Rebirth of the Wild Age

Entering the brand-new year of 2001, if there is any good news, it is that Pepsi is fighting itself.

Pepsi (China) announced that Shandong Province is its sphere of influence, but Pepsi (the Shandong Province joint venture) disagreed. As a result, Pepsi (China) and Pepsi (the Shandong joint venture), the two sides started a price war around the Lantau market, and the cola produced by the two companies were fighting each other to a fierce state, and everyone inside and outside the industry looked confused.

At the same time, Pepsi (China) forced the Chinese investors of Pepsi (Xikang joint venture) to withdraw their shares. When the negotiations between the two parties broke down, Pepsi (China) substantially increased the price of cola concentrate, and Pepsi (Xikang joint venture) was not allowed to produce Pepsi drinks other than cola.

As a result, Pepsi-Cola's business in China was torn apart and messed up. Agents at all levels were even more confused, and they didn't even know which factory to get the goods from.

In another time and space, after years of channel construction, Pepsi has the potential to surpass Coca-Cola in China. Just because of this series of blind comparisons, I directly lost myself and was quickly thrown out a few blocks by Coca-Cola.

And now even if Xifeng disrupts the situation, PepsiCo is still doing this, because its US headquarters wants to eat alone and is unwilling to distribute large amounts of profits to Chinese joint ventures every year.

The source of all this is that China is about to join the WTO and gradually relax investment restrictions in various fields. In the past, Yang Coke was not allowed to be sold domestically, and then it could be sold domestically but with a quota. After the quota was removed, the number of joint venture factories was increased. Now, Yang Coke is finally able to build a wholly-owned factory in China.

The people at Pepsi headquarters thought, if I can build a factory in China, why should I continue to engage in joint ventures?

This situation does not only happen in the beverage industry. For example, Eastcom Mobile is a joint venture brand, and all technologies are provided by Motorola. Now Motorola has issued an ultimatum directly, either China surrenders its shares, or Motorola divests its capital and liquidates its shares. China has chosen the second option, and Eastcom Mobile has become a real domestic product.

In a few months, Panasonic Panasonic even confirmed to the media that all 50 joint ventures of Panasonic in China will be independent.

Multinational companies in all walks of life are using various methods to force Chinese investors to retreat. Because they used to engage in joint ventures because they were restricted by policies, and now the policies are suddenly loose, their greedy faces are all at once exposed.

And why is it that Coca-Cola did not choose to act rashly in the face of Xifeng’s constant pressure, but PepsiCo desperately seeks sole proprietorship?

Because Pepsi's business in China is too chaotic!

In the early 1990s, Pepsi-Cola adopted a very extensive development model in order to rapidly expand in China. This hidden danger will continue until more than a decade later.

There are three types of cooperation atmosphere between Pepsi and China, namely joint venture, cooperation, and franchise filling. Among these joint venture companies, some are controlled by the Chinese party, some are owned by PepsiCo, and some even have no shares in PepsiCo (only provide Coke concentrate for profit). There are also a variety of management methods. Some factories are managed by the Chinese side, some factories are managed by PepsiCo, some factories are contracted by PepsiCo, and some Pepsi and the Chinese side each send a general manager.

It can be said that management, marketing and channels are all in chaos.

In principle, Pepsi-Cola's factories in China are zoned, and products from one zone cannot be sold in another zone. However, in order to make money, Chinese investors may not consider so much. For example, the Xikang joint venture is Pepsi's largest filling plant in China, and the Coke produced by Xikang is actually sold to the northeast. The shareholders and regional distributors in the Northeast were not happy anymore, so various promotions fought a price war in disguise, often fighting with their own people.

Moreover, in order to expand channels, joint ventures across the country united and raised Pepsi’s channel rebates very high. Coupled with the confusion in marketing management, one-third of Pepsi-Cola's joint ventures in China have suffered losses one after another.

The authorized filling plant is even more funny. This type of filling plant is responsible for its own profits and losses and operates independently, and only purchases Pepsi-Cola concentrate for production. So they began to engage in crooked ways, buying local miscellaneous-brand cola concentrates, and after filling them, they sold them under the Pepsi label.

Faced with such a chaotic situation, China suddenly loosened its policy and said that it could build a wholly-owned factory in China. How could PepsiCo still hold it back?

At least the joint venture company in Xikang Province must be controlled, because it is Pepsi's largest production base in China and contributes more than 30% of Pepsi's profits in China.

Before long, PepsiCo will take the Xikang joint venture to court. The arbitration court of the Stockholm Chamber of Commerce in Sweden will make a judgment. The Chinese party loses the lawsuit for "non-cooperation in inspections" and "cross-regional sales". PepsiCo seized the opportunity to take control of the Xikang joint venture. This lawsuit was called "the first arbitration case of China's accession to the WTO." In fact, China's crime was not a breach of contract. PepsiCo had exploited a loophole in China's law at the time.

Five years later, the official involved in the China International Trade Arbitration Commission was arrested. It was this person who proposed to submit the case to a Swedish court for arbitration!

In any case, Pepsi's sole proprietorship process has made Pepsi even more chaotic.

Lips die and teeth are cold, rabbits die and foxes are sad.

The tragic experience of the Xikang joint venture made the Shenghai joint venture feel cold. This is Pepsi's second largest production base in China. The Chinese investor in Shenghai directly united 15 Pepsi bottling plants to hold a press conference to confront PepsiCo.

The two sides slapped their heads out, so that the market share of Pepsi-Cola plummeted.

In the following years, PepsiCo's joint ventures in China did not make much money, and even more than half of them fell into continuous losses. Chinese investors have opted to withdraw, and PepsiCo took the opportunity to pay for the offer. In this way, it gradually became a sole proprietorship in a way that both loses and loses. Since then, PepsiCo's business in China has gradually improved.

Coca-Cola is much more stable ~www.readwn.com~ There are only four major partners in China, namely COFCO, Swire, Kerry and China International Trust. Among them, the joint venture company of Coca-Cola and China International Trust, which specializes in the production of Sprite and Fanta, does not involve the production and marketing of Coke.

Kerry will be dumped by Coca-Cola in a few years, and COFCO will continue to sell plants to Coca-Cola. If it were not for the rapid shrinking of the carbonated beverage market in China later, it is estimated that Coca-Cola would completely get rid of COFCO and Swire, and finally realize its wholly-owned plan for business in China.

"I'm going to come to a national Coke promotion." Yang Xin said with a smile.

Song Weiyang said: "It is absolutely possible. Even if you can't beat Pepsi to death with a single blow, you must beat Pepsi to make you unable to take care of yourself."

This is called, take advantage of his illness, kill him!

Xifeng responded the fastest, and then Coca-Cola came in. Both parties took advantage of Pepsi's civil turmoil, frantically eroded market share, and drove Pepsi into ecstasy within a few months.

However, Pepsi headquarters still does not repent, and would rather seek sole proprietorship because of huge losses and sharp decline in sales-because China's business is too chaotic, and Pepsi is not sole proprietorship. This is tantamount to cutting the flesh and removing the pus. Don't want to ease it in three to five years. Come on.

By the fall of this year, some organizations have calculated the market share of China’s carbonated beverages: Coca-Cola is 38.6%, Xifeng is 33.1%, Pepsi has plummeted to 13.8%, Jianlibao has only 4.5%, and 10% of the market is under various brands. Subdivide.

It's completely changed!

According to another time-space trajectory, only when PepsiCo's joint venture suffers a serious loss and Pepsi China takes the opportunity to take over the sole proprietorship, can it regain its foothold by inviting celebrities to advertise.

But will Xifeng make Pepsi China come alive?

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