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Chapter 1271 leapfrog strategy

Fu Song and Guo Fansheng finished breakfast together and then came to yesterday's conference room.

Yesterday’s meeting discussed the most important organizational structure adjustments, and today’s specific issues need to be discussed.

The first thing that is before everyone is the beer market research report made by Fang Jingcun at the end of last year.

"The mainland beer industry has gone through a steady development process in the 1980s. After entering the 1990s, both production, quality and variety have developed rapidly compared with the late 1970s and early 1980s..."

While everyone was flipping through the report, Fang Jingcun gave a more detailed introduction through projection.

"In terms of production, the mainland produced only 520,000 tons of beer annually in 1979. According to incomplete statistics, the annual production of beer exceeded 10 million tons last year, and it is expected to exceed 12 million tons this year, becoming the second largest beer producer after the United States.

Especially since 1987, the growth rate of beer production in mainland China has exceeded 20% annually, and market sales have also increased year by year..."

"With the purchasing power of mainland consumers increasing, the sales momentum of bulk and barrel beer will show a downward trend, and can be sold slowly. For a long time in the future, the competition for bottled beer with the largest output and the largest sales will be the most intense..."

"From the consumption season, beer has changed from summer consumption in the past to four seasons..."

"In addition to cities, the rural consumer market is also expanding year by year..."

"From the regional distribution, the areas with the most active beer consumption market are the areas around the capital, Shandong Peninsula, Yangtze River Delta, Pearl River Delta, and Sichuan. These places are first of all densely populated, and secondly have relatively developed economies..."

"From the perspective of beer brands, the brands recognized by consumers in the mainland beer market include: Qingdao Beer, bj Beer, five-star Beer, and wealthy Beer. These brands are highly well-known throughout the country;

Local beer brands including our group Mucheng Beer, Hulunbeier Beer, etc. have mostly limited their influence to the surrounding areas of origin.”

"Foreign investment is mainly Sino-foreign joint venture beer, such as Sino-German Beer, Sino-Swiss Beer, Blue Ribbon Beer and other brands, are increasingly occupying the market.

Because the world's beer industry currently has overcapacity and monopoly companies dominate, China's beer development is unique and has huge potential. International multinational beer companies cannot and dare not give up such a huge market in the mainland.

Compared with most domestic beer companies, the strength of foreign-funded beer companies is incomparable, so this is particularly worthy of vigilance.”

After talking about the current situation of the mainland beer industry, Fang Jingcun immediately summarized the problems existing in the beer industry.

"Consumption is still low, but the development potential is huge. In terms of total production, my country is already a major beer producer, second only to the United States, but per capita, each person is only a little over 10 liters, which is less than half of the world's average consumption, and far lower than developed countries.

For example, Germany consumes 148 liters per capita, Denmark 144 liters and Austria 125 liters. Even Italians who don’t like to drink beer the least can drink 28 liters of beer each year.

According to the growth trend of beer production and consumption in mainland China in recent years, we have reason to believe that in ten years, China will become the world's largest beer producer and consumer, with huge development potential."

"Secondly, beer production has not yet formed a complete industrial system. With the rapid development of over the past 10 years, the mainland beer industry has initially formed a system.

But compared with advanced countries, it is very incomplete, mainly reflected in the inconsistency of many aspects such as raw materials, equipment, production and R&D, and no one does a lot of basic work..."

"Low consumption, incomplete industrial system, low management level, low product grade, insufficient industrial coordination, these are the five major problems facing the mainland beer industry.

Some of the problems are at the national level, such as industrial coordination and incomplete system, but some problems are at the enterprise level, such as low management level and low product grade.

The existence of these problems is a challenge for a considerable number of beer companies, but it is a rare opportunity for Vision Group."

"At present, the beer market in the mainland is still a blue ocean, but there are signs that this blue ocean will not last too long, so we don't have much time left.

Therefore, here, I suggest that the group start the national strategic layout of beer as soon as possible, and urge all members of the Decision-making Committee to consider it carefully."

In fact, the reports you have introduced are more detailed, such as solutions and solutions to several problems in the domestic beer industry and the support required.

As the president of the Fast-FMCG business group, He Shaohua is the person who cares most about this issue in the decision-making committee, so he was the first to express his doubts: "Mr. Fang, I read the report that by the end of this year, beer production bases will be established in seven major regions, including Northeast China, North China, East China, Central China, South China, Northwest China, Northwest China, and Southwest China. Is this a bit big?"

Fang Jingcun said: "I just said that the beer market in the mainland is a blue ocean, but it will not be too long. Taking into account all factors, we judge that this year may be the last window for Vision Group to enter the beer industry on a large scale. Once this opportunity is missed, if you want to re-enter, you will definitely pay a few times or even greater price."

Qiao Fangling then asked: "What is the basis for you to judge that this year is the last window period?"

"In fact, some reasons have been mentioned before, such as the international beer market has been saturated, and the domestic market, as the largest emerging market in the world, strong foreign capital will definitely not miss this opportunity.

In the past decade, many foreign-funded beer companies have entered the mainland market through various means, such as Zhongce, Suntory, Fujida, Ams, Singapore Hongmao International, Singapore Brewing Investment, Hongjiang Kanazawa So, Tongsen Pacific, etc., mainly occupying the market through joint ventures and factory building.

According to the information we have collected, in the next two or three years starting this year, at least more than 60 multinational companies will enter the beer market in the mainland, including high-end brands such as Budweiser, Shengli, Carlsberg and Heineken.”

"This is foreign capital, and then domestic capital. There is already a clear news that Qingdao Beer is likely to log on to the Shanghai Stock Exchange or the Hong Kong Stock Exchange at the latest next year before the end of this year, and may also log on to two stock exchanges at the same time."

At this time, Fu Song interrupted: "Secretary Yu and Mayor Qin of Qin Island are very concerned about this matter. They have been busy since last year, so there is probably no big problem."

Fang Jingcun nodded and said, "It is said that the Qingdao Beer Factory will acquire the second, third and fourth factories. On this basis, it will be established as a joint-stock company. The strength should not be underestimated. If you successfully log in to the exchanges between the two places, it should not be difficult to raise 500 million RMB. "

Fu Song shook his head and said, "If Qingdao Beer can be listed on the Hong Kong Stock Exchange this year, it will be the first Chinese company to be listed overseas. Although the symbolic significance is far greater than the actual significance, it is an excellent gimmick and will definitely be highly sought after by capital.

Five or six billion is too conservative. I think 15 or six billion is about the same, and it is at least! How can you let others sleep soundly when you lie on the side of the bed? Think about it from the perspective of others, once Qingdao Beer has money, who will be the first to take action?"

Speaking of this, Fu Song's eyes suddenly became sharp: "We Mu Beer! I personally think that Mr. Fang's judgment is correct. This year is the last one for our Mu Beer to enter the national beer market on a large scale, and it is also the best window period. We must seize the key points of the strategic when our competitors have not reacted and cannot react."

In fact, everyone knows Fu Song's attitude. If he does not support entering the national beer market, then today's meeting will not be held at all.

Therefore, Fu Song's words had the final result, and neither He Shaohua nor Qiao Fangling expressed any objection.

Han Zesheng said: "The key is how to enter the national market. Mr. He's doubts just now are not unreasonable. The seven major regions in the country are being deployed at the same time, which poses a very big challenge to the group's finance and talent reserves."

Fang Jingcun said: "We have also considered this issue. The layout of the seven major regions will not be changed, but in each major region, we will first choose and occupy the target regional market with the greatest consumption potential and the most profitable.

The second is the regional market with great consumption potential and rich profits, and regardless of whether this market is close to the original market, then so on, the points are connected into lines, and the lines form surfaces, and finally the whole country is connected into one."

Guo Fansheng touched his chin and said, "This is a bit like MacArthur's 'jumping tactic' in the strategic counterattack stage of World War II."

Fu Song laughed and nodded: "Mr. Guo is right, Mr. Fang, I think I'll name this strategy 'Leap Strategy'."

Guo Fansheng said: "But when the Americans are engaged in this tactic, they have absolute sea and air advantages. This is the prerequisite for the implementation of the "frog jump tactic".

Without this premise, let alone the division and siege, as long as the Japanese have a few broken battles, Mai will cry to death. So, what is the sea and air advantage of our group?"

"The financial strength is strong." Feng Baoguo immediately said that he had a deep understanding of this over the years. If Fu Song had not continuously injected funds, how could the agricultural outlet develop so well?

Guo Fansheng nodded and said, "Capital drives expansion, okay, this is one."

He Shaohua said slowly: "In recent years, the group has been committed to channel construction, and in terms of horizontal channels, it basically covers major regions and cities across the country;

In vertical channels, it continues to sink, and in some developed areas along the eastern coast, the channels have been able to sink to the township level.

The ‘Frog Jump Tactic’ is not enough to occupy the strategic points of the world. The key is to divide and surround it. It is necessary to have the ability to block competitors from our market area, and to siege competitors. Both of these abilities cannot be separated from channels.

Mr. Guo just asked our group what its sea and air advantage is. I think capital is an air advantage, because it has strong mobility and is more hidden. If you take multiple measures, you can easily achieve a cloud of the sky and sun on your competitors.

And our channel is maritime advantage, continuously delivering ammunition, personnel, and battlefield information to our strategy."

The reason why He Shaohua is so familiar with the group's channels is mainly because the daily chemical business he is responsible for is easy to produce but difficult to sell, and the requirements for brands and channels are very high.

The abbreviation of daily chemical products, as the name suggests, daily chemical products are things that people can use every day and almost everyone can use, so the channel construction of the daily chemical industry must be put into effort on both horizontal breadth and vertical depth at the same time.

It can be said that in Vision Group, no one understands the importance of channels better in theory and practice than He Shaohua.

Fu Song looked at everyone and finally turned his eyes to Guo Fansheng: "Mr. Guo, what else is there?"

Guo Fansheng shook his head: "Mr. He just said very well. It is also a learning process for me, and I have no objection."

Fu Song asked again: "Where are the others?"

Qiao Fangling said: "What is the way we enter the target market? Should we invest directly in building a factory, or acquire and merge ready-made breweries?"

Fu Song looked at Fang Jingcun, and he was more curious about this question.
Chapter completed!
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