Market Analysis on: Lipton in China

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Lipton history

Lipton” is the world’s largest tea brand. Thomas · Lipton is the brand’s founder. Have once, go traveling’s Lipton came to the famous tea grown Ceylon. Ceylon tea is English very much, but the high price drinks only can enjoy a polite society. Lipton sensitive to realize that, if we can make tea introducing mass daily life, is necessary to become a new business. And then there is Lipton tea with milk. In 1992, Lipton into China market. Whenever and wherever Lipton tea with milk in mild increase your spirit at the same time, give the body compensatory nutrition, make you energetic.

Effects of Tea Market in China

A market Analysis in China

Positive

1. Supply funds for China’s tea industry to develop. At the same time, it can help to guide the direction of researching in tea market in China. According to statistics, Unilever’s investment in China has reached $ 1 billion ever since 1986. In October 2005, the company invested $ 50 million to build the world’s largest tea manufacturers in Hefei. And planning to build a tea production base in Huangshan.

2. Supply many new positions for Chinese in the factory. So far to now, Lipton has imported over 100 advanced technologies and hired more than 2000 employees in China.

3. The most significant advantage that a multinational company has is the new management system they bring in. Lipton’s concept in occupying China market is comprehensive localization. Localization of human resources, purchasing, capital operation and imagination. On the functioning of the company, it also has its individual approach. For example, in brand’s management, it has a rich and mature brand management experience. From a global point of view, it is to take a conservative strategy, compress the number of names, and ensure the growth rate of the first-tier brands is high.

Negative

1. Occupy China tea market. So far to now, Lipton shares more than 80% of the market among all similar products and has no alternative. International Lipton tea beverage is in most consumers’ preference. And Lipton tea is mainly instant tea, which packed in small pouches, is convenient and fast. Not like the kind of tea which need to be soaked. Much Chinese, especially youngs prefer Lipton tea. With the improvement of people’s economic level in China, people need more high-end goods than ever before. At the same time, international tea brand like Harney & Sons, Seasons Tea, Twinings, Dilmah, Goodearth, Chat time are accepting by more and more local people, which restrict China’s tea brands to some degree.

2. Seize the natural resources of China’s tea industry, and obtain the highest profit in China tea market. According to statistics, Unilever in China’s domestic procurement has reached 90%. The company has more than 5 billion yuan in sales and growth performance.

Lipton status in China

As the union made China brand, Lipton in Chinese cities occupies a significant market share. Lipton tea products are now selling global 110 countries and regions. Whether fame or sales, Lipton are the world’s leading tea brand, more than the second most brand sales of at least one times higher. Meanwhile, Lipton now also is global consumers choose the most third-largest non-alcoholic beverage, behind the Coca-Cola and Pepsi cola.

Edited by Amy Wang from Daxue Consulting China

Credit Photo: one show

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