulas, and the leader of the industry is stable. In March 2022, Yili issued an announcement saying that he had acquired goat milk powder "leading sheep" Australia at the cost of HK $ 6.2 billion, becoming the largest shareholder of the latter.

In addition, as early as the end of 2019, Yili launched the first sheep milk powder product "Golden Crown Crown Youzi Lamb". Domestic milk powder companies such as Mengniu and Feihe, as well as multinational companies such as Wyeth and Fishlan, have also launched in the Chinese market. Your own goat milk powder products. Figure/Golden Collar Guanwei

In the context of fierce market competition, strong giant companies in various ways have long been stuck in advance. Junlebao wants to kill a bloody road in the goat milk powder market. It is difficult to imagine.

Not long ago, after the IPO failed, there was a public letter on behalf of the goal on behalf of the Red Star Mei Ling's listing on the Internet.

Perhaps, Junlebao's entry into the goat milk powder track is intended to fill its gap in this field, but the greater significance may only be another new way to move towards high -end and improve its gross profit, but if it is a listing strategy, it is a listing strategy. Important springboards, so many Junlebao needs to work hard.

"To be honest, if you choose a dairy product, you still believe in big brands. Although the price is important, it is not the most important criterion. Buying things for children, who only cares about money, can't wait to give him good." Tina from the supermarket from the supermarket. Come out, sigh and say.

In the competition of business, the ideal model is always unavoidable when it falls into the real consumer market. Many times the reason for consumers to buy a product is often unexpected. But if you think about it, it seems reasonable again.

Business is like this.

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