In yesterday's article, we briefly talked about China Feihe. Many students don't really want us to talk about Hong Kong and American stocks. After all, they can't buy them themselves, so they can only watch the excitement.

But what the director wants to say is that it is better to teach people to fish than to teach them to fish. The purpose of talking about different companies is not to "push companies" for everyone. No, we must make this clear. Instead, it is necessary to analyze why a successful company succeeded and why a successful company failed in the past, so that everyone can know everything. After all, the underlying logic of business is the same.

Some time ago, the director gave you a live broadcast in Snowball, talking about Mindray. At the same time, the director took Feihe, Nongfu Spring and Bull as examples to tell you the importance of channels. In the medical industry, the monopoly of channels is more frightening than that in the consumer industry. After all, it is difficult for the medical industry to have online counterattacks (it is difficult for the medical industry to have channel changes, which means it is difficult for companies to counterattack through channel changes).

the topic is a little off track. what does the director want to say? That is, we must not be too short-sighted, and we must not read the articles in Value Firm, just to see that we have no brains to copy our homework and to see that conclusion.

To be honest, without these reasoning processes, you don't know the logic behind it, and I don't know why. To tell you the conclusion, you can't hold good assets.

For example, the "get rich slowly and get faster" fund portfolio made by Value Firm, the market retreated sharply in the first week of its establishment, and the portfolio also retreated by 8 points. How many people redeemed in that wave, so they missed the vigorous rebound.

In the market, everyone knows what good companies are, and the information on the market is also very developed. Why is there a situation of 7 losses, 2 draws and 1 profit? It is because most people only look at a conclusion when reading information, ignoring the middle process, not understanding the truth behind it, and then can't hold it.

well, get down to business, let's talk about flying cranes in China.

Recently, the data of the seventh population census was released. We should find that the number of newborns in China is getting smaller and smaller every year, while the milk powder industry is basically engaged in the business of infants before the age of three. With the decline of the number of newborn people, the demographic dividend of the milk powder industry has disappeared.

then milk powder is a stock market, just like liquor.

However, although it is a stock market, it is precisely because of this "stock market" that children have become everyone's favorite, and parents have attached great importance to their children to an unprecedented height.

In the past, a few babies in a family could only grow up by drinking some milk powder and feeding them some rice paste. Now, there is only one baby in a family, and many of them are "old children". Grandparents, grandparents and parents are all around, and no matter how hard they are, they can't suffer the children. As the "core" of the family, milk powder must be tried to make the best.

Therefore, the logic of domestic milk powder is very similar to that of liquor. The stock market depends on raising prices and enhancing concentration, and high-end milk powder has become the same as high-end liquor.

nobody cares about cheap milk powder, and the more expensive milk powder, the more people buy it.

It's really obvious. In recent years, the growth rate of high-end milk powder and ultra-high-end milk powder in China is very, very fast, and the industry concentration is constantly improving.

Feihe was the first to see this trend. Around 215, it cut off its low-end milk powder product line and concentrated its resources to promote high-end and ultra-high-end milk powder. Its market share of ultra-high-end milk powder Xingfeifan has reached as much as 3%! This product has contributed nearly half of the company's revenue!

The price of ultra-high-end milk powder is high, and the gross profit naturally exceeds that of other series products. Therefore, as the sales of ultra-high-end milk powder in the company grow at a "very exaggerated" speed, the gross profit margin of the company will go up like a rocket.

Now, in Beijing, the market share of Feihe has become the absolute number one, which is quite interesting. Domestic milk powder is even more "high-end" and more expensive than overseas milk powder. The key point is that everyone still buys it.

really, the world has changed.

As mentioned above, Feihe was the first in the industry to make ultra-high-end milk powder, and resolutely cut down many low-end product lines. In order to make its products worthy of high-end, Feihe spent a lot of money, and the research and development expenses increased year by year, and specially established a master's team including nutrition, food science, biology and medicine, with strong scientific research strength.

To be honest, such investment in R&D is quite rare in the field of consumption.

slogan is called "closer to Chinese mothers' breast milk and more suitable for China babies", which is really not empty talk.

Because Feihe has been making a comparative study on the samples of population diet and breast milk composition in various regions of China, identifying the differences and proportions of the main components needed for the growth and development of infants in China, and trying to make its own products closer to the breast milk of Chinese mothers and meet the growth needs of China babies.

Secondly, it is the channel of Feihe, and the importance of the channel. We briefly talked about it in yesterday's article, and today, I will give you a deep disassembly.

In fact, milk powder in China has undergone a channel change.

In 21 and before, the mainstream selling channel of milk powder was Shangchao. However, with more and more money in people's pockets, one-stop maternal and child stores gradually emerged in China. Just as Feihe foresighted cutting off some low-end brands and focusing on ultra-high-end milk powder, Feihe also foresighted the layout of maternal and child channels, and even launched some high-end products for this maternal and child store.

With the rise of maternal and infant stores, the proportion of milk powder from Shangchao has gradually declined. Apart from the national policy, one of the most important reasons why domestic milk powder can surpass imported milk powder is that the decision-making chain of foreign capital is too long to grasp the dividend of this domestic channel change, which has been countered by domestic milk powder.

By 22, the income composition of Feihe will be about 13% online, 6%+ for mother and baby, and 2% for Shangchao.

after years of hard work, the company's channel structure is very flat, which is different from many consumer goods with multi-level distributors. On the one hand, the company directly supplies the maternal and child stores to supermarkets and other retailers, on the other hand, it distributes through the first-floor distributors, and at the same time, all the major online e-commerce channels are directly operated by the company.

What are the benefits of flattening channels? It can help the company better grasp the terminal situation. The director will show you a clause between Feihe and the distributor.

Feihe requires dealers to submit the estimated order quantity for next month before 2th of each month, and the accuracy of these estimated order quantities must reach at least 85%.

set monthly and annual sales targets for the distributor and monitor them regularly. If the distributor fails to reach the sales target in two or more quarters of a year or fails to reach the annual sales target of 45% in the first half of the year, the agreement will be terminated.

this is the advantage of flattening. The company can not only adjust its production capacity at any time according to the terminal situation, but also make flexible sales adjustment according to the feedback from different channels in different regions. The terminal channel must accurately predict the future sales and get the goods, and must reach the sales volume, otherwise it can terminate the agreement at any time.

It is precisely because of years of operation that the company has iron bucket sales channels and has a strong grasp of them, so that the company's inventory turnover rate and accounts receivable turnover rate far exceed those of its peers!

So, although Feihe has high requirements, it is actually very happy as a channel for Feihe. Otherwise, the company could not have such a group of loyal channels.

why? Think about it, if you look at it from the perspective of channels, what products are good to represent?

it must be high turnover, high profit, quick expense settlement and less worry.

For example, a friend of the director works as a channel for electronic products in Huaqiang North, Shenzhen (he does not face the terminal, but is a middle distributor, and there will be many layers of channels among the products he represents). He can take tens of millions of goods every year, and after deducting the messy expenses, he earns about 1 million yuan every year.

But the director's friend has a hard time, and he dare not eat or wear. Why?

It's because he can't get the payment until the end of the year. As soon as he gets the money, he will go to the upstream to buy goods. He always bets on hundreds of millions of goods. It seems that he can make money, but all he earns is figures, and his cash flow is very bad. This is the hardship of having no right to speak and low turnover rate. Once he has a little problem in the middle of his cash flow, it's all over.

from the perspective of turnover, the turnover rate of Feihe's dealers is obviously higher than that of other domestic or foreign brands that Feihe represents. The safety inventory that Feihe requires dealers to maintain is basically at the lowest level in the industry (the average inventory of dealers is 1.5 months), and the gross profit margin of channels can basically be stabilized at around 2%, which is already very high (you know, the friend of Huaqiang North, the director of the company, is in the early 1% position).

in short, the return on investment of Feihe dealers is among the highest in the industry.

At present, Feihe has more than 2, dealers and a shopping guide team of 2, people, covering more than 11, stores.

The core reason behind Feihe's success lies in grasping the two major trends of high-end milk powder and channel change. At present, Feihe's market share has successfully jumped to the top in China. In the future, the milk powder industry will continue the trend of localization+high-end+market concentration, and Feihe's potential is still very great.

Everyone knows that medical treatment is an excellent track, with all kinds of 1-fold shares and 1-fold shares, but it is also recognized as complicated and difficult to learn. Now, the course of medical investment, which is probably the best one you can find, is coming.

The course sorts out the huge medical system and breaks it down into 15 sub-tracks, and then analyzes the investment opportunities of the sub-tracks one by one. Let you master the medical investment method from now on, know the investment logic of each track clearly, and seize the opportunity to learn.