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Published at 11th of July 2019 05:40:04 AM
Chapter 609: 609
Feng Yu’s goal seems to be set too high, but this goal was not too far for Lehaha . The current market leader in China’s beverage market was still Jianlibao . Lehaha had already overtaken other competitors like Coconut Tree, Lebashi, etc .

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As for the overseas brands like CocCola . Etc . was still not very popular in China . Although they were still making profits, their earnings were not very high . Their brands were also not very well known . The overseas companies did not try to increase their brand awareness in China as they felt the Chinese could not afford to drink soft drinks every day .

The other Chinese beverage juggernauts, like Jiaduobao (JDB Group) and Fen Huang from Feng Yu’s previous life still had not appeared . The Rising Sun group were only popular in their own province . Huiyuan does have some progress, but they were only focusing on the Shangdong and Jingjinji regions . Their sales were far from Lehaha .

If Lehaha suppressed Jianlibao, they would be the market leaders . But Lehaha, even when they added in their Children’s supplement sales, they were still far from Jianlibao . It was also because of Jianlibao that CocCola and Pepsi could not expand its market share in China . When it comes to carbonated drinks, the Chinese top pick was still Jianlibao .

Last year, Jianlibao had set up a soccer youth team and sent them to Brazil for training . They wanted to groom the next generation of top soccer players . But many of the players had entered the team because of their connections . This was why only a few of the players from the team became top players . This grooming of the next generation’s top players was a joke .

This year, Jianlibao had become the leading beverage sponsor of the Asian Games . In the next 4 to 5 years, their sales will increase further and will hold on to the position of market leader firmly . The annual sales of Jianlibao now had crossed the 1 billion RMB mark, and it was still growing .

But Feng Yu remembered that Jianlibao will start to decline after 1998 . There were several reasons for this . First, it was the appearance of many types of beverages in the market . There were aggressive marketing, and the newcomers were trying to get as much market share as possible . Jianlibao was the market leader and looks down on these new competitors . In the end, Jianlibao lost its market share to them, and their brand influences were also affected .

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The second reason was compelling . When Jianlibao was at the top, their local government kept taking away their profits and asked Jianlibao to increase their scale . How did Jianlibao increase their scale without their earnings? Loans . They took bank loans and buy out the smaller factories in their province . This increased Jianlibao’s scale quickly, but they forgot about their fund issue . As their sales decline and affect their profits, the company encountered cashflow problems . They do not even have the funds to continue their operations .


Thirdly, it was Jianlibao’s sales model . They were still using their traditional sales model and did not even set up their sales distribution channels correctly . When Jianlibao realized this and wanted to set up their distribution channels, it was too late . They do not have the funds to do it .

Fourth, it was the fall out with the local government . If Jianlibao used their profits to expand and grow, there would not be cash flow issues . But the local government kept taking their profits away and caused the fund shortage in the company . The leader of Jianlibao felt that the local government was interfering too much in the company’s decisions and taking too much of their profits . The interference by the local government was the cause of the company’s downfall .

There were many reasons for the decline . Feng Yu only knew that Jianlibao had failed to maintain their lead because of the cashflow problems, lack of branding and outdated sales model . Feng Yu does not think highly of Jianlibao’s management team because of these reasons .

Of course, the only person from the management team that was considered impressive, was the founder and Chairman, Li Jingwei . He had founded Jianlibao and later founded Li-Ning Company with the world champion, Li Ning . However, Li Jingwei was kicked out of Li-Ning soon after the company was set up . Li Jingwei had good foresight in the current era .


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Another reason why Feng Yu did not try to recruit Li Jingwei was because of his age . He was already in his 50s and had made some bad management decisions .

In Feng Yu’s previous life, Li Jingwei was also jailed for misappropriation of Jianlibao’s fund . He had misappropriated tens of millions during the company’s reformation . This person could not be trusted .

Li Jingwei had started a brand but does not know how to manage it . He depended on the government . But as all the state-owned enterprises in China were undergoing reforms, he dragged the reformation to much later than the rest of the companies . During the Reformation, he misappropriated the company’s funds and ended up in jail .

If Li Jingwei were as good as Hongtashan tobacco’s, Chu Shijian, he would be able to misappropriate the company’s funds and still had his workers’ support . Chu Shijian was sentenced to life imprisonment for misappropriation of state assets but got his sentence reduced because of his workers’ petition to the government . No one tried to help Li Jingwei after he was arrested .

Of course, Chu Shijian had the support of his workers because he had created billions of profits for Hongtashan and all his workers were able to have good lives . Li Jingwei had also helped Jianlibao achieved high gains, but his workers did not benefit from the company’s success . When Li Jingwei finally decided to give his workers some benefits, the company does not have the funds to do it . Jianlibao was already on a decline .

Another reason why Feng Yu did not try to buy out Jianlibao now was that he needs to pay at least several billions to buy out the company now . Feng Yu only need to wait for Jianlibao’s downfall, and he could buy out the company for a few hundred million RMB .


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No matter what, there was no way for Lehaha to overtake Jianlibao now unless Feng Yu used some underhand methods .

It was easy for Feng Yu to cheat Jianlibao, but he did not do it . He rather waits for its downfall and then buys them over .

Furthermore, without using those underhand methods, Feng Yu was confident that he would beat Jianlibao within 5 years!

Jianlibao’s biggest failure was not knowing how to manage and make use of its brand to increase their profits . If Feng Yu were to manage Jianlibao, he would introduce all sorts of energy drinks and carbonated drinks, like Red Bull, Mai Dong, etc . These drinks were in-line with Jianlibao’s brand image and will help the company bring in lots of profits .

But Jianlibao only has one sports drinks . They did not even introduce other favors and did not put in any efforts on marketing . They do not know the influence of TV advertising .

There was something interesting about Jianlibao too . Jianlibao was currently the brand that was stopping CocCola and Pepsi from expanding in China . But the first bottle of Jianlibao was produced using Pepsi’s production line .

That means Pepsi had helped Jianlibao in the past, but Jianlibao turned around and stopped Pepsi’s expansion in China . Pepsi was not satisfied with them . This was why when Jianlibao was down-and-out, Pepsi still targeted them .

Lehaha wanted to introduce carbonated drinks was to try to get as much market share as possible, when Jianlibao was still stopping Coco-Cola and Pepsi from expanding . Lehaha can collaborate with Jianlibao to attack Coco-Cola and Pepsi later .

Lehaha will be a newcomer for the carbonated drinks industry . But for the yogurt drinks, Lehaha was the market leader . Feng Yu wants Lehaha to introduced one of the most popular beverage in his previous life, Nutri-Express!

Nutri-Express was just yogurt drinks with some other vitamins added to it . It was not anything special, but Lehaha had hit 4 billion annual sales revenue with this beverage alone!

Bigger bottle of yogurt drinks? Zhong Qingxian was deep in thoughts and nodded . That’s right . Why didn’t I think of this before? Not only children like yogurt drinks, but adults can also drink it . This will increase the company’s profits further!

It was possible to catch up with Jianlibao within 5 years! Why can’t Lehaha be the market leader of China’s beverage industry?

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