Analysis of five major factors in China's beverage industry

Analysis of advances and withdrawals in the beverage industry in China can be attributed to five major related factors:

1. Stable overall demand

"Same quality and quantity, sustainable development. International multinationals unanimously believe that China will become the global beverage market in 2015, and this judgment will make the whole industry happy and impulsive. At present, the entire beverage industry is in a phase of overcapacity, and the traditional scale-effective dividend energy has been basically used. In 2014, the growth from the growth of growth (quantity) to the sales growth of the type (quality) and the same, that is, "quality, quantity and weight." Moderate control of capacity expansion.

2, system risk prevention

The primary system risk is food safety. From the "rotten fruit door" of the fruit juice company to the "standard door" of the mineral water company, it is not only which two industries or two enterprises are shot in. Managers of all companies should "prevention and early warning," and once they discover any existing or potential food standard issues or food safety problems in the industry, they must be resolved at the earliest opportunity. If it is an industry-related issue, it must be notified as soon as possible of the association, and gather the strength of the industry and the government to work together.

3, external environment friendly

Although there were no major quality events and food safety incidents in the beverage industry in 2014, the social recognition of the entire industry was not as good as it should be. In particular, topics such as obesity, additives, and caffeine are often linked to beverages. If we want to improve the external environment of the beverage industry, in addition to the quality of the products themselves, the tripartite approval of experts, media, and consumers is important. While ensuring the quality of products, we must increase the participation in energy conservation and emission reduction, social welfare activities, and cultural undertakings. Participate in efforts to establish a good corporate image and brand image.

4, "middle income trap"

The lack of new growth points and the increase in manufacturing costs led to insufficient incentives to slow growth. This was the case in 2014. In the context of weak growth in the output of most beverages, some new beverages emerged, reflecting consumer preferences for beverage products. The design of beverage products should shift from formula-based to R&D-based. In the new “Beverage General” category, fermentation types are added to large categories. For example, kvass belongs to cereal fermented beverages, and high-tech products are also required for research and development. There are more ideas.

The rise in income levels and spending power means increased production costs, which is also reflected in the beverage industry. While relying on equipment to increase production automation and production line production efficiency, it also strengthened the training of skilled workers and increased the overall labor productivity.

5, market orderly competition

The beverage industry is a big cake. No single company can make a single company. The rise and fall of a company or a brand is an internal factor and it is not the result of external competition. If each group company can launch several new products with a certain market share every year, competition will not be limited to prices. There are 15 beverage products with over 1 billion US dollars of Coca-Cola global retail sales. Among them, Minute Maid Orange is developed and cultivated successfully in the Chinese market. PepsiCo has 22 food products with global retail sales exceeding US$1 billion. Most of the 22 are beverages. Doing a full-fledged product category, the industry can compete in an orderly manner.