- Chief Business Intelligence
- Chief Business Intelligence
Introduction Before the big cake of e-commerce, everyone thought of sharing a piece, but some people did the opposite.
In the era of e-commerce, many companies want to get a piece of the pie. Red Bull is not used to e-commerce and decided to completely remove e-commerce products from the shelves. Red Bull's decision has caught the attention of outsiders in the industry.
It can be seen that Red Bull took such a radical move this time because it was completely disappointed in the e-commerce platform.
Shut down e-commerce platforms completely
Create a blacklist
Recently, Reignwood FMCG Group (i.e. China Red Bull) announced the complete closure of 2B, 2C and regional community e-commerce platforms. It is also necessary to complete the rectification of all e-commerce platforms involved in disrupting the market order at low prices within one month.
To show that they mean it. Externally, if the goods are flushed after April 10, they will be severely punished. Internally, if there is a violation, the quarterly evaluation amount will be deducted, and if the circumstances are serious, they will be demoted or even transferred.
In addition to this, Red Bull has also established a blacklist. Many e-commerce platforms such as Mini Programs, Taobao, and JD.com are on the blacklist.
That is, if someone supplies a platform on the blacklist, they will have to pay for it.
Regarding Red Bull's move, some netizens said, "The main thing is that it can't be sold online, if it can sell more than a billion online, will he still withdraw from the network?"
But Red Bull's purpose in doing this is also very simple, that is, to ensure channel profits and prevent the phenomenon of price gouging.
In fact, this is not the first time that Red Bull has said that it wants to "break up" with an e-commerce platform.
As early as 2017, dealers could not get Red Bull's discounts and rewards because they could not complete the annual sales task, and then chose to start low-price sales and channeling, resulting in channel price chaos and a decline in channel customer profits.
The following year, Red Bull banned Ali Retail Pass and banned all suppliers in the south from purchasing from it. Dare to be tough Ali, except for Red Bull, no one dares to think of it. However, now Ali Retail Pass has also closed its doors.
However, Red Bull did not completely block B2B that time, and finally chose "Best Store Plus" as a cooperative e-commerce.
Share a hot knowledge, the price plate is an important part of a mature brand, the price is equivalent to the product, and a mature product is the hard work of a company for many years, and the operation of the dealer is clearly to Red Bull's life.
If the e-commerce environment is good, who would choose to cut off the door? The reason for this is that e-commerce platforms continue to disrupt the order of the FMCG market, and in order to stabilize market prices and maintain brand value, Red Bull has to withdraw.
There are also many netizens who expressed their support for Red Bull's decision, "It is too difficult to crack down on e-commerce to support physical commerce, physical stores!"
Fleeing goods are also divided into benign and malignant. If it is said to be a benign channeling of goods, it is an act that drives sales. This behavior is good for the development of the market, and it is also a good thing for Red Bull sales.
The vicious channeling of goods is unauthorized and disrupts the market order. Generally, it is the channel middleman who retaliates against the upstream manufacturers, with the aim of obtaining huge profits.
Rectify dealers
Refuse to flee goods and sell at random prices
The rise of e-commerce has brought a steady stream of dividends to brands, but in fact, e-commerce is also constantly "regurgitating" brands, which also brings greater challenges to brands.
In order to attract consumers, the selling price on the e-commerce platform is several times lower than the official price.
In the FMCG market, Red Bull is not the only company that prohibits dealers from supplying to e-commerce.
In 2017, the Yijiu Batch platform was blocked by Niulanshan's dealers because of the problem of fleeing goods, and opposed Yi Jiu Batch to sell goods from other places to the local area at a low price, which destroyed the local market price.
In the same year, also in order to maintain market order, Wuliangye issued an announcement stating that it would stop cooperating with 6 e-commerce platforms.
According to the announcement, due to the cooperation between dealers and e-commerce platforms such as Yijiu Batch, the goods "flew" across the country, causing chaos in the market.
In addition, COFCO Coca-Cola, Weilong and other brands have issued relevant documents, stating that they will no longer supply to e-commerce platforms, and refusing to disrupt the market by naming and rejecting some community group buying platforms.
Many well-known community group buying companies have been punished for unfair price behaviors, such as Orange Heart Preferred, Duoduo Buy, Meituan Preferred, etc., with a minimum fine of 500,000 yuan and a maximum fine of 1.5 million yuan.
These platforms make the sales price of a large number of goods lower than the purchase cost by means of direct reduction and issuance of coupons, which not only disrupts the normal market order, but also constitutes the illegal act of dumping at low prices.
Also in the pharmaceutical market, many pharmaceutical companies have complained that platforms such as "Pharmacist Gang", "Taobao" and "Good Pharmacist" have been selling their products at low prices for a long time, which seriously affects market prices.
For the sake of sales and popularity, dealers dumping at low prices will not only lead to the disruption of the market economy, but also be prone to the problem of counterfeit products and shoddy products.
Last year, Mr. Qi, a consumer, bought a box of cottage Red Bull in the live broadcast room. Originally, a can of Red Bull was 6 yuan, but a box in the live broadcast room was 70 yuan, which is less than 3 yuan for a bottle.
Seeing this, Mr. Qi thought he had picked up a big bargain, and placed an order for five boxes in one go. But after receiving the goods, Mr. Qi found that the taste was wrong.
After careful comparison with the original product, I found that I had bought a knockoff. Although they are all golden cans, the English on the genuine Red Bull is "redbull", while the knock-off is written "redbeuii".
It should allow all the upstream and downstream industrial chains participating in the market economy to gain market share, and the operation of the e-commerce platform is nothing more than ruining the market.
It was only a matter of time before Red Bull announced its withdrawal from e-commerce platforms, a move that made many people see the problems of e-commerce, and then re-examine the relationship between e-commerce and traditional channels.
However, compared with Red Bull, Coca-Cola and Nongfu Spring have integrated online and offline promotions in order to balance the interests of all parties, launching exclusive and customized promotions, which can maintain their brand image while ensuring higher profit margins.
Red Bull's withdrawal from e-commerce platforms may only be able to stop the destruction of market prices by e-commerce in the short term.
However, according to the current consumption habits of consumers, more people use e-commerce platforms for shopping. Announcing the withdrawal from e-commerce may lose some young consumers.
Therefore, Red Bull also needs to find a more appropriate way to balance the interests of all parties and develop corresponding strategies.
Competition for functional beverages
Who can have the last laugh
In addition to the reasons for the decline in sales of Reignwood Red Bull, the long-term dispute with the parent company Thailand Tencel is also one of the reasons.
The "dispute between the two bulls" can be said to be inextricable and boiling. This trademark dispute began in 2016, and it has not yet come to an end, and it is not known when it will be over.
Since the start of the trademark war, Reignwood Red Bull's sales have continued to decline.
In 2016, China's Red Bull sales were 21 billion yuan, down 9% compared with 2015, and then 7% in 2017, and sales fell below 20 billion yuan.
I don't know if it's in order to no longer be controlled by others, since the trademark war between Reignwood and Tencel began, Reignwood launched a 400ml War Horse functional drink. Some consumers said that it tasted better than Red Bull, and some people said that it tasted the same as Red Bull.
It's hard not to wonder if Reignwood wants to use War Horse instead of Red Bull to end the dispute that has lasted more than seven years.
In 2018, War Horse was as fierce as its name, and it took only two years to achieve total sales of 830 million yuan. Under the operation of Reignwood, the development trend is improving.
Just when everyone thought that Reignwood could play with "alternative literature", War Horse did not let Reignwood get his wish.
Due to the epidemic, in 2021, the sales of War Horse began to decline, and in addition, the situation of Reignwood's other two products, Vita Cocoa and VOSS, is not very good.
When Reignwood had been immersed in the trademark war, Dongpeng entered the track of functional drinks as a "replacement" for Red Bull with the advertising slogan "tired and sleepy, and Dongpeng Beverage".
The "Twin Bull Dispute" undoubtedly assisted Dongpeng Special Drink.
Dongpeng Beverage officially launched Dongpeng Special Drink in 2009, and began to soar all the way after it was launched. In 2021, Dongpeng was officially listed on the Shanghai Stock Exchange, becoming the "No. 1 beverage stock in China" and achieving "corner overtaking".
Between 2016 and 2027, China's Red Bull market share fell from 63% to 58%, and during the same period, Dongpeng Special Drink increased from 30% to 40%.
The double-sided attack of Tencel Red Bull and Dongpeng Special Drink, plus there is no product within Reignwood that can compete with it. Reignwood Red Bull, which survived in the cracks, fell into a dilemma step by step. I have to say that Reignwood Red Bull is too difficult.
Compared with Reignwood Red Bull, Dongpeng Special Drink has a low price advantage in the market and has captured many men.
The gradual decline of Reignwood Red Bull has made many netizens look forward to the rise of Dongpeng, saying, "Red Bull withdrew from the market, and Dongpeng took over." ”
In addition, there are many rising stars who want to share the big cake of functional drinks and gain market recognition. However, in the end, it did not achieve the desired effect.
Write at the end
In the functional drink track subdivided under FMCG, there are leading companies in the front and rising stars in the back. The highly competitive market environment also means that consumers have more choices.
As a giant company in energy drinks, Red Bull has every decision that affects the market. Before the final result of the "two-bull dispute" is reached, every functional beverage product has an opportunity to develop.
In general, for the problem of low-price dumping on e-commerce platforms, although many FMCG companies have policies and punishment regulations, Red Bull's comprehensive ban this time has forced other companies to re-examine this problem, that is, in the era of e-commerce, how can traditional enterprises balance the upstream and downstream and achieve common development.
For functional drinks, do you choose Red Bull or Dongpeng Special Drink or other brands of functional drinks? Welcome to leave a message in the comment area to discuss and express your opinions or opinions, thank you.
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