Old brands hungry for success
Traditional companies with rich and colorful histories have reinvented themselves with new models and cutting-edge technology to survive.
Traditional food and drinks brands are being transformed as they expand their export markets and fight off international rivals.
Companies with reputations that customers can trust are making a revival, despite fierce competition from foreign firms.
Brands with rich and colorful histories have reinvented themselves with new business models and cutting-edge technology to survive in the modern world.
Moutai, China's favorite white spirit produced by Kweichow Moutai Co Ltd, is a typ-ical success story as is the Beijing-based restaurant chain, China Quanjude (Group) Co Ltd. Confectionary company Guanshengyuan Food Ltd, from Shanghai, is another winner.
"Every success story is unique, but they were all based on prudent decision-making by their management in an ever-changing business environment," said Jiang Weihong, a researcher from the Shanghai Academy of Social Sciences.
To stay competitive, traditional brands have moved with the times and launched new products, invested in factory technology and upgraded their marketing operations.
"The stories of the big European brands teach us that it is important to develop consistently and have people at the top with international vision. This is the key to ensure that the brands stay competitive over time," Jiang said.
Last year, food and beverages sales totaled 2.61 trillion yuan ($421 billion) on the Chinese mainland, according to Wind Info, a research company that deals in data. With such a massive market, competition is fierce among traditional brands.
As China's ancient capital, Beijing has some of the oldest food and beverage companies in the country, with stellar labels produced by experienced and dedicated employees.
One such traditional conglomerate is Sanyuan Group Co Ltd, a State-owned enterprise specializing in agriculture and animal husbandry.
The company is made up of 12 State farms, 20 professional companies, 41 transnational joint-ventures, and three overseas subsidiaries. It also includes Beijing Sanyuan Foods Co, which is listed on the Shanghai Stock Exchange.
So, the next time you pick up a bottle of milk in a supermarket from a Western company, you might want to swap for one of Sanyuan's products. After all, the company has been around for nearly 60 years in Beijing.
Even during the contaminated milk scandal of 2008, dairy products from Beijing Sanyuan Foods were considered to be safe. Since then, the government has imposed tighter quality controls on the dairy industry to restore consumer confidence.
With a growing reputation overseas, Sanyuan has expanded its global reach. "Our cheese products have been used as raw materials and made into other products," Lyu Shuqin, deputy manager at Beijing Sanyuan Foods Co, said. "They have been exported to Japan.
"At the moment, we mainly focus on the domestic market. But in the near future, we are looking to strengthen our export business."
Since the company was established, Sanyuan has gone through radical changes. Today, it has a highly advanced supply chain in the dairy sector. This involves breeding the herd, raising the cattle, transporting milk and dairy products as well as an after-sales services.
In 2014, the company started work on an industrial park in Hebei province in northern China to expand production capacity. The park will be up and running next year and will process 1,000 tons of milk a day, which is approximately 2 million bottles.
Of the 2,000 traditional brands in China, about 27 percent are food and beverage businesses, according to a research report from Beijing Technology and Business University.
Many, such as the Beibingyang Co, the Beijing Wang Zhihe Food Group Co Ltd and the Beijing Dragon Seal Wine Co Ltd, have been transformed in recent years.
With increased investment, these companies are fighting back against foreign competitors by playing their trump card－brand loyalty. Many customers have long memories and they tend to stick with the products they grew up with.
"In Shanghai, more than 70 percent of local residents remain loyal to the labels of their childhood," researcher Jiang said.
But there are still pitfalls ahead as more domestic and overseas brands move into a crowded marketplace.
"Broadly speaking, whether we admit it or not, most old brands are opting for poor advertising choices," Jiang said. "Time-honored brands need to maintain their luster by keeping pace with the changing times."
Companies with reputations that customers can trust are making a revival, despite fierce competition from foreign firms.
Brands with rich and colorful histories have reinvented themselves with new business models and cutting-edge technology to survive in the modern world.
Moutai, China's favorite white spirit produced by Kweichow Moutai Co Ltd, is a typ-ical success story as is the Beijing-based restaurant chain, China Quanjude (Group) Co Ltd. Confectionary company Guanshengyuan Food Ltd, from Shanghai, is another winner.
"Every success story is unique, but they were all based on prudent decision-making by their management in an ever-changing business environment," said Jiang Weihong, a researcher from the Shanghai Academy of Social Sciences.
To stay competitive, traditional brands have moved with the times and launched new products, invested in factory technology and upgraded their marketing operations.
"The stories of the big European brands teach us that it is important to develop consistently and have people at the top with international vision. This is the key to ensure that the brands stay competitive over time," Jiang said.
Last year, food and beverages sales totaled 2.61 trillion yuan ($421 billion) on the Chinese mainland, according to Wind Info, a research company that deals in data. With such a massive market, competition is fierce among traditional brands.
As China's ancient capital, Beijing has some of the oldest food and beverage companies in the country, with stellar labels produced by experienced and dedicated employees.
One such traditional conglomerate is Sanyuan Group Co Ltd, a State-owned enterprise specializing in agriculture and animal husbandry.
The company is made up of 12 State farms, 20 professional companies, 41 transnational joint-ventures, and three overseas subsidiaries. It also includes Beijing Sanyuan Foods Co, which is listed on the Shanghai Stock Exchange.
So, the next time you pick up a bottle of milk in a supermarket from a Western company, you might want to swap for one of Sanyuan's products. After all, the company has been around for nearly 60 years in Beijing.
Even during the contaminated milk scandal of 2008, dairy products from Beijing Sanyuan Foods were considered to be safe. Since then, the government has imposed tighter quality controls on the dairy industry to restore consumer confidence.
With a growing reputation overseas, Sanyuan has expanded its global reach. "Our cheese products have been used as raw materials and made into other products," Lyu Shuqin, deputy manager at Beijing Sanyuan Foods Co, said. "They have been exported to Japan.
"At the moment, we mainly focus on the domestic market. But in the near future, we are looking to strengthen our export business."
Since the company was established, Sanyuan has gone through radical changes. Today, it has a highly advanced supply chain in the dairy sector. This involves breeding the herd, raising the cattle, transporting milk and dairy products as well as an after-sales services.
In 2014, the company started work on an industrial park in Hebei province in northern China to expand production capacity. The park will be up and running next year and will process 1,000 tons of milk a day, which is approximately 2 million bottles.
Of the 2,000 traditional brands in China, about 27 percent are food and beverage businesses, according to a research report from Beijing Technology and Business University.
Many, such as the Beibingyang Co, the Beijing Wang Zhihe Food Group Co Ltd and the Beijing Dragon Seal Wine Co Ltd, have been transformed in recent years.
With increased investment, these companies are fighting back against foreign competitors by playing their trump card－brand loyalty. Many customers have long memories and they tend to stick with the products they grew up with.
"In Shanghai, more than 70 percent of local residents remain loyal to the labels of their childhood," researcher Jiang said.
But there are still pitfalls ahead as more domestic and overseas brands move into a crowded marketplace.
"Broadly speaking, whether we admit it or not, most old brands are opting for poor advertising choices," Jiang said. "Time-honored brands need to maintain their luster by keeping pace with the changing times."
