The beverage market is going to war on multinational giants to keep an eye on the Chinese market

Entering the New Year, the Chinese beverage market is facing a new round of offensive by multinational companies. According to the reporter's observation, the global beverage industry leader Coca-Cola Company, after being banned by the Ministry of Commerce of the People's Republic of China after the merger of Huiyuan Juice, is actively looking for new ways to resolve the "pain" of merger failure after a period of brewing. With this "standard", Pepsi and other giants have also quickly boosted the Chinese market.

Dark drink

Six months after the sinking of the Huiyuan merger, Coca-Cola began to enter the Chinese dairy beverage market and functional beverage market, and launched a variety of non-carbonated beverages, which shows that it is bound to win the Chinese market. After the fruit milk and ice cream C+, Coca-Cola launched a third non-carbonated drink in just two months – Cool Music Vitamin Water. This seems to indicate that after the fruit milk is aimed at the Wahaha Nutrition Express, it will quickly launch a cool drink of vitamins and other functional drinks such as Red Bull. Coca-Cola is using a different sales channel to open the high price of the grade, opening up a new path for functional beverages. It is worth noting that while the new products are frequently introduced, Coca-Cola's marketing strategy this year is quite cautious – Ice C+ is only small-scale test sales in Hangzhou and Shanghai, and there is no timetable for Cool Music to enter other first-tier cities.

From the case of Cooper's old rival Pepsi's brand Propel, Pro-pel, which led by 38% in 2007, lost its Coca-Cola marketing in 2008.

New areas focus on others "cakes"

According to statistics, in the energy-based functional beverage category, Red Bull's share in East China was about 46% in 2008, and 76% in South China.

According to industry analysts, in recent years, with the popularity of juice drinks and tea drinks, the growth rate of functional drinks has slowed down significantly since 2005. At present, from the category, it has shrunk to 40% of its peak. In the heyday, there are nearly 20 single products in 20 brands, and now there are only 30 varieties of less than 10 brands, and even many products have been delisted.

The juice source milk juice developed by Coca-Cola Company has quietly landed on the market. According to professional analysis, the milk drink market is relatively mature, and it has a market share such as Wahaha Nutrition Express. Coca-Cola Meijiu's fruit milk can be divided into a lot of variables. The person in charge of Coca-Cola said frankly that the intervention of fruit milk will gradually change the current pattern of the fruit milk market, but it will take time to form a counterbalance force compared with some big brands.

Pepsi has also launched two new products, the low-calorie electrolyzed beverage G2 and Propel, which also contain Propel iced tea with caffeine. In China, it is a high-profile launch of “Pepsi Extreme”. For this sugar-free cola, called the “new generation”, Pepsi hopes to cater to the “post-80s” consumer market.

According to experts, the competition in the “traditional” beverage market segment is becoming increasingly fierce. The fierce competition has led to an increase in corporate advertising and other investment, and sales revenue has rarely increased, resulting in lower and lower profits, forcing companies to develop new areas to drive sales growth and achieve corporate revenue.

Expanding pace is getting faster and faster

In fact, since 1998, Coca-Cola has launched a number of tea drinks, which are believed to compensate for the decline in sales of carbonated beverages as consumers turn to healthier beverages.

Some people related to Coca-Cola told reporters that the current gas-containing beverages are still the main business of Coca-Cola, accounting for 70% of China's business, and the growth of non-gas beverages is also healthy.

Coca-Cola's gas and non-gas business go hand in hand, and jointly promoted the double-digit growth of China's business in more than 20 quarters. At present, China has become the third largest market for Coca-Cola in the world.

Obviously, in terms of juice drinks, Coca-Cola still has a lot of capacity and market gap, not to mention the high gross profit margin of the juice industry is 10% more attractive than the gross profit margin of carbonated beverages. Some analysts in the securities industry said that this is a result of self-construction in the case of the acquisition of Huiyuan. Coca-Cola will become the brand of juice beverage in China in the next 5 years. Now Coca-Cola is already in the top three, and the future juice-free juice drink will be the focus of Coca-Cola development.

Some analysts predict that Coca-Cola will continue to enter the milk-containing beverage market in China, and it is likely to be involved in the domestic dairy industry. Some insiders analyzed that the milk beverage market will continue to develop at a high speed in the next 3-5 years. If the fruit milk is recognized by the market, Coca-Cola may continue to enter the field of yogurt in the future, but this requires a 2-3 year inspection period.

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