It has been quite difficult for the beverage alliance to expand overseas in recent years. If it were not for the support of the retail channels of those supermarkets, it would not be possible to promote it.
Moreover, overseas sales are also suppressed by local beverage brands and the world's top beverage companies.
Just like Lehaha, Jianjianbao, etc. suppressed Liangle Group in China, Liangle Group and other world-leading beverage groups have also been suppressing Huaxia, a major beverage alliance.
Carbonated drinks, fruit drinks, dairy products and tea drinks are the main categories of drinks. Of course, in Europe and the United States, coffee drinks are the main drink, and tea is slightly weaker over there.
All peers want to maintain their own market while invading other competitors' markets, expanding their share and making more money.
When you are expanding aggressively in other people's markets, others are also expanding aggressively in your market. But no matter what, every company will choose to maintain the existing market before expanding outwards, rather than focusing solely on whether it can capture other people's markets.
In the Chinese market, multiple beverage brands coexist, each with its own flagship product.
Baodao Enterprise and Liangle Group, which originally competed with Lehaha and others, have now completely united.
Their strategy of encircling cities from rural areas failed to achieve very good results. On the contrary, Lehaha and other strategies of developing from cities to rural areas have gone very well.
The consumption power in rural areas is inherently weak, and transportation and warehousing are not easy to do. The only advantage may be that advertising fees are low. Can they do wall-painting advertisements
However, a city includes surrounding rural areas. The population in the city is much larger than that in the rural areas, and the purchasing power is far higher than that in the rural areas. Although the advertising fees are higher, the sales volume is far higher than that.
As more and more factories such as Lehaha are established, production capacity has increased sharply, and the products are enough to be sold from cities to rural areas. In addition, income in rural areas has increased a lot in recent years, transportation has become better, and many families have TVs, so they can naturally see TV advertisements.
Coupled with the deeply rooted brand advantage of Jianjianbao, children in Lehaha also know that although the two companies of Liangle Group and Baodao are not struggling, it is obvious that their development has reached a bottleneck.
Although they didn't lose money on paper, they didn't make any money at all. With such a large stall, there is not much profit left after paying taxes every year, and even lowers the profit margin of the entire group.
Some executives thought the business was boring and they were actually losing money. With an investment of 100 million US dollars, the annual profit is only a few million RMB, and the deposits in the bank are much more than this. Taking into account inflation and the depreciation of the US dollar, they will lose money.
They either think of other ways to launch new products, or they find ways to cooperate with other companies to enhance their competitiveness. At this time, they found a third beverage company that they could form an alliance with, and that was the French Daneng Group, a top European beverage giant.
Dairy products, functional drinks, etc. are all good and do not conflict with the products of Liangle and Baodao. Moreover, Daneng Group has acquired Robust, which has a certain influence in the Chinese market and has better sales channels than them.
The sales of tea drinks under Robai's Group are very poor, not as good as those of Kang Shuaifu and Tongtong. As for the tea drinks launched by Liangle Group in China, they were directly cut in half and cannot be sold at all.
The cooperation of these beverage companies will also be a challenge to the major beverage alliances. But Zong Qingxian and the others are not in a hurry, because they still have a big killer - Taihua Supermarket Group.
If they really can't compete, then let Taihua Supermarket Group remove those drinks from the shelves, cutting off an important retail channel for them.
What's more, Zong Qingxian and the others never thought they could not compete. Not only did they understand the preferences of the Chinese people better, but they were also more deeply ingrained in the impressions of the Chinese people. As long as there were no quality problems, they would never lose.
On the contrary, Kang Shuaifu and others have had quality problems. After being reported by the media, the impact was very bad.
In fact, the Lehaha family can suppress these foreign-funded enterprises. Not to mention the addition of Jiejiebao Group and the entire beverage alliance, it would be too easy to suppress them.
And since the Tata Group began to cooperate with Taihua Holdings, the Beverage Alliance has cooperated with Tata Global Beverages on multiple channels. For example, sales channels, transportation channels, raw material procurement channels, etc. have made their profits higher.
When Tata Global Beverages cooperated with Lehaha and others, they also pointed out their shortcomings. For example, there are no alcoholic beverages in their beverage alliance.
Alcoholic beverages are also the most important type of beverages. The products with the highest sales prices and profits are from this category. For example, the price of a bottle of wine can range from a dozen RMB to hundreds of thousands RMB, but the cost difference between expensive and cheap wine is definitely not that big.
The more expensive it is, the higher the profit.
Tata Global Beverages is not only the world's top tea beverage company, but also the world's top company in fruit juice drinks and alcoholic beverages.
Not only is it very good in India and Europe, it is also very powerful in the Americas.
So Zong Qingxian, who accepted this suggestion, introduced Beidacang Group's alcoholic beverages into the major beverage alliance, such as Bingcheng Beer, Beidacang Liquor and so on.
However, Huaxia Liquor itself has its own organization, and it is simply impossible to merge them. The profits of those liquor companies are so high. If they want to join the alliance, they need a dominant position. It is impossible for Zong Qingxian to agree. The overseas sales channels are in our hands.
Domestic beverage companies are flourishing, much more than those in Europe and the United States. Just for one dairy company, there are so many. There are state-owned enterprises, private enterprises, joint ventures, and foreign-invested enterprises. The market competition is very fierce.
Feng Yu didn't care about these, but warned Zong Qingxian that food safety is the first priority, and quality is the top priority at all times.
If there is a problem with the quality, even if you throw it all away and admit the loss, it is better than selling it secretly. Brands are difficult to operate and cannot bear the blow of negative news. The loss will be too great.
In the previous life, there were quality problems with China's dairy products. What an impact it had. All dairy companies are suffering comprehensive losses, and no one dares to drink milk.
The Olympic Games in China are coming soon. This is an opportunity, a crucial opportunity for Chinese enterprises. After all, this is a sports event that the whole world is paying attention to.
This year, the advertising expenses of all enterprises have increased significantly. Taking advantage of the Olympic Games, many brands will once again increase their visibility in the international arena and become first-tier brands.
Especially Lehaha, Zong Qingxian attaches great importance to it. Not because Lehaha is the company he founded, but because Lehaha’s refreshing series of carbonated drinks are very popular overseas, and their product sales are even as good as Jianjibao.
Many people only know that there are Coca-Cola and Pepsi-Cola in the world, so in the future we need to let them know that there is also a refreshing Coke in the world!
The best time for business expansion has come!
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