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Why did Alibaba contact Nestlé to “spoof” Yunnan Coffee? Is there any hidden secret in the process?

Jack Ma created Alibaba, and Alibaba also made Jack Ma in a certain sense. We cannot deny Jack Ma’s outstanding contributions. Online shopping and mobile payment have indeed benefited the country and the people, but we need to understand that Jack Ma After all, he is a businessman, and his starting point and goal is to make profits, so he naturally has his own reasons for joining forces with Nestlé to spoof Yunnan Coffee.

Nestle has more than 500 factories around the world, and also has a vast market in China. It has cooperative relationships with Alibaba and Yunnan Coffee. One sales chain, the other is an important source of raw materials, but This time, they clearly sided with Alibaba and even attacked Yunnan Coffee. What is the reason?

First of all, at the beginning of the new year of 2021, the Yunnan Coffee Association pointed out that on December 2, 2020, when Alibaba and Nestle jointly participated in a meeting on the coffee industry with some Yunnan coffee companies, after the meeting Alibaba actually drafted a relevant proposal for 3-in-1 instant coffee. You must know that Alibaba did this on behalf of the Yunnan Coffee Association, but did not notify the Yunnan Coffee Association in advance. As a result, the Yunnan Coffee Association believed that Ali's move was a breach of contract and obviously did not take the association seriously.

But Alibaba and Nestlé also have their own opinions, because most of the raw materials for coffee do come from Yunnan. However, although the Yunnan Coffee Association calls on everyone to drink Yunnan coffee, its quality has repeatedly experienced problems, and this This time Alibaba teamed up with Nestlé to spoof Yunnan Coffee, and naturally expressed dissatisfaction with various previous actions.

However, the Yunnan Coffee Association admits that it has indeed benefited from the support of Nestlé and Alibaba, but it has also given them great advantages. Although its own products are average, the prices of raw materials sold are relatively low, but the products produced by Nestlé are expensive. This makes the Yunnan Coffee Association believe that Yunnan coffee has been sold at a low price for more than 30 years, and the income per ton has been reduced by about 3,000 yuan. Over the past few decades, Yunnan Coffee has lost tens of billions of yuan, so he also has his own difficulties.

On the one hand, Alibaba and Nestlé are not satisfied with the quality of the raw materials and want to act on their behalf. On the other hand, the Coffee Association believes that although our products are average, the prices are low and have benefited you a lot, so this It is obvious that he does not take himself seriously. This is actually a game in business. Both parties want to obtain greater profits.

So what Yunnan Coffee needs to do is to transform and upgrade. Although Alibaba is a very large e-commerce sales platform in China and can provide better promotion paths, if it wants to satisfy customers and become competitive, The origin, more importantly, is to improve the quality of the coffee, while also focusing on upgrading and adjusting the industry. After all, we used to sell simple coffee beans without grading, but now what we need to do is to create a complete coffee enterprise chain. In this way, it will naturally not be looked down upon by others, and both parties will be satisfied and have stronger market competitiveness without fear of other threats.