Reborn with a Cell Phone 2007

In the Chinese beverage market, Hongyan Cola was once one of the most representative domestic beverages. In 1988, at its peak, Hongyan Cola's annual output value exceeded 3 million yuan.

In 1990, Hongyan Cola was launched in the New York market. With its unique exotic taste, it quickly became popular throughout New York and a sales company was established in the World Trade Center. It represents the rise of national brands after the reform and opening up, and also represents the country's ardent expectations for national industry.

At that time, everyone thought it was the starting point of Hongyan Cola, but it actually became the pinnacle of the entire national brand.

Why did China's national brands disappear during the 30 years of the fastest economic growth?

How did more than 6 domestic brands lose to foreign brands? Hongyan Cola is the best example.

In June 1992, the state issued the "Decision on Accelerating the Development of the Tertiary Industry", which relaxed restrictions on foreign investment in the commodity circulation sector and allowed foreign investment to enter the Chinese market in the form of joint ventures and cooperative enterprises. As a result, a vigorous wave of joint ventures swept in.

The acquisition of many domestic brands by foreign capital was an irresistible trend back then.

On the one hand, foreign capital has more advanced management systems and production experience. Not accepting foreign capital means being crushed by brands that accept joint ventures.

On the other hand, foreign capital offered too much. Any foreign company would pay out tens of millions of dollars, and did not even seek absolute control of 51%. In that era, few places and companies could resist such temptation.

But no one expected that foreign capital would quickly turn against China after obtaining the qualification to enter the Chinese market through joint ventures. Coupled with the fact that domestic companies had little understanding of brand and management concepts, the foreign capital that was originally intended to accelerate the development of my country's commodity market ended up becoming a glutton that crazily devoured domestic products.

Not all domestic brands can "peacefully break up" with foreign capital like Wow Hehe. Wow Hehe is a case of a domestic brand successfully escaping from the joint venture trap, but more domestic brands do not have the decisiveness and good luck of Wow Hehe, and like Hongyan Cola, they are hidden in the tide of the times.

In 1994, Baishi and Hongyan formed a joint venture. In the joint venture agreement between the two parties, Baishi and Hongyan agreed that the future production of Hongyan Cola would not be less than 50% of the production of the joint venture. However, Baishi actually only abided by the agreement in the first year after taking over the company, with the production ratio reaching 74%, which dropped sharply to 25% in the second year.

Baishi's cooperation with Hongyan was more about coveting the sales channels in the hands of domestic brands. Hongyan had a weak awareness of so-called patents, trademarks, and brands. At the beginning of the joint venture, it agreed to Baishi's request to transfer its trademarks and product production formula patents to the joint venture. This resulted in Hongyan losing the production rights of its original products after losing control of the joint venture.

By 1996, the once popular Red Rock Cola suddenly disappeared, and was replaced by Bai's.

Foreign capital has used the same method to swallow up many old domestic brands. The old domestic brands that can be seen today have actually died once, and they can still be seen because the reason they were able to restart after the cooperation authorization between the brand and foreign capital expired.

After the restart, the previous sales channels and markets were no longer there, and the outdated production line made the brand lose its market competitiveness. It could only be sold in small towns to survive. Without sales, there would be no profits, and no funds to upgrade product production lines, thus continuing a vicious cycle.

Ji Shumiao stood in front of the gate of Hongyan Cola Factory, opened the folding fan in his hand with a "swish" sound and waved it - if he couldn't stay at the peak, then he would go back to the way he came.

Zhou Hui, who was behind him, was speechless and asked the same question he had been asking all the way: "Why do you want me to accompany you on your business trip?!"

This time Ji Shumiao finally answered him and tapped him with the corner of his folding fan: "I'm not asking you to accompany me, I'm asking you to learn."

Ji Shumiao adheres to the principle that one must leave a name for good deeds, and knows that when doing favors for others, one should not do it through others, lest his good reputation be used to benefit others. Therefore, this month he began to travel to various cities to look for old domestic products that are in urgent need of rescue.

Let Zhou Hui learn well, and then you can let him go on business trips to the factories of major domestic brands.

Ji Shumiao waved his small fan, looking very romantic and suave: "Let's go, I'll take you to be the savior."

Three days later, the Shimian Live Broadcast Room launched a special live broadcast of "Hongyan Cola", which played the sentimental card and made Hongyan Cola sweep the country overnight. "Drink Hongyan Cola and enjoy a happy childhood" became a popular advertising slogan.

Half a month later, because Hongyan Cola became famous again, Hongyan Cola appeared in many shopping malls.

A month later, Hongyan Cola was finally able to put the production line upgrade plan on the agenda.