At the beginning of April, T-K Group made use of Nanshan, XX, and Mei Shan companies’ sales channels to introduce their own health supplements brands into Country Z’s market, successfully making their way into most of the supermarkets in the country. Meanwhile, NBJ continued to leverage on the reputation of their own brand to fight off T-K Group.
The entire business world, both overseas and locally, paid close attention to this battle for Country Z’s health supplements market.
Old Mr. Wen sat on the sofa as he watched the news, which reported on T-K Group’s all-out offensive attack against Country Z’s health supplements market. “It looks like Country Z’s business world will experience a turning of the tide.”
His words were not without regret. As a traditional businessman in Country Z, Old Mr. Wen detested those international corporations who tried to acquire local enterprises. There was nothing wrong with their local brands at all, but they just never got the chance to develop to their full potential. As a result, outsiders would never view Country Z’s products as favorably as those overseas brands.
Wen Xinya was peeling an apple when she heard him. She lifted her head in question. “Why did you say that? Do you also think that Country Z’s health supplements brands cannot win against a global enterprise?”
Wen Xinya knew Grandpa was not the only one who held that opinion.
Everyone who had been paying close attention to this whole situation had the same thoughts. After all, T-K Group had already swept up more than half of Country Z’s health supplements industry as of now. Only NBJ and Lanxin Company remained steadfast. In everyone’s eyes, those two companies were just a couple of mayflies trying to shake a great tree. They were completely overestimating their own capabilities.
Old Mr. Wen sipped his tea as he answered, “The director of NBJ is the president of Country Z’s health supplements association. He made use of his authority to try and instigate all the local distributors against T-K Group. This is his only way to fight the T-K Group. However, he overlooked the interests of those distributors.
“This is a battle between an international corporation and Country Z’s health supplements brands. To put it bluntly, what has it got to do with the distributors? It doesn’t matter where the money comes from—be it from Country Z’s brands or a foreign company—it’s all the same to them.
“In the short term, most distributors might stand on the side of national interest, as well as honor the fact that they have had a longstanding working relationship with you—and be willing to forgo their own interest just to support you. However in the long term, when the distributors’ profits start to get significantly impacted, they will no longer be so inclined to help. That will be the time when NBJ falls.”
If Country Z’s health supplements brands had formed an alliance to fight against T-K Group when it first expressed its ambitions to conquer the local market, the various distributors would have also joined that alliance. After all, they could not afford to offend all the local health supplements companies just because of the T-K Group.
Then, there might still be a possibility of winning this battle.
However, the local health supplements scene was extremely divided. NBJ enjoyed a good reputation, Ming Yuan possessed deep financial pockets, while Mei Shan had a very strong foundation. They each made their own way and ended up being attacked one by one.
Now, the tide had turned and only NBJ and Lanxin Company were left in the local health supplements market. There was no way that the distributors would forgo their own profits and perish together with NBJ and Lanxin Company.
Wen Xinya looked deep in thought. “Although NBJ’s actions against T-K Group have caused quite an impact, it is only a temporary stalling measure against the inevitable takeover.”
NBJ had already exhausted its limited abilities.
The company would not be able to hang on much longer.
Over the past year, NBJ had met T-K Group head-on several times. NBJ had expended a startling amount of financial resources and was now struggling at the brink of death.
Wen Xinya asked again, “What are the chances of the local health supplements brands winning if Lanxin Company and NBJ form an alliance to pit themselves against T-K Group?”
Grandpa had a unique insight into the business world. Although he valued profitability, he was also a farsighted person.
Old Mr. Wen uttered in a low voice. “Over the past year, Lanxin Company appeared to be completely docile towards T-K Group. But among the few setbacks that T-K Group suffered in the local health supplements scene, there were hints that some of them were the doings of Lanxin Company working behind the scene. And Lanxin Company has also ramped up its operations the past year. I am guessing that they wish to develop their capabilities to match the T-K Group’s level. There are some sides to this company that I can’t quite grasp.”
Old Mr. Wen had investigated Lanxin Company’s background but to no avail. As a result, he did not dare to speak too presumptuously.
A slight smile played upon the corners of Wen Xinya’s lips.
Old Mr. Wen continued, “However, even if the two companies joined forces to fight against T-K Group, I still feel that the chances of success are small.”
Wen Xinya said, “It’s a small chance but not impossible. It looks like there is still a possibility of success for the local health supplements brands.”
It seemed like Grandpa thought rather highly of Lanxin Company.
Old Mr. Wen said, “That might be so, but it is still a very small possibility. It’s obvious that much thought and planning have gone into T-K Group’s all-out invasion of Country Z’s health supplements market. The fact that they are launching their second- and third-tier brands into the market first, shows they are well-prepared for this battle.”
In Country Z, the development of its cities was uneven, which resulted in an overly-wide income gap. The consumers in each income group had their own spending levels, requirements, and habits. No single product would be able to completely cover the entire Country Z’s market.
And T-K Group was launching their second- and third-tier brands into the market first—what did that imply?
It showed that for the past one year, they had done a careful analysis and gained a deep understanding of Country Z’s state of affairs and economy, before making such a decision.
The second- and third-tier brands offered the high and premium grade products under T-K Group. Just this move alone revealed T-K Group’s high ambitions of engulfing the entire health supplements market of Country Z.
“I guess that their next step would be to launch a comprehensive promotional attack and boost their brand image so that everyone would have a deeper understanding of the foreign brands.” Wen Xinya fingered her engagement ring. In the past, she was used to rubbing the red diamond ear stud on her left ear, which Xu Zhenyu had given her, whenever she was deep in thought. But since Si Yiyan put on that dangling earring on her right ear, she had switched her habit to playing with that earring whenever she was thinking.
And now, she had once again changed her habit.
Old Mr. Wen nodded in approval. “You are right. When the advertising war starts, we will see just how T-K Group sweeps up the entire health supplements market of Country Z!”
This was not something he wished to witness. But reality dictated so.
Wen Xinya said ambiguously, “It looks like to fight T-K Group, the others must spoil their plan before they manage to launch their promotional attack.”
Old Mr. Wen glanced at her but didn’t think much of it. After all, the two of them often discussed things that happened in the business world.
