Foreign Packaging and Competition (Chinese)

"But when we reached 12.5 billion bales, we are sure that Tetra Pak is the world's No. 1 in terms of the above." Li Huxun emphasized with confidence that "China is an unstoppable market. In the future 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 has to face a grim reality: The global competition between the carton and plastics business has become increasingly fierce, and it is reshaping the competition. In 2001, Tetra Pak. The home paper packaging competitor 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 - at present, Tetra Pak's market share in the field of international sterile paper packaging is 70%-80%.
With China's dairy industry prospering in China, Tetra Pak seized the opportunity to the greatest extent possible - 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.”
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 steady income – 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 treated milk in Tetra Pak, 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. (To be continued)