As early as the 1950s, Tetra Pak was one of the first companies to provide packaging for liquid milk, and became one of the world's largest suppliers of packaging systems for milk, juice, and beverages.
At present, Tetra Pak has a total of 77 sales companies in the world, and is licensed to operate 68 packaging material factories and 12 packaging machinery assembly plants. In 2001, the company produced a total of 94 billion packages and supplied 53 billion liters of liquid food products to consumers worldwide.
In China, Tetra Pak supplies packaging materials to several domestic dairy and beverage companies, including Yili, Guangming, Sanyuan, Mengniu, Wahaha, and Huiyuan.
Tetra China speeds up again
A few years ago, Tetra Pak's machine, which had a price of 15 million yuan in China, was hardly discounted, but it is now sold for 2 million yuan or even free of charge. The change was due to the emergence of its old rival, the Swiss Industrial Group (SIG), in the Chinese market.
"China has become Tetra Pak's most important marketplace." On February 11, at the opening of a new large-scale warehouse at the Tetra Pak factory in Kunshan, China, Mr. Nick Shreiber, president and chief executive officer of the Swedish Tetra Pak Group, explained China. Changes in market strategy.
The main function of this 6,100-square-meter warehouse is to cooperate with Tetra Pak’s expanding production capacity in China. According to the plan, the production capacity of the Kunshan plant will be quadrupled with the completion of two new production lines at the Kunshan plant before the end of the year. The volume of Tetra Pak's packaging that can be produced in China has therefore increased from 5.809 billion in 2002 to 7 billion. Its sales revenue in China is nearly 5 billion yuan.
Tetra Pak's large-scale capital increase and expansion in China started last year: In September 2002, Tetra Pak's fourth joint venture, Tetra Pak Packaging (Beijing) Co., Ltd. was established. Billion RMB will set up a new factory in the Beijing Economic and Technological Development Zone. The new plant is expected to be put into production in mid-2004, and the output will be doubled. In October, the company will build a new one. The new modern production line has increased the factory's production capacity by 40%.
“The increased production capacity of the above investments is sufficient to meet the market demand that the Chinese market may grow in the next five years.†Li Huxun, president of Tetra China, is confident.
However, Tetra Pak's ambition for the Chinese market is far more than this, "When all our investments are completed in 2004, the capacity will reach 12.5 billion bales."
To this end, in 2001 the global net sales of 7.65 billion euros Tetra Pak will be a lot of money spread to the Chinese market without hesitation: In 2002, Tetra Head Office approved an investment of about 100 million euros in China. “I have been working for Tetra Pak for 23 years. I have never seen a company invest in so many markets in China as it was in China.†Li Huxun was quite impressed. “To the end of 2004, we were in China. The investment in fixed assets will reach 214 million U.S. dollars."
Tetra Pak’s confidence stems from the "geometric leap" of China's performance in recent years. Since 2000, Tetra Pak China has been growing rapidly at a rate of over 20% annually. Since previous investments “have not been able to catch upâ€, Tetra Pak's products in China are in short supply. “The development of this market in recent years is much faster than we thought, especially in the dairy industry.â€
Last year, Tetra China's sales of packaging materials exceeded 7.7 billion packs. At this point, based on the sales volume of packaging materials, China has become Tetra Pak's largest sales market in the world. Currently, China's business has also entered the top five, accounting for nearly 6% of Tetra Pak Global.
"But when we reached 1.25 billion bales, we are sure that the Tetra Pak Group is the world's No. 1 in terms of the above." Lee Husson emphasized with confidence that "China is an indispensable city often in the next 5-10 During the year, it will definitely exceed the scope of Asia."
In 2001, in the context of the decline in sales in some markets in Europe and North America, the significance of the Chinese market for Tetra itself is self-evident. As a leader in the aseptic paper packaging industry, Tetra itself has to face a serious reality: the global competition between the carton and plastics business has become increasingly fierce, and it is re-establishing a competitive landscape — 2001, Tetra Pak Two paper packaging competitors withdrew from the US sterile paper packaging business.
In contrast, Tetra Pak apparently has to be comfortable in China: As early as 2001, China has become one of Tehran's fastest-growing markets, and at least 95% of the market share in aseptic paper packaging allows Tetra Pak The status of China's soft drink packaging industry is unattainable—Teller's market share in the field of international sterile paper packaging is currently 70%-80%.
Prosperity with China's Dairy Industry
In China, Tetra Pak seized the initiative to the maximum extent — at least 10 years earlier than its competitors, and always focused on the dairy industry.
"Our goal has always been to grow together with China's dairy industry." Li Huxun said that as a company in the middle of the industry chain, the key to Tetra Pak's current success is "to meet the diversified needs of the Chinese market through diversified products." .
To a certain extent, Tetra Pak played a role in nurturing and promoting the development of China's dairy market, providing product guarantees and technical support for its rapid development.
Let Liole be proud of one case is its largest customer in China - Yili. In the 1980s, Yili was also an ordinary small dairy factory, which mainly produced milk for the surrounding area of ​​Hohhot. After cooperating with Tetra Pak, the two sides faced the problem of how to supply well-preserved milk from Hohhot to the fast-growing South China market. "At that time we had to develop a product suitable for long-distance transportation. There was no such Chinese packaging supplier on the market," recalled Yi Jun, chairman of Erie. With the help of Tetra Pak, “The milk shipped from Hohhot quickly gained a good reputation in South China.â€
In 1997, Yili purchased the first filling machine from Tetra Pak. By the end of 2002, Tetra Pak had provided Yili with 61 production lines. In the past few years, Yili has grown at an annual rate of 40% and has become one of the largest dairy products companies in China. “The support provided by Tetrah has played a significant role in the rapid development of Yili over the past five years. From the improvement of raw materials to marketing training, Tetra has provided support, so we are real partners.†In Zheng Junhuai's eyes, Yili was able to have today.
“We have been using the advanced 'key customer management system' marketing model in the Chinese market.†Li Huxun showed the “magic weapon†of Tetra Pak’s victory in the Chinese market: Focusing on customer management, Tetra’s technical equipment experts and packaging Designers, market service personnel, and even financial managers will maintain close ties with customers and jointly in-depth production and market first-line. In the whole process of equipment introduction, product development, technical training, market information, marketing system construction, and new product listing, we actively invest to help local customers grow.
"It is precisely this concept that we have quickly integrated into local companies, growing with them and achieving a win-win situation."
Right now, Tetra customers include several major domestic dairy and beverage giants such as Yili, Guangming, Sanyuan, Mengniu, Wahaha, and Huiyuan, and have established about 800 production lines nationwide. As long as these production lines are able to maintain stable production, Tetra Pak has a stable income—there is a constant supply of Tetra Pak.
It is understood that in the current industry, the profits of various companies are almost all from selling paper.
Now, Tetra Pak has reached the ideal state of "toward prosperity with the Chinese dairy industry." According to Lee Husson, at present, 70% of Tetra Pak's business in China is in the dairy industry. In 2001 alone, Yili produced about 200,000 tons of ultra-high-temperature milk in Tetra Pak packaging --- a 250-ml Tetra Pak package. Its market price was around 4 horns.
In fact, for Tetra Pak, the Chinese market has become a "surprise" so quickly. "In the past 10 years, China has been developing in ten steps."
"Since 1975, Taiwan's unity, Singapore's Yang Xiecheng and Hong Kong's vitamin milk have become our customers. So we set up an Asia Development Department in Hong Kong to do our after-sales service," recalls Hussein. Hong Kong is close to the mainland, so when Guangdong opened an external trade fair in 1979, Tetra Pak also went “looking for opportunities†and sold its first machine to Guangdong.
In 1985, Tetra Pak was established in Hong Kong, but in reality it was only a trading company that had been staying in Hong Kong. "At that time, it was only interested in selling things in China and it had not reached the point of investing in China." Until 1992, “The headquarters visited China once and felt that the market has great potential.†In 1994, 75% of Tetra Pak Holdings Co., Ltd. was established in Foshan.
Now, Tetra Pak has already completed its first step in China: setting up offices in nine key cities such as Shanghai and Beijing; four joint venture factories in Beijing, Foshan and Kunshan, and establishing Distribution network around. In 2000, Tetra Pak China headquarters was officially relocated from Hong Kong to Shanghai.
However, with the increasingly fierce competition in the beverage packaging market in China in recent years, Tetra Pak began to feel pressure.
Red's multinational companies each other
Last year, Tetra Pak's old rival, the Swiss Industrial Group (SIG), which ranked second in the field of international sterile paper packaging, began to aggressively break into the Chinese market. On Nov. 27th, SIG Combibloc established its presence in the Suzhou Industrial Park in China. The first carton packaging plant has a total investment of 90 million U.S. dollars. The completed SIG Leisure Pack Suzhou plant will be put into production in the first quarter of 2004 with a capacity of 3.3 billion packs of cartons.
"We are indeed late, but it is never too late to make a correct decision," said Mr. Edwin Somm, Chairman of the SIG Group's Board of Directors. He revealed that in recent years SIG Combibloc will also set up a new aseptic paper pack factory in China. This time may be located in a place closer to the customer, such as Inner Mongolia and other moderately developed regions.
“If a manufacturer accounts for 90% of a market, then this is when we want to enter that market. Because we have always been following the market later.†Giving SIG great confidence is their success in Thailand: 1996 When Combibloc first entered Thailand, the market conditions in Thailand were similar to today’s Chinese market, but six years later, the market share of SIG Commodity in Thailand has increased to 30% to 40%. “Our strategy is to win the market by taking a different path from our competitors.†In the Chinese market, the recent goal of Combibloc is to achieve a market growth rate of 20% to 30% in the next few years in order to gain as much market share as possible in China. .
In fact, Combibloc now poses no small threat to Tetra Pak. According to an industry source, prior to Combibloc, Tetra Pak did not generally have a discount on the prices of machines sold in China. However, Combibloc’s marketing strategy of winning customers with low-cost delivery machines and then selling packaged materials has forced the company to Le has to change the original sales
At present, Tetra Pak has a total of 77 sales companies in the world, and is licensed to operate 68 packaging material factories and 12 packaging machinery assembly plants. In 2001, the company produced a total of 94 billion packages and supplied 53 billion liters of liquid food products to consumers worldwide.
In China, Tetra Pak supplies packaging materials to several domestic dairy and beverage companies, including Yili, Guangming, Sanyuan, Mengniu, Wahaha, and Huiyuan.
Tetra China speeds up again
A few years ago, Tetra Pak's machine, which had a price of 15 million yuan in China, was hardly discounted, but it is now sold for 2 million yuan or even free of charge. The change was due to the emergence of its old rival, the Swiss Industrial Group (SIG), in the Chinese market.
"China has become Tetra Pak's most important marketplace." On February 11, at the opening of a new large-scale warehouse at the Tetra Pak factory in Kunshan, China, Mr. Nick Shreiber, president and chief executive officer of the Swedish Tetra Pak Group, explained China. Changes in market strategy.
The main function of this 6,100-square-meter warehouse is to cooperate with Tetra Pak’s expanding production capacity in China. According to the plan, the production capacity of the Kunshan plant will be quadrupled with the completion of two new production lines at the Kunshan plant before the end of the year. The volume of Tetra Pak's packaging that can be produced in China has therefore increased from 5.809 billion in 2002 to 7 billion. Its sales revenue in China is nearly 5 billion yuan.
Tetra Pak's large-scale capital increase and expansion in China started last year: In September 2002, Tetra Pak's fourth joint venture, Tetra Pak Packaging (Beijing) Co., Ltd. was established. Billion RMB will set up a new factory in the Beijing Economic and Technological Development Zone. The new plant is expected to be put into production in mid-2004, and the output will be doubled. In October, the company will build a new one. The new modern production line has increased the factory's production capacity by 40%.
“The increased production capacity of the above investments is sufficient to meet the market demand that the Chinese market may grow in the next five years.†Li Huxun, president of Tetra China, is confident.
However, Tetra Pak's ambition for the Chinese market is far more than this, "When all our investments are completed in 2004, the capacity will reach 12.5 billion bales."
To this end, in 2001 the global net sales of 7.65 billion euros Tetra Pak will be a lot of money spread to the Chinese market without hesitation: In 2002, Tetra Head Office approved an investment of about 100 million euros in China. “I have been working for Tetra Pak for 23 years. I have never seen a company invest in so many markets in China as it was in China.†Li Huxun was quite impressed. “To the end of 2004, we were in China. The investment in fixed assets will reach 214 million U.S. dollars."
Tetra Pak’s confidence stems from the "geometric leap" of China's performance in recent years. Since 2000, Tetra Pak China has been growing rapidly at a rate of over 20% annually. Since previous investments “have not been able to catch upâ€, Tetra Pak's products in China are in short supply. “The development of this market in recent years is much faster than we thought, especially in the dairy industry.â€
Last year, Tetra China's sales of packaging materials exceeded 7.7 billion packs. At this point, based on the sales volume of packaging materials, China has become Tetra Pak's largest sales market in the world. Currently, China's business has also entered the top five, accounting for nearly 6% of Tetra Pak Global.
"But when we reached 1.25 billion bales, we are sure that the Tetra Pak Group is the world's No. 1 in terms of the above." Lee Husson emphasized with confidence that "China is an indispensable city often in the next 5-10 During the year, it will definitely exceed the scope of Asia."
In 2001, in the context of the decline in sales in some markets in Europe and North America, the significance of the Chinese market for Tetra itself is self-evident. As a leader in the aseptic paper packaging industry, Tetra itself has to face a serious reality: the global competition between the carton and plastics business has become increasingly fierce, and it is re-establishing a competitive landscape — 2001, Tetra Pak Two paper packaging competitors withdrew from the US sterile paper packaging business.
In contrast, Tetra Pak apparently has to be comfortable in China: As early as 2001, China has become one of Tehran's fastest-growing markets, and at least 95% of the market share in aseptic paper packaging allows Tetra Pak The status of China's soft drink packaging industry is unattainable—Teller's market share in the field of international sterile paper packaging is currently 70%-80%.
Prosperity with China's Dairy Industry
In China, Tetra Pak seized the initiative to the maximum extent — at least 10 years earlier than its competitors, and always focused on the dairy industry.
"Our goal has always been to grow together with China's dairy industry." Li Huxun said that as a company in the middle of the industry chain, the key to Tetra Pak's current success is "to meet the diversified needs of the Chinese market through diversified products." .
To a certain extent, Tetra Pak played a role in nurturing and promoting the development of China's dairy market, providing product guarantees and technical support for its rapid development.
Let Liole be proud of one case is its largest customer in China - Yili. In the 1980s, Yili was also an ordinary small dairy factory, which mainly produced milk for the surrounding area of ​​Hohhot. After cooperating with Tetra Pak, the two sides faced the problem of how to supply well-preserved milk from Hohhot to the fast-growing South China market. "At that time we had to develop a product suitable for long-distance transportation. There was no such Chinese packaging supplier on the market," recalled Yi Jun, chairman of Erie. With the help of Tetra Pak, “The milk shipped from Hohhot quickly gained a good reputation in South China.â€
In 1997, Yili purchased the first filling machine from Tetra Pak. By the end of 2002, Tetra Pak had provided Yili with 61 production lines. In the past few years, Yili has grown at an annual rate of 40% and has become one of the largest dairy products companies in China. “The support provided by Tetrah has played a significant role in the rapid development of Yili over the past five years. From the improvement of raw materials to marketing training, Tetra has provided support, so we are real partners.†In Zheng Junhuai's eyes, Yili was able to have today.
“We have been using the advanced 'key customer management system' marketing model in the Chinese market.†Li Huxun showed the “magic weapon†of Tetra Pak’s victory in the Chinese market: Focusing on customer management, Tetra’s technical equipment experts and packaging Designers, market service personnel, and even financial managers will maintain close ties with customers and jointly in-depth production and market first-line. In the whole process of equipment introduction, product development, technical training, market information, marketing system construction, and new product listing, we actively invest to help local customers grow.
"It is precisely this concept that we have quickly integrated into local companies, growing with them and achieving a win-win situation."
Right now, Tetra customers include several major domestic dairy and beverage giants such as Yili, Guangming, Sanyuan, Mengniu, Wahaha, and Huiyuan, and have established about 800 production lines nationwide. As long as these production lines are able to maintain stable production, Tetra Pak has a stable income—there is a constant supply of Tetra Pak.
It is understood that in the current industry, the profits of various companies are almost all from selling paper.
Now, Tetra Pak has reached the ideal state of "toward prosperity with the Chinese dairy industry." According to Lee Husson, at present, 70% of Tetra Pak's business in China is in the dairy industry. In 2001 alone, Yili produced about 200,000 tons of ultra-high-temperature milk in Tetra Pak packaging --- a 250-ml Tetra Pak package. Its market price was around 4 horns.
In fact, for Tetra Pak, the Chinese market has become a "surprise" so quickly. "In the past 10 years, China has been developing in ten steps."
"Since 1975, Taiwan's unity, Singapore's Yang Xiecheng and Hong Kong's vitamin milk have become our customers. So we set up an Asia Development Department in Hong Kong to do our after-sales service," recalls Hussein. Hong Kong is close to the mainland, so when Guangdong opened an external trade fair in 1979, Tetra Pak also went “looking for opportunities†and sold its first machine to Guangdong.
In 1985, Tetra Pak was established in Hong Kong, but in reality it was only a trading company that had been staying in Hong Kong. "At that time, it was only interested in selling things in China and it had not reached the point of investing in China." Until 1992, “The headquarters visited China once and felt that the market has great potential.†In 1994, 75% of Tetra Pak Holdings Co., Ltd. was established in Foshan.
Now, Tetra Pak has already completed its first step in China: setting up offices in nine key cities such as Shanghai and Beijing; four joint venture factories in Beijing, Foshan and Kunshan, and establishing Distribution network around. In 2000, Tetra Pak China headquarters was officially relocated from Hong Kong to Shanghai.
However, with the increasingly fierce competition in the beverage packaging market in China in recent years, Tetra Pak began to feel pressure.
Red's multinational companies each other
Last year, Tetra Pak's old rival, the Swiss Industrial Group (SIG), which ranked second in the field of international sterile paper packaging, began to aggressively break into the Chinese market. On Nov. 27th, SIG Combibloc established its presence in the Suzhou Industrial Park in China. The first carton packaging plant has a total investment of 90 million U.S. dollars. The completed SIG Leisure Pack Suzhou plant will be put into production in the first quarter of 2004 with a capacity of 3.3 billion packs of cartons.
"We are indeed late, but it is never too late to make a correct decision," said Mr. Edwin Somm, Chairman of the SIG Group's Board of Directors. He revealed that in recent years SIG Combibloc will also set up a new aseptic paper pack factory in China. This time may be located in a place closer to the customer, such as Inner Mongolia and other moderately developed regions.
“If a manufacturer accounts for 90% of a market, then this is when we want to enter that market. Because we have always been following the market later.†Giving SIG great confidence is their success in Thailand: 1996 When Combibloc first entered Thailand, the market conditions in Thailand were similar to today’s Chinese market, but six years later, the market share of SIG Commodity in Thailand has increased to 30% to 40%. “Our strategy is to win the market by taking a different path from our competitors.†In the Chinese market, the recent goal of Combibloc is to achieve a market growth rate of 20% to 30% in the next few years in order to gain as much market share as possible in China. .
In fact, Combibloc now poses no small threat to Tetra Pak. According to an industry source, prior to Combibloc, Tetra Pak did not generally have a discount on the prices of machines sold in China. However, Combibloc’s marketing strategy of winning customers with low-cost delivery machines and then selling packaged materials has forced the company to Le has to change the original sales
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