Knowing Limitting is Unlimited Strength

Each time I worked on a strategy, my co-founder does zeroco.de its possibilities and probabilities of succeeding. In the process to overcome the discussion paralysis, I resort to identifying the gaps and fixing them through better ways of adapting and the availability of equivalent alternatives, which always leads me to know how important it is to know its compoundedness and limits.

The world's largest beverage company and its successful formula resonate the same. It's not 𝘊𝘰𝘤𝘢-𝘊𝘰𝘭𝘢 or 𝘜𝘒'𝘴 𝘋𝘪𝘢𝘨𝘦𝘰(maker of Johnny walker) or 𝘉𝘦𝘭𝘨𝘪𝘶𝘮'𝘴 𝘐𝘯𝘉𝘦𝘷(Maker of Budweiser) rather it is china's 𝑲𝒘𝒆𝒊𝒄𝒉𝒐𝒘 𝑴𝒐𝒖𝒕𝒂𝒊 with a market cap of $255.73 𝘣𝘪𝘭𝘭𝘪𝘰𝘯(Oct 2022) Diageo is a distant second with $96.21 billion

𝘒𝘸𝘦𝘪𝘤𝘩𝘰𝘸 𝘔𝘰𝘶𝘵𝘢𝘪, 𝘢 200-𝘺𝘦𝘢𝘳-𝘰𝘭𝘥 𝘤𝘰𝘮𝘱𝘢𝘯𝘺, is the most renowned producer of 𝘊𝘩𝘪𝘯𝘢’𝘴 𝘯𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘥𝘳𝘪𝘯𝘬, 𝘉𝘢𝘪𝘫𝘪𝘶. For over a decade, it has been the global booze sensation, as a bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now amounts to $400 and cranks out EBITDA margins of 68%, twice that of global rivals such as Diageo(stats as per 2020)

So, what's the secret behind Kweichow Moutai's success!, simply it knows its limitations and would prefer to stick to them, that’s it. It does this disregarding every other western marketing mantra. Adding to this it isn’t global, has meager digital sales and does not appeal to millennials, and lastly scores very poorly on ESG(environmental, social, and governance) scale.

In finding the basis, I discovered;
1. The Benefits hugely are from Chinese nationalism, as it's also called the "National Liquor"
2. It serves only China's super-rich rather than its middle class and the country’s premium market is massive as a 73million, which is bigger than the population of France and for Chinese Moutai is what vintage champagne is to the rest of the world.
3. It looks beyond affluent millennials and digital natives, as it focuses only on the elderly and the middle-aged, is more than lucrative and mid-30s are its most significant market focus as of now, grooming its brand to be future middle-aged.

Rather than the secret recipe and formula, it believes in what it is doing and remains consistent in adapting to its future only by strengthening the limitations of its practices. Try to List your limitations, your growth strengthens more than ever.

This post is part of 𝒁𝒆𝒓𝒐𝑪𝒐𝒅𝒆(https://www.zeroco.de/) - Side Effects & Survival Series, we are open for collaborations do reach out if you have any interesting thoughts.