Tag: Life Style

An shrinking industry with huge impacts

Also – a report on beer that includes 2011-2016 beer consumption growth by country.

So ~200,000,000,000 liters divided by world population of 7,500,000,000 = 26.67 liters per person annually.

Say a can of beer is 330 ml – then each person is consuming ~80 cans per year.

That is a larger than I expected.

Although beer still needs to compete with wines, spirits and others for total alcohol consumption, it is still the no.1 source of alcohol (worldwide, but varies by country) – the impacts on everyday life are huge!

A better graphic illustration of alcohol consumption can be found here. A few screenshots are listed below.

Trends: to more premium options & to craft beer

In the US, craft beers is a growing sector while the overall beer sales is declining in 2018.

And the number of brewpubs is growing rapidly in recent years in the US.

And stories have been told, for example, Corono has been very popular and growing fast in China.

On a conference call following the release of Q1 2018 results yesterday, Carlos Brito told analysts that AB InBev’s more expensive offerings are doing “very well” in China. He singled out Corona, which became the number one imported beer in China in the three-month period. The brand “[is] growing very rapidly”, Brito added. A-B InBev boasts around a 20% market share in the country, with strength coming from its premium and super-premium brands. [just-drinks.com]

And sales of Budweiser in China overtook those in America in the first half of 2018. [beveragedaily.com]

Corona’s parent company Modelo was acquired by AB InBev in 2012 for $20 billion at an enterprise value to EBITDA multiple of 15.4 times.

It’s time to talk about WeChat’s development after I have spent more than two month catching up in China.

This series will try to summarize several things WeChat has already been doing great and what it could possibly do in the foreseeable future.

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First of all, restaurant mini-programs/official account.

The most significant feature to me is probably the ability to order on a digital menu via a QR code. All you need to do is to seat down and scan the code (with the information of table number usually) that is sticked on the table. One can totally make an order and wait for food without any help from the restaurant (saving lots of labor and waiting time). In addition, since everyone on this table can scan the code, they will share the same page and see each other’s ordering, which is extremely helpful as they are mostly shared plates.

What is more, usually it also makes users to follow the restaurant’s official account in WeChat in a very smooth way. Sometimes it’s mandatory. It is particularly beneficial for restaurant chains (and milk tea / coffee chains) that have multiple locations and marketing campaigns.

Then, depending on the frequency of customer’s visits, chains usually have their membership system in WeChat official accounts or mini-programs. That way, an WeChat account is essentially a Facebook or gmail account in the US. Complex reward and membership programs can be implemented in WeChat by chains, such as McDonald’s.

Besides ordering, WeChat provides a way for consumers to take a number to wait for a table before arriving at the restaurant.

The booking/waiting environment is a little different here in China. While booking a table at a specific time is common in the US, restaurants in China mostly only have a queue system. Most people will need to go to the restaurant first, take a number and wait for an hour or more in prime time. This is actually good for the shopping mall as people need to stay here longer, either generating other purchases or making the mall look more popular.

Also, on WeChat one can order ahead, which is especially helpful in beverage chains like Hey Tea. Hey Tea has long been “featuring” its super long line to order. As Starbucks in China just announced its order-ahead-and-pick-up feature “Fei Kuai” in a few cities this summer, its competitors have been able to do this at least one year earlier on WeChat.

Not to mention the payment step, which WeChat has been doing for years.