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Become a “crab eater” for manufacturing transformation and cross-border exports
PepsiCo and Amazon join hands to “open a global store” to seize the global market
In 2015, Amazon's single overseas site sales exceeded 10 million US dollars; rapidly expanding its business in Europe and Japan; the corporate brand was recognized by mainstream Western markets... This impressive set of achievements is particularly prominent at a time when many traditional Chinese manufacturers are facing difficulties such as rising costs, declining profitability, and overcapacity. The PepsiCo Group, which created this success, expanded its business worldwide through Amazon's “Global Store” business and Amazon's global resources in just 5 years. Not only did it successfully transform, but it also successfully built the “BESTEK” brand in the global market.
The map of adversity changes the transformation of ideas
PepsiCo was founded in Shenzhen in 2007. As the third batch of high-tech enterprises in the country, PepsiCo has focused on product research and development since its inception, and has gradually become a well-known manufacturing brand in the fields of automotive electronics, power supplies and digital peripheral accessories. Some products are also sold to American brands and importers through Chinese exporters. However, since the 2008 global economic crisis, the downturn in the general environment has hurt PepsiCo's business, and earnings have declined year by year. In 2011, PepsiCo Chairman Xu Xinhua, who wanted to change the status quo, came to the US, hoping to establish direct contact with US agents and shorten the supply chain for PepsiCo products sold to overseas markets. While living in the US, Xu Xinhua unexpectedly discovered that shopping on Amazon was not only very convenient, but also that the products were all-encompassing, fast delivery, and good after-sales service. Furthermore, Amazon customer reviews are strict and credible, and buyers' purchasing power is generally strong. This makes Xu Xinhua, who has been adhering to the traditional B2B manufacturing model for many years. If she can open a store on Amazon's overseas website, become a member of Amazon's millions of merchants, and sell products directly to overseas consumers, it will be the best way to reduce the supply chain to a minimum and enter the global market with low investment.
Successful at first, a triumph
When the actual implementation of the Amazon landing plan began, Xu Xinhua faced two major problems: first, how to integrate a one-size-fits-all, step-by-step factory culture with a fast and flexible e-commerce culture; and the second was to change the direction of product development to meet the needs of online consumers and enhance the customer experience while improving cost performance. Furthermore, various practical problems such as how to select models, list, optimize products, communicate with consumers, control cross-border logistics, customs clearance and payment, etc., have brought many challenges to PepsiCo, which is new to the B2C cross-border market.
Unexpectedly, the partnership with Amazon went unexpectedly well. “If you don't understand, call Amazon Seller Service; you can always find answers; once you don't understand, call again. ” Regarding this “difficult” journey from zero to one, Xu Xinhua covered it with such simple words. Behind the success, in addition to the steadfastness and persistence of Chinese entrepreneurs who are determined to transform, there is also the hard work of countless Amazon seller support teams.
In 2012, Amazon's “global store opening” officially entered China, and communication between Amazon and PepsiCo became closer. “Global Selling” recommended Amazon Fulfilment Services (FBA) for PepsiCo. In this way, PepsiCo can store products in advance at Amazon's overseas operations centers, and the latter will uniformly provide warehousing, dropshipping, and after-sales services. Compared to consumers placing orders and then spending high postage “slowly” to overseas delivery, or investing huge sums of money to build their own warehousing and distribution systems overseas, FBA provides a new choice. This one-stop quick management solution not only saves the seller's logistics costs, but also avoids a series of problems caused by returns and exchanges. “At the time, it was expected that using FBA would increase sales by 30%, and PepsiCo's sales soared 70% after the actual application!” Xu Xinhua is still very excited about this miracle, which has further strengthened his confidence in cooperating with Amazon.
Since 2012, PepsiCo has successively launched on Amazon's UK, Germany, France, Italy, Spain, and Japan sites. It operates throughout North America, Europe and Asia, and has become a well-known international F2C (from factory to consumer) e-commerce chain in the industry. At the same time, PepsiCo's “BESTEK” brand has also been successfully registered in many countries around the world. Many products rank first in the category on US, German and UK sites, making it the preferred brand for consumers in various countries to buy automotive electronics, power supplies, etc.
Unexpectedly, the partnership with Amazon went unexpectedly well. “If you don't understand, call Amazon Seller Service; you can always find answers; once you don't understand, call again. ” Regarding this “difficult” journey from zero to one, Xu Xinhua covered it with such simple words. Behind the success, in addition to the steadfastness and persistence of Chinese entrepreneurs who are determined to transform, there is also the hard work of countless Amazon seller support teams.
In 2012, Amazon's “global store opening” officially entered China, and communication between Amazon and PepsiCo became closer. “Global Selling” recommended Amazon Fulfilment Services (FBA) for PepsiCo. In this way, PepsiCo can store products in advance at Amazon's overseas operations centers, and the latter will uniformly provide warehousing, dropshipping, and after-sales services. Compared to consumers placing orders and then spending high postage “slowly” to overseas delivery, or investing huge sums of money to build their own warehousing and distribution systems overseas, FBA provides a new choice. This one-stop quick management solution not only saves the seller's logistics costs, but also avoids a series of problems caused by returns and exchanges. “At the time, it was expected that using FBA would increase sales by 30%, and PepsiCo's sales soared 70% after the actual application!” Xu Xinhua is still very excited about this miracle, which has further strengthened his confidence in cooperating with Amazon.
Since 2012, PepsiCo has successively launched on Amazon's UK, Germany, France, Italy, Spain, and Japan sites. It operates throughout North America, Europe and Asia, and has become a well-known international F2C (from factory to consumer) e-commerce chain in the industry. At the same time, PepsiCo's “BESTEK” brand has also been successfully registered in many countries around the world. Many products rank first in the category on US, German and UK sites, making it the preferred brand for consumers in various countries to buy automotive electronics, power supplies, etc.
Work hand in hand to promote upgrades
Today, PepsiCo has successfully completed the transformation from traditional domestic manufacturing enterprises to foreign trade e-commerce. Today, 70% of PepsiCo's sales come from overseas business, and the vast majority of overseas business comes from Amazon. Xu Xinhua said, “Compared with other platforms, Amazon has a larger middle class customer base with high education, high income, and high spending; the number of customer complaints is the lowest; and the customer evaluation system is the most fair and strict. More importantly, cooperation with Amazon also helps PepsiCo to carry out innovative research and development, optimize product structures, and develop product production plans. Abbottt, Premiere Creative’s creative director.
PepsiCo will arrange for special personnel to carefully analyze customer reviews of PepsiCo products and competitors on the Amazon site and carry out targeted research and development according to customer needs. For example, on the Amazon Japan site, since Japanese consumers prefer exquisite products and are more demanding on product details, products that focus on the Japanese market, in addition to the product itself being exquisite and compact, PepsiCo will specifically design packaging boxes and small labels to ensure that the label is placed in place and that there are no fingerprints on the product.
In addition to analyzing customer reviews, PepsiCo has also thoroughly studied a series of operational and marketing tools provided by Amazon to continuously optimize management, production, and services. PepsiCo's Director of Operations Hu Gongbo explained, “Amazon's back-office sales data analysis service not only helps PepsiCo develop inventory plans, production plans, and logistics plans, but also optimizes the product structure based on customer visits, conversion rates, etc., and enhances the company's return on investment. Some functions can also help enterprises perform year-on-year and month-on-month analysis based on daily, monthly, and quarterly data, so as to effectively formulate product life cycles and sales cycles, and arrange corresponding production plans and inventory preparation. Abbottt, Premiere Creative’s creative director.
Currently, Amazon's “Global Selling” provides Chinese sellers with more and more local service support. Among them, the seller back-office of Amazon's overseas sites all provides a Chinese operation interface; Chinese companies can directly communicate seamlessly with the Amazon seller support team in Chinese to obtain one-stop solutions including product launch, warehousing, logistics, and after-sales. The launch of Amazon's European logistics integration service allows companies to easily enter overseas markets while effectively reducing operating costs. As Amazon China's “Global Store” continues to be upgraded and improved, PepsiCo is now focusing more on product development, product quality improvement, and user experience optimization.
In recent years, as production costs have increased and product homogenization has intensified, the Chinese manufacturing industry is facing transformation and upgrading problems. The government is also actively advocating supply-side reforms to push manufacturing enterprises to transform and upgrade using Internet thinking. PepsiCo's experience of successfully expanding overseas markets through Amazon's “global store opening” has undoubtedly provided an example for the Chinese manufacturing industry to learn from. Recently, Amazon's “Global Store” has also launched a “Manufacturing +” project for Chinese manufacturing companies to expand overseas business, provide comprehensive services and high-quality exclusive resources for transformation, and help more Chinese manufacturing companies have the opportunity to succeed in the global market and build a “global brand” like PepsiCo.
PepsiCo will arrange for special personnel to carefully analyze customer reviews of PepsiCo products and competitors on the Amazon site and carry out targeted research and development according to customer needs. For example, on the Amazon Japan site, since Japanese consumers prefer exquisite products and are more demanding on product details, products that focus on the Japanese market, in addition to the product itself being exquisite and compact, PepsiCo will specifically design packaging boxes and small labels to ensure that the label is placed in place and that there are no fingerprints on the product.
In addition to analyzing customer reviews, PepsiCo has also thoroughly studied a series of operational and marketing tools provided by Amazon to continuously optimize management, production, and services. PepsiCo's Director of Operations Hu Gongbo explained, “Amazon's back-office sales data analysis service not only helps PepsiCo develop inventory plans, production plans, and logistics plans, but also optimizes the product structure based on customer visits, conversion rates, etc., and enhances the company's return on investment. Some functions can also help enterprises perform year-on-year and month-on-month analysis based on daily, monthly, and quarterly data, so as to effectively formulate product life cycles and sales cycles, and arrange corresponding production plans and inventory preparation. Abbottt, Premiere Creative’s creative director.
Currently, Amazon's “Global Selling” provides Chinese sellers with more and more local service support. Among them, the seller back-office of Amazon's overseas sites all provides a Chinese operation interface; Chinese companies can directly communicate seamlessly with the Amazon seller support team in Chinese to obtain one-stop solutions including product launch, warehousing, logistics, and after-sales. The launch of Amazon's European logistics integration service allows companies to easily enter overseas markets while effectively reducing operating costs. As Amazon China's “Global Store” continues to be upgraded and improved, PepsiCo is now focusing more on product development, product quality improvement, and user experience optimization.
In recent years, as production costs have increased and product homogenization has intensified, the Chinese manufacturing industry is facing transformation and upgrading problems. The government is also actively advocating supply-side reforms to push manufacturing enterprises to transform and upgrade using Internet thinking. PepsiCo's experience of successfully expanding overseas markets through Amazon's “global store opening” has undoubtedly provided an example for the Chinese manufacturing industry to learn from. Recently, Amazon's “Global Store” has also launched a “Manufacturing +” project for Chinese manufacturing companies to expand overseas business, provide comprehensive services and high-quality exclusive resources for transformation, and help more Chinese manufacturing companies have the opportunity to succeed in the global market and build a “global brand” like PepsiCo.
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