Sales layoffs of 20%? Wang Laoji Emergency Response Personnel | Position | Wang Laoji
On June 28th, it was reported that Wang Laoji will be reassigning some positions in the company starting from June, and sales positions will be laid off by 20%.
Regarding the above news, Wang Laoji told the media today that due to the development needs of the company, normal adjustments will be made to the functions of certain departments and corresponding personnel positions, without involving layoffs.
20% layoffs in sales positions?
Wang Laoji's response
On June 28th, it was rumored that Guangzhou Wanglaoji Health Industry Co., Ltd. would lay off 20% of its sales positions.
According to the widely circulated document "Audit Function Adjustment and Improvement Propaganda Meeting" by Wang Laoji, starting from June, Wang Laoji has gradually adjusted the vacant staffing and combined personnel of various departments such as channels, marketing, and sales in the marketing center. Employees who have not been successfully matched in both directions will be transferred directly to the sales representative position from their original workplaces.
The document also shows that by the end of May, Wang Laoji's audit department had summoned department audit managers and above to return to the headquarters to further promote the work ideology of the core backbone. At the same time, online meetings were organized in various regions to promote the specific implementation work and issue relevant process instructions and letters of intent. Work switching was implemented from June onwards.
In response to this, Wang Laoji Health Company stated to the media that due to the company's development needs, normal adjustments have been made to the functions of certain departments and corresponding personnel positions, without involving layoffs. The management team of the company is stable, and there is an abundant cadre team. At present, the company's performance is stable and maintaining healthy growth.
According to the public information, Wang Laoji is the herbal tea brand of Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd., which belongs to the big health sector. According to the 2022 annual report, the big health sector of Baiyunshan is mainly the production, research and development and sales of drinks, food, health products and other products. The enterprises mainly engaged in include the subsidiary Wang Laoji Big Health Company and Wang Laoji Pharmaceutical, and the main products include Wang Laoji herbal tea, Spinning Ji series, Li Xiaoji series, Throat Sugar, Guilinggao and so on.
According to the 2022 annual report, for the sales of Wang Laoji herbal tea, Wang Laoji Health Company and Wang Laoji Pharmaceutical mainly focus on distribution, with a three-level distributor; The first level distributor is responsible to Wang Laoji Health Company and Wang Laoji Pharmaceutical, and is specifically responsible for regional channel development according to the sales tasks assigned by Wang Laoji Health Company and Wang Laoji Pharmaceutical; Secondary distributors purchase from primary distributors and are responsible for product distribution. Wang Laoji Health Company and Wang Laoji Pharmaceutical are directly responsible for product advertising investment, participating in terminal expansion, promotion, and customer maintenance.
The growth rate of herbal tea market is showing a downward trend
Wang Laoji keeps trying new things
According to the financial report, in 2021, the revenue of Baiyunshan's health sector was 10.851 billion yuan, a year-on-year increase of 38.07%, accounting for 15.78% of the total revenue. In 2022, the revenue of Baiyunshan's health sector decreased to 10.473 billion yuan, a year-on-year decrease of 3.48%, accounting for 14.84% of the total revenue.
Specifically, the revenue and profits contributed by Wang Laoji's parent company, Wang Laoji Health Company, to Baiyunshan have been decreasing year by year. In 2021, Wanglaoji Health Company contributed 9.729 billion yuan in operating revenue, 4.608 billion yuan in profit, and a net profit of 1.288 billion yuan to Baiyunshan. In 2022, Wanglaoji Health Company contributed 9.348 billion yuan in operating revenue, 4.043 billion yuan in profit, and a net profit of 1.448 billion yuan to Baiyunshan.
The reporter noticed that the growth rate of the herbal tea market is showing a decreasing trend year by year. According to data from the China Academy of Commerce and Industry, in 2014, the overall market size of China's herbal tea industry reached 42 billion yuan, accounting for 7.21% of the beverage market share; By 2015, the market size of herbal tea had exceeded 50 billion yuan. Among them, 2015 became a watershed for the herbal tea industry, with the industry's growth rate decreasing year by year. According to the report from Forward Industry Research Institute, the growth rate of the herbal tea market from 2012 to 2017 was 16.7%, 15.9%, 15.1%, 15%, 9.7%, and 9.1%, respectively, showing a decreasing trend year by year. By 2018, the market size of herbal tea was only 47 billion yuan, a year-on-year decrease of 18%. In 2020, due to the impact of the epidemic, the market share of ready to drink herbal tea in Asia decreased by 27.1%.
Perhaps realizing the overall downward trend in the herbal tea market. After entering 2021, Wang Laoji began to frequently expand his existing business scope and continue to pursue popular products and concepts. In addition to catering to the preferences of young consumers, we have innovated our core herbal tea products and launched black herbal tea with low calorie and healthy selling points. Wang Laoji also collaborated with the WeChat brand to launch a weight loss beer called "Bihi Beer", and a few months later, he established the hot pot ingredient supermarket "1828 Wang Laoji Xiaoji Pan Pi". Finally, at the end of last year, Wang Laoji tested the concept of the metaverse. Jointly with Alibaba, we have created the "Baijiahe" digital collection and registered the "Laoji" series trademark starting with the surname Baijia.
At the Baiyunshan investor relations event held on June 21st, investors also asked, "What is the distribution of sales channels for Wanglaoji herbal tea? How is the recovery of herbal tea products after the epidemic? Is there still room for improvement in herbal tea products?" In response, the company replied that for many years, the company has adopted a global channel layout strategy and has achieved full coverage of Wanglaoji herbal tea in traditional channels, catering channels, gift channels, ready to drink channels, special channels, and e-commerce channels, achieving organic linkage between online and offline channels. After the optimization of epidemic policies, the catering market and consumer willingness of the public have gradually recovered. Therefore, the company will continue to adhere to the principle of "one yuan, multiple cores" to enhance the comprehensive strength of the entire big health sector, and continue to promote various marketing work of big health products. Considering factors such as consumer upgrading and market expansion space, the company believes that there is still room for further development of herbal tea products.
In addition to Wang Laoji, Baiyunshan also actively promotes new product directions. On June 21st, during the investor relations disclosure event, Baiyunshan stated that the Ciningji and Lixiaoji series products will cover some sales channels of Wanglaoji herbal tea, and will continue to promote market layout by opening up new sales channels. At present, the two products are still in the cultivation stage. In the future, the company will vigorously promote the development and sales of new products such as the Ciningji and Lixiaoji series according to the plan, strive to improve the market awareness of new products, and gradually cultivate them into important products in the big health sector.
