On China's Soft Drink Market Investment and Prospects

From 2006 to 2010, China's soft drinks have maintained a steady development trend, and the compound annual growth rate of annual sales revenue has reached 22.83%. Among them, carbonated beverages, bottled drinking water, fruit and vegetable juice and fruit and vegetable juice beverages, milk-containing beverages and plant protein drinks The compound growth rates of sales revenue of solid beverages, solid beverages, tea beverages and other soft drinks were 13.76%, 21.24%, 25.90%, 35.25%, 18.10% and 30.28%, respectively. The data show that over the past five years, soft drink sub-sectors have achieved remarkable results. The three soft drink segments, including milk beverages and plant protein beverages, tea beverages and other soft drinks, fruit and vegetable juices and fruit and vegetable juice beverages, have developed rapidly. Ranked the top three in the industry. In 2011, the total market size of China's soft drinks industry (total sales revenue) will reach 408 billion yuan, and the total industry scale in 2015 will reach 872 billion yuan.

From the point of view of the industry life cycle, with the improvement of people's living standards and spending power, the beverage industry has entered a period of rapid development, products are recognized by the public, and the market demand is large. At present, there are more powerful competitors in the soft drinks market, with a wide range of products.

The beverage industry is an eternal sunrise industry, but the industry's average competition threshold has become higher and higher. The domestic beverage industry is based on a huge market and has great room for growth. In recent years, the growth rate of the output value of the beverage industry has exceeded the growth rate of GNP. The good development prospects, coupled with the high degree of marketization of the entire industry, have attracted international beverage giants to enter, and the competition is fierce. In summary, the basic competition rules of the beverage industry are:

First, the industry average competition threshold has increased. The competition in the beverage industry is already on a new platform. It is a game between giants (including Coca-Cola, Pepsi, Danone, Taiwanese, and Native). A variety of elements and overall strength competition. Resource conditions, R&D capabilities, manufacturing bases, marketing levels, etc., "One can't be worse." Non-bigger investment, generous, and high starting point can not gain advantages.

Second, the marginal utility of advertising has diminished. The "strong bang" method of advertising has not applied to the market. On the one hand, it is because as the price goes down, the resources used by companies for advertising are limited; on the other hand, consumers are somewhat numb in advertisement bombardment and tend to be rational. How to maintain brand image and promote brand value with new operating methods is the main challenge for each company's marketing. In the future, the breakthrough in brand operation and marketing will focus more on the depth and integration of communication. In the form of events, marketing events that will be more direct, interactive, and integrated into consumer life will become the mainstream.

Third, the competitive position of the product itself has increased.

Fourth, the person who gets the terminal is the world. Controlling the terminal and improving the terminal's competitiveness (indicated in the distribution rate, the main push rate and other indicators as well as terminal services, promotion capabilities, etc.) are the basic tactics of various companies. The advantages of marketing have shifted from brand operation to channel model, structure and channel management. Channel resources, especially terminal resources, have become the focus of competition among various companies.

Fifth, prices will be the focus of competition for a long time. Different brands have different levels of price competition. For example, Coke products and bottled aquatic products are almost at the bottom because of homogenous and intensive distribution of products, while tea, milk, juices and other categories are still unstable because of the competitive structure. It is still a weapon to change the industry structure.