Rebirth 1981 starts with saving the sisters from the neighboring village.

Chapter 638 [The War Between Domestic Products Begins]

On May 5st, mainland China officially announced a two-day weekend system.

You should know that the system of big and small worship was changed only on March 94, 3.

Only a year later, in order to join the WTO and keep pace with the international community, the country announced the implementation of a 5-day 8-hour workday and a two-day weekend.

After seeing this news, Peng Wanhua couldn't help but shook his head.

He knew that even after another 30 years, the system would still not be fully implemented.

996 is a blessing.

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This summer is a bit hot, but what’s even hotter is the war between domestic products!

In the past, thanks to policy protection, domestic beverages were able to survive in a safe corner and live a comfortable life.

However, with the acceleration of the process of joining the WTO, the beverage market has been liberalized.

The two major international colas have entered the domestic market in a big way.

Many cola manufacturers, represented by Fenhuang Cola and Feichang Cola, were immediately hit.

In order to maintain market share, we had to launch a counterattack.

Thus began a massive battle to defend domestic cola.

First it was Fenhuang Cola and Feichang Cola, and later Bingfeng and Xuri Sheng joined the battle, and the price war became fierce!

This battle even affected Peng Wanhua.

The person in charge of the beverage sector under his company is Li Jingwei. Li Jingwei owns Tianfu Cola and was forced to participate in this national cola counterattack.

In addition to Coca-Cola, the war between domestic products has also spread to the home appliance field.

The competition in the television industry is the most intense in the home appliance field.

For a long time, mid-to-high-end televisions have been occupied by foreign countries. With the introduction of more advanced production technologies into China, the country has gradually gained strong capital.

Among them, Changhong, TCL, Haier and Panda launched a price war to fight against the attack of foreign color TVs by relying on lower production costs and advanced production lines.

This also affected Peng Wanhua.

The person in charge of home appliances in his division is Li Wei from Wanwei Group.

To be precise, it is Wanwei Electric, a subsidiary of Wanwei Group.

To be more precise, they are two subsidiaries controlled by Wanwei Electric, namely Huawei Electric and Wanniu Electric.

On that day, Li Jingwei and Li Wei jointly found Peng Wanhua and reported to him the latest domestic battle report.

Li Jingwei said: "From a national perspective, Coca-Cola and Pepsi currently occupy 45% of the market share, our Tianfu Cola occupies 25% of the market share, and other colas occupy 30%."

"In fact, the current cola market is not that big. We occupy 25% of the market, with revenue of only 30 billion, and the total market is only billion."

"Our Jianlibao's global revenue exceeded US$195 billion last year, and it will be no problem to exceed US$200 billion this year. This revenue is currently lower than Pepsi's US$280 billion, but has exceeded Coca-Cola's US$150 billion."

"In addition to Jianlibao, Red Bull's revenue last year reached 25 billion US dollars. Adding the two together, our overall revenue in functional beverages reached 220 billion US dollars, accounting for 70% of the global market!"

"According to our estimates, cola will face fierce competition in the future, with a compound annual growth rate of about 6%. As for functional beverages, the market potential is still huge, with a compound annual growth rate of more than 10%!"

"So, you mean that you won't participate in this cola price war?" Peng Wanhua asked.

Li Jingwei: "Yes, in my opinion, this cola price war is not a good thing for us."

The most direct way to participate in the cola wars is to cut prices.

But Li Jingwei felt there was no need to follow the trend.

Fanta and Fenhuang Cola are lowering their prices in order to grab the national market share.

If Li Jingwei follows this approach, it can only be said to be a passive response, with no good effect at all.

“According to our research, cutting prices to grab market share will do nothing to shake the position of Coca-Cola and PepsiCo.

These two companies have long been well-known in the domestic market, and they have strong financial support from international groups, so they are not afraid of price wars at all.”

“To put it bluntly, if the price cuts last longer, the domestic cola manufacturers may be the first to collapse.

If things didn't go wrong, some domestic manufacturers could still survive.

If we make trouble now and lose all our cash, we will be in big trouble later.”

"Yeah, that makes sense." Peng Wanhua nodded.

He recalled the domestic cola war started by Fanta Cola in his previous life. As a result, after a lot of trouble, brands like Fenhuang and Bingfeng were all wiped out.

Fanta is now in name only, while Coca-Cola and Pepsi have further increased their market share.

"Of course, we do have enough cash flow, but that doesn't mean we have to participate in a price war. This approach will only hurt both sides and will not be able to kill the two international cola giants," Li Jingwei analyzed calmly.

"So, what are your plans?"

Li Jingwei: "First, I plan to integrate internal and external dealer resources and combine third-party dealers into a sales alliance. This alliance is exclusive and can only sell our products or products within our alliance.

Second, I plan to integrate internal logistics, outlets, and retail information, and through comprehensive information technology transformation, determine production based on sales, optimize our production methods, and improve the efficiency of production and supply chain services.

Third, develop new products and seize emerging markets.”

As soon as he said it, Peng Wanhua understood.

Sales, production, supply chain, R&D, all-round changes to consolidate and enhance our own strength.

Well, if the price war is a temporary market grab.

Improving one's own hard power is for long-term operation.

If the cola war is a martial arts competition, then the price war is just learning some moves. What will truly determine the future victory or defeat will still depend on internal strength.

This strategy is indeed in line with Li Jingwei's personality traits.

Li Jingwei continued: "The key point is the third point. After all, the domestic cola market is so small. Instead of struggling in it, it is better to find another way."

"Two years ago, we launched a milk drink that tastes refreshing. Compared with cola, which has little nutrition, our milk drink contains whole milk powder and various trace vitamins.

You can also add different concentrated fruit juices to make a variety of fruit-flavored milk drinks. From the perspective of nutrition, health and publicity, there is a lot to be done.”

"According to statistics, the revenue of this dairy product was only 5 million yuan the year before last, but it soared to 15 billion yuan last year! If it continues to grow at this rate, it will probably reach 200 billion yuan in revenue in less than two or three years!

At present, the dairy beverage market is larger than that of cola, and this is what we should focus on at present.”

"In addition to milk drinks, we have also launched tea drinks targeting urban white-collar and blue-collar workers in recent years. They are subdivided into green tea, black tea, oolong tea, milk tea, etc., which help lower blood pressure and cholesterol.

There is also fruit juice, which is our second main nutritious drink because it contains a lot of vitamins and minerals. It is divided into many different flavors and focuses on naturalness and health.

Coffee drinks have a unique taste and a refreshing effect. There are also coconut water, soda water, lemonade and other "niche" products with great potential in the future.

Including tea, juice, coffee, coconut water, etc., our overall revenue has reached 35 billion!"


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