<strong>Chapter 858 – It’s the opposite</strong>


    Zhong Qingxian and Li Jingwei informed Feng Yu about the progress of dying the two cpanies, and thepanies in the alliance did not betray the.


    Actually, thepanies in the alliance also want to stop these twopanies from entering the Chinese market. The cake is only so big and there are already many beveragepaniespeting. If these two beverage giants enter thepetition, they might lose their market share.


    These two beverage giants had used this tactic to acquire domestic beveragepanies in several countries.


    The other Chinesepanies have the same thoughts as Lehaha and Jianlibao. Everyone wants to keep the market for themselves and open up new markets!


    Sessful beveragepanies like these two cpanies generate high profits annually, and the poption in China is high. If the Chinesepanies can maintain their market share, their profits will keep increasing.


    Feng Yu felt they had missed out on something as the two cpanies should not be beaten so quickly using this simple tactic. China is a massive market and they will not give up so quickly.


    Soon, Feng Yu knew what countermeasures the two cpanies used.


    Products from the two cpanies start appearing in small towns and viges. These small retail stores are the blind spots of Lehaha, Jianlibao, and the rest of thepanies.


    When Feng Yu received this piece of news, he felt unbelievable. This is the opposite of what it should be. Shouldn’t it be the two cpanies forcing other brands to sell their products outside of major cities?!


    Feng Yu frowned. Only the lowest tier distributors will supply goods to the towns and viges. The spending power of several towns and viges cannot even bepared to a major city, and the transportation and storage cost is much higher. This should not be what the two cpanies be doing!


    This is the ssic strategy of using the viges and towns to surround a city. In Feng Yu’s previous life, Lehaha and Fen Huang C used this strategy. Their products appeared inrge quantities in the viges and used a lower pricing strategy to grab market share, and their marketing strategy is using TVmercials and putting up posters everywhere in the viges.


    In Feng Yu’s previous life, the two c giants had built up their reputation and secured the sales channels in major cities. No one could pull them off the throne, and the rest of thepanies had to use other ways topete with them. Although Lehaha and Fen Huang C supplied their products only to viges and towns, they also made a few hundred million annually.


    But this strategy is used by smallerpanies against more prominentpanies. Why are the two beverage giants using this strategy? This will lower their brand’s position, putting their products on a level lower than the Chinese beverages.


    Even if the cpanies decided to do this, how did they sell their products to the viges in such a short time? Feng Yu does not believe they had established their own distribution channels. Nopanies can set up their ownwork of distribution channels so fast!


    Such things can be investigated easily, and the findings made Feng Yu frowned.


    Pepsi is cooperating with Kang Shifu, and Coca-C is working with Tong Yi. These two Taiwanesepanies had been focusing on the vige and town markets this year because they can’t win against Lehaha in the cities.


    But setting up these distribution channels requires high investment, and the spending power in the viges are not high. Until now, the Taiwanesepanies are still making losses.


    At this time, the two beverage giants approached them, seeking cooperation. These two Taiwanesepanies were kicked out of the beverage alliance and were on bad terms with thepanies in the alliance. All 4panies havemon enemies, and cooperation is not a problem.


    Also, the two Taiwanesepanies were pped with hefty fines by the local authorities recently and they hate the Chinese beveragepanies!


    Feng Yu suddenly remembered that Pepsi and Kang Shifu had worked together in his previous life. In Feng Yu’s past life, Pepsi had sold their bottling factories to Kang Shifu and even sold a new C vor form to them, in exchange for Kang Shifu producing and selling Pepsi’s products for them.


    Of course, Kang Shifu paid an astronomical amount to Pepsi in this deal.


    After they cooperated, Pepsi managed to suppress Coca-C in China and Southeast Asia. Their products’ sales overtake Coca-C, and the Chinese market bes the most profitable market for Pepsi.


    Feng Yu never expect Pepsi to do the same in this life. But this time, Pepsi’s cooperation with Kang Shifu is different. Kang Shifu had not be the leader of the tea beverage industry and do not have aprehensive distributionwork. Their brand also did not be popr in China.


    Kang Shifu had invested a lot into their own distribution channels and getting the distributing Pepsi’s products for them can help them lower their cost. More importantly, Pepsi will let Kang Shifu use their bottling factories to increase their production capacity and reduce its transportation cost.


    This is a win-win situation for bothpanies.


    Coca-C also noticed this and chose to work with Tong Yi. Their cooperation with Tong Yi is the same as Pepsi and Kang Shifu.


    In conclusion, all of them have themon enemy, the Chinese beverage alliance, and this alliance controls the pricing of beverages in China market.


    The products of thepanies in the alliance are selling at simr prices and don’t engage in price wars against each other. All thepanies in the partnerships are united against the two beverage giants and want to get them out of the Chinese market. At the same time, they also want to suppress the two Taiwanesepanies and force them to pull out from the beverage industry.


    The two beverage giants had no other choices but to do this. The viges will get wealthy in the future, and their spending power will increase eventually. Also, they are not giving up on the cities, as the two Taiwanesepanies have connections there.


    Although the two Taiwanesepanies do not have beverage distributors in the cities, they are selling instant noodles. Theirwork of distributors might not be as strong as Lehaha, but they are on the same level as Jianlibao.


    The cpanies want to make use of their connections to get back the cities’ market and at the same time, control the market of the surrounding viges. This way, they will maintain their brand awareness and will make aeback to the cities within 2 years. By that time, they will have set up their own distributionworks.


    So, the US cpanies formed an alliance with the two Taiwanesepanies and solved their sales distribution channels woes.


    This incident reminded Feng Yu and the other Chinesepanies not to look down on otherpanies. They will always find a way around the barriers.


    Zhong Qingxian and Li Jingwei were furious. It’s these two Taiwanesepanies again. Without them, Pepsi and Coca-C’s losses this year will be much higher.


    Hmph! You two started by selling instant noodles? Then Lehaha will also start selling instant noodles! In the past, Zhong Qingxian still has some hesitation about whether if they should sell instant noodles. But now, he is set on going against these Taiwanesepanies.


    You all are the ones who stick your hands into my pot. Don’t me me for snatching everything from your tes!