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With the largest market share but trapped in a tug-of-war in litigation, what is the solution to the dilemma of Red Bull China?

author:Panda Investment

At the end of the 1990s, the advertising slogan of "thirsty to drink Red Bull, sleepy and tired to drink Red Bull" made China's Red Bull popular. After 26 years, Red Bull China has gone from 0 to 1 and has become a national brand with annual sales of more than 5 billion cans.

What is even more enjoyable is that although this "little golden pot" has a foreign name of "Red Bull", the Chinese Red Bull that runs it is already a national enterprise. Because China Red Bull has been marching all the way, behind the realization of leapfrog development, it is inseparable from the actual trader of China Red Bull, Reignwood China.

With the largest market share but trapped in a tug-of-war in litigation, what is the solution to the dilemma of Red Bull China?

In the 1970s, The Thai-Chinese Xu Shubiao developed a tonic drink named "Krating Daeng". In 1993, Xu Shubiao built a factory in Hainan to introduce "Krating Daeng" into China, but because he was not familiar with the domestic market policy, could not get the approval for product production, and the trademark could not be registered for a long time, he folded and returned.

At this time, Xu Shubiao met Yan Bin, an entrepreneur who was very active in Sino-Thai economic and cultural exchanges, and Yan Bin had a good relationship with Thai politics and business circles, such as the family of former Thai Prime Minister Thaksin Shinawatra. After a lot of market research, difficult negotiations and large investment, Yan Bin prepared to build a joint venture company, obtained the Ministry of Health's "vitamin functional drink" production license approval, and promoted the successful registration of the trademark of Chinese Red Bull and Tu.

It is worth mentioning that Yan Bin also signed a 50-year cooperation agreement with Thai Tencel and two state-owned enterprises on behalf of China's Red Bull. The agreement stipulates that only Red Bull China has the exclusive right to produce and sell Red Bull beverages in China, while TENCEL Thailand is not allowed to produce and sell Red Bull Beverages in China. It is also on the basis of the 50-year agreement that Yan Bin will lead Reignwood Group and China Red Bull to fully invest in the cause of market cultivation and promote the prosperity of functional beverages.

In the face of a huge consumer market, it is not easy for the public to understand a new product and form a good reputation. Therefore, China Red Bull follows the law of the market, and packaging supplier O.R.G. has developed many times, only the color of packaging and decoration has been tested more than 40 times, and finally adopted a small gold pot with more texture and in line with the aesthetics of the Chinese people, and applied for a appearance patent for this purpose.

The early entrepreneurship is not easy, he took the Chinese Red Bull team to "open the road in every mountain, meet the water to build a bridge", completed the well-known "Red Bull Miles" activity; put forward the slogan of "the market has no blind spots, every store must enter", required the marketing team even if there are only two cans of Red Bull, but also placed in the most obvious position on the merchant shelf, and personally led the team to present Red Bull to the taxi drivers in Beijing in the winter... This series of market activities has laid an important foundation for the future growth of Red Bull in China.

In addition, China Red Bull also played the famous advertising slogan "thirsty to drink Red Bull, sleepy and tired to drink Red Bull". And in the early days began to sponsor a variety of sports events with great characteristics, with the help of large-scale investment, which made the Red Bull brand gradually deeply rooted in the hearts of the people. At the time of scale expansion, the partner THAI TENCEL did not make additional investment, in order to let Red Bull survive the difficulties, Reignwood also mortgaged assets such as Reignwood Tower to the bank to transfuse blood for enterprises, invested heavily in the construction of functional beverage production bases such as Beijing, Xianning, Yixing, Foshan, and established 39 branches across the country to inject impetus into the stable development of China Red Bull.

With the largest market share but trapped in a tug-of-war in litigation, what is the solution to the dilemma of Red Bull China?

In 2012, China's Red Bull's national sales exceeded 10 billion yuan for the first time; in 2014, it exceeded 20 billion sales, achieving "double in two years". Former partners can't sit still. In March 2012, after xu Shubiao died of illness, the previous good cooperative relationship was also gone, Thai Tencel frequently launched lawsuits at the same time, but also launched "Red Bull Aneji drink" and "Red Bull vitamin flavored drink", the latter is not a health food, the formula and taste are very different, but the packaging and decoration is extremely similar to China's Red Bull, the three red bulls are put together and sold together, consumers call silly and unclear.

At present, there is no conclusion in the Dispute of Red Bull china, and there is no judgment on trademark infringement of Red Bull china, but the copycat Red Bull cannot help but prevent it. "Double Eleven" is coming, everyone must also polish their eyes when purchasing.

With the largest market share but trapped in a tug-of-war in litigation, what is the solution to the dilemma of Red Bull China?

First of all, you must recognize the product name "Red Bull Vitamin Functional Drink" on the blue ribbon strip, and then you can check the health food approval number approved by the Ministry of Health on the can, commonly known as "Blue Hat". In addition, there is a traceable two-dimensional code "ID card" at the bottom of the Red Bull can, which can query the production date, production batch, production plant, shelf life and other information of the beverage, ensuring that consumers understand the origin of each can of Chinese Red Bull beverage and have evidence.

Although Red Bull China has the largest market share of domestic functional beverages, it is currently mired in litigation. Some domestic national enterprises and national brands suffer from the same development dilemma, although it is a good product, in the game of "bad money expelling good money" dominated by capital or becoming a victim, in fact, such a result is also extremely unfavorable to the prosperity of the market and the protection of consumer rights and interests.

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