How can the "domestic soda" crushed by Coca-Cola regain the main battlefield

The beverages of foreign brands occupy the memories of a generation, and the tastes of the next generation of children are being shaped by domestic and foreign brands.

Cola, Sprite, Iced Black Tea, Huiyuan Juice.

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In the memory of the post-95 generation, Coke Sprite was almost the beginning of everyone's understanding of beverages, but before them, my country actually experienced a glorious period of domestic beverages.

Remember what drinks you drank when you were a kid? Beijing Arctic Ocean, Guangzhou Asian Soda, Tianjin Shanhaiguan Soda, Chongqing Tianfu Cola, and Wuhan No.

2 Factory.
In the 1980s and 1990s, almost every major city in China had its own exclusive drinks.

Exclusive special sodas from all over the world

The fast-moving consumer industry has always produced rich people, and these established beverage companies were also one of the few commercial giants in my country at that time.

Taking the Arctic Ocean as an example, a half-and-a-half bottle of orange-flavored soda can make the Arctic Ocean Company's output value exceed 100 million in the early 1980s, and even appeared on the first spring evening in 1983; on the other hand, Laoshan Coke was not far behind In 1985, the national market share once reached 20%; Tianfu Coke was even sold overseas, all the way to the United States where Coke was originally produced.

How did such a grand occasion of dominance of the heroes disappear overnight?

The picture is delicious, Pepsi enters the game: the changing beverage market

The picture is delicious, Pepsi enters the game: the changing beverage market

The era when domestic beverages flourished, ended with the invasion of the market by the red and blue brothers of Kekou and Pepsi.

Two foreign brands that have invaded the domestic beverage market

In the mid-1990s, the introduction of foreign capital was the main theme of commercial development at that time.

Two local brands like Zhonghua Toothpaste and Nanfu Battery were successively acquired by Unilever of the United Kingdom and Geely of the United States or joint ventures or mergers and acquisitions.
Foreign brands such as Philips and Procter & Gamble also entered the Chinese market at the same time.

In the beverage track, the two multinational companies, Coca-Cola and Pepsi, have long been eyeing their eye, trying to "unify" the Chinese beverage market.

However, since China is so big, how easy is it to dominate? Not to mention, Beijing and Tianjin alone, even if they are so close, the sodas that children love to drink are still different, each station in the Arctic Ocean and Shanhaiguan.

Pepsi and Coca-Cola have to build distributors across the country from scratch, but they can’t afford this time.

Although the eldest brother has nothing, the eldest brother only has money.

The ready-made sales channels for domestic sodas are like capillaries in every corner of the city, which really makes the two cola greedy.

In 1994, PepsiCo invested in Tianfu Coke.

Pepsi provided brand and advertising support, drawing profits from each bottle of Coke in return.
Tianfu provided OEMs and agents, and obtained the opportunity to learn from top foreign companies.
This seems to be a win-win business, but there is a fundamental conflict-carbonated drinks taste the same, and not everyone can taste the difference between Pepsi and Pepsi.

Pepsi's investment in Tianfu Cola

For Tianfu and Pepsi at the time, the same track, the same category, and no differentiated new products were launched.

Even if there was nothing wrong at the beginning, competition afterwards was inevitable.

Pepsi, produced by Tianfu, competed with its own sodas.
Pepsi gradually stopped Tianfu’s advertising resources and allowed Tianfu’s market share to plummet.
In the first year of the joint venture, Tianfu-Cola’s sales accounted for 74%, fell to 51% in the second year, 20% in the third year, and only 2% in the tenth year.
In the end, Tianfu Coke was completely hidden in the snow, and Pepsi replaced it and appeared in the arms of every child in Chongqing-in current terms, this is called seizing the minds of users.

Changes in market share after Tianfu-Cola and PepsiCo’s joint venture

In a few years, the same thing happened one after another.
The "Two Music" companies have divided up 7 soda plants in the form of joint ventures.
Among them, Coca-Cola has invested in Shanhaiguan, Bawangsi and the second factory soda.
Soon, the overlord was replaced, and the production of domestic sodas was reduced or stopped, and once disappeared from the eyes of the people.

The strategic layout of the joint venture of "Two Music" companies

At the same time, the "Liang Le" company, which has successfully developed advanced marketing strategies around the world, has just begun to expand its territory in the Chinese market.

The packaging style is “eye-catching” with “killing matt”, “queer” with cute appearance, and the hit “fruit orange” that continues to this day.
The spokesperson is changed from Eason Chan to Wang Yibo.
Although the advertising styles are similar, but fruitful Licheng has been dominating for so many years by virtue of its advantages in channels and taste.

Eye-catching, queer, fruity orange

Ordinarily, orange juice is not difficult to make, but whether it is the farmer’s orchard of the richest man Zhong Suansui or the hot NFC juice in recent years, Minute Maid has not been able to beat Minute Maid.
Until now, Coca-Cola still relies on Minute Maid to occupy the largest share of my country's juice market.

Analysis of market share of Chinese juice companies in 2019

This wave of textbook-style commercial operations made the old soda plants that were about to be forgotten at that time stunned.
After all, I haven't experienced the baptism of a market economy.
This kind of frustration is very harmful and insulting.

Chinese and foreign beverages, cooperation is easy and difficult to break up

Chinese and foreign beverages, cooperation is easy and difficult to break up

The entanglement between local beverages and foreign companies continued until around 2010.
Although the tide of joint ventures is fierce, foreign companies have also encountered nails in China.

You may remember a drink called "Very Coke"-Very Coke was launched in 1998.
It was about the same scenery as the current Yuanqi Forest and made its debut under the name of "Light of National Products".
Playing the banner of "the Chinese's own cola" has an effect similar to "not being a Chinese.
"

In addition to the sentiment card, a very successful secret of Coke, there is a price war.
With the same capacity, the price of Very Coke is 5 cents cheaper than Coca-Cola-don't underestimate the 5 cents.
Coca-Cola sold 3 yuan a bottle 20 years ago, and it is still 3 yuan.
It's not that you don't want to increase prices, but you are afraid that once the price rises, the hegemony of the 3 yuan range will be immediately taken away by others.

Very Coke's pricing advantage over Coca-Cola

Very Cola also relies on this range of advantages, so sales in the rural market have soared.
At its peak, Very Coke had an annual sales of 2 billion yuan, ranking third in the Chinese market.
Behind it was Wahaha’s owner Zong Qinghou, and behind Zong Qinghou, there was actually the "boss" Danone of France.

This name may not be common, but you must have bought these products-Danone Biscuits, Robust, Pulse, Zhengguanghe Drinking Water, Huiyuan Juice.
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Since 1987, Danone has carried a wad of banknotes and frequented them.
Well-known food and beverage manufacturers in China put them under their own names.

Very "behind the force" of Coke

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Fortunately, the detours we have traveled are not in vain, and the learning ability has always been what Chinese people are best at.
After China's beverages broke away from the planned economy, it took 30 years to complete the 80-year history of beverage development in European and American countries.

With the revival of domestic products in the past two years, these old brands have been resurrected-Hankou No.
2 Factory, Arctic Ocean, Bingfeng, and Mochi Juice have all been made into explosive models with exponential growth, although the base number has long been not as good as it was in the past.

Behind the revival of domestic products is a change in the entire social stage, borrowing the concept of the famous Japanese best-selling author Miura Exhibition-the fourth consumer era.

China is gradually entering the fourth consumption era.
One of the biggest characteristics of this era is local consciousness.
If the third consumer era is full of comparison consumption, advocating foreign brands and dislike local brands, then people can now see more emotional connections between brands and people while they denounce consumerism.

This consensus is not due to blind patriotism.
On the contrary, it is precisely because the younger generation has experienced many foreign brands or opened their horizons abroad.
In contrast, it is determined that today's national trend brands are not inferior to foreign brands in terms of cost performance.

Take Yuanqi Forest as an example.
It was only 4 years old, and its valuation exceeded 14 billion.
Behind this is the strong support of Generation Z.
Under this general trend, even Jianlibao, which was made for Vital Energy Forest, has restarted the sugar-free microbubble water.

The rise of the vitality forest

Even if they can't beat Coca-Cola and Pepsi, they cannot withdraw until the end.
The brand must be in the arena.
With more competition, consumers have more choices.

In fact, no matter whether it is juice or happy water, which kind of beverage is not so irreplaceable.
In the freezer less than two meters long in the convenience store, the latest products are always placed in the most conspicuous position.
For a three-dollar beverage, the retailer may charge 30,000 yuan for the supermarket shelf, and this may involve a 3 billion-dollar business war.
The changes in your tastes yesterday and today may be a mirror, reflecting the change of dominance in the business world.

The beverages of foreign brands occupy the memories of a generation, and the tastes of the next generation of children are being shaped by domestic and foreign brands.
Every generation has its own consumption symbol.
After all, for us, what is sweet is not Coke, but a childhood that cannot be returned.

Source: Houlang Institute

Note: All pictures in the article are reprinted on the Internet, and infringement will be deleted!

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