0edec0db8530cf6186ef5166ff939dd5.jpg (Photo : Image.baidu.com)
The Atlanta-based soda and beverage giant, Coca-Cola Company said last Wednesday that they are looking to increase efforts to innovate their product line in China.
Citing the changing tastes of Chinese consumers and increased competition from local beverage companies, Coca-Cola’s director of China operations said that the company needs to adapt or fall behind. Although widely viewed as the company that introduced soda to China over 30 years ago, Coca-Cola’s original target consumer was not the Chinese public but rather foreign tourists traveling to China.
According to sources involved in the company’s early China efforts, Coca-Cola convinced Chinese officials that allowing the beverage into the China market would increase tourism and more importantly “bring in more foreign income.” At the time, many Chinese consumers who had the chance to taste the beverage didn’t think it tasted very good. But Coca-cola would go on to become one of the most popular soft drinks in China.
Today however, changing consumer tastes have pushed soda consumption behind not only bottled water but also juice in market share according to reports. Coca-Cola officials in China have stated that while they will continue to emphasize soda drinks, they understand that they will also need to diversify their offering beyond soda drinks if they want to stay relevant in the Chinese beverage industry. As a result, since 2005, Coca-Cola has pushed a range of juice-based beverages from its Minute Maid line, developed exclusively for the Chinese market.
Still, Coca-Cola has determined that more needs to be done especially with domestic brands such as Wahaha and Jiadubao gaining market shares with a variety of beverage offerings ranging from iced tea to herbal drinks.
According to Coca-Cola’s director of China operations, innovation in both its soda drinks and other beverage lines will help the company take advantage of the opportunities revealed by market forces.
