‘Make like Chinese businessmen and exchange WeChat accounts’ is the advice for a solution for the ongoing trade war between the United States and China given by the Chinese head of one of the world's most iconic brands for US president Donald Trump and Chinese President Xi Jinping.
According to the advice of the Curtis Ferguson the President of Coca Cola for Greater China and Korea, the leadership style of Trump should be changed to adapt more to the Chinese model and should start talking using the messaging app so that the dispute can be ended.
"As all business is done in China, I'd probably suggest they exchange WeChat accounts and get on with this thing," Curtis Ferguson told the media at the World Economic Forum in Tianjin, China.
Even while announcing the imposition of new US tariffs on Chinese goods worth $200 billion, Trump said on Monday that he is ready to hold direct talks with the Chinese Premier, whom he "respects". In a retaliatory move, China imposed tariffs on $60 billion of American goods.
Ferguson said that all business would be impacted by those hikes. He however said that the company would not be directly affected by the tariffs as of now except for increase in commodity prices.
He also hoped that there would be no boycott of American goods and products by Chinese consumers because Coca Cola is viewed more of a local brand than a American brand.
A huge amount of investment has already been made by Coca Cola in the Chinese market – the second largest in the world and the American brand has been operational in the market for more than 40 years now. There are over 50000 employees of the company working in 45 factories and offices in China and the research and development center in Shanghai which is the largest of the company in the world.
However, Ferguson says that there is along way to go fro Coca Cola in the Chinese market. At present, the market share of the firm in the Chinese non-alcoholic, ready-to-drink market is just 10 per cent.
"In China, we're well off the mark of where we have to be," Ferguson said. "We have a lot of catching up to do."
He said that to increase market share the company would have to change its product line to adapt to the fast changing tastes of the Chinese consumers. Coca Cola has ventured into the coffee market through its $1.5 billion acquisition of Costa which also has operations in China. Additionally, in order to make its health drinks more appealing to local consumers, the company is considering and experimenting with Chinese medicinal recipes, Ferguson said.
There are recent reports that the US company is now planning to expand its health drinks line outside of China also.
(Source:www.cnbc.com)
According to the advice of the Curtis Ferguson the President of Coca Cola for Greater China and Korea, the leadership style of Trump should be changed to adapt more to the Chinese model and should start talking using the messaging app so that the dispute can be ended.
"As all business is done in China, I'd probably suggest they exchange WeChat accounts and get on with this thing," Curtis Ferguson told the media at the World Economic Forum in Tianjin, China.
Even while announcing the imposition of new US tariffs on Chinese goods worth $200 billion, Trump said on Monday that he is ready to hold direct talks with the Chinese Premier, whom he "respects". In a retaliatory move, China imposed tariffs on $60 billion of American goods.
Ferguson said that all business would be impacted by those hikes. He however said that the company would not be directly affected by the tariffs as of now except for increase in commodity prices.
He also hoped that there would be no boycott of American goods and products by Chinese consumers because Coca Cola is viewed more of a local brand than a American brand.
A huge amount of investment has already been made by Coca Cola in the Chinese market – the second largest in the world and the American brand has been operational in the market for more than 40 years now. There are over 50000 employees of the company working in 45 factories and offices in China and the research and development center in Shanghai which is the largest of the company in the world.
However, Ferguson says that there is along way to go fro Coca Cola in the Chinese market. At present, the market share of the firm in the Chinese non-alcoholic, ready-to-drink market is just 10 per cent.
"In China, we're well off the mark of where we have to be," Ferguson said. "We have a lot of catching up to do."
He said that to increase market share the company would have to change its product line to adapt to the fast changing tastes of the Chinese consumers. Coca Cola has ventured into the coffee market through its $1.5 billion acquisition of Costa which also has operations in China. Additionally, in order to make its health drinks more appealing to local consumers, the company is considering and experimenting with Chinese medicinal recipes, Ferguson said.
There are recent reports that the US company is now planning to expand its health drinks line outside of China also.
(Source:www.cnbc.com)
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