"Arowana" is a famous edible oil brand owned by Kuok Brothers Cereals and Oils Pte. Ltd. in Singapore. Kuok Brothers Cereals and Oils Sdn Bhd is the flagship company of the Kuok Brothers Cereals and Oils Group. Kerry Cereals and Oils (Shenzhen) Co., Ltd. is a fully invested marketing planning and management company in China of Kerry Cereals and Oils (China) Co., Ltd., a subsidiary of Guo Brothers Group. On August 3, 2011, the edible oil price limit was lifted, and the price of Arowana officially increased by about 5%.
Every Mid-Autumn Festival is a good time for all walks of life to strive hard, and the edible oil industry is no exception. I remember that during the Mid-Autumn Festival that year, on CCTV we saw Arowana, Orchid Flower, Fulinmen and Luhua taking turns to advertise, and no one wanted to lose to the other. Probably, in the minds of ordinary people, these are four major families competing with each other. In fact, this is not the case. The above four brands belong to two major camps. The first two are under Kerry Cereals and Oils (China) Co., Ltd., while the latter two are under Kerry Cereals and Oils (China) Co., Ltd. A subsidiary of COFCO Corporation. Kerry and COFCO are the dragons and tigers in China's small package edible oil market. Since the end of 2001, COFCO sold all its shares in "Arowana" and expressed to the outside world that it would concentrate its resources and energy to build "Fu Linmen". The brand's determination also indicates that China's small package edible oil market has entered an era of competition between dragons and tigers.
Market competition is cruel. Every company that participates in the competitive game wants to dominate the world, but it backfires. In many industries, the reshuffle always ends up with several giants playing the same game. . On the other hand, precisely because of the existence of competitors, every gaming company dares not slack off and try to make the pie bigger at the same time. "Where there is excellence, there is no glory" can only be a temporary lament of the ancients. Modern enlightened entrepreneurs such as Coca-Cola are grateful to their decades-old rival, Pepsi-Cola. I wonder if the leaders of Kerry and COFCO are also grateful. Same idea.
Okay, now let’s turn the wheel of history back and review the growth history of the two giants in China’s small package edible oil industry, as well as various practical cases of their battles in recent years.
Arowana: Qianlong comes out of the water. In the 1980s, when people ate oil, they would go to the grain store with empty bottles to buy one pound of soybean oil or two pounds of rapeseed oil. More than ten years ago, almost no one would have dared to imagine that there would be a market for small-package oil in China. With the rapid development of the domestic economy, a large number of food companies have launched, and coupled with the improvement of people's living standards, domestic oil sources have begun to be unable to meet residents' consumption needs. At this stage, China does not yet have small-packaged cooking oil. The market is filled with bulk cooking oil that has many impurities, a lot of fumes, and unsafe hygiene. However, the market for small-packaged cooking oil that meets international health standards is still blank.
The products that initially entered the Chinese market were mainly refined oil products, such as palm oil, rapeseed oil, soybean oil, blended oil, etc., which were mainly packaged in bulk oil or 190 kg iron drums.
In the late 1980s, the Kuok Brothers Group, a famous Asian multinational company that originated in Malaysia, inspected domestic and foreign markets and believed that there would definitely be a huge market for small packaged oil in China, and finally made up its mind to establish it in 1990. Founded Nanhai Oils and Fats Industry (Chiwan) Co., Ltd. and started the production of China's first batch of small-packaged edible oils. The first brand launched was Arowana.
Then the Kuok Brothers Group unified its edible oil companies in China under the banner of Kerry Cereals and Oils (China) Co., Ltd., and Kerry Cereals and Oils became the first company in China to introduce small-package edible oils.
In the early 1990s, Chinese people were still unfamiliar with small-packaged cooking oil, mainly due to the high price. In the early days, Kerry Cereals and Oils patiently spent several years of sluggish profits with a mentality of cultivating the market. We have to admit that Kerry played an important role in building China's small package edible oil market.
In the end, the pockets of Chinese people were opened and small-packaged cooking oil was accepted by the Chinese people. The method adopted by Kerry was actually very simple. The small-packaged cooking oil was solved through group purchasing in the form of welfare benefits for the units. That is, The so-called "welfare oil method" is used to open market gaps. Nowadays, everyone thinks it is a normal marketing tactic, but 10 years ago, it was not easy to think of.
In 1990, faced with the fact that there was almost no small-package cooking oil on the market, it was difficult to change people’s living habits. At that time, Li Fuguan, general manager of Kerry Cereals and Oils, submitted a report to the board of directors: Prepare In three years, 20 million yuan was invested to open the door to China's small package edible oil market. After one year, sales reached 3,000 tons. Through thinking and investigation, they found that Chinese enterprises and institutions have the habit of distributing "welfare" products during holidays. This is a Chinese characteristic, and it is this characteristic that has promoted and popularized small-packaged cooking oil.
Kerry Cereals and Oils opened the door to China's small-package edible oil market. They are the manufacturer of the industry and have been the leader in the industry for more than ten years in the actual market.
Fulinmen: The tiger is coming down. According to survey data released by the Ministry of Internal Trade, the Arowana edible oil brand under Kerry Cereals and Oils has been the No. 1 brand in the small package edible oil industry with absolute advantage for the past 10 years. , its market share exceeds that of the second to tenth places combined.
Among the top ten edible oil brands in the country, Kerry’s brands occupy three positions and are still increasing. In the annual consumer goods survey in major cities across the country starting in 1994, the brand awareness of Arowana is five times higher than that of the second-ranked competitive brand; it is the best brand in the minds of consumers, and Arowana is higher than the second-ranked competitive brand. 8 times. The sales volume of the three major Kerry Cereals and Oils brands, Arowana, Orchid Flower and Carp alone, exceeds the combined sales of the rest of the top ten brands.
If you add in the sales of 13 other brands, Kerry Cereals and Oils accounts for almost half of China's small package edible oil market. This oligopoly situation was not broken until Fulinmen, a subsidiary of COFCO, was born in 1995. At the end of 2001, after COFCO sold all its shares in "Arowana", China's small packaged edible oil market.