First of all, no matter from the control of channels, the density of outlets, trading management ideas or financial strength, the enterprises of Northeast Corps do not have the ability to trade the whole country. 20/kloc-in September, 2004, Wahaha sales staff disclosed to the media that Wahaha Gowasu was "dead": "Gowasu was on fire for a while, saying that no one would buy it if it could not be sold, and then began to deal with it." The withdrawal of Wahaha has made the market less powerful. Wahaha can spend 500 million yuan on advertising at a time, but the annual output value of most enterprises in Northeast Gowasu does not exceed 200 million yuan. The lack of funds makes it difficult for the Northeast Legion to pull at high altitude, and it is difficult to spare no effort to promote sales besides distributing goods in the market. The lack of market maintenance makes it difficult to turn customers' curiosity about new products into buying habits.
Secondly, while the market is expanding blindly, enterprises do not take into account regional differences. Gowasu drinks sell well in the three northeastern provinces because they are geographically close to Russia and can adapt to Russian flavors and customs. Besides Gowasu, traditional Russian sausage and Italian bread sell well in the three northeastern provinces. But this does not mean that people in other regions can accept it. As a matter of fact, most people in southern cities are not used to Gowasu. Moreover, the water source and grain in Heilongjiang are relatively good in the whole country, which are the unique conditions for producing high-quality Gowasu drinks. This is why the taste of Lin Qiu Gowasu produced in Tianjin is not as good as that produced in Harbin, and even Gowasu produced in other factories can be 50 cents cheaper than that produced in Northeast China. In the process of promoting to the whole country, enterprises have not done enough market research, so it is difficult to prevent "acclimatization".
Third, improving the process to increase production capacity has also changed the initial attraction. Gowasu enterprises in Northeast China once criticized Wahaha Gowasu for blending maltose instead of bread fermentation, so the price was cheap, and Wahaha did not deny that it changed its formula name on the grounds that "the traditional technology caused the product to taste slightly mushy and the bottle was easy to burst". Zong Qinghou responded: "Anyone in Gowasu can do it, and the key depends on who consumers recognize." He did not define "authenticity", but used "market is king", which is the ultimate criterion for evaluating the success of enterprises.
What's more, Lin Qiu did not conduct in-depth assessment of dealers at the beginning of investment promotion, and even recruited a large number of inexperienced new dealers. Once the market situation is no longer smooth, their ability to resist risks is very poor.