The gap between Huiyuan Juice and other competitors

Coca-Cola Company's acquisition of Huiyuan Juice is one of the hottest news at present. From a commercial point of view, selling Huiyuan juice to Coca-Cola is a very profitable business. In this transaction, Coca-Cola offered a purchase price of HK$ 65,438+02.2 per share, nearly three times the closing price of HK$ 4.65,438+04 when Huiyuan suspended trading. Zhu Xinli, the head of Huiyuan, is very satisfied and proud of this transaction. Zhu Xinli holds 465,438+0.53% equity of Huiyuan Juice, that is, 665,438+0,000 shares. Once acquired by Coca-Cola, Zhu Xinli will cash in HK$ 7.4 billion. Being able to be acquired by Coca-Cola at a premium when the stock market is depressed is very successful from the perspective of capital operation, and it also shows that Huiyuan Juice is worthy of its name from the perspective of business.

However, after the announcement of Coca-Cola's acquisition of Huiyuan Juice, it caused an uproar in China. Many netizens expressed their views on this matter online, and many portals, including Netease and Sina, investigated the acquisition. Among them, more than 200,000 netizens voted for Sina, and 78.36% of them expressed their opposition to the acquisition. In the survey of China Securities Network, the proportion of opposition is as high as 98.37%. The sale of Huiyuan Juice to foreign companies was opposed by many people in China, especially the purchase of Coca-Cola, which made many people in China feel humiliated and set off a wave of anti-takeover in the name of patriotism, making a very ordinary commercial acquisition an indelible pain in their hearts.

Why does the owner of Huiyuan Juice want to sell the company and brand? The sales of Huiyuan juice in China accounted for 42.6% and 39.6% of the total domestic market respectively, and Huiyuan has become the undisputed leader in the pure juice market in China. Moreover, Huiyuan successfully listed in Hong Kong last year. It can be said that Huiyuan has given outsiders the feeling of being proud of the spring breeze, and it is incredible to be suddenly acquired by others at this time.

However, if we carefully observe the corporate governance structure and development trend of Huiyuan, we can easily find that Huiyuan is actually at the end of its rope, and it is difficult to go abroad and go to the world alone, because it does not have enough talent reserves and reasonable corporate governance structure, and of course it is not a grand development strategy. Huiyuan itself has no core competitiveness. In the tide of world economic integration, enterprises can't rush out and will inevitably be surrounded by foreign enterprises.

Many of our national brands have been bought and squeezed by large foreign companies. These national brands have disappeared because of the gap in our strength, and the technical content and characteristics of our products are not obvious. Enterprises lack unique core competitiveness and will naturally be eliminated in the face of the strong impact of foreign companies.

Zhu Xinli is a clever businessman. He sold it to Coca-Cola in the heyday of Huiyuan. Naturally, he made a lot of money. Although the public opinion in China may be against him, after all, he got a real gold and silver harvest. He knows that the result of persisting in the war of resistance may be complete failure in the end. Because his level is not as good as Lenovo's Liu Chuanzhi and Haier's Zhang Ruimin, his team also lacks the ability to go abroad. He is very self-aware, and his defense actually proves this.

So, why did Zhu Xinli sell Huiyuan to Coca-Cola? Is there no domestic enterprise that can buy it? Actually, this question is easier to answer for two reasons. First, domestic enterprises can't offer higher prices than Coca-Cola, and businessmen just pursue profits. Second, Zhu Xinli thinks that others can't do what Huiyuan can't do, because Zhu Xinli thinks that he is the boss of the domestic juice industry, and if he sells it to other domestic enterprises, he will feel humiliated, and the face of Chinese people is also very important. After all, Coca-Cola is the largest beverage company in the world, and selling it to Coca-Cola won't hurt Zhu Xinli's face.

Of course, when we say that Zhu Xinli lost everything after selling Huiyuan, it doesn't mean that Coca-Cola lost money. Coca-Cola's bosses will not be philanthropists, and the income from its acquisition of Huiyuan Juice will definitely be much greater than that of Zhu Xinli, because he has occupied the market in China, avoided the lose-lose competition and eliminated a powerful competitor (national brand).

China's national brands have disappeared one by one under the powerful offensive of foreign brands, which makes people feel very sad, but patriotism cannot be closed to foreign brands. Patriotism can't make people avoid foreign products, because the quality and characteristics of our products can't meet everyone's needs. Therefore, the revival of national brands can not only rely on feelings and the simple protection of the government, but also need to improve the market competitiveness of national brands.

The revitalization of national brands is the responsibility of enterprises in China, which requires China to cultivate excellent entrepreneurs and excellent management talents, and requires the joint efforts of one generation or even several generations. Huiyuan's sale to Coca-Cola is not a matter of getting to the bottom; The boss who sells Huiyuan can't be blamed for this. After all, he is also a businessman, talking about business. However, this incident should inspire enterprises and entrepreneurs in China to rise up against it. As long as entrepreneurs in China work hard and improve their own quality, there may be many new Huiyuan. Our national brands should not only be able to resist the attacks of foreign brands, but also the enterprises in China should go abroad and go to the world.