Click to read the original article for details. **Recently, Coca-Cola launched a new sports drink. After an 11-year hiatus, Coca-Cola made a comeback, officially bringing its sports drink brand POWERADE back to the Chinese market. This return is seen by outsiders as Coca-Cola's attempt to ride the "Winter Olympics" wave and achieve a leap forward. During the 2008 Olympics, POWERADE made a brief appearance, but it was indeed just a flash in the pan. POWERADE With over 90 years of Olympic marketing experience, Coca-Cola naturally wouldn't give up on the Olympic market due to one failure. Having missed the opportunity at the 2008 Summer Olympics, Coca-Cola is determined to seize the chance at the 2022 Winter Olympics to bring POWERADE back to the Chinese market. A Crowded Field Sports drinks are a type of functional beverage and hold a significant market share within that category. According to a report by China Commercial Industry Research Institute, "2018-2023 China Functional Beverage Market Investment Analysis and Prospect Forecast Report," in 2018, China's functional beverage retail sales were expected to exceed 45 billion yuan for the first time, reaching 45.67 billion yuan. Meanwhile, a report by Bosi Data, "2018-2023 China Sports Drink Industry Market Assessment and Trend Forecast Research Report," more specifically pointed out that in 2018, China's sports drink market would reach 27.4 billion yuan, with sports drinks accounting for nearly 60% of the functional beverage market. The domestic sports drink market is undoubtedly crowded with formidable competitors; otherwise, Coca-Cola wouldn't have quietly retreated back then. As the world's largest beverage company, Coca-Cola's leading position in China's carbonated beverage market remains difficult to shake, but why has its performance in the sports drink market been so different? In fact, Coca-Cola launched POWERADE as early as 1988. It is not only favored by professional athletes in North America but also popular among the general consumer market. According to relevant data, POWERADE's market share in North America is second only to PepsiCo's Gatorade. Setting aside whether POWERADE, which officially launched in Shanghai and other provinces in June, can tantalize Chinese consumers' taste buds, to integrate into the Chinese market, POWERADE must first face competition from numerous domestic sports drink brands. Given the current domestic market performance, there is little room left for POWERADE. And this doesn't even mention its competitor in the U.S. market—Gatorade—which holds an 85% share of the U.S. sports drink industry and is truly a giant. Its performance in China is also impressive. According to data from the China Enterprise Brand Research Center, in 2018, Gatorade ranked fifth in China's functional beverage brand power index, making it the only foreign brand to enter the top five. This demonstrates its strong performance in overseas markets. ▼ 2018 China Functional Beverage Brand Power Index Ranking (Data source: China Report Network) According to the latest news, Dongpeng Te Yin, the "second-in-command" in the domestic functional beverage market, has accepted listing guidance and begun its journey to go public, which will also pose a huge impact on POWERADE's layout. It's not hard to see that POWERADE's entry at this time means facing strong domestic competitors and foreign giants lurking outside. Under attack from both sides, the future challenges for POWERADE are unimaginable. Challenges and Opportunities Coca-Cola's entry into the sports drink market at this time is indeed somewhat late compared to its carbonated beverage market in China. But how could Coca-Cola, which focuses on global marketing, not know this? One statistic alone shows that Coca-Cola can gain a share in the Chinese market: compared with developed countries, China's per capita consumption of functional beverages is only 0.5 kilograms per year, far below the global average of 7 kilograms per person. Therefore, China's functional beverage market has enormous potential. So, will Coca-Cola's return to China this time allow it to stand out in the fiercely competitive functional beverage market and carve out a territory? Or will it end as hastily as it did 11 years ago, with no achievements? Let's first look at its strongest competitor Red Bull Red Bull, in recent years, has indeed lost its momentum. Although it remains the dominant player in China's functional beverage market, its market share has been eroded by the influx of new products. Since the trademark dispute between Thai Red Bull and Chinese Red Bull began in 2016, sales of Chinese Red Bull have been declining. Data shows that from 2015 to 2017, Red Bull's sales in China declined year by year, from 23 billion yuan in 2015, falling below 20 billion yuan, to 19.6 billion yuan in 2017; its market share also dropped from 63% in 2016 to 58% in 2017. Correspondingly, the market shares of Lehu and Dongpeng Te Yin have increased, and these three are the top three in China's functional beverage market. According to the latest data from Nielsen, the three giants that once held a 90% market share saw it decline to less than 80% in 2018. From this perspective, POWERADE's entry might also cleverly seize a place in the ever-changing Chinese functional beverage market. ▼ 2017-2018 China Functional Beverage Brand Market Share (Data source: China Industry Information Network) The former "POWERADE" failed, but this time Coca-Cola has rebranded it as "Bao Rui" (POWERADE), which has boosted its momentum. POWERADE's market positioning has also become clear: first-tier metropolises like Beijing and Shanghai serve as bases for brand promotion and channel distribution; e-commerce platforms like JD.com and Taobao have not been overlooked either. This time, it seems fully prepared. In product development, Coca-Cola has deliberately created two products, "POWERADE Endurance" and "POWERADE Burn," tailored to different sports scenarios. The former targets endurance sports, while the latter targets explosive sports. Such refined products are intended to ignite the passion of every athlete. In the fiercely competitive market, every step for POWERADE will be difficult. The product still needs to capture consumers' minds, especially since this is a beverage that users must taste and experience themselves; brand positioning is particularly important. Conclusion It is still too early to judge whether Coca-Cola's entry into China's sports drink market this time will successfully disrupt the market. But one thing is certain: the current Chinese market is already full of competitors. As for POWERADE's attempt to seize market share, perhaps the Chinese market already has an answer: "We don't want to compete with you, but we're not afraid of you competing; if necessary, we have to compete." Source: Internet + Sports (ID: jipangtiyu)