In the memories of most post-90s and post-00s, Li Ziyuan can be said to be a very famous name, and Li Ziyuan's sweet milk is almost a must-have for most young people's spring and autumn trips, but recently the topic of Li Ziyuan not being able to sell has been hotly discussed, why is the sweet milk giant suddenly out of nowhere?
1. Plum orchard can't be sold?
According to a report by Blue Whale Finance, following the decline in revenue and net profit in the first quarter, Li Ziyuan has not yet come out of the quagmire of declining performance.
According to the 2024 semi-annual report released by Li Ziyuan, in the first half of the year, its revenue was 679 million yuan, a year-on-year decrease of 3.08%; The net profit attributable to the parent company was 95.1205 million yuan, a year-on-year decrease of 29.29%. Among them, the revenue in the second quarter was 345 million yuan, a year-on-year decrease of 2.99%; The net profit attributable to the parent company decreased by 49.33% year-on-year to 38.1663 million yuan.
Founded in 1994, Liziyuan's products include six series of dairy beverages, dairy products, plant-based protein beverages, compound protein beverages, fruit juice beverages, and cereal beverages, and was listed on the Shanghai Stock Exchange in February 2021.
Since its revenue exceeded 1.4 billion yuan in 2021, Li Ziyuan's revenue has hovered at the level of 1.4 billion yuan for three consecutive years, without further breakthroughs. From 2021 to 2023, Li Ziyuan's revenue will be 1.47 billion yuan, 1.404 billion yuan, and 1.412 billion yuan respectively, and the net profit attributable to the parent company will be 262 million yuan, 221 million yuan, and 237 million yuan respectively. In the first half of 2024, the revenue will be 679 million yuan and the net profit will be 95 million yuan.
Li Ziyuan has been focusing on dairy beverage products in the market, almost throughout the company's development for 30 years, and more than 95% of the company's revenue contribution comes from this. In the first half of 2024, the company's dairy beverage business revenue was 656 million yuan, a year-on-year decrease of 4.87%, accounting for 97.02% of the total revenue.
The company's milk beverage business revenue mainly comes from sweet milk products, which has already made the company faintly aware of market risks. In the previous annual report, Li Ziyuan had said that if it is relied on for a long time, it may have a greater impact on performance.
2. Why can't the sweet milk giant?
In recent years, Li Ziyuan, as a giant in the sweet milk market, has not performed well in the market, which is not accidental, what should we think about it?
First of all, Plum Garden, once known for its sweet milk, now seems to be mired in sales. Sweet milk, as its core product, has been a part of the childhood memories of countless consumers. However, with the awakening of health awareness, consumers' preferences for beverages are gradually shifting to low-sugar, low-fat health options. The high-sugar, high-calorie attributes of sweet milk are at odds with the health pursuits of modern consumers, resulting in a decline in its market acceptance. In the past two years, the overall market for milk-containing beverages has declined, and Li Ziyuan has not been spared, with both sales and market share of sweet milk declining, and the average price per 100 millilitres also showing a downward trend.
Secondly, on the track of dairy products, the competition has already entered a white-hot stage. Li Ziyuan not only has to face pressure from dairy giants such as Yili and Mengniu, but also has to compete with many competitors such as Wahaha AD calcium milk, Yili yogurt, Mengniu yogurt, and Yakult probiotic drink. These brands not only have a strong brand influence and market foundation, but also continue to launch new products to meet the diverse needs of consumers.
Taking Wahaha AD calcium milk as an example, it has won a wide consumer base with its classic taste and stable quality. Yili yogurt and Mengniu yogurt have attracted a large number of young consumers through their rich flavors and diversified packaging. Yakult probiotic drinks have occupied a place in the market with their unique health attributes and strong brand influence. In contrast, Plum Garden's sweet milk is relatively lagging behind in product innovation and market expansion, and it is difficult to stand out from the fierce competition.
Third, diversification is an important strategy for enterprises to respond to market changes and find new growth points. Li Ziyuan also realized this and tried to broaden the market by diversifying its product line. However, the path to diversification has not been smooth. Despite the launch of a number of new products, there has been no explosion that can compete with sweet milk. Behind this, it reflects Li Ziyuan's shortcomings in product innovation and market insight. The market acceptance of new products is not high, and they cannot effectively attract consumers and form new growth drivers.
Fourth, from the perspective of long-term development, no enterprise can rely on a single product or strategy to eat everything. The predicament of Li Ziyuan is essentially a manifestation of insufficient innovation. In a rapidly changing market environment, only by continuously innovating products and keeping up with consumer needs and market trends can enterprises remain competitive and achieve sustainable development. Li Ziyuan needs to make greater efforts in product innovation, market positioning, brand building, etc., to adapt to the new changes in the market and find new growth points. #记录我的2024#