Extraordinary Genius Chapter 856

Extraordinary Genius

Chapter 856 - Everyone wants to cooperate

"Mr. Zhong, nice to meet you." Pepsi'sManager Zhao greeted Zhong Qingxian. He had extended his hand for a handshake,but Zhong Qingxian pretended not to see it.

Zhong Qingxian did not stand up and asked."Manager Zhao? Why are you so free to visit me?"

"Mr. Zhong, I am also from Hang Zhou likeyou. We are both from the same hometown, and I need your help." Manager Zhaosaid.

Zhong Qingxian frowned. From Hang Zhou? Howlong had it been since your return to Hang Zhou? Your accent had changed. Needmy help? The difficulties you are facing now are caused by me!

In China, there are only so few beveragedistributors in every province and Zhong Qingxian, Li Jingwei and the bosses ofother beverage companies know all of them.

Among the companies in the alliance,Lehaha's sales channels are the most comprehensive and have distributors inevery province. Their goods will be delivered immediately to the distributors forthe first moment whenever they need it.

This time, Lehaha, Jianlibao, and othercompanies added a new term in their contracts with the distributors. They werewilling to offer some benefits to the distributors, but the distributors haveto charge those non-China beverages higher prices, making sure those foreignbrands will not get any profits.

For example, Pepsi and Coca-Cola wereAmerican brands, and they can't join the Chinese Beverage Industry a.s.sociation.This is discriminating them indirectly and it is legal.

Even if the two beverage giants agree tothe harsh conditions set by the distributors, Lehaha can sue them for dumping.You are selling your product at a loss, and this is consider dumping.

The distributors thought about this andrealized cooperating with Lehaha and the alliance will bring more profits asLehaha's products were selling much better. If the two cola companies want to workwith them, they must agree to the harsh conditions, and the distributors willmake more money. Even if the two cola companies do not agree, their losses willnot be high as the sales of their products were not very good.

Also, Lehaha told the distributors that theRefres.h.i.+ng series of beverages will be introducing small gla.s.s bottle packagingand will let the distributors sell it. Smaller packaging will increase sales,and the distributors' earnings will be higher.

With so many lucrative terms, thedistributors start to make things difficult for the two cola companies. Eitheryou pay us more, or you look for another distributor.

"Manager Zhao, since we are both from thesame hometown, let me know what difficulties you are facing, and I will help ifit is within my means." Zhong Qingxian said.

Manager Zhao was overjoyed. There is asaying that Zhejiang's businessmen are the most united, and coming from thesame hometown seems to be effective.

"Mr. Zhong, we have a few bottlingfactories, and your company needs it. We can cooperate and we will help you allproduct your products, in return, you can help us contact the distributors inyour sales channels." Manager Zhao said.

Zhong Qingxian rubbed his temples with atroubled look. "Ah… I can't make the decision on this… Manager Zhao, do youhave anything else?"

Manager Zhao's face changed. d.a.m.n! You justsaid you will help me and you are rejecting me now?!

"Mr. Zhong, why can't you make the decisionon this? Lehaha's sales channels are the best in China."

"Sigh… You cannot say this. We are also usingdistributors to sell our products. How about this? I will give you a list ofdistributors, and you can contact them yourself."

Manager Zhao cursed in his heart. What'sthe use of giving me a list of distributors? I also have their contacts! What Iwant are reasonable terms!

"Mr. Zhong, our Pepsi, is very familiarwith Coca-Cola sales strategies. We can cooperate against Coca-Cola and in thefuture, we can control the carbonated drinks market. You all can take thebigger share and we don't mind having a smaller market share. As for Coca-cola,we will force them out of the Chinese market." Manager Zhao said.

Pepsi and Coca-Cola were long-time rivals,and Coca-Cola had been trying to suppress Pepsi in every market.

Coca-Cola had entered the Chinese marketearlier than Pepsi, but its sales were not doing well and their brand awarenesswas not high. But after Pepsi enters the Chinese market, Coca-Cola increased itspromotion to try to take over this ma.s.sive market.

But the Chinese still prefer Jianlibao whenit comes to fizzy drinks, and they felt Cola tastes weird. After a few years ofhard work, the cola companies successfully groomed a group of consumers wholikes their products, but Lehaha also introduced Cola flavor drinks.

The two beverage giants were speechlesswhen they realized Lehaha, a newcomer, caught up with them, and their productswere selling better than them!

No matter what the two cola companies did,they could not control the Chinese market, and their production cost, transportationcost, sales channels, brand awareness, marketing, etc. had lost to Lehaha.

In terms of scale, Lehaha cannot becompared with the cola companies. But the cola companies' headquarters were notwilling to provide funds to their China offices. Without funds, how are theygoing to market their products? Finally, their headquarters issued a sum ofmoney for their marketing budget, and they thought their days will change forthe better. However, the distributors start to join forces to make thingsdifficult for them!

Manager Zhao thought about the situationand knew it is useless to cooperate with Coca-Cola. They must work with adomestic company to penetrate the market. Pepsi had used this strategy whenthey enter Europe.

It is difficult for an overseas power todeal with the local forces, and it is wiser to cooperate with the local forces.

Zhong Qingxian hesitated for a moment afterhe heard what Manager Zhao said. "Hmmm… I need to discuss with the rest beforeI can give you an answer."

"Mr. Zhong, we, Pepsi, is very sincere inthis cooperation. I will be waiting for your good news."

Within half an hour after Manager Zhaoleft, Coca-Cola's China person-in-charge arrived at Lehaha. What he said wasthe same as Manager Zhao. Coca-Cola is willing to cooperate with Lehaha againstPepsi.

But the representative from Coca-Cola isvery arrogant, unlike Manager Zhao. He refuses to recognize Lehaha as China'sbeverage industry leader and only say they will share the Chinese market.

Zhong Qingxian had made up his mind. IfLehaha is going to cooperate with either of them, he will choose Pepsi. Sharethe market? This is China, and no matter how strong Coca-Cola is in the rest ofthe world, Lehaha is still the market leader here!

Of course, Zhong Qingxian wanted theChinese market all to himself, and it would be best if the two cola companiespull out of the Chinese market. But he knows this is impossible. China's marketis too big, and there will still be distributors who are willing to work with them.They can also help some small distributors to grow.

But it is costly and will take a long timebefore the cola companies can establish their own distribution channels. Baseon their current sales volume, the cola companies, will suffer ma.s.sive lossesif they did this.

Zhong Qingxian could not decide whether ifthey should cooperate with either of the companies, and in the end, he picks upthe phone to call Feng Yu.

Translator's notes:

Dumping (pricing policy)

https://en.wikipedia.org/wiki/Dumping_(pricing_policy)