In the Chengdu Commercial Building, Chu Tianyao had just arrived at the office and found that the people sitting in the office area seemed to be particularly relaxed.
"How is this going?"
Chu Tianyao turned his eyes and looked at Du Guoying, who looked dejected.
"Mr. Chu, you are right. The number of dealers who have canceled cooperation with us is increasing this month, and it has exceeded 50%."
Although he didn't want to, Du Guoying told Chu Tianyao the bad news early in the morning.
The loss of dealers was faster than he imagined.
"What about the retail channels we have opened up?"
Most of the Chengdu offices are only responsible for business in Chengdu and surrounding areas. Logically speaking, they will not be affected too much. Chu Tianyao was startled and asked.
"There are orders from major supermarkets, but the volume of purchases has obviously become smaller. Especially in the Baile shopping mall, the order volume has been reduced by half."
Hearing Du Guoying's words, Chu Tianyao frowned slightly.
It was agreed to cooperate with Lu Liqiang before, but now the purchase volume has been suddenly reduced, which has to make people suspicious.
"It's not just the Baile Shopping Mall. As those foreign brands enter the market, it has a huge impact on us. Now many supermarkets tend to choose foreign beers, and the market for those foreign brands seems to be pretty good."
Du Guoying said, reached out and took out a newspaper and handed it to Chu Tianyao.
The newspaper was from two days ago. When Chu Tianyao looked up, he found an eye-catching headline.
“Foreign beer has flowed into the domestic market, and consumption enthusiasm has been unprecedentedly high!”
Under this line of bold and bold headlines, a densely packed report of several hundred words was written, which introduced the influx of foreign capital into the domestic beer market in the past two years.
Led by Carlsberg and Budweiser, as well as Le Cordon Bleu and Baker's, two major foreign beer companies, they have built factories in China through acquisitions or joint ventures.
San Miguel Beer from the port city is not idle either, and has entered Yangcheng in a big way, intending to open up the beer market in the southern part of the mainland.
There are Harbin Beer, China Resources and Yanjing in the north, Shengli and many foreign-funded breweries in the south, and there are many established enterprises in the east and west. The entire domestic beer industry situation seems to have undergone tremendous changes overnight.
"It's really abominable. These foreign devils do marketing at all costs and even give large-scale profits to dealers. Aren't they just here to make money from us Chinese people?"
In the office, Du Guoying was filled with indignation.
Chu Tianyao took the newspaper and walked into his office.
Everything came earlier than he imagined, but the specific situation has not changed. It is inevitable that foreign investment will enter the domestic beer market, but Chu Tianyao is not worried about this.
It has been a year or two since foreign capital has been unable to adapt to the domestic climate. This time it is unwilling to make a comeback, and it is probably just a flash in the pan.
However, how to survive this period of fierce competition is what Chu Tianyao needs to consider most.
Of course, the one who should be worried most right now is not Chu Tianyao, but the major domestic manufacturers led by Tsingtao Beer.
…
Rongcheng, Tsingtao Beer Branch.
Wang Zhongda looked at the market report sent by his subordinates, and his face looked a little unhappy.
"What do these foreign devils want to do? Want to spend money and fight with us as soon as they come?"
Throwing the report in his hand on the table, Wang Zhongda said angrily.
He was really irritated by the money-burning marketing methods of these foreign investors. Although there were many large domestic breweries, compared with these foreign investors with strong capital, they were still far behind.
Take Carlsberg, for example. This is the fourth largest brewing group in the world. It was established as early as 150 years ago, 50 years earlier than Coca-Cola. In terms of capital, it is even the largest domestic brewery combined.
It's not even enough for other people's net worth.
As early as 1978, Carlsberg built a factory in the port city and sold it to the mainland through customs. In 1992, it directly spent money to build the first Carlsberg brewery in the mainland in Guangdong Province. However, the company's senior executives at that time were Hong Kong people who were proficient in Cantonese and English.
As a city citizen, the decision-making power also lies in the Hong Kong City headquarters. Decision-making lags behind. As a result, although Carlsberg entered the mainland market first in the past two years, its reputation has always been low.
Until recently, when major foreign capital poured into the Chinese market, Carlsberg was unwilling to lag behind and successively invested heavily in acquiring breweries in Huizhou and other places, even spending money on advertising and wooing dealers.
Such a simple and crude marketing method has allowed Carlsberg's beer to not only spread throughout Guangdong Province and other southern regions, but has even gradually been dumped into the southwest region.
The first and most affected ones are naturally several leading beer companies in the southwest.
"Yanjing is making large-scale acquisitions in the north in an attempt to dominate the central region, while China Resources is building factories along the Yangtze River and implementing local distribution. Now the headquarters is under great pressure, so it is even more important for us to open up the southwest market."
In the general manager's office, Wang Zhongda said in a deep voice. Several senior company officials standing in front of him were also feeling stressed.
In the southwest region, there is not only the invasion of foreign brands, but also the competitive pressure from the two major local brands, Lanjian and Shancheng.
It is said that a strong dragon cannot defeat local snakes. Lan Jian and Shancheng took the lead in lowering the advance payment this time, but they managed to win over many dealers in a short period of time, and their market share surged in a short period of time.
"Mr. Wang, let me tell you that we will also lower the dealer's advance payment and fight a tough battle with Lan Jian and Shancheng. In terms of funds, we are not necessarily less than them."
In the office, someone suddenly suggested to Wang Zhongda.
As soon as these words came out, Wang Zhongda frowned.
It is not that he has not considered this. Since Tsingtao Beer went public, the head office has abundant cash flow. Even if they reduce dealers' advance payments, they can survive longer than Lanjian and Shancheng.
But the consequences of doing so also made Wang Zhongda feel a little worried.
That is, although the product is sold, what should I do with the large amount of balance accumulated?
You know, even those outstanding balances are not easy to recover in normal times, not to mention that now the advance payment has been reduced, which will inevitably cause a large backlog of balances, which is also a lot of pressure for those dealers.
What major beer companies do is not to give them more leverage, but to blindly purchase and accumulate goods. Once the market suffers a setback, the risks that dealers will have to bear are not small.
If there was a thunderstorm, Wang Zhongda could not even imagine the consequences.
"Mr. Wang, we really have no choice. What everyone is fighting for now is the amount of funds. The failure of any company is an opportunity for us."
In front of Wang Zhongda, several people suggested again.
At present, the domestic beer market is nothing more than a game of big fish eating small fish. Advance payments are constantly being reduced. The first thing that cannot bear it are the second and third tier beer companies.
Once they collapse, the resulting market vacancy will be instantly swallowed up by other major manufacturers.
Wang Zhongda couldn't see this truth clearly. Although he was worried, but there was no better way at the moment, he could only choose to agree and join this beer war.