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  • Essay / Energy Drinks in China - 1017

    China has embarked on rapid economic growth, particularly in urban areas, resulting in a booming consumer market for premium goods and services. The Chinese would represent 20% of global luxury products by 2015, which would represent the colossal sum of 27 billion dollars. By 2020, China's middle class is expected to reach 45% of the population, or nearly 700 million people. These reasons make China a very lucrative target market for luxury beverage manufacturers like us. This well-documented growth in disposable income among Chinese consumers provides a highly advantageous space in the regional market as a global beverage manufacturer. In-depth research on the fastest growing soft drinks in China between 2010 and 2013 gives a strong signal: with the right kind of marketing and presentation of drinks with a targeted function, can lead to exponential growth. Our Illy energy drink fits this category very well. Illypower takes a tunnel vision and offers potential consumers a drink with a function rather than just a flavor. It's packed with antioxidants and is made from recyclable coffee capsules used in brewing coffee at our Italian Illy coffee manufacturing facility. Traditional homeopathic medicines used in Chinese culture have helped create a consumer base more open to sustainable functional caffeine drinks. . Some real-world examples to support our argument are the popularity of herbal teas that help with digestion. Additionally, Asian specialty drinks such as peanut milk and almond juice are popular because it is believed that the plant proteins in these drinks can prevent obesity. These consumer beliefs have opened the door to functional, health-focused beverages like ours. Ready-to-drink teas such as President, Master Kong and...... middle of paper ......and so on, according to Chinese market analysis. Our analysis also tells us that Chinese people, with high disposable incomes, will be willing to pay a higher price for the latest products. Chinese consumers have consistently demonstrated a keen desire to pay a significantly higher price for products that provide a sense of prestige and sophistication. In 2011, China became the world's third largest market for luxury brands, accounting for nearly 25% of global sales of mainstream luxury goods. Simply bearing an imported label can often, but not always, be sufficient to classify products as a primary rice category. It has also been observed that the high price of a product is directly correlated to the quality of that product. Considering the extremely high quality from which this product is made, we are confident that Powerilly is a leader in its industry..