I. Industry leaders

FMCG is an oligopoly industry, so we need to focus on those enterprises whose market share is far ahead, such as Yili and Mengniu in dairy industry, Shuanghui in meat industry, Tsingtao Brewery and China Resources in beer industry, Haitian in soy sauce industry, Fuling mustard tuber in pickled products industry, qiaqia food in melon seed industry, Chengde Lulu in vegetable protein beverage, etc. They are absolute leaders in their own sub-sectors, and some market shares are even higher than the second and third.

Two. Industry space

Industry space is mainly two investment logics:

1, there is a lot of room for sub-industries, and they can get very good growth if they do their jobs well; Such as dairy products, frozen foods, vegetable protein drinks, etc.

2. The brand has extensive extensibility. Most of them touch the ceiling on the main products and need to continue to grow through horizontal expansion; For example, Want Want's children's category extension, Master Kong and unified full leisure extension.

Third, channel advantages.

In the FMCG company I invest in, I must have the most powerful channel in the sub-industry. I have repeatedly stressed the importance of channels to a FMCG company: ① Convenience, and a strong channel has absolute convenience. For example, you can see that lovely child Wangwang smiling at you almost everywhere. (2) Visual products, powerful channels can pave the product terminals with strong visual impact, such as Oreo's wall-mounted distribution in many supermarkets, which makes customers want to buy. ③ The application of big data, the wider the channels, the more terminal data the company has, and it can organize subsequent production, publicity and other activities according to customers' information, ahead of other companies.

Fourth, strategic layout.

FMCG must have distribution outlets and regional distribution capabilities all over the country, so as to ensure that the channel has the most stable foundation and the lowest comprehensive cost. Therefore, the layout, coverage and sales area division of the factory are all issues that we need to study and consider. An excellent company must have a unified and moderately centralized national layout, and continue to cover other regions through its own base market until it is woven.

Verb (abbreviation of verb) brand effect

Under the same publicity effect, the higher the sales volume, the lower the publicity cost of each product. For example, Yili's 300 million titled "Where is Dad?" Sales reached 47.8 billion yuan. According to the ex-factory price of each product in 3 yuan, the average cost of each product is only 1.9 cents. Even if calculated by QQ star product line alone, it is only about 20 cents. Therefore, after sufficient sales, FMCG enterprises can continuously increase customers' awareness of the brand through brand promotion, and constantly tap their own "moat".

Sixth, the ability to raise prices.

FMCG is a standard product with small profits but quick turnover. Although the price increase is determined by the company according to many factors such as cost and sales model, whether the sales volume can keep up after the price increase is the real test of the company's channel and brand level. Therefore, when investing, we should closely observe the sales volume of the company after the price increase!