In the 1990s, Red Bull entered the Chinese market and began to spread the concept of 'energy drinks'. Since then, Red Bull has dominated the energy drink market in China. According to a 2017 research report by Essence Securities, Red Bull continues to lead the industry with an absolute advantage in market share. However, in 2016, a conflict broke out between Thai Tencel and China Huabin Group over the Red Bull trademark license, and the trademark dispute remains unresolved, providing opportunities for other companies and brands in the industry. In recent years, Dongpeng Te Yin has been making continuous efforts in the market. According to Jiahua Weiye Capital, an investor in Dongpeng Te Yin, the company currently holds a market share of 10.19%, closely following Red Bull. So, can the 'market runner-up' seize the opportunity to overtake? On April 16, the brand and media director of Dongpeng Te Yin told reporters that its sales are currently around 4 billion yuan, and the company is confident in the development of the energy drink industry. The Red Bull trademark dispute is an opportunity for the entire industry. Channels and brand still need to be strengthened Red Bull's leading position remains very stable. As a local brand, Dongpeng Te Yin has been making efforts in recent years and has also gained favor from capital. In 2017, it received an investment of 350 million yuan from Jiahua Weiye Capital. Dongpeng Beverage was originally a time-honored beverage manufacturer in Shenzhen. In 1997, Dongpeng Te Yin was successfully developed and officially launched, but it was not until 2013 that Dongpeng Te Yin officially entered the national market. Since 2015, Dongpeng Te Yin has established a 'brand rejuvenation' strategy, proposed the slogan 'Young and awake, fight hard', and sponsored popular TV dramas and variety shows such as 'Lao Jiu Men' and 'High Energy Youth Group' to get closer to young consumers, and laid out sports marketing, quickly attracting the attention of young consumers. The reporter noticed that the unit price of Dongpeng Te Yin in small shops and supermarkets in Shanghai is 4-5 yuan, while Red Bull is 6-8 yuan, and some convenience stores even sell it for 9 yuan per can. Lehua's unit price is 5-6 yuan. The flavors of several energy drinks are similar, and Dongpeng Te Yin has a price advantage. Song Xiangqian, founding partner and chairman of Jiahua Weiye Capital, said in an interview with reporters that after the investment, he is satisfied with the improvement in the overall operation and management efficiency of Dongpeng Te Yin in the three dimensions of product, brand, and channel, and the rapid growth of revenue and profit. However, in Song Xiangqian's view, compared with brands such as Red Bull and Lehua, Dongpeng Te Yin still has room for improvement in channels and brand. 'Red Bull has been developing the Chinese market for nearly two decades, with numerous branches and outlets, and a market share of nearly 80%, highlighting its absolute leadership. Lehua, as a brand of Dali, has more than 10,000 secondary distributors, and has stronger control over townships. Compared with Red Bull and Lehua, Dongpeng Te Yin needs to expand and improve its marketing network and channel construction.' Song Xiangqian also said that although Dongpeng is currently young enough in advertising, marketing, and communication, its product packaging, logo, and appearance design lack certain personalized fashion elements, and it needs to make efforts in this area in the future. At the marketing level, Red Bull is positioned to focus on energy and vitality, and in advertising and marketing, it never leaves the theme of 'energy', strengthening consumers' awareness of Red Bull's brand positioning and deepening brand memory. In comparison, Dongpeng Te Yin's brand marketing still needs to be strengthened. How to break through in the future At present, the main domestic energy drink products include Red Bull, Dongpeng Te Yin, Lehua, Heika, as well as American energy drink 'Monster' and Wang Sicong's Ailuo and other brands. Functional drinks, represented by energy drinks, are regarded as a future industry worth hundreds of billions. This has attracted more brands to enter, making market competition more intense. At present, the competition among major brands for the 'post-90s' young market is intensifying, especially in the energy drink industry, which may lead to a reshuffle of the industry. From the marketing strategy, it can be seen that Dongpeng Te Yin is constantly moving closer to young consumers, such as setting up 'Sleepiness Research Institute' in universities, embedding 'scenario-based' advertisements in popular TV dramas, and launching unique marketing methods such as WeChat red envelopes. On April 16, the brand and media director of Dongpeng Te Yin said, 'While the entire beverage industry is showing a downward trend, the energy drink industry is still growing steadily. We are confident in the development of this industry. The Red Bull trademark dispute is an opportunity for the entire industry.' However, in the view of Zhu Danpeng, an analyst in the Chinese food and beverage industry, based on the current development of Dongpeng Te Yin, the possibility of overtaking is very small. First, because Red Bull has an absolute advantage, competitors cannot shake its position in the short term. Second, the consumer groups have been precisely 'segmented'. Energy drinks are currently mainly consumed by three types of people: drivers and assembly line workers, white-collar workers and young people who stay up late, and teenagers and mobile game enthusiasts. Different brands target different consumers with different channels and tiers. Source: 'Daily Economic News' -END-