China is a big market with a very large market size, in these markets Wahaha take up a part of market share. And the market has been segmented by towns. Also the people buy Wahaha products not only the price, but also because of Wahaha is a China brand.
Moreover, the strategies Wahaha use is start from the small towns, schools, although the price won't be expensive, but there are a lot of people buy their product. It makes Coca cola and Pepsi which are Wahaha's biggest threat at drinks market, doesn't take the biggest part of the market share. Also, I don't think Wahaha's sale will affected by business cycles or seasons.
Wahaha mainly targeted small towns, democratic market at the early stage. But now, Wahaha have different line not only drinks, but also Children clothing. It show Wahaha is going to expend their industry to cross-industry business. Which also mean Wahaha's target consumers change to rich people, because children grown fast. And people have kept buying, because their sizes keep changing. Normal people in China might not afford the cost, it's kind of luxury product in China. Furthermore, Wahaha have a good brand image and quality, people trust in. Although, Wahaha have a big success in home market, but city like Hong Kong might doesn’t really like buying china's local brand product. Because Hong Kong people doesn't really trust the quality and the name of China. Causes there are a lot of negative news of china's production quality, like fake food, etc.
The biggest competitions in drinks industry are Coca cola and Pepsi. These are world know brand, this is their strength. Also, they have huge funds, good reputation, and different kind’s drinks. But, Coca Cola and Pepsi are Global Brand; China is not their home country. If they enter this market, they have to rebuild their name and image in China.