I don't know if you have noticed that there are suddenly a lot of domestic soda drinks on the market, from Beijing Arctic Ocean, to Wuhan No. 2 Factory, Shaanxi Bingfeng, and Inner Mongolia Kiln, which has come from behind. For a while, a hundred flowers bloomed, attracting many domestic product lovers to check in.
However, what makes everyone feel strange is that compared with foreign soda such as Coke and Sprite, which are used to drinking, these local brands are more expensive. There are even quite a few people who say that they are "assassins" in supermarket freezers. Why are local brands more expensive than foreign brands?
It's not that you can't afford to drink beer, but that soda is more cost-effective! The national tide soda, which carries the memories of childhood, is now crazy! They not only occupy supermarket shelves, but even play beer marketing. Whether it's a barbecue stall or a hot pot restaurant, you can see their huge billboards. There are even some pretty little girls who shuttle through the night market and enthusiastically sell to customers.
At first, everyone thought that domestic soda was selling feelings, but they didn't expect it to trigger a more violent "business war". Beijing's long-established brand Arctic Ocean has taken the lead and opened a number of "Beiping Ice Factories" in one go, not only locals are vying to check in and find childhood memories here, but even tourists regard it as a tourist destination, and there is an endless stream of people who come to take pictures.
Not to be outdone, Wuhan's No. 2 Soda Factory directly landed on the Hong Kong stock market by way of mergers and acquisitions, becoming "the No. 1 soda stock in the mainland"! Since Lan Shili, the former richest man in Hubei, became the big owner of the No. 2 Factory, this 70-year-old brand has suddenly been rejuvenated.
Boss Lan's positioning of the second factory is very accurate, and he is backed by capital while seizing the market. Not only did it launch high-end products with flavors such as cherries and salted pineapples, but it even launched affordable cans in October last year, selling for only 1.99 yuan per bottle of soda. Attacking in all directions, we have firmly grasped consumers at all levels.
Of course, among the many domestic products, the most eye-catching is the Inner Mongolia brand kiln. In 2021 alone, 3 billion sales will be sold, directly winning the farmer's orchard! Later, Wu Jing was invited to be the spokesperson, and in just one year, he went out of the northwest and went to the whole country. Moreover, its mainstream consumers are mostly concentrated in the post-90s and post-00s, and the potential market in the future is huge, and it is definitely a dark horse in the domestic industry.
Seeing that the situation of domestic brands is very good, Coca-Cola and Pepsi, the two old soda giants, are losing ground one after another. In recent years, they have hardly taken a shot of new products. Traditional Coke, Sprite Fanta, etc. have suffered from aesthetic fatigue. If you don't believe it, you will know when you go to the supermarket that the Cokes that originally occupied the C position have been secretly transferred to the corner shelves. And most of the country has been given to domestic soda.
Of course, for consumers who occasionally drink carbonated drinks, domestic soda has become a curiosity. Especially the new flavors from these old brands, everyone wants to buy two bottles to try. However, many heavy carbonated lovers are still obsessed with hoarding Coke in whole boxes, and they have always disdained domestic soda.
The reason for such a strange phenomenon is also very simple: domestic soda is really unaffordable. Since the 90s, prices in China have risen a lot, but the price of foreign soda has never increased. The bottle of 500 ml is always priced at two yuan and five, and you can buy it home if you encounter a big promotion or even more than one piece.
On the other hand, these old soda brands, whether it is the Arctic Ocean or Wuhan No. 2 Factory, can often cost five or six yuan for a can, and even some glass bottles with limited flavors are sold for more than ten yuan. For young people who can't live a normal life without carbonated drinks, drinking domestic soda every day will cost hundreds of dollars a month. It's a lot of money indeed.
So far, a strange phenomenon has emerged in China's carbonated beverage industry: the price of domestic soda is high and it sells feelings, and the price of imported soda is low and it is customary. The collision of these two camps, which are so incompatible, has jointly stimulated the huge potential of the beverage market. Speaking of which, some people may ask, since the beginning of the last century, old brands of soda have been established in various places. Why did the "Sino-foreign war" in the carbonated beverage industry only fire the first shot now?
In the final analysis, it's not that the former domestic soda doesn't want to fight this battle, but it really can't fight. Before the 70s, local brands in mainland China also had a hundred years of blooming: Arctic Ocean, Jianlibao, Bingfeng, Wuhan No. 2 Factory, Laoshan Cola, almost everywhere has its own well-known soda brand.
However, when Coca-Cola and Pepsi entered the Chinese market, everything changed dramatically. At the beginning, the people did not agree with these foreign brands at all, and their sales were also struggling. However, the honest domestic brand can't play the foreign devils with rich business experience at all.
In order to win the Chinese market, Liangle can be said to do everything. They began to use acquisitions and partnerships to seize the Chinese market. Take the Arctic Ocean as an example, since the start of cooperation with Pepsi in 1994, it has been hidden in the snow for 15 years. During this period, Pepsi was popular all over the country, but the Arctic Ocean became a thing of the past.
Even in 2007, the state-controlled Yiqing Food made a move, ready to buy back the Arctic Ocean brand. However, they were forced to accept the forfeiture clause of "no production of carbonated beverages for four years", and it was finally realized. After 2011, the last shackles on the brand's head were lifted, and countless Beijingers' childhood memories - "Arctic Ocean Soda" was re-launched.
There is also the Wuhan No. 2 factory, which was acquired by Coca-Cola in the early 90s, and has a history of 70 years before that. However, after the acquisition, it could only sit on the cold bench, and a large number of employees were forced to "lose their jobs", and finally officially announced the official suspension of production in 2000.
Speaking of which, after all, the mainland market is the home of domestic brands, and even if there is a joint effort between the two musicians, they should have the strength to compete. Why was there no power to resist, and only ended up in defeat?
Before the 80s, China used to have its own "soda eight". However, after Coca-Cola and Pepsi entered the mainland market, they failed one after another, and none of them could win against overseas brands. Is the domestic soda too bad, or the foreign brand too strong?
In the final analysis, the decline of domestic soda actually has a lot to do with the production method. At that time, the filling technology in China was still very backward. When each bottle of soda is produced, the syrup needs to be packed into the packaging bottle in proportion, and then other ingredients are added, and finally the water is filled and mixed evenly.
On the other hand, Coke and Pepsi have played the concentration technology to perfection. Their production line has only two processes, liquid addition and canning, so the output is at least four times that of ours.
In addition, domestic soda also faces a major strategic choice: efficiency or market? Due to the lack of transportation capacity and high transportation costs, their freight distribution can only cover the surrounding provinces, and places that are too far away are often beyond the reach of the whip.
If you want to seize the foreign market, you must establish a branch. However, the scale and financial resources of these brands were not enough to support such ambitious goals, and they had to give up in the end.
However, after entering the Chinese market, Liangle spent money to build factories almost regardless of the cost. China's big rivers have their own production lines, coupled with leading filling technology, the output quickly beats the local brands. In just a few years, Liangle has made domestic soda a lot and has occupied 95% of China's soda market.
At this stage, Coca-Cola and Pepsi also put aside almost all grievances in overseas markets and went hand in hand. From packaging to pricing, they are like a pair of twins, chasing and blocking domestic brands. Who else can remember that they have been fighting for me for more than 100 years, and even contributed to one of the most tragic wars in the history of business?
In the world of Fat House Happy Water, Coca-Cola and Pepsi have been competing for more than 100 years. For the title of "Brother Coke", they have come and gone, and even dedicated countless classic business cases. Even consumers are clearly distinguished, each holding up the banner for the red and blue teams.
In the early 20th century, the two beverage giants sang a magical battle drama. You must know that at the beginning of its establishment, Coca-Cola had almost an overwhelming advantage and never took the other party seriously. But when Charles Guth became the helm of PepsiCo, a brilliant business battle began.
In 1930, the U.S. economy ushered in the Great Depression. Pepsi has also become a "luxury" in the beverage industry, with each bottle selling for more than 5 cents. However, Pepsi has sprung up and started to increase the volume without increasing the price. Although the price is the same as that of Coca-Cola, one bottle is the amount of two bottles of the other party.
I thought that Coca-Cola was going to collapse, but I didn't expect them to seize the opportunity of World War II and make themselves the best "condolences goods", which were purchased by the government and sent to the front. This alone has added 10 billion bottles to Coca-Cola's sales.
Pepsi also saw the trick and began to focus on the young market. even advertised that "old-fashioned fathers only drink Coca-Cola", and it became an instant hit. At this point, the two brands are even more distinct, and have even become the most obvious symbol between the old school and the reformist.
But as time passed, Coca-Cola's classic formula still won more people's love, and PepsiCo began to focus on advertising. In 1980, they hired superstar Michael Jackson as their spokesperson, and since then they have been out of control.
Britney, Beyoncé, Pink, are all one of PepsiCo's spokespersons. The first spokesperson of the Chinese market is Leslie Cheung, followed by Louis Koo, Aaron Kwok, Jay Chou, etc., which are definitely big names.
Although the two brands have also been leaders in China for decades, the rise of domestic products has also caught them off guard. Since 2022, the sales of local soda have been climbing year after year, and now they have captured more than 35% of the retail market. Who will die in the future is still unknown. Which soda brand do you prefer, welcome to leave a message in the comment area to discuss.
Source: Minimalist Popular Science 2022
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