Oligopoly, blowout, breakout, Chinese beverage ups and downs for 40 years
Whether dwind can be on the “big stage” of the Lunar New Year’s Eve dinner has become the most intuitive way to verify the popularity of beverage brands.This Spring Festival, sparkling water, milk tea and other youthful new drinks have made their debut, while the old Sprite cola carbonated soda and juice are still the classic choices for most consumers.Zong Qinghou, founder of Wahaha, once said: the beverage industry is outdated and always a sunrise industry.According to the forecast of CICC, the annual compound growth rate of Soft drink market in China will maintain 5.94% from 2019 to 2024, and the total market size is expected to reach 1.3 trillion yuan in 2024.Hundreds of billions of levels to trillions of levels, the huge market is destined to attract more participants, and the war will be a winner.Over the past year, the beverage industry has witnessed a polarizing scene of “different lives in the same industry”.Huiyuan Juice, once a household name, declared bankruptcy and restructuring, with accumulated debts exceeding 11.4 billion yuan. The status quo of the 30-year-old brand is in a state of regret.”Dark horse” Yuanqi Forest, by virtue of fizzy water, milk tea and other zero-calorie sugar concept drinks, “beat” out of the close circle and won the first place in the beverage category on many E-COMMERCE platforms.Some are dying, some are rising, and some are enduring. The silent war has been going on.Now, catch up with the succession of enterprises, Chinese beverage enterprises will happen what new variables.On Zhihu, someone asked a question: Why hasn’t the price of Coke increased for so many years?This is jointly decided by the duopoly situation, in order to prevent the possibility of the rise of minority brands, take the route of small profits and quick sales.And those two big oligarchs are “old friends” Coca-Cola and Pepsi.In 1978, Coca-Cola re-entered China after a lapse of nearly 30 years, and began to stir up the domestic beverage market pattern.Old rival Pepsi followed suit, opening its first bottling plant in Shenzhen in 1981.At that time, the domestic carbonated beverage brands to the Arctic Ocean, Shanhaiguan, Zhengguanghe, Asia, Bawangsi, Tianfu Cola, Laoshan Cola, Shaolin Cola these eight soda accounted for the majority of the local.In 1983, these eight soda mills accounted for 42 percent of the country’s sales.As Coca-Cola begins to pop up in major cities, another kind of Oriental magic water is in the making.Li Jingwei, director of a winery in Guangzhou Sanshui County, was inspired by Coca Cola, and when China was in the health care boom, he thought of making a functional drink specially prepared for sports people, and Jianlibao was born at this point.Through the 1984 Olympic Games, Jianlibao first appeared on the international stage, because of the year with women’s volleyball 3 coherent light, its flagship fitness function in the heart of consumers.A year later, Jianlibao’s sales directly quadrupled more than two years will reach 130 million yuan, the bottle of “Oriental magic water” development process as the name of the general magic.And jianlibao is different, local soda factory is facing a completely different situation, in addition to shaolin Coke seven male none escape by “two le” encirclement.The first is the Arctic Ocean soda, due to the early lack of experience in commercial cooperation, Pepsi placed a side.In the 15-year cooperation agreement between the two sides, Arctic Ocean lacks the right to speak in the joint venture as its investment proportion is lower than that of Pepsi.Arctic Ocean is only allowed to produce pure water. The rest of the production line is devoted to Pepsi’s 7Up and Mirinda.”Liangle” did the same with the use of joint ventures to suppress the seven male, one by one, domestic soda was stored one by one, in the 1990s, these local soda factories to facilitate the Chinese market gradually faded.Carbonated soda market two giant pressure, Jianlibao but in which like a duck to water, which also provides a new idea for domestic drinks.If you can’t make soda, let’s find another way to make another beverage.A variety of drinks represented by Wahaha, Nongfu Spring, Huiyuan and Uni-President began to appear on the market, while functional drinks, tea drinks, fruit juices and other subdivisions gradually increased. The days when soda dominated the beverage market have passed.In jianlibao’s heyday of the decade, even Coca-Cola is difficult to match.In 1987, the two for the sixth National Games designated drinks title in the process, Jianlibao to 2.5 million to win the opening price without suspense.With the rising of the light of national beverage Jianlibao, the domestic beverage market has also entered the stage of flowering.Especially to the real economy as the root of zhejiang business, Wahaha, Nongfu spring is the best example.In 1987, Zong Qinghou took a loan of 140,000 yuan and decided to establish Hangzhou Wahaha nutritional food Factory. The oral liquid sold early made Zong Qinghou get his first bucket of gold.After abandoning health care to be tasted, zong Qing hind sights toward food, drink again, rebuke day price 80 million yuan buys Hangzhou canning factory, research and development gave the first batch of fruit milk and eight treasure porridge.During this period, Zong qinghou began to explore a new sales model “co-marketing”, which not only guaranteed cash flow but also reduced sales costs to a certain extent.Wahaha entered the bottled water market in 1996.Zhong from Wahaha found that his entrepreneurial track is similar to Zong Qinghou’s in that they both changed from health care products to beverage market.Zhong, who earns 10 million yuan a year from Gubi Pill in the same year, decided to switch to selling water in the future after the policy adjustment.In 1996, Nongfu Spring came into being.Huiyuan Juice, coconut coconut juice and other fruit and vegetable drinks were not the favorite drinks at that time, but the Rising Sun Iced tea from Hebei swept the middle of the 1990s.In 1993, Hebei Sunrise Group started with an investment of 30 million yuan and created a sales miracle of 3 billion yuan within 5 years, opening up a new track of beverage subdivision — tea beverage.Tingyi and Uni-President enterprises also launched iced tea series one after another, inviting various star singers to come to help, catching the pain point of young people chasing fashion trends.However, with the advent of the new millennium, the situation of Rising Sun and Jianlibao has drastically changed.The collapse of Rising Sun Group was caused by the double pressure of internal management system and external competition, while Jianlibao experienced a high-level reshuffle, poor management and other reasons, and gradually declined.On the contrary, “two le”, in the limelight by Jianlibao rob ten years, but in an orderly expansion of China’s beverage territory, to carry out a diversified brand strategy.Coca-Cola’s cola, Sprite, Smart, LAN Feng, Sunshine, covering soda, tea drinks, fruit juice, etc.;Pepsi also has four flagship products – Cola, 7Up, Mirinda and Mountain Dew – for each segment of the track.Some data show that in 1999, the share of Coca Cola and Pepsi in Guangzhou market was 30.4% and 20.78% respectively, and the two combined more than half of the share, the duopoly situation is still difficult to shake.It was only in the 21st century that local beverage brands really saw a boom.The traditional tea drink, Guangzhou-style herbal tea, was packed into an easy-pull can and crowned with the efficacy of clearing away heat and dissipating fire. The saying “Drink Wang Laoji for fear of getting hot” made herbal tea drink crowded into the table of ordinary people.In 2003, the annual sales of red cans of Wong Lo Kat increased by nearly 400%, only one year later, they exceeded 1 billion yuan.In 2008, Wong Lo Kat replaced Coca-Cola as China’s first can.On September 3, Coca-Cola announced that it would buy Huiyuan juice for HK $17.92 billion.As soon as the news came out, the public preferred to terminate the acquisition of the majority of the voice, lest repeat the situation of seven male suppression, so in a burst of public criticism under the acquisition ended in failure.Although “Double Le” is firmly in the leading position, the whole Chinese consumer beverage market is still in a period of rapid growth, which will naturally flood into players of various segments of the track, and the status quo of competing with each other has become normal.In December last year, the media noticed that Coca-Cola’s market value exceeded 250 billion DOLLARS. After the epidemic, its stock price even hit new highs, and now its market value has already exceeded 260 billion dollars.So centuries-old Coca-Cola, is it really safe?The emergence of yuanqi Forest, like catfish to stimulate the whole carbonated beverage market, so that “two le” has a new sense of crisis.Sugar-free sparkling water with 0 sugar, 0 fat and 0 calories is a clever poke at the current generation Z’s need for a balance between healthy eating and good drinking.Under the old impression, good drinking and healthy can not coexist.In addition, “bubble water” more than a word named, to a certain extent to give the new concept of carbonated drinks.’There’s no shortage of consumers in China,’ says Andrea Tang, founder of the Andrea Tang generation. ‘What we lack is good products.’By means of marketing and precise positioning of products, sugar-free drinks represented by Yuanqi Forest began to occupy the minds of consumers.Within two years of its establishment, Yuanqi Forest’s sales have exceeded 1 billion yuan, and in 2020, its revenue will reach 2.7 billion yuan, an increase of 309%.The development speed of the upstart really envy a number of beverage brands, so all kinds of sugar-free, sugar drinks appear on the shelves of major business.It can be said that the emergence of Yuanqi Forest, a dark horse, took “Two le” by surprise and abruptly promoted the process of non-saccharification of domestic carbonated drinks, which also caused the relationship between the two in a tight state.According to insiders, as of Last June, the forest lost 1 billion yuan due to the shortage of erythematol.And even more, the OEM directly called Genqi Forest, saying that because of the pressure, “the factory producing Genqi Forest must shut down by 12 o ‘clock tonight.”Media reports, this is an international beverage giant boss personally called, requiring the other side to inform its subcontractors immediately terminate the cooperation with Vitality Forest.In 2019, after several last-minute reversals, Andrea Andrea sent a message to her executive suite: “We’re going to build our own factories.”Subsequently, The first self-use factory of Yuanqi Forest was completed in Chuzhou, Anhui province, and its own factories were built in Guangdong, Tianjin, Hubei and Sichuan provinces.Freed from the constraints of the production process, Genki Forest is better positioned to make its way into China’s beverage scene.New consumer brands are coming, and some traditional local brands are facing a succession problem at the helm.Zong Fuli from the hands of his father took wahaha, can continue to write once selling water myth is unknown;The 68-year-old Has maintained a hands-on role and has given no indication of a successor.Under the impact of new consumer brands, it is also a big problem for these traditional beverage brands to get out of the strange circle of relying on the leader and keep pace with The Times.This Spring Festival, Wahaha’s Super Cola returned to the big screen with a new look, appearing on the gala.”Resurrection” is very cola, combined with the popular diet carbonated drinks, reinvented into the packaging of the national tide wind.Wahaha’s goal is obvious: to adapt its brand strategy to cater to the trend of young people.This is also a bold attempt for the younger generation of old enterprises.What can be preserved must be in tune with The Times.During the 40 years of ups and downs of Chinese beverage, from the early crushing situation of “Liangle”, to the later blooming period of a hundred flowers, and now the industry situation of “one super many strong”.Old brands are trying to revive, new brands are reforming and innovating, and those brands that have been eliminated and cannot keep pace with The Times are bound to be forgotten in the current of history.