Local approach puts Coca-Cola on fast track
(XING BAO)
11/09/2001
Coca-Cola was proud to have been a part of China's "continuing growth story" and intend "to continue that partnership into this new century and beyond," according to Douglas Daft, chairman and chief executive officer of the global beverage giant."When I look towards our future in China...something I do with great optimism...I see that it will continue to be defined by the 'secret formula' that has gotten our business to where it is today: Global Brands, Local Approach," said Daft, who was in Shanghai over the weekend to attend the annual International Business Leaders' Advisory Council meeting. "Our local approach has made us a truly local business in China," he said. "Our beverage concentrate is now produced locally and purchased in local currency. We purchase more than US$600 million worth of ingredients, materials and packaging in China every year and nearly all the 15,000 people who work in our system in China are local people." "Our advertising, our innovation and our new product development - all happen at the local level. Through a true local approach, we're able to connect with our local Chinese consumers every day, one person at a time. We'll continue to diligently build our business in this way." Coca-Cola has relocated its China headquarters from Hong Kong to Shanghai last year. A new research and development centre has also been established in Shanghai recently to expedite new product development for the local market and serve the needs of markets in Southeast Asia. The American company has established itself as the leading soft drink in China, which is now its sixth largest market in the world. The company's sales volume in China has increased from 4 million unit cases in 1986 to 450 million unit cases last year. In China, Coca-Cola has also contributed more than US$3 million to community programmes, including building 51 Hope Project schools which benefit 30,000 underprivileged students in the countryside.
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