Wahaha, which was "forced" to go public, saw its performance decline year by year. What's the problem?

At the end of May, 2065438+09, Wahaha's public relations minister and the daughter of Zong said that Wahaha's listing was normal and would drive the upstream and downstream industrial chains to grow together. In fact, in 20 17, Zong once said that he would consider going public, and then Wahaha took back the internal employee shares, apparently to prepare for the listing. With Fuli Zong's statement, Wahaha is getting closer and closer to listing, so why does Wahaha, which has always insisted on not listing, suddenly "suddenly change its face"?

Performance decline, forced to "go public"

Wahaha was once a member of the unlisted camp. Like Huawei, Laoganma and other private enterprises, Wahaha is respected by consumers and the general public. Today, Wahaha has withdrawn from the non-listed camp, mainly because its performance is not ideal and it needs to seek new growth through listing.

1989, Zong founded Wahaha Food Factory in Hangzhou, and achieved sales of 210 million yuan in four years. By 20 13, Wahaha's revenue will reach 78.2 billion yuan. At the peak, Wahaha claimed that the revenue of 20 14 exceeded 1000 billion yuan. Unfortunately, Wahaha didn't realize his wish. Since then, Wahaha's performance has declined year by year. By 20 17, its revenue was only 45.5 billion yuan, almost the same as in 2009.

Products can't keep up with the trend of the times

There are many reasons for the decline of Wahaha, and the main reason is that it has not kept up with the changes of the times. First of all, when the population of China changed from rural to urban, Wahaha couldn't keep up with the construction of urban channels. Wahaha's sales network is mainly concentrated in third-and fourth-tier cities and rural areas, and it is very weak in big cities. With the acceleration of urbanization in China, Wahaha's market is gradually decreasing. Although Wahaha has been expanding the channels of first-and second-tier cities, it is difficult to win the competition with friends without the first-Mover advantage.

Secondly, the consumption concept of China people has changed. Wahaha failed to keep up with this change after the main consumer groups became post-90s and post-00s. For young people, in addition to taste and taste, exquisite packaging is also a factor that affects their purchase. Finally, Wahaha failed to keep up with the changes in the Internet and the media. Internet is one of the biggest changes in China in recent ten years, which has a great impact on traditional enterprises, but Wahaha failed to seize this opportunity. While others are promoting through new media, Wahaha's advertising and exposure are declining, and its brand image is one step ahead of others.

Cross-border at will, dragging down development

Wahaha entered the children's wear market for diversified development in 2003, but its performance has been unsatisfactory. In 20 10, Wahaha re-entered the milk powder market with a market share of less than 1%. In 20 12, Wahaha entered the real estate and retail industries, but it ended up in vain. In 20 13, Wahaha took out1500 million to enter the liquor market, but it soon disappeared. After entering 20 19, Wahaha also established an artificial intelligence company, which is still very mediocre.

There is nothing wrong with diversified development. Other companies in the same industry have also achieved success. Why can't Wahaha do well? The main reason is that Wahaha is too blind to enter without being ready, and he can't stick to it when he enters.