What we can learn from veteran domestic brands who’ve achieved enduring success in China
Last month’s news of the passing of Wahaha founder Zong Qinghou, has stirred up a nationwide wave of nostalgia, leading to a "Wahaha shopping frenzy." Although public emotions have driven the mania, it is Wahaha's brand and products ability to stand the test of time that has enabled it to seize the opportunity.
In China’s increasingly competitive market, many veteran enterprises have gradually been forgotten by consumers because they did not adapt to the market rhythm and keep up with market changes. Only those brands that have constantly evolved their development strategies based on market demands have been able to sustain long-term growth. Here are two exemplar examples that domestic and foreign brands can learn from:
Haidilao - continuously exploring new consumer scenarios
The well-known hotpot chain, Haidilao, has never stopped innovating. This has been as out-there as providing services such as manicures, hand care, and shoe polishing while dining, as well as offering table games to play while waiting for a table, to later adding services such as hair washing and photo printing. Haidilao has continuously strived to enrich customers' dining experiences. In recent years, Haidilao has continually expanded its services beyond its original restaurant dining.
Haidilao recently entered the breakfast market by setting up stalls selling breakfast on the streets in Xi'an. This is a breakfast business operated by Haidilao stores themselves, making use of time that would otherwise be unused. There are no fixed operating hours, with service times depending on each store’s situation.
Breakfasts at Hidilao. Images: RED/Xiaohongshu
Haidilao is well known for always closely monitoring market trends and swiftly acting upon these. Take 2023 as an example, Haidilao expanded its sideline businesses: from entering university cafeterias, targeting college students, and cultivating their consumption habits, to setting up stalls in night markets and offering late-night hotpot services, actively participating in the very on-trend "night economy."
They also tapped into the trend of going camping and opened Haidilao camping stores. In line with the explosion in popularity of music festivals, the company recently held the Haidilao Hotpot Music Festival in Chengdu with Haidilao camping stores, continuously exceeding consumer expectations by creating diverse and interesting consumption scenarios.
Photos from the Haidilao Hotpot Music Festival in Chengdu. Images: RED/Xiaohongshu
In summary, Haidilao's expansionary mantra can be described as "go wherever people are going," and "try whatever consumers are interested in."
Jiuyang - seeking differentiation within soy milk category
Jiuyang has evolved over 30 years of China’s dramatic change and still maintains its place in the market. Jiuyang has expanded and strengthened its main product category, soy milk, while also continuing to broaden its product range. In an environment where the food & beverage is constantly being bombarded with new, flashy innovations replacing less fresh brands, Jiuyang has worked hard to ensure that soy milk, as a small category, continues to remain relevant, novel and fresh.
Jiuyang recently launched a new product called "Longjing Jasmine Soymilk Tea," which has attracted widespread attention. The product breaks the boundaries of traditional soy milk by combining Jiuyang's soy milk with West Lake Longjing tea and jasmine flowers. West Lake Longjing tea and jasmine flowers themselves have been popular elements in the milk tea industry in recent years. By combining these elements with soy milk, the product brings a unique and refreshing taste. Additionally, the product draws inspiration from some tea-drinking concepts, claiming to use "hot cooking" to create a silkier texture for the soymilk and "cold brewing" to extract the rich flavour of Longjing tea.
Jiuyang’s "Longjing Jasmine Soymilk Tea.” Images: Hongcan official WeChat account & Xiaohongshu / RED
As a national drink, soy milk's most alluring features are its health and nutrition. In recent years, Jiuyang has been focusing on enhancing its products around the "health and nutrition" advantages of soy milk. In addition to launching a series of soy milk products, it has also been continuously exploring the "soy milk +" products, upgrading and innovating many products to meet different market demands. For example, it developed a cold-brewed fruit soy milk beverage, combining elements of "cold-brewed fruit drinks." The sugar-free beverage, innovates on taste while meeting consumers' demand for healthy beverages.
Jiuyang soy milk innovations. Images: RED/Xiaohongshu
Like Haidilao, Jiuyang has maintained its core selling points, and expanded on these with on-trend innovations to stay relevant in China’s cut-throat food & beverage category.
