It is not easy for the beverage alliance to expand overseas in the past few years. If it is not for the support of those supermarkets, they will not be able to expand overseas.
Also, their overseas sales are being suppressed by the local beverage brands and the world's top beverage companies.
It is like Wahaha, Jianlibao, and the rest of the world's top beverage companies in Hua Xia, Hua Xia, Jianlibao, and the rest of the world's top beverage companies are also trying to suppress Hua Xia.
Carbonated drinks, fruit drinks, dairy drinks, and tea drinks are the main categories of beverages. Of course, coffee drinks are the main category in Europe and the US, and tea drinks are not as popular.
All the companies in the same industry want to protect their own market share and invade other competitors' markets to increase their market share and make more money.
When you are expanding in other companies' markets, other companies are also expanding in your market. But no matter what, all the companies will choose to protect their current market before expanding, and not focus on snatching other companies' markets.
In the Hua Xia market, there are many beverage brands, and all of them have their own products.
The Taiwanese companies and Jianlibao Group, which had been competing with Wahaha in the past, had formed an alliance.
Their strategy of encircling the cities from the rural areas did not achieve good results. On the other hand, Wahaha's strategy of expanding from the cities to the rural areas is going well.
The spending power in the countryside was weak, and it was difficult to get transportation and storage. The only advantage was that the advertising fees were low, and they could do those kinds of wall advertisements.
But a city includes the surrounding rural areas, and the population in the city is much higher than the rural areas. Although the advertising fees are higher, the sales volume is also much higher than the rural areas.
As the number of factories in Wahaha increases, their production capacity increases rapidly, and their products can be exported from the cities to the rural areas. Also, the income of the rural areas had increased, and the transportation is better. Many households have televisions, and they can watch TV advertisements.
Also, Jianlibao's brand advantage is deeply rooted in the hearts of the people, and even kids in Wahaha know about it. Although the Jianlibao Group and the two Taiwanese companies are not facing difficulties, their development is at a bottleneck.
Although they are not making losses, they are not making profits. With such a big business, there is not much profit after taxes, and the entire group's profit margin is lowered.
Some of the executives felt that this business was meaningless and that they were actually losing money. Investing 100 million USD, and the annual profit was only a few million RMB. Even if they saved the money in the bank, it would be more than this amount. Including inflation and the depreciation of USD, they would still be losing money.
They had to think of other ways to introduce new products or cooperate with other companies to increase their competitiveness. At this time, they found a third beverage company that they can form an alliance with. That is France's Almighty Group, a top European beverage giant.
Dairy products, energy drinks, etc. are not bad, and there is no conflict with the two Taiwanese companies' products. Moreover, Almighty Group had already acquired Le Bai Shi and had a certain level of influence in the Hua Xia market. Their sales channels were also better than them.
The sales of the tea beverages under Le Bai Group were very poor. They were not even as good as Kang Shifu and Tong Tong. As for the tea beverages launched by the two Le Group in Hua Xia, they were directly cut in half. They could not sell at all.
It will be a challenge for the beverage alliance to work together with these beverage companies. But Zong Qingxian and the rest are not anxious. This is because they still have a trump card, Tai Hua Supermarket Corporation.
If they cannot compete with them, they will ask Tai Hua Supermarket Corporation to remove these beverages from the shelves. This will cut off one of their retail channels.
Furthermore, Zong Qingxian and the rest do not think that they will lose. They know the preferences of the Chinese and have a deep impression of them. As long as there are no problems with the quality, they will not lose.
On the other hand, Kang Shifu and the rest had problems with the quality of their beverages. This incident was reported by the media, and it left a bad impression.
Actually, Wahaha alone can suppress these few foreign companies. Furthermore, they have Jianlibao and the entire beverage alliance. It is too easy to suppress them.
Also, after Tata Group started to cooperate with Taihua Holdings, the beverage alliance started to cooperate with Tata Global Beverages on multiple channels. For example, the sales channels, transportation channels, raw materials purchasing channels, etc., increased their profits.
When Tata Global Beverages was working with Wahaha, they had pointed out their shortcomings. For example, their beverage alliance does not have alcoholic beverages.
Alcoholic beverages were also one of the most important types of beverages. The products with the highest selling prices and profits were all from this category. For example, a bottle of grape wine can cost more than 10 RMB to more than 100,000 RMB. But the cost difference between expensive and cheap grape wine is not that big.
The more expensive the beverage, the higher the profits.
Tata Global Beverages is not only the world's top tea beverages. It is also one of the world's top fruit drinks and alcoholic beverages.
Not only are they doing well in India and Europe, but they are also doing well in the US.
So, Zong Qingxian accepted this suggestion and brought Beidacang Group's alcoholic beverages into the beverage alliance. For example, Bing City Beer, Beidacang Baijiu, etc.
But Hua Xia's Baijiu has its own organization, and it is impossible for them to merge with the alliance. Those Baijiu companies have high profits, and if they want to join the alliance, they must be the leader. But Zong Qingxian will not agree to this. Their overseas sales channels are in Tata Global Beverages' hands.
There are many beverage companies in China, and there are more of them than the Western countries. Just one dairy products company has so many competitors. There are state-owned enterprises, private companies, joint ventures, and foreign companies. The market is very competitive.
Feng Yu does not care about these companies. He only told Zong Qingxian that food safety is his top priority, and quality is the most important.
If there are any problems with the quality, it is better to dump all the products than to sell them secretly. Brands are hard to manage, and they will not be able to withstand negative news. The losses will be too high.
In Feng Yu's previous life, Hua Xia's dairy products had quality problems, and it had a huge impact. All the dairy companies suffered losses, and no one dares to drink milk anymore.
Hua Xia's Olympic Games is coming, and this is an opportunity for Hua Xia's companies. After all, the Olympic Games is the focus of the whole world.
This year, all the companies had increased their advertising fees by a lot. They want to make use of the Olympic Games to increase their brand awareness internationally.
Zong Qingxian values Wahaha the most. It is not because Feng Yu is the founder of Wahaha. It's because Wahaha's Refreshing series of carbonated beverages are very popular overseas, and their sales are not inferior to Jianlibao.
Many people only know about Pepsi and Coca-Cola, and Feng Yu wants them to know about Refreshing Cola in the future!
This is the best time to expand!
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