Married into Giants? glimpse of China's brand of mergers and acquisitions

Keyword: brand mergers and merger of China's brand of foreign takeovers of brand China

The "merger", English is Enterprisesmergersandacquisitions. Chinese understand that companies merge and off-take, "mergers" are merged, the "acquisitions" is off-take.

Whether it's Samuel,?, or P.S. SamuelC.Weaver Weaver Saunders Sana'a El or de Palm Phyllis, without exception, are considered: mergers and acquisitions, this business of derivatives from birth that split second, with Angel and Devil's dual identity. From the late 19th century and early 20th century, the development of global mergers has experienced the fifth wave. In 1994 launched the fifth wave of mergers and acquisitions, cross-border mergers and acquisitions has become a multinational company to enter the main method of the host country markets, in international direct investment share is rising. While China has been involved in the beer industry, in the fifth wave of mergers and acquisitions in the whirlpool.

The Chinese market, since the mid-1990s, more than 10 years of domestic and foreign, in brewing industry set off another round of another round of "enclosure movement." Attracting public, media, Government, business, industry's attention. How mergers and acquisitions and mergers and acquisitions in the "historical issues"; increasing the amount of mergers and acquisitions (British Bogou and xuejin beer case subject reached 56 billion RMB!); Enterprise profitability and manage upgrades are growing ever louder; new brands and varieties more and more, mergers and acquisitions product formation and development of brand survival; a national brand and regional brand officially opened the prelude of the fighting, and so on. Constitute a Chinese beer industry competitive landscape. This huge photos, how to deal with the merger of brand strategy and business trends, is particularly interesting and thought-provoking.

First, the merger of two basis points

1. adoption of the merger to reshape portfolio and regional market resources (from the asset consolidation towards market integration), aiming for in some core product category and key regional markets become leader. At the same time, most companies still use through centralized marketing and other resources to focus on the development of their core brand. This strategy is the most typical example is Qingdao Beer and snow, they are themselves through mergers and acquisitions in the product category combination of perfection and the core area of the market leader in the fight to do quickly. However in the building core products and core brand in the result of both. Qingdao Beer since 2004 main push its benchmark products (Qingdao brand) and launched the original draft beer of new products. But in general do not smoothly and the China resource snow lead with its snow product brands relatively successful.

2. in order to reduce costs and expenses, and to provide adequate funding for expansion. Most companies have been spared no effort to improve operational efficiency, where scattered procurement (lateral diversification consolidation) and centralized supply (supporting enterprises of the construction and consolidation of vertical integration) is a common choice, this fact is the industrial chain of system integration, as it turns out, this really is the brewery saving a lot of expenses, and improve operational efficiency.

Through these two major strategy in the first three strong beer in China, as well as regional powerful enterprise achieve a virtuous circle of scale and benefit increases) are being synchronized for the unrestricted development and huge success.

II. merger and integration

Mergers and acquisitions, let the Chinese brewery of scale achieved an unprecedented increase. Including Qingdao Beer, yanjing beer, huarun snowflake beer, Goldstar beer, Pearl beer, kingway, Chongqing beer, beer, blue sword group of Yellow River, and so on, through capital mergers and acquisitions, offsite self-built factories, and other expansion means, to obtain the scale of competitive advantage.

In the merger of the chain, the "consolidation" is one of the keywords. Including like A-B beer group, SAB beer as well as international beer giant, has set off on merger or holding brewery "consolidation". Including business chain consolidation, market chain integration, management chain consolidation, integration of talent, especially the brand integration, but also became more and more beer group following the merger of "size" of the strategic thinking of the "focus".

However, the Chinese beer market unique regional emotion, local support, huge Chinese geographical territory, making the "Dukes of separatist" become "brand integration" of the greatest constraints. Including how to affect the already strong regional brand loyalty of consumers, how and region regional brand together forward, will be "brand integration" need to reflect on the issues. At the same time, to create a national brand, it is no easy task. Not only face consumer market cultivation and consumption of penetration tests, but also faced the test of strategy and tactics, including brand choice, brand positioning, brand personality refining, brand communication strategies, etc. In short, China's beer industry in the pursuit of scale during the merger wave of problems and difficulties.