Market competition is cruel, and every enterprise participating in competitive games wants to dominate the world by itself, but it backfires. In many industries, shuffling has always evolved into a game between several giants. On the other hand, because of the existence of competitors, every game company dare not slack off and dare not make big cakes in * * *. "The rest of my life, how can I have a good life?" can only be a temporary lament of the ancients. Modern enlightened entrepreneurs such as Coca-Cola are grateful to their decades-old rival Pepsi. I wonder if the heads of Kerry and COFCO have the same idea. All right, now let the wheel of history go back. Let's review the growth history of the two giants in China's small package edible oil industry and their various practical cases in recent years.
Arowana: Hidden dragon comes out of the water
In the 1980s, when people ate oil, they all went to the grain store with empty bottles to buy one catty of soybean oil or two catties of rapeseed oil. More than a decade ago, few people dared to imagine what market small package oil would have in China. With the rapid development of domestic economy, a large number of food enterprises have been launched, coupled with the improvement of people's living standards, domestic oil sources have begun to fail to meet the needs of residents' consumption. At present, there is no small-package edible oil in China, and the market is full of bulk edible oil with many impurities, large lampblack and unsafe hygiene, while the market of small-package edible oil that meets international hygiene standards is still blank. At first, the main products entering the China market were refined oil, such as palm oil, rapeseed oil, soybean oil and blended oil. , mainly packed in bulk oil or190kg iron drum.
At the end of 1980s, the Kwok Brothers Group, a well-known Asian multinational company that made a fortune in Malaysia, thought that there would be a huge market for small packaged oil in China by investigating the domestic and foreign markets, and finally made up its mind to set up Nanhai Oil Industry (Chiwan) Co., Ltd. on 1990, and began to produce the first batch of small packaged edible oil in China. The first brand launched was Arowana. Subsequently, the Guo Brothers Group unified the national edible oil enterprises under the banner of Kerry Cereals and Oils (China) Co., Ltd., and Kerry Cereals and Oils became the first enterprise in China to launch small package edible oil.
In the early 1990s, people in China were unfamiliar with small package edible oil, mainly because of its high price. In the early days, Kerry Grain and Oil patiently passed the inefficient stage for several years with the mentality of cultivating the market. We have to admit that Kerry has played an important role in the construction of small package edible oil market in China. Finally, it opened the pockets of Chinese people and made small packages of edible oil accepted by Chinese people. Kerry's method is actually very simple. Small package edible oil is solved by group purchase in the form of unit welfare, which is the so-called "welfare oil law" to open the market gap.
Now everyone thinks normal marketing methods, but 10 years ago, it was not easy to be thought of. In 1990, it is very difficult to change people's living habits in the face of the fact that there are almost no small packages of edible oil in the market. At that time, Li, general manager of Kerry Cereals and Oils, submitted a report to the board of directors: he planned to invest 20 million yuan in three years to open the door of China small package edible oil market. After one year, the sales volume reached 3000 tons. Through thinking and investigation, they found that all enterprises and institutions in China have the habit of distributing "welfare" products on holidays, which is the characteristic of China, and it is this characteristic that makes small package edible oil popular. Kerry Cereals and Oils opened the curtain of China small package edible oil market. They are the manufacturers of the industry and have been the leaders of this industry for more than ten years in the actual market.
Fulinmen: the tiger goes down the mountain
According to the survey data released by the Ministry of Internal Trade, Arowana edible oil brand 10, a subsidiary of Kerry Grain and Oil, has been the first brand in small package edible oil industry with absolute advantage for 0 years, and its market share exceeds the sum of the second to tenth places. Among the top ten edible oil brands in China, Kerry's brand occupies three positions, and there is an increasing trend. From 1994, in the annual survey of consumer goods in major cities in China, the brand awareness of Arowana is five times higher than that of the second-ranked competitive brand; It is the best brand in consumers' minds, and Arowana is 8 times higher than the second-ranked competitive brand. Only Arowana, Hu Jihua and Carp, the three Kerry grain and oil brands, sold more than the sum of other brands in the top ten brands. If the sales of other 13 brands are added, Kerry grain and oil accounts for almost half of the small package edible oil market in China.
It was not until 1995 that Fulinmen, a subsidiary of COFCO, was born that this oligopoly situation was broken. At the end of 200 1, after COFCO sold all its shares in Arowana, showstopper really appeared in China small package edible oil market, which also marked that China small package edible oil market entered the era of dragon and tiger hegemony.
Only half a year later, COFCO broke the news again. On May 17, 2002, another important grain and oil processing enterprise under COFCO officially put into production, mainly producing "Fulinmen" series edible oil and "Hayes" brand soybean meal. This project is the "bridgehead" for Fulinmen to explore the southwest market and the surrounding markets in Southeast Asia in the future. In addition to Liu Fuchun, President of COFCO, guests attending the ceremony included Allen Andrias, Chairman of the Board of Directors of ADM Company of the United States, and Guo Kongfeng, President of Scotiabank Company.
Dahai Cereals and Oils Industry (Fangchenggang) Co., Ltd. is jointly invested by two global top 500 enterprises-COFCO, ADM Company of the United States and Fengyi Company of Singapore, with a total investment of 50 million US dollars and a daily processing capacity of 3,600 tons of soybeans, with COFCO accounting for 40% of the shares.
Liu Fuchun, president of COFCO, stressed that Dahai Cereals and Oils is the "bridgehead" for COFCO to explore the southwest and southeast Asian markets in the future, and it is also a new force in the oil business of COFCO. This time, the combination of strong forces and clever land occupation has created enough sea grain and oil to cause the industry to shake. To this end, COFCO proudly declared that "it will take three years to make' Fulinmen' the first brand of edible oil in China!" Since then, a tiger roared out of the mountain in China edible oil market.
At present, the number of edible oil production bases invested and controlled by COFCO's oil business has increased from 4 to 5, with a total investment of over 2 billion yuan, all of which are owned by Fulinmen Company. The other four carriers of COFCO Oil Industry are Donghai Grain and Oil, located in Zhangjiagang; Yellow sea grain and oil, located in Rizhao, Shandong; Beihai Grain and Oil, located in Tianjin; And Dongzhou Grain and Oil located in Zengcheng, Guangdong. Most of these oil plants are located in coastal areas, forming a reasonable industrial layout based on developed coastal areas and radiating Chinese mainland.
Such a layout, in terms of product sales, coastal areas have relatively developed economies and strong purchasing power of residents, and are the main consumption areas of refined edible oil; From the aspect of raw material supply, it is convenient to use the convenient transportation conditions of the port and adopt the strategy of centralized procurement in large quantities and separate digestion. More than 50,000 tons of raw materials are often purchased at one time, transported by big ships and unloaded in several oil plants from north to south, which greatly reduces the cost of raw materials.
In the edible oil market, the price war is always breaking out, and it is difficult to gain a foothold without cost advantage. At present, five edible oil producers under COFCO have the largest oil production line in Asia, with a total daily processing capacity of 1000 tons, of which "Donghai" grain and oil has become the third largest oil plant in the world with a daily oil extraction capacity of 5,800 tons. COFCO hopes to continue to attack by virtue of the cost advantage generated by scale.
After COFCO sold all its shares in Arowana for HK$ 380 million, we noticed that COFCO strengthened its control over its rival Laiyang Lu Hua. Laiyang Lu Hua is a rising star in China small package edible oil market in recent years. After several years' efforts, it has ranked among the top three edible oils in China, and occupied a place in the First Army with a market share of nearly 9%. COFCO owns shares in Lu Hua, and it wants to achieve two purposes. One is to control the excessive growth of Lu Hua, so as not to pose a strong threat to itself. More importantly, it wants to unite Lu Hua against Arowana.
Facing Kerry's huge dealer network of more than 600 dealers from south to north all over the country, COFCO further improved its sales network and increased its marketing efforts. At the end of 2000, Shanghai Fulinmen Food Co., Ltd., a subsidiary of COFCO, was established to strengthen the brand promotion and product marketing of Fulinmen. In order to further explore the market, Fulinmen first divided the whole country into 1 1 regions, including five regions in the north and six regions in the south, and established a huge marketing network covering all parts of the country and facilitating classified management. At the same time, according to the different characteristics of each region, direct sales, semi-direct sales and semi-distribution methods are adopted respectively.
Events cast a shadow in front of them. Although there is still a certain gap between Fulinmen and Arowana, we have already felt the determination and strength of Fulinmen to be the boss from COFCO's actions, and Long Hudou's drama is yet to come.
COFCO Long Hudou Kerry
At that time, when Kerry led the small package edible oil market in China, I think he must be very lonely at that time. Masters without rivals are often lonely, so that the ancients will feel narcissistic.
What breaks Kerry's loneliness is COFCO and its brands such as Fulinmen (corresponding to Arowana) and Lu Hua (corresponding to Hu Jihua). Due to the appearance of ring spoilers, the small package edible oil market in China has undergone earth-shaking changes in recent years. The two competitors launched a series of confrontations and competitions in terms of brand, variety and price, and staged round after round of wonderful Long Hudou.
Brand war
Arowana was first introduced to the market by Kerry Corps and eventually became the flagship brand of Kerry edible oil. Later, Kerry successively launched the 16 brand in China market! Among them, carp, silver ingot, Hu Jihua, Xiangmanyuan, Citigroup, handprint, skillful chef, etc. This multi-brand strategy is rare in China enterprises, and P&G is perhaps the best example in the world.
When launching the brand Arowana, Kerry was carefully considered. Because edible oil is a fast-moving consumer product and a daily commodity consumed by ordinary people, an affinity brand is of great help to product sales and corporate image. After excluding several candidate names, Kerry chose Arowana. Arowana is a rich ornamental fish, which symbolizes luck and nobility and has a strong brand association. Over the past ten years, market practice has proved that this is a rare good name.
In the outer packaging design, Arowana emphasizes exquisiteness, affinity and high-grade, and designs the packaging pattern of bottle stickers to be extremely exquisite. The colors are red and yellow, and the taste is even the most suitable Luzhou-flavor for China people. These positioning make the small packaging oil of Arowana have strong China characteristics from the beginning, so it was quickly accepted by the people in China.
Different from P&G's multi-brand strategy, the functional orientation of P&G shampoo products is different, that is to say, there is no direct and violent conflict between Rejoice and Head & Shoulders, while Kerry's brand does not. The thinking of Kerry's decision-makers is that instead of waiting for competitors to compete for the market with themselves, it is better to set up competitors first, and set up different branch brands at different levels, from high to low, and on different varieties according to market demand to curb the development of competitors.
For example, Arowana peanut oil competes directly with Hu Jihua peanut oil. Kerry explained that Arowana is a comprehensive brand (with various types of oil products), while Hu Jihua is a professional peanut oil brand. This angle of division is novel and unique, which is worth learning from China enterprises.
Fulinmen brand is also playing festive cards. Literally, it means happiness. For China, which has a 5,000-year-old culture, winning a good impression is the best auspicious language, which is easier to generate affinity than anything else.
Different from Jialiduo's brand strategy, COFCO is good at one industry, working hard on the brand of Fulinmen, and has not built a new brand on a large scale. In terms of strength, COFCO is one of the world's top 500 enterprises with abundant capital, so it should not be a problem to develop new brands, which may be related to the different brand views of COFCO leaders and Kerry.
Another brand that COFCO can get its hands on is Lu Hua. From 65438 to 0998, with the overwhelming advertisements, the concept of "Lu Hua peanut oil triggered China edible oil revolution" spread rapidly, and the unique advertising strategy almost made Lu Hua popular overnight. It wasn't long before Lu Hua jumped into the top ten cooking oil stars in China.
Kerry used to promote Xiangmanyuan as a sub-brand in the past, but in recent years, it has strengthened the forging of Hu Jihua brand. This year, besides Arowana, Hu Jihua also appeared on CCTV. COFCO is tit for tat. Facing the huge peanut oil market, it launched Lu Hua peanut oil, expecting to continue to expand the share of Lu Hua peanut oil in the peanut oil market. Therefore, during the Mid-Autumn Festival this year, we saw the situation of Arowana to wealth and Hu Jihua to Lu Hua.
price war
Commercial wars in China have occurred in many industries. Behind every price war is a round of market reshuffle, and some small and medium-sized enterprises are wiped out in a round of price war. The price war has undoubtedly raised the threshold for entering the industry and suppressed some enterprises whose quality brands are not competitive in the market. In the end, the result of price war is often an oligopoly game between several winners.
In order to seize the market, since the Mid-Autumn Festival last year, the edible oil market has staged a price war. At the beginning of the year, 5 liters/barrel of salad oil fell below the 30 yuan mark, and now it only costs 256 yuan. The result of competition is that the market is concentrated in large enterprises and superior brands. According to the statistics in March 2002, the market share of the top 10 edible oil brands reached 77.44%, and the small packaged oil also made a market of/kloc-0.5 billion yuan in the competition.
The price of edible oil in Shanghai market has always been a sensitive point in China edible oil market. During the Mid-Autumn Festival this year, the newly listed Arowana 2.5-liter second-generation blended oil was sold in 23 yuan, but the price was 22.5 yuan after the discount; The original price of Nissin 2.7 liters of edible oil is 36.40 yuan, but the actual price is only 20.60 yuan; Products of brands such as Sea Lion, Wang Tiantian and Hongguang have also been reduced in price to varying degrees. A dealer said, "A year ago, Arowana's 5 liters of blended oil sold for more than 50 yuan. Now it only needs 30 yuan." Behind this secret price competition is the increasingly fierce edible oil industry.
Regarding the price war, Ma Lishan, general manager of Shanghai Fulinmen Food Co., Ltd. once had this view: "Some people look down on the oil industry and say that it is really not wonderful to drop one or two yuan each time-he doesn't know that this is a' capital-playing' industry, and a drop of one or two yuan means hundreds of millions of profits. How many people can afford to play for a few years? After the chaos, there will be rectification. As long as the most difficult period lasts for one or two years, sunny days will come. "
Let's take a look at Kerry's views on price wars. Chen Bo, vice president of Shenzhen Kerry Grain and Oil Commercial Development Company, said: "In the view of my peers, we should think more about how to make use of the changes in raw material supply after China's entry into WTO, how to make bulk oil consumers accept us, and how to enlarge the small packaged oil market. Now that the market is far from saturated, there is no need to fight price wars, which is harmful to our own industry. "
The conversation between the two sides was mild, but we should not forget that when Fulinmen launched a price war last year, COFCO was still holding shares in Kerry, and Fulinmen and Arowana were competing with each other, and it felt like brothers were killing each other. But at the end of last year, after COFCO sold all the shares of Kerry, the form was different. No matter which side launches a new round of price war, it will have less scruples. We will wait and see when the new price war will break out again.
Category war
There are many kinds of edible oils in small packages. In the last century, people in China often ate bulk soybean oil and rapeseed oil. Then salad oil, blended oil, peanut oil, then millet oil and sunflower oil, which is dazzling. With the improvement of people's living standards in China, consumers begin to pay attention to nutrition and health, and pay more attention to raw materials and ingredients of edible oil. In order to meet this demand, some enterprises began to gradually shift from price war to developing new oil products, and increased publicity to attract consumers. Therefore, the competition in the edible oil market is also manifested as category competition. Category competition has a long history, but it is not as fierce as it is now. The ultimate beneficiary of category competition is consumers.
In the small packaged oil market, the competition pattern of categories has always been pyramid-shaped: salad oil is the bottom layer and the largest sales volume at present, blended oil with the third market share is the middle layer and natural edible oil is the top layer. From the growth point of view, peanut oil processed by non-chemical means is a pure green food, which grows fastest among the three major oils and is the representative of high-grade oil.
Let's talk about the characteristics of several oils first. Salad oil first appeared in China. Salad oil is a refined oil made of rapeseed oil or soybean oil and palm oil with various China media. After decoloration, deacidification and deodorization, salad oil has reached a new level in sanitary conditions. After heating, it does not foam, does not smoke, is colorless and tasteless, and has been deeply loved by consumers.
However, this kind of oil does not have much fragrance, which is not suitable for the eating habits of China people. Therefore, from 65438 to 0990, the first product of Arowana in China was blended oil, that is, peanut oil, sesame oil and rapeseed salad oil were mixed, which increased nutrition and delicacy on the basis of hygiene and safety. The edible oil market has gradually entered the era of salad oil and blended oil from the crude oil era. From 65438 to 0995, Fulinmen entered the market and became the main competitor of Arowana in the blended oil market. From 65438 to 0998, peanut oil entered the edible oil market. Among many peanut oil producers, Lu Hua seems to be the most famous in this field. Under the overwhelming advertising bombardment, Lu Hua has rapidly become the third national brand after Arowana and Fulinmen. However, how to overcome the problem that peanuts are prone to mildew is still the key to whether peanut oil can stand firm in the category competition.
Salad oil is undoubtedly the highest purity edible oil in terms of quality, but some nutrients in the oil may be lost in large quantities, so it is also a best policy to choose high-grade edible oil from the perspective of environmental protection and no harm to health. At present, there has been a trend of eating natural edible oil in Europe. In the field of natural edible oil, olive oil and millet oil have always been favored by foreign countries, but because China is the main producer of peanuts in the world, peanut oil has become the first choice of natural edible oil for China people more quickly and naturally.
Blended oil has higher requirements for oil nutrition on the basis of hygiene. Generally, a certain proportion of peanut oil is mixed into rapeseed oil to achieve the effect of enhancing fragrance. Its formula is also constantly improving, and there are many varieties. The edible oil market in China has gradually entered the era of salad oil and blended oil from the crude oil era.
In March of 20001year, Arowana grandly launched corn oil, claiming to spend hundreds of millions of yuan to enter the "corn oil" market, and put forward a "new concept of health" and advocated a brand-new consumption concept. According to insiders, Arowana entered the corn oil market for certain reasons: First, Lu Hua peanut oil vigorously promoted green health, which put some pressure on Arowana, and the introduction of corn oil could prevent peanut oil from encroaching on salad oil; Secondly, it shows that domestic edible oil manufacturers intend to seize the high-grade oil market first when WTO comes; Thirdly, after more than ten years' development, China small package edible oil began to enter a new development period of healthy and nutritious oil from the stage of hygienic and safe oil use. Corn oil has long been popular in Europe and America, which not only removes all kinds of harmful substances in the oil, but also retains its unique nutrition and fragrance, and the absorption rate is as high as 97%. For a time, corn oil has the potential to replace peanut oil. However, due to the high oil price of millet, it can only attract consumers with high consumption level, and it is difficult to be on an equal footing with salad oil, blended oil and peanut oil in the short term.
In order to continue to defend the leading edge of the industry, Arowana developed and launched the second generation blending oil in the first half of this year, and forced it to the market before the Mid-Autumn Festival with the help of huge advertisements. According to the recommended values of dietary fatty acids put forward by the World Health Organization, the Food and Agriculture Organization of the United Nations and the Nutrition Society of China, the optimal ratio of saturated fatty acids, monounsaturated fatty acids and polyunsaturated fatty acids is1:1. When this ratio is reached, people will benefit from absorption. Arowana said that the second generation blended oil was produced according to this ratio and became the only edible oil certified by DRI (Dietary Nutrient Reference Intake of China Residents) of China Nutrition Society. At present, Arowana second-generation blended oil is the best packaged edible oil in the market.
Capital war
Modern commercial competition is also a contest of strength to some extent. The petroleum industry is an industry with high input and low return, and there must be strong financial support behind the lively brand war, price war and category war. To deal with the price war, we must have a cost advantage, and the cost advantage often needs the help of scale and abundant capital. Because category innovation, marketing planning and advertising promotion activities are inseparable from the support of funds. As Li, managing director of Kerry Grain and Oil, said, "It is common for any grain and oil enterprise to use hundreds of millions of funds, but the return is generally only 2% ~ 3%."
Arowana is a subsidiary of Kerry Grain and Oil (China) Co., Ltd., backed by Malaysian Kwok Brothers Group. Kerry Grain and Oil (China) Co., Ltd. is an investment company specially set up by Guo Brothers Group for domestic grain and oil enterprises, and the funds should not be a problem. At present, Kerry has established seven production plants in six regions of China, and cultivated 16 edible oil brands such as Arowana, Yuanbao, Hu Jihua, Carp, Handlabel and Xiangmanyuan. It is the strong strength that makes the brand operation of Arowana effortless.
Behind Fulinmen and Lu Hua is COFCO. The full name of COFCO is China Cereals, Oils and Foodstuffs Import and Export (Group) Co., Ltd., which was established in Beijing. 1952. It is one of the 44 key state-owned enterprises directly managed by China Municipal Government. It is a large enterprise group integrating trade, industry, finance, information, service and scientific research, spanning agricultural products, food, hotels, real estate and other fields. Since 1994, it has been ranked among the top 500 global enterprises of American Fortune magazine. COFCO's partner in the edible oil industry is ADM of the United States, which is also a Fortune 500 company. This strong shareholder advantage is unmatched by other edible oil producers in the mainland. The strong alliance of grain and oil giants not only complements each other in capital, technology and management, but also helps to realize the optimal allocation of resources in the global market. As giants in the international grain and oil market, COFCO and ADM are very familiar with the supply and demand trends and price changes of oil crops in the international market, and to some extent, they have transformed their experience and advantages in international trade into advantages in cost procurement.
In 2000, COFCO hired McKinsey and other internationally renowned management companies as consultants, and implemented major changes with reorganization, restructuring and listing as the main contents. COFCO has set up a special oil department to plan and manage the five oil plants under its control. At the same time, at the beginning of 20001,COFCO injected its "Fulinmen" business into its Hong Kong listed company "COFCO International" (HKEx No.0506), and will increase its investment in "Fulinmen" by relying on the Hong Kong capital market.
In terms of the deployment of bulk oil to seize grain, COFCO first sold all its shares in Arowana at the end of last year, and then in May this year, it jointly invested 50 million US dollars with ADM Company of the United States and Fengyi Company of Singapore to establish marine grain and oil in Fangchenggang, mainly producing "Fulinmen" series edible oil and exploring the southwest market. So far, the number of edible oil production bases invested and controlled by COFCO Oil Business has increased to five, with a total investment of more than 2 billion yuan, which is owned by Fulinmen Company. The other four are Donghai Grain and Oil, located in Zhangjiagang; Yellow sea grain and oil, located in Rizhao, Shandong; Beihai Grain and Oil, located in Tianjin; And Dongzhou Grain and Oil located in Zengcheng, Guangdong. Most of these oil plants are located in coastal areas, forming a reasonable industrial layout based on developed coastal areas and radiating Chinese mainland. COFCO claims that it will take three years to build "Fulinmen" into the first brand of edible oil in China.
summary
According to incomplete statistics, in 2000, the consumption of edible oil in China reached120,000 tons, with a total sales of about 60 billion yuan, of which the annual consumption of small package edible oil was about10,000 tons, accounting for about 8% of the total consumption of edible oil, with a sales of about 8 billion yuan.
Although the current small package of edible oil is insufficient 10%, with the continuous improvement of living standards of urban and rural residents, especially those in large and medium-sized cities, new concepts such as safety, hygiene, health and nutrition are becoming more and more prominent in the development trend of edible oil consumption. China's small package edible oil is in a high-speed growth stage, and its consumption is increasing at an average annual rate of 25%. In some economically developed big cities, small packaged edible oil has replaced bulk edible oil as the market protagonist. In some cities such as Beijing and Qingdao, which have cancelled the sales of secondary oil or bulk oil, the proportion of edible oil in small packages is higher. The edible oil industry is pregnant with huge business opportunities. The small package edible oil industry will become one of the sunrise industries with the greatest development potential in China in the next few years.
The small package edible oil industry has been dominated by COFCO and Kerry in recent years. According to the sales statistics of all-China Business Information Center in March, 2002, the top edible oil brands and market share of 10 are Arowana (28.67%), Fulinmen (18.75%), Lu Hua (9. 18%) and Yuanbao (5.
Among them, Arowana, Yuanbao and Hu Jihua belong to Kerry Grain and Oil, a subsidiary of Singapore Kwok (Guo Henian) Brothers Group, with a cumulative market share of 36%. While Fulinmen and Lu Hua, which rank second and third respectively, belong to COFCO (Fulinmen is controlled by COFCO and Lu Hua is a shareholder of COFCO), and their combined market share is 27.93%. In addition, Kerry owns 12 regional brands, such as Bandailan, Jialong, Xianglong, Qiaochu and Lu Bao, which are distributed in six regions of China, and COFCO also has a general brand.
It is understood that Kerry's grain and oil sales revenue last year was 6 billion yuan, and this year's target is 8 billion yuan; The marketing performance of Fulinmen edible oil under COFCO was also good last year, and the growth trend was also very rapid; The goal of Lu Hua is to expand the processing capacity of peanut oil to 300,000 tons by 2005, and the annual sales income will reach 3 billion yuan. According to experts' estimation, the edible oil market in China will reach 30 billion yuan by the end of 2003 and will exceed 50 billion yuan in 2005.
Insiders pointed out that at present, edible oil brands have entered a stage of rapid growth, and three major trends have gradually emerged: First, the proportion of small packaging in the market is increasing; Second, local small factories with poor quality and small scale quickly closed down under the squeeze of large enterprises; Third, small packaged edible oil is increasingly concentrated in big brands.
The lively competition of many brands in the edible oil market and the loneliness of "oligarchs" in the industry are full of too many variables under the specific background of China's entry into WTO.
Although Kerry and COFCO are currently in the vanguard position in the edible oil industry, new military strategists appear at any time in the rapidly changing market. With China's accession to the WTO, foreign oil giants who have been wandering abroad also want to share a piece of the China market. Indonesian food king Lin Shaoliang invested heavily in building a factory in Fujian; The Grand Slam of Guangjin Group, another Indonesian company that invested in Zhejiang, has entered the top five in the market. Compared with the top two in China market, foreign oil giants are not at a disadvantage in economic strength and management. I believe that the competition in the edible oil market will be more intense in the future. After shuffling, several big brands have emerged, forming an industry oligarchy, but focusing on big brands does not mean the end of competition.
For China's edible oil industry, Long Hudou has just started, and the competition in this industry will be more intense. We also expect that after Long Hudou, there may be changes such as the tripartite confrontation among the three countries, but in any case, * * * is the common aspiration of the edible oil industry in China, and we expect this industry to be more mature and perfect!