The new tendency of the world tea market

The manufacture and consumption of tea have been greatly increased since the world tea market was established in 20th century. Tea has become one of the most popular drinks in the world and could not be ignored. That is why the competition of the world tea market is becoming more and more sharp. Since 1990's, there were some new management forms or new characteristics appeared in the countries, which have great manufacture and consumption of tea. To put it briefly, the new forms refer to joint management---the alliance between enterprises (including alliance between countries--- transnational management), the crossover management between tea and its process products or between tea and other drinks etc. Nowadays tea is becoming one of borderline commodities, the tea industry is becoming one of the borderline industries. No matter the crossover management between enterprises or between different commodities, the purpose is to extend the scope of business and develop the new markets. Besides the merger and purchase between enterprises, there are some new forms of crossover management and joint management as follows: 1. CO-branding It means two brands from different companies are used in the same commodity. It is to improve the reputation of both brands, or use one of the brands, which is famous so as to increase the sales volume. "CO-branding" is different from joint venture. It would be enough if the two companies reach an agreement of using two brands. The most important factor is mutual-benefit. 2. Partnership Many years ago the Pasi Cola Co. Ltd of United States and the Lipton Co. LTD of Britain established a new allied company--- Pasi-Lipton Tea Co. Ltd. Each party has three delegates in the new board of directors. The sales of Lipton Iced Ted and Lipton Brisk quite benefited from their alliance. Nowadays this company is promoting their products by advertisement. 3. Joint ventures Both parties of the joint venture have their own advantages of manufacture, processing and sales. In order to improve their competitive capacities to face the challenge of global export, some of the small well-known household tea companies (most of them have their own tea plantations) in the major tea manufacture and export countries, have taken the way to set up new joint ventures. 4. Crossover It refers to crossover management between different markets or different commodities. To the Tea-Coffee industry, it means a coffee company or a tea company should specializes in both tea and coffee. The crossover management between tea and coffee can make full use of the equipment and labor power to extend the business scope. It is no doubt that extensive crossover management will improve the sales volume of tea. It seems that the various forms of joint management in the world tea market are just unfolding.