"Guangzheng, thank you for your hard work. I didn't expect the European market to be opened." Feng Yu and Fu Guangzheng celebrated with cigars between their fingers and champagne in their hands.
Whether in Europe or America, the sales of all Chinese beverages are entrusted to a company, a company called Beverage Alliance (BML). Of course, the owner of this company is Feng Yu.
This company is not a company focused on profit, but a company that aims to help promote the Huaxia Beverage brand to Europe and the United States, so Feng Yu did not let Fu Guangzheng take a stake.
But Feng Yu has acquired five canning factories in the United States and Canada, and Fu Guangzheng has also acquired several bottling factories in Europe. He is also optimistic that those beverages can gain a foothold in Europe.
If dairy beverages can also gain a foothold in Europe and the United States, they will continue to acquire manufacturers that produce dairy products.
"Hard work is secondary, but whether those Chinese beverage manufacturers can survive, they will definitely lose money at least this year, and they may even lose money next year." Fu Guangzheng reminded.
Market development has cost a lot. Not only the advertising costs, but also the costs of entering those supermarkets, high transportation and warehousing costs, promotion costs, etc.
When new products enter the market, there is always a price to pay. And this kind of dedication may not necessarily be rewarded. As powerful as Coca-Cola, didn’t all the tea drinks promoted in China in previous lives fail? It spent a lot of money on advertising and had Coca-Cola's strong sales channels. It was still no match for tea beverage companies such as Kangshuaifu and Tongtong, so it had to admit defeat.
"My BML company doesn't make money from them at all. I'm kind enough. If they still don't want to insist, then I won't force it. At least the promotion effect of Jianlibao, Qili and tea drinks is pretty good. Just these alone If the brand can be run, all our efforts will be worth it.”
Loose alliances are prone to problems. Even though those companies are taking advantage, they still feel like they are at a disadvantage.
"The fault is that you don't make money. The less you make money, the more they will push for it. They don't care what you think. After all, you are a shareholder of Lehaha and Jianlibao. You said you want to promote Huaxia Beverage brands, they think you are using their brands to enhance the competitiveness of Lehaha and Jianlibao. Otherwise, why can't they have electrical appliances or cars during this big promotion with prizes?" Fu Guangzheng shook his head and said.
"The electrical appliances and cars were all personally sponsored by me, and they didn't cost anyone any money. It's up to me who I want to sponsor. I have nothing to do with them, so why should I pay so much for them?"
Feng Yu finally knows what it means to win a favor and fight for a favor. Although there is indeed the intention to enhance competitiveness through those brands, those brands have obviously benefited more.
However, those companies did not attach great importance to the development of European and American markets. They originally thought that they could make money by selling products. The more you sell, the more you earn.
But now, if you sell more, you will lose more. Although brand awareness is increasing, what's the use if it doesn't make money!
This short-sighted vision made Feng Yu quite helpless. Fortunately, Zong Qingxian and Li Jingwei support Feng Yu. They clearly understand the importance of the market and brand.
It doesn't matter if they start losing money. They have all planned to lose money in one, two or even three years. As long as they gain a foothold in the European and American markets, they will be able to earn back the money sooner or later.
And their domestic profits are enough to ensure that there will be no problems with their capital chain. The most noisy people here are Kang Shuaifu and Tong Tong from Baodao. They believe that their tea drinks have not been better promoted. This is Feng Yu's intention. They are treated differently just because they are from Baodao. .
Discrimination? If they were not treated differently, would Tongtong and Kangshuaifu be included in the list of the major beverage alliance based on the scale of their beverage business at this time
You are indeed very successful in making instant noodles, and at the same time, you are still the largest instant noodle company in the world. However, in terms of beverages, neither company is doing well, and Kang Shuaifu is new to the industry.
At this time, the two companies only have tea drinks, and the products they make are no better than Lehaha, Lebaishi, and Jianlibao. They don’t spend much money at all. It’s good to promote them in supermarkets, but they still want newspaper promotion? I asked you to get a promotion for another bottle, why don’t you do it
According to the wishes of these two companies, they do not do this type of promotion, and neither do companies such as Lehaha and Lebaishi, otherwise it will become a fight between their own people and their own people.
At this time, the two companies increased their production capacity and began to seize the domestic market. They unanimously adopted the strategy of surrounding the city from the countryside, selling their products to towns and counties first, and not caring about the city at all. The price is, of course, 50 cents cheaper than tea drinks from Lehaha and Lebaishi. If you sell it for two yuan, we will sell it for one yuan and a half!
Of course, Feng Yu can't control such sales methods. It's actually a good thing for everyone to raise the bar. But the problem is that when the United States wants goods, the two companies actually reduce their shipments!
Their reason is also very simple. Don't they want to supply European supermarkets? Our domestic sales have also suddenly increased. Our production capacity cannot keep up for a while, but we guarantee that it will be restored next month.
The United States doesn't make money. Although the price in the Chinese market is low, there are still profits without transportation costs, warehousing costs, etc. In particular, the prices of their products in the United States are lower than those of Lehaha and Lebaishi.
One is making money, and the other is not making money. If you are not stupid, you know how to choose, right? What's more, they also dominate the European and American markets. At least they are sold in chain supermarkets, and their sales have increased significantly.
They want to wait until the US market can achieve this kind of sales without advertising fees, then they will make a profit.
It would be even better if sales could increase again.
Now their method is to drag it out. Continue to maintain brand exposure, then refuse to continue to pay advertising fees, and reduce product supply to reduce losses and continue to expand visibility.
Next to the hot products, their brand awareness will definitely increase.
As for the terms in the agreement that they would voluntarily withdraw from the European and American markets if they could not meet supply requirements, they did not abide by them at all. They supplied less and relied on their position to not withdraw.
This rogue behavior made Feng Yu quite angry, and it seemed that he had to give some warnings to these two companies. There are many types of tea drinks, and they are as good as yours. Since you are unwilling to abide by the agreement, don't blame me for cracking down on your tea drinks in China!
Feng Yu called and discussed with Zong Qingxian and Li Jingwei, asking them to give the two companies a final ultimatum. Otherwise, we must abide by the agreement. When the goods are shipped here, they must be shipped quickly. Otherwise, it will completely withdraw from the European and American markets and pay liquidated damages.
But before Feng Yu and the others could sanction these two companies, they discovered that Liangle Company was taking action.
(End of chapter)