An open letter to Guangzhou Pharmaceutical and JDB

Guangpiao, Jiaduobao:

First of all, thank you for your great contribution to China's herbal tea industry! It is your joint efforts, especially the 17-year extraordinary contribution of JDB, which has caused Wang Laoji to become the first can of Chinese beverages that surpass Coca-Cola from a declining old brand name, and has contributed to the development and growth of Chinese herbal tea industry.

Under your strong alliance, China's herbal tea, Wang Laoji, ushered in a golden opportunity and began to move toward world-class outstanding brands. To the extreme regret and deplorment of the Chinese people, in the face of the most precious strategic opportunity, you are guilty of being guilty and falling on the awakening rumors of “no eternal friends, only eternal interests”.

As a result, Wang Laoji's trademark competition has been vigorously released for several years. Twisting twists and turns, bewildering, continue to become people talk about money after dinner, like a star of the marriage story or soap opera. Everyone has been rushed to get angry, drink cans of Wang Laoji, and then look at the next set. After pulling and pulling for several years, everyone is getting impatient.

Finally, on May 12, the China International Economic and Trade Arbitration Commission ruled in a piece of paper, "stopping up" grudges. Guangpong holds a beautiful woman and Jiaduobao regrets giving it away. This thought that the story was over, the music ended up being scattered, each back home, each drinking tea, right and wrong, let the commentary. Unexpectedly, the ruling was only the beginning and the story was far from over. You have begun to play a new round of saliva again. Moreover, the vomiting is even greater and the momentum is getting stronger. They accused each other of infringement of the law (even "stolen state-owned assets"), recovered claims from each other, slandered each other, stressed each other's formula, and made billions of viewers surprise.

Objectively speaking, after “512”, both of you have expressed the unanimous desire to do a strong ambition to expand the big herbal tea industry, in particular, JDB’s position that “it is no longer entangled in the past”, and the establishment of Guangzhou Pharmaceutical Co., Ltd. with a total of 182.8 million Wong Lo Kat Love Fund. Great charity, it is commendable. But next time you are confronted by each other, and your preoccupation with each other must be reported (whether active or passive), leaving us with doubts about your future.

In terms of tactics, all of you are armed with sharp swords. They are all heavyweight players. Everyone has the ability and may use a tactical sword to stab each other. However, it will also have its own hands and no real winner. Your competition must not be a sprint, but a marathon. A short lead has no real meaning, and it is the king who abides by the rules.

On this endless runway, Coca-Cola and Pepsi have competed and pushed each other for more than one hundred years and ran out of a splendid Coke world.

I must remember with you a fragment of history:

On May 19th, 2006, PepsiCo received a letter stating that the sender claimed that he was working for the Coca-Cola company and could provide a very detailed copy of the Coca-Cola formula. However, Pepsi believes that accepting the document violates business ethics and is a sinister theft. It will undermine Pepsi's global corporate image, and it will also break the basic rules of fair competition in the United States and infringe the interests of global Coca-Cola consumers. . Pepsi refused to accept the confidential document and immediately reported the case to Coca-Cola.

The two companies eventually acquired the 14-page highly confidential information with the help of the FBI. The female employee involved was Williams, an executive secretary of a senior executive at The Coca-Cola Company. She and two other men with criminal records attempted to sell this information to PepsiCo for US$1.5 million.

After the suspects were arrested, the Coca-Cola Company recorded in the company's memorandum with great gratitude, and expressed its highest respect for the fair competition spirit shown by the old rival PepsiCo. The Coca-Cola company's board of directors issued news to express gratitude to PepsiCo.

I do not know what you think after watching?

Of course, there is also competition between the two music, but limited to brand positioning, advertising creativity, stars, promotions and other legal, reasonable, open, fair, and adhere to the bottom line of competition. Never do vicious competition that destroys the industry and harms people. Don't forget that when you use your fingers to scold others, the other four fingers point to you.

True, the essence of business is competition. But your competition is more at the tactical level; strategically, your opponents are world-class drinks such as carbonated drinks and coffee; and in essence, your real opponent is your own.

In the next ten or twenty years, while China’s economy continues to grow, “soft power” such as Chinese culture will surely be greatly enhanced, creating a new trend that will affect the world. During this period, there will surely be a group of brands that truly represent Chinese culture and go international. . Can herbal tea be among them?

As a national intangible cultural heritage, herbal tea is not only an important drink category, but also has a unique Chinese cultural heritage. Now, red canned Wong Lo Kat herbal tea has begun to be exported to Southeast Asia, Europe and the United States market. However, if Chinese herbal tea is to be sold in the world, it will surely be faced with by the international beverage giants such as “Two Funs”. It will be difficult for China’s herbal tea to break through the interception if it is alone and fighting alone. If a brand of Gemini is established in the herbal tea market It will be beneficial to jointly grow bigger and stronger herbal teas, and it is more hopeful that Chinese herbal teas will truly become the beverage of the world.

A really strong brand and a prosperous market must be based on full competition. Jump out of competition to see competition and jump to see the future. Without big competition, there will be no big categories and no major developments. The brand Gemini is a universal law in the business world. Coca-Cola and Pepsi, McDonald's and KFC, Shuanghui and Yurun, Uniform and Master Kong are exceptions. There is no history of Coca-Cola and Pepsi Co.’s 100-year history of co-operation and there is no global dominance of today's Coke culture and brand.

The Wong Lo Kat brand's return to Guangzhou Pharmaceuticals may not be a bad thing in the long run.

Wang Laoji, born in the first tier of herbal tea, has accumulated many years of brand influence and time-honored advantages, and Jia Duobao, who is good at marketing innovation, came from Hong Kong and has the advantages of brand operation and internationalization, just like Coca-Cola and Pepsi-Cola. Respond to each other and work together, instead of simply shifting one's life to another. And JDB does not taste like Pepsi as a new classic beyond the old brand. Judging from the current situation, JDB is still fighting for “authentic” and it is worth discussing. Essentially speaking, Wang Lao Ji and Jadobo are both based on "Chinese herbal tea" and "Authoric Herbal Tea." They have the same source, the same formula, and a highly similar taste. Therefore, "authentic" is not a brand value, nor is it a reason for consumption. This is a need for both sides to rethink strategic thinking and positioning.

Imagine the future, a few years later, Wang Laoji has a long history, Jiaduobao came from behind, a new pattern of herbal tea industry - the formation of the brand Gemini, herbal tea market will usher in a new era of common prosperity. Along with the historical trend of China's rise, China's herbal tea, under the leadership of the duo, went international, with Coke and coffee three points, and truly become a world-class beverage. If this is the case, then it is the victory of Chinese herbal tea. It is a great fortune for Chinese culture and Chinese brands. What's more, it is your name, history, and merit.

The two strongest encounters are most afraid of vicious competition, attack each other, kill each other, and destroy the entire category. Only by working together in harmony and competing with each other can we work together and share the future!

At present, Wong Lo Kat's test is mainly based on experience and team, can achieve channel coverage and terminal control in the shortest time. In addition, Wong Lo Kat has already been ramping brand authorization. This will be the biggest potential risk and harm. Guangpharm must stop the bleeding.

For JDB, the biggest test is the brand recognition and conversion of consumers' minds. In particular, it is worth mentioning that JDB's overseas resources and experience may be a golden key to breaking competition and opening wider markets. The Guangzhou Asian Games is a strategic "testing water" for JDB.

For the future, your true test and challenge lie in your own beliefs, ideals, realm, bosom and ambition, as well as the career, competition, and wealth outlook that comes from. Small victory by wisdom, victory by virtue. This is a consideration of small interests and great future, little cleverness and great wisdom. It is also time to truly reflect entrepreneurship.

In the "Innovation and Entrepreneurship" published in the 1980s, Drucker concluded: "In the past 10-15 years, the true entrepreneurial economy that has emerged in the United States is the most far-reaching significance in modern economic and social history. And the most inspiring events." It is now China.

The biggest "test of the world" written by the mighty sword in the movie "Heroes" and the Buddha's saying "put down" is your greatest test. Because of "the world" and "put down", because "put down" and jointly have "the world."

Some people may say that this is an innocent and naive idea. The business world is always cruel. What I want to say is that these seemingly naive and innocent ideas constitute the basic principles and the highest realm of business competition. The formation of the simplest entrepreneurial spirit also constitutes a great positive energy for promoting the sound development of the commercial society. "Do not do what you don't want, don't do it to others," "harmony, win-win" and "respect to the sky." It is this road too.

"There are no eternal friends, only eternal interests," but don't forget that there are still "no eternal enemies" in this sentence. I believe that only the interests of "harmony and win-win" are "eternal interests." ". In the movie "Intimate Enemy," Amy and Derek went from their lover to their opponent and finally to the partner's trilogy. It was the entertainment of this simple truth.

I do not want to teach, direct, and criticize, but rather "deep love and earnestness". It is a rational, constructive discussion, reminder, and communication. It is also a heartfelt appeal, expectation, and blessing!

Finally, I want to give you a famous quote from former British Prime Minister Winston Churchill:

"If you are always pestering the past and the present, then you will lose the entire future."

I wish you abandoning your predecessors, competing for a win-win situation, and achieving great success!