After Shi Yuzhu left, Zong Qingxian asked. "General Manager Feng, do you really think his health supplement company can make money?"
"Why not?"
"If it is five years ago, I believe it can. He is also an expert among experts in the sales of health products. I even learned a lot of ideas from him in the past. But that was when the health supplement industry was booming, and almost all health supplement companies were making money. Many fake products were also produced! "
"But it is different now. After that crackdown, many health supplement companies went bankrupt, and Wahaha had given up on health supplements to focus on beverages. There were so many health supplements in the market in the past. How many of them are left now? "
Feng Yu nodded. "You are right. Most of the health supplements in the past are gone. But didn't you notice there are new health supplements in the market?"
"Yes, there are. This is a legal industry. But the era of high profits had passed, and many health supplements cannot be sold! "
"That is because they have not found the right niche!" Feng Yu replied. Selling health supplements as gifts is a genius idea!
Zong Qingxian is confused. Niche? What niche does health supplement have? It is only suitable for the general public.
"Every industry has its ups and downs, and one of the main reasons that affects the rise and fall of an industry is industrial policy! In the past, the health supplement industry had gone astray, and the market was filled with fake products. That's why the government cracked down on it. But after that crackdown, the industry was reformed, and all the fake products are gone. What is left should be the real deal. "
"Did you notice that people are starting to focus on health supplements again? If we can find a suitable entry point, health supplements will be popular again. It is not impossible!" Feng Yu said confidently.
"Really?"
"An industry needs to go through rapid growth, steady growth, stagnation, and decline. Back then, the health supplement industry was cut in half during the period of rapid development. This industry wasn't really eliminated by the market! "
Zong Qingxian nodded. Feng Yu's words make sense.
The health supplement industry did not decline naturally. It was because of the government's crackdown. Now that the industry had loosened up, it was possible for it to rise again.
However, he felt that it was too risky for Feng Yu to lend Shi Yuzhu 50 million USD.
Feng Yu's investments are often confusing, but in the end, Feng Yu is right. Perhaps this time, Feng Yu was right.
"General Manager Feng, when do you think the beverage industry will stagnate?"
"It's still too early. In fact, Hua Xia's beverage industry is still in a period of rapid development. Let's take Wahaha's products for example. Our sales are increasing every year, right? Jianlibao's sales also increased a lot this year, right? There are also many new brands that have emerged, and their sales aren't bad either. Think about it, compared to five years ago, how many times has it grown? "
"When will it enter a period of steady development?" It's like what Feng Yu said. There are still some new beverage brands emerging, and their sales are quite good.
"It will take at least 10 years. By then, the cities' potential should have been tapped, and the villages' market should have been opened up. The sales will continue to increase, but it will not be too fast, and there will not be any new brands appearing suddenly. "
Actually, before Feng Yu's previous life, there were still many beverage brands appearing every year. But there were also some brands that disappeared. It might be due to problems with their business strategies or funds.
At that time, there are many beverage brands in the market, but only a few brands are selling well. Two Cola, Kang Shifu, Tongyi, Wahaha, Huiyuan, Jia Duo Bao, Red Bull, etc.
Among which, Feng Yu admires Jia Duo Bao the most. Jia Duo Bao can become the industry leader with just one product. How successful is this?
But in this life, it is different from Feng Yu's previous life. First, the two Cola brands are suppressed, and Jianlibao has no signs of declining. Wahaha is doing better in Feng Yu's previous life, and Tongyi and Kang Shifu do not have any signs of rising.
Le Bashi was still around, but it was the same. Le Bashi had given up on the northern market and focused on the southern market. It was mainly because their distribution channels were not as good as Lehaha, and they did not have many branches. The transportation costs were high.
Huiyuan is doing well because of its fruit juice. Because it joined the beverage alliance, it is doing better and faster than in Feng Yu's previous life.
Zong Qingxian had told Feng Yu that if he knew fruit juice is selling so well, he would have acquired Huiyuan. Now, Huiyuan is not selling even if he wants to acquire Huiyuan.
But Feng Yu doesn't know that in Feng Yu's previous life, Qi Li was suppressed by Red Bull and even lost money. In this life, Qi Li was developed even earlier and used athletes as endorsers. It sold very well.
Red Bull, on the other hand, is struggling in China and is only active in Guangdong. In this life, Red Bull will not be as popular as it was in Feng Yu's previous life. Wahaha is also not doing well in Feng Yu's previous life, but it is very successful in this life.
But Zong Qingxian and Feng Yu have the same opinion. It is hard for beverages to enter a declining phase. It's just like how humans need to eat grains, and drinking beverages is inevitable.
Some beverage brands might decline, but the entire beverage industry will not decline. It's just like tea. It had been passed down for thousands of years, and many people still like to drink it.
"Manager Feng, that means the companies you invested in are the ones that you think will enter a period of rapid development?"
"Something like that. Of course, some industries are developing steadily, but they will not decline in the short term."
For example, the supermarket industry is in a period of rapid growth now. But in a few years, it will enter a period of steady growth. Maybe in a decade or two, it will enter a period of stagnation. But it is still too early to say that it will decline.
Online retailing will squeeze the survival space of traditional retailing, but it will not replace them. This is because online retailing requires a certain transportation time, and traditional retailing allows customers to buy and leave immediately.
Also, the motorcycle industry is in a period of steady growth now, but in a few years, it will enter a period of stagnation. But when that happens, Songjiang Motorcycles can switch to electric scooters, and electric scooters will have another 10 years of rapid growth.
Actually, Feng Yu had also invested in industries that had not entered a period of rapid growth. For example, mines. Feng Yu had invested in mines early, but the prices of the mines were not high at that time.
But in two years, the prices of the mines will increase, and it will be Feng Yu's time to reap the profits.
Zong Qingxian looks at Feng Yu. Is this the secret of Feng Yu's success? Identify the industries and invest. But how did he identify those industries?
… …
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