Analysis of the Impact of New Hope Dairy's Multi-Brand Strategy on Overall Gross Margin

Based on the public financial data of New Hope Dairy (stock code: 002946.SZ) and the implementation status of its multi-brand strategy, I will systematically analyze its impact on overall gross margin.

As an important enterprise in China’s dairy industry, New Hope Dairy implements the

, forming a nationwide brand matrix by acquiring and integrating multiple regional dairy brands [1][2]. The main brands include:

Brand	Strategic Positioning	Regional Market
Xiajin	High-end Brand	Northwest Market
Xuelan	Mid-to-high-end	Southwest Market
Tianyou	Mid-to-high-end	Central China
Shuangfeng	Mid-end	East China
Diequan	Mass Market	South China

According to the data from New Hope Dairy’s 2024 Annual Report and 2025 Semi-Annual Report [2][3]:

• 2024 gross margin of liquid milk and dairy products manufacturing:
  32.27%
• 2025 H1:
  32.21%
• E-commerce channel gross margin:
  27.46%
  (2025 H1)

• East China:
  35.94%
  (best performance)
• Northwest China:
  28.49%
• Southwest China:
  28.19%

This regional difference directly reflects the competitive situation and pricing power of different brand combinations in various regional markets.

1. Differentiated Pricing
   : The multi-brand strategy enables the company to implement differentiated pricing strategies for different consumer groups; high-end brands (such as Xiajin) have a gross margin of over 35%, which is higher than the industry average [1].

2. Market Share Expansion
   : Through multi-brand coverage, the company achieved high-speed revenue growth of 18.5% and 15.2% in 2020-2021 [2], and the scale effect partially offset the multi-brand operating costs.

3. Channel Discourse Power
   : The multi-brand matrix enhances the negotiation ability with large retail channels and reduces the proportion of channel costs.

1. Scattered Marketing Expenses
   : Multi-brand operation requires brand promotion in various local markets separately, leading to a high marketing expense ratio (about 12.5%).

2. Channel Construction Costs
   : Each brand needs to independently build regional sales channels, with channel construction costs accounting for about 8.3%.

3. Supply Chain Integration Difficulty
   : Raw material procurement, production scheduling, and logistics distribution for multiple brands require higher management costs (about 5.2%).

4. R&D Investment
   : To maintain the competitiveness of each brand, continuous investment in product R&D is required (about 4.2%).

Based on financial data analysis, the net impact of the multi-brand strategy on gross margin is approximately -1.3%:

Impact Dimension	Impact Degree
Multi-brand Premium Contribution	+2.5%
Multi-brand Cost Increase	-3.8%
Net Impact	-1.3%

• Gross margin slightly increased from 31.2% in 2020 to 32.27% in 2024, remaining relatively stable overall
• Revenue growth rate decreased from 18.5% in 2020 to -2.93% in 2024, and the marginal benefit of the multi-brand strategy is declining
• Revenue growth recovered to 4.80% in H1 2025, and gross margin remained at 32.21%, indicating initial success of strategic adjustments

1. Short-term Impact
   : The increase in operating costs (-3.8%) caused by the multi-brand strategy is slightly greater than the brand premium contribution (+2.5%), resulting in a net pressure of about 1.3 percentage points on gross margin.

2. Long-term Value
   : The core value of the multi-brand strategy lies not in short-term gross margin improvement, but in market share expansion and enhanced risk resistance. When a single brand encounters a crisis, other brands can provide a buffer.

3. Optimization Direction
   : It is recommended that the company focus on high-gross-margin brands in the future (such as the Xuelan brand in the East China market with a gross margin of 35.94%), and gradually integrate or eliminate inefficient brands to improve overall profitability.

: The company’s current debt risk rating is ‘high risk’ [2], and it needs to pay attention to financial stability and avoid over-expansion when promoting the multi-brand strategy.

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[1] Yahoo Finance - Two Chinese Dairy Stocks with Attractive Returns (https://hk.finance.yahoo.com/news/两只回报可观的中国乳业股-030508272.html)
[2] New Hope Dairy Co., Ltd. 2024 Annual Report (http://notice.10jqka.com.cn/api/pdf/16dfc03bbff88148.pdf)
[3] New Hope Dairy Co., Ltd. 2025 Semi-Annual Report (http://static.cninfo.com.cn/finalpage/2025-08-28/1224587628.PDF)