Coca-Cola enters the alcoholic beverage market in China The analysis says it reflects confidence in the Chinese consumer market

International Online Report (Reporter Zhu Wanling): Recently, Coca-Cola launched alcoholic beverages in the Chinese market. Analysts believe that this move is based on the continuous expansion of China's alcohol consumption and the love of young consumers for such products. Behind this, it also reflects the confidence of international brands in the Chinese market.

Click on the Coca-Cola Tmall flagship store, and the first thing that pops up is a product link to a newly launched hard soda sparkling wine. This sparkling wine has previously been launched in Latin America and Europe. Introducing it to the Chinese market is also a new attempt by Coca-Cola in China.

Zhu Danpeng, an analyst in the Chinese food industry, believes that Coca-Cola has seen a trend of low-grade "micro-drunk" alcoholic beverages in recent years that are popular among The new generation of consumers in China. "The rapid development of 'micro-drunk' beverages in the past two years is inseparable from the consumer thinking and consumption behavior of the new generation of China as a whole." They have a certain just need for alcohol, but they have no ability to consume high-end liquor on the one hand, on the other hand, high-end liquor is relatively high, and several people will soon get drunk if they go to drink together. However, if you drink 'micro-drunk' products, the whole process can last for 3 hours or even 4 hours, which is more continuous for gatherings and socializing. ”

The data shows that from a global perspective, affected by the epidemic, global alcohol sales fell by 6% in 2020, and global alcohol consumption fell by about 15.8 billion liters. However, enterprises above designated size in China's brewing industry completed product sales revenue of 835.331 billion yuan in 2020, an increase of 1.36% year-on-year; the total profit achieved was 179.2 billion yuan, an increase of 11.71% year-on-year.

At the same time, under the great challenges brought by the epidemic, the performance of the Chinese market has also become one of the biggest highlights of Coca-Cola. Whether in the fourth quarter of 2020 or the full year of 2020, Coca-Cola's share of china's market value has grown across both dine-in and takeout channels.

With the continuous release of the potential of China's consumer market, multinational companies are also actively introducing their brands into the Chinese market. Taking the first China International Consumer Goods Fair held in Hainan as an example, Japan's Shiseido Group brought 13 of its brands to the exhibition, two of which were officially released in the Chinese market for the first time; Nestlé brought 181 products from 15 countries, of which 29 products were first-time in China...

In the view of Zhang Jianping, deputy director of the Academic Committee of the Research Institute of the Ministry of Commerce of China, international brands are optimistic about China, reflecting the great attraction of the Chinese market. "After October 2020, China's total retail sales of consumer goods have surpassed the United States and become the world's largest retail market. This retail market now drives the world's automobiles, home appliances (consumption), and many daily consumer goods (consumption), and more than 30% of the increase is contributed by the Chinese market. So, multinationals like Coca-Cola are clearly paying more and more attention to the Chinese market. Moreover, in China's huge market, each consumer category segment actually has a lot of potential market growth space. ”

As Mo Mengyan, Commercial Counsellor of the Swiss Embassy in China, pointed out during the Circumference, Switzerland, as the guest of honor of the first CICGF, brought 26 enterprises with products covering watches, food, cosmetics, fashion and other categories to participate in the exhibition, focusing on the potential of China's consumer goods market. "Chinese consumers are becoming more and more sensitive to quality, which is why we at Swiss brands see the Fair as a good time for Swiss consumer goods to enter the Chinese market."

Zhang Jianping said that with a large number of high-level international brands entering the Chinese market, it will also create a more international competitive environment for Chinese brands and force Chinese companies to improve their competitiveness: "In a more competitive market, it can stimulate the enthusiasm or motivation of our Chinese enterprises." Under the pressure of competition, it is necessary to find ways to increase investment in research and development, enhance the technical content and added value of products, accelerate the cultivation of independent brands, and provide consumers with higher quality products and better services. ”