The strategic expansion of the revival of dairy industry
-
Last Update: 2001-12-07
-
Source: Internet
-
Author: User
Search more information of high quality chemicals, good prices and reliable suppliers, visit
www.echemi.com
Introduction: on December 5, 2001, Shanghai Guangming Dairy Co., Ltd officially started construction of a new factory with an investment of more than 100 million yuan in Shunyi Industrial Development Zone, Beijing, which is another significant move of Guangming after its investment in Beijing in January 1999 Since then, the three domestic dairy giants "Guangming", "Sanyuan" and "Yili" have gathered in the capital respectively, marking that after China's accession to the WTO, a new battle of dairy industry is about to start Wang Jiafen, general manager of Guangming dairy, said frankly that since Guangming entered the Beijing market for three years, its annual growth rate has reached 100%, and its market recognition rate has exceeded 90% Further expansion is not only the promotion of the market, but also a part of the company's plan of "one bright China" In fact, Yili, from Inner Mongolia, built a factory in Miyun, Beijing a year ago Relying on the continuous "blood supply" of the capital market, it is ready to fight a "long-term war"; as a local enterprise, Sanyuan, after years of consolidation, combined with the ambition of annexing Kraft, is more leisurely Now, like the past three Yuan period of Beijing and Guangming reign in Shanghai, Yili's pattern of collecting and supplementing remains in China no longer exists When Anh studies carefully, it is the temptation of the rapid growth of the dairy market and the threat of foreign investment to stimulate the expansion of domestic dairy giants For the market situation that the output of fresh milk last year was 10.82 million tons, an increase of 34% over the previous year, Chen Xin, a dairy expert from Shanghai Agricultural Committee, said vividly, "according to the national population of 1.3 billion, the annual per capita consumption of milk is less than 8 kg, and the daily consumption of each person is equivalent to that of two bottles of eyedrops." For the domestic and foreign dairy industry, the most exciting is the national "student drinking milk plan" which is being implemented If the plan of "more than 200 million primary and secondary school students in the next two to three years each person drinking no less than 200 ml of dairy products per day" can be realized, the output of more than 10 million tons in the country still can not meet the consumption demand of half of the students Such a huge potential, naturally, also makes foreign businessmen heartache At present, there are 45 dairy enterprises with foreign investment in China, and all the top 20 dairy brands in the world have come to China to build factories In the face of the fierce attack of foreign businessmen with capital, technology and brand, the domestic giants have already made a decision A sound marketing system is their biggest magic weapon to win Even when visiting Beijing, Wang Jiafen, general manager of Guangming dairy, made no secret of the idea of "to be the first in the capital" It is not difficult to see Guangming's ambition of striving to be the overlord of China's dairy industry and to be one of the top ten dairy companies in the world " Wang Jiafen said that since foreign businessmen can go abroad to compete for the Chinese market, there is no reason for domestic dairy enterprises to be caged in the local market Sending heavy troops in Beijing is just a part of the bright all-round expansion Mr Zheng Dazheng, chief researcher of Bright Dairy, explained from the perspective of brand expansion, "no matter holding shares, participating shares, franchising, licensing processing, or even pure capital investment, as long as it is conducive to bright development, it can cooperate." It's not hard to understand why Guangming absorbed 5% of Danone's shares Danone also left all its dairy enterprises in southern China to Guangming This is enough to make Wang Jiafen feel "dancing with Wolves" relaxed and comfortable compared with the collective resignation of the five founding fathers of the company recently due to their different opinions with Danone, a major shareholder At present, the tentacles of Guangming products have been extended to 29 provinces and autonomous regions except Shanghai The sales of these regions account for 45% of the total sales of Guangming Guangming has completed the basic strategic layout of the national market, and formed the tentacles in the important milk consumption areas of Beijing Tianjin, the Yangtze River Delta and the Pearl River Delta Anh has become the consensus of dairy enterprises In order to consolidate the existing marketing network, the domestic dairy giants, without exception, regard the construction of milk source base as the focus of a new round of strategic expansion In addition to Yili's acquisition of milk sources through the establishment or merger of a batch of dairy factories in Heilongjiang and other places, Yili also adopts the strategy of "company + farmer" to obtain milk sources Accordingly, Guangming, Sanlu and Sanyuan all adopt this form to expand milk sources in many areas Guangming and Sanyuan even plan to establish their own milk source bases in Australia, and Guangming proposes to "manage the production of cattle." The concept that management ability becomes technology and service patent reflects its far-reaching strategic vision In order to block pamarat, which is about to settle in Guangzhou, Guangming is going to establish its own milk station in Guangzhou, which will be a confirmation that domestic dairy enterprises have taken the lead in milk source Anh industry experts predict that five years later, the country's 1500 dairy enterprises may only have about 10 left In order to compete for the position of "overlord" in the future dairy industry, a new fight will be more intense in both depth and breadth Anh
This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only.
This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of
the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed
description of the concern or complaint, to
service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content
will be removed immediately.