Core Viewpoint - The article emphasizes that "extreme product power" is the primary productivity force for companies, highlighting the importance of product development over marketing in a competitive environment [2][3]. Group 1: Importance of Product Development - In a highly competitive market, companies must focus on product development to create extreme product power, which serves as a significant leverage point for business operations [2][3]. - The concept of the power law in product development suggests that even a small improvement in product quality can lead to exponential growth in sales and market presence over time [4][6]. - Companies with strong product foundations can outperform larger competitors, as demonstrated by the power law where a small base raised to a high exponent can yield greater results than a larger base with a lower exponent [6][8]. Group 2: Key Recognitions for Building Extreme Product Power - Companies must adopt a consumer-centric perspective, recognizing that their products are just one of many choices available to consumers [8][10]. - Products should aim to achieve at least two out of three desirable attributes: being good (taste, appearance, fun), strong (technology, craftsmanship, supply chain), and large (market scale) to create competitive advantages [12][16]. - Establishing the shortest possible connection with consumers is crucial, as it aligns with their instinctive decision-making processes [14][15]. Group 3: Strategic Product Selection - Selecting the right products is the most critical factor in building extreme product power, accounting for 40% of its importance [23]. - Products should be high-frequency, essential, versatile, and unique to ensure future sales potential [24]. - Successful examples include products that are widely applicable and have high consumer value, such as the "耗油牛柳" from 欧赛斯, which can be used in various dishes [24][25]. Group 4: Research and Development - R&D is the second most important factor, contributing 30% to extreme product power, where defining and developing outstanding products is essential [28][29]. - Companies that prioritize R&D and foster a culture of continuous product improvement tend to excel in the market [29][31]. Group 5: Marketing and Branding - Effective product naming is crucial for extreme product power, requiring names that are memorable, clear, and directly address consumer needs [34][36]. - The creation of compelling product selling points is essential, focusing on a single, strong reason for consumers to purchase [46][49]. - Packaging design should convey the product's value and brand identity, enhancing market appeal and driving conversion [49].

Group 1 - The article discusses the strategic consulting firm Ries Strategic Consulting and its pivotal role in guiding companies like Great Wall Motors and Jack Sewing Machine through critical decision-making processes [21][22][24] - Ries emphasizes the importance of focusing on fundamental issues that determine a company's survival and growth, rather than superficial or short-term solutions [23][25] - The success of Great Wall Motors in the SUV market is highlighted as a case study of effective positioning and trend analysis, leading to significant revenue growth [10][11][12] Group 2 - The article contrasts the approach of Ries with that of other consulting firms, noting that Ries maintains a commitment to solving core strategic problems rather than succumbing to client pressures for easy solutions [30][31][32] - The firm’s methodology includes extensive market research and consumer insights, which are crucial for developing effective strategies [46][47] - Ries has a track record of successful case studies across various industries, demonstrating its ability to adapt and provide valuable insights in changing market conditions [38][39][45]

Group 1 - Wahaha Group confirmed a contract manufacturing relationship with Jinmailang, stating that some batches of bottled water failed quality tests during self-inspection, leading to the termination of cooperation from April 2025 [1][4] - Jinmailang's chairman stated that the cooperation began in May 2024 and will end in May 2025, with over 50 million boxes delivered, equivalent to 1.2 billion bottles of water [5] - The discrepancy in termination dates between Wahaha and Jinmailang has created confusion, referred to as a "Rashomon" situation [5] Group 2 - Jinmailang's revenue has significantly declined, with reported figures of 19.076 billion yuan in 2022 and 16.57 billion yuan in 2023, indicating a downward trend [3][10] - The company has faced challenges in its IPO journey, having announced plans to go public in June 2017, but has not made progress in the past eight years [2][12] - Jinmailang's instant noodle segment reported a revenue of 6.367 billion yuan in 2023, down 11.29% year-on-year, with production decreasing by 20.09% [10][11] Group 3 - Wahaha has been adjusting its production layout, leading to some factory shutdowns, while claiming that current products meet national quality standards [8] - Jinmailang operates 26 production bases across 18 provinces, with a beverage production capacity of 2 million tons annually [8] - The company has attempted various strategies for IPO, including partnerships and financing rounds, but has yet to achieve a successful public offering [13][14][16]

Core Viewpoint - The chairman of Jinmailang responded to the controversy regarding the OEM production of Wahaha bottled water, emphasizing the scale and efficiency of their operations while revealing low profit margins on their own products [1][2]. Group 1: OEM Production Details - Jinmailang produced over 500 million boxes, equivalent to 12 billion bottles of Wahaha bottled water in the past year, due to a surge in demand [2]. - The collaboration began in May of the previous year and is set to end in May of this year, contrary to Wahaha's statement that the partnership will terminate in April 2025 [3]. - Wahaha's statement indicated that some batches of bottled water did not pass factory sampling tests, but Jinmailang's chairman did not address this issue during the interview [4]. Group 2: Financial Insights - Jinmailang's blue label water has a net profit of only 0.02 yuan per bottle, with a retail price of 1 yuan, providing a competitive edge in a market where bottled water is often priced at 2 yuan [6]. - Jinmailang's annual sales volume for its own bottled water products, including blue label water and Liangbai water, exceeds 12 billion bottles [2]. Group 3: Company Background - Jinmailang Group was established in 1994 and has a diverse product range including convenience foods, beverages, and flour [5]. - Jinmailang Beverages Co., Ltd. was founded in 2006 and has established a significant presence in the packaged drinking water market with products like Liangbai and blue label water [5]. Group 4: Other OEM Relationships - Other companies, such as Suntory and Hema, also have OEM relationships with Jinmailang, with Jinmailang's factories accounting for over 30% of Suntory's national production of oolong tea [9].

Group 1 - The chairman of Jinmailang, Fan Xianguo, confirmed the company's role in producing bottled water for Wahaha, stating that over 50 million cases, equivalent to 1.2 billion bottles, were produced from May last year to May this year [1] - Jinmailang has 26 production bases across the country, which allows for reduced transportation costs and efficient production, with 32 out of 115 beverage production lines being high-speed [1] - Wahaha announced the termination of its cooperation with Jinmailang starting from April 2025, while Fan mentioned that the collaboration would end in May this year [1] Group 2 - Wahaha's official statement acknowledged the existence of a contract manufacturing relationship with Jinmailang, noting that some batches of bottled water did not pass quality checks during internal inspections [3] - Wahaha reassured consumers that all currently available bottled water products meet national quality standards and the company's quality management standards [3]

Group 1 - Wahaha announced a termination of its contract with Jinmailang due to some batches of bottled water failing quality checks [1] - Jinmailang has previously produced bottled water for Wahaha that passed quality inspections [2] - Jinmailang's market share in the packaged drinking water sector has been between 6% and 8.5%, ranking fourth behind competitors like Kangshifu and Unification [5][8] Group 2 - Jinmailang has established a full industrial chain development model, including over 30 OEM partnerships with well-known brands [9][12] - The company has faced increasing competition in the low-price segment of the beverage market, particularly due to price wars initiated by major brands [7][8] - The concentration of the packaged drinking water market has increased, with the top five companies holding a combined market share of 58.6% as of 2023 [8]