China Food

Today, after the restructuring of PepsiCo’s Greater China region, the new local female CEO is “the first show”!

In the post epidemic era, the Chinese market is becoming more and more important for multinational food and beverage giant PepsiCo.

One of the latest signals is that the company, which operates many well-known brands such as Pepsi Cola, Leshi potato chips, Quaker Oats and Baicao, recently re established the post of CEO of Greater China to further “unlock” its growth potential in China.

As introduced by the snack agent, PepsiCo announced early last month that it appointed Xie Changan as CEO of Greater China. From November 1, 2021, PepsiCo will be fully responsible for all aspects of beverage, leisure snacks and cereal products in Greater China and report to Chen Wenyuan, CEO of PepsiCo Asia Pacific. Before that, PepsiCo’s business in Greater China was under the direct care of the latter.

This is the latest example of the global top 500 companies adjusting their business structure in China and appointing local professional managers as the top leaders since this year. At the same time, this also makes Xie Changan one of the most influential female leaders in the industry.

Xie Changan, CEO of PepsiCo Greater China

For the new handsome, Chen Wenyuan commented that Xie Changan is a “strong leader”. She has established and trained a local team with passion, pragmatism, innovation, insight into the market and perfect execution. The food team led by Xie Changan “achieved record growth in China”.

“We have two major needs in the new development stage: the first is to accelerate the growth of business in Greater China, and the second is to accelerate the iteration of organizational capacity and deepen the overall talent reserve.” Today, Xie Changan told xiaoshidai in an exclusive video connection. At the same time, it also highlights PepsiCo’s confidence in China’s local talent team and its important strategic position in the Chinese market.

Xie Changan said that on the one hand, China is a very important business growth engine for PepsiCo in the international market outside North America; On the other hand, China also exports some core capabilities to PepsiCo’s global market, including the practical experience of digital transformation. “On the road of digitization, we continue to explore new methodologies and operation modes, but many fields are the first crab eater in PepsiCo system”.

In the above communication with the snack generation, the new commander of PepsiCo Greater China, who has always been energetic, enthusiastic and friendly, disclosed in detail for the first time her new ideas in charge of PepsiCo’s business in China, including how to realize the previously formulated goals of the group through digital transformation, product innovation, diversified team building and “ongoing plan” The goal of “faster, stronger and better”

Three opportunities

Xie Changan believes that at present, PepsiCo faces three major opportunities for growth in China.

First of all, it is the increase of per capita consumption. “In terms of overall per capita consumption of leisure snacks, beverages and nutrients, compared with developed countries and even some other developing countries, we can see that there is still a lot of room for growth in the Chinese market. In particular, this is accompanied by the process of consumption upgrading.” She told xiaoshidai that this is a growth opportunity brought by “Opportunity Driven”.

“Second, we call it ‘advantage building’ growth opportunity. That is to say, it does not rise with the general environment of the industry, but depends more on the enterprise’s own advantage ability to create conditions to achieve high growth.” She said that these capabilities include digital transformation, product innovation, global consumer asset integration and operation.

Finally, she said that there are still many growth opportunities in PepsiCo’s layout of the new track. “In the past two years, we have also actively expanded the track. For example, through the acquisition of Baicao, we have broken through the salty snack category in terms of leisure snacks.”  

When asked whether to expand the new category, Xie Changan said to xiaoshidai, “the standard of judgment is how the capacity of this track is in the long run? In addition, can PepsiCo create different value in it, including whether our assets, brand structure and corresponding capabilities are suitable for these tracks?” She said that in terms of category expansion, PepsiCo China will consider both organic growth and strategic investment.

In addition, she pointed out that the opportunity to layout the new track also includes the opportunity of emerging channels, including the rapidly growing interest in e-commerce and member stores. “We are building more flexible supply chains and further making reverse customization on taste, formula and packaging according to the different characteristics of consumers and channels.” Xie Changan said

Based on this, the food and beverage giant is “full of confidence” in maintaining the growth momentum of its business in China for a long time.

According to the financial report, PepsiCo’s global net revenue in the third quarter of 2021 was US $20.189 billion, with a year-on-year increase of 27% and an organic increase of 15% in the Asia Pacific region including China. “The Chinese market plays a role as a growth engine.” Xie Changan told xiaoshidai.

In addition, she quoted Nielsen data as saying that in all categories where Pepsi’s business is located, including Pepsi Cola’s carbonated beverage category, Quaker’s cereal category, fun’s salty snacks category and Pepsi Cola’s carbonated beverage category, “we have achieved a market share growth of 1-3 percentage points so far this year.”

Full link digitization

As mentioned above, PepsiCo plans to accelerate its digital transformation in China in order to “create conditions for high growth”.

Xiaoshidai noticed that this is also one of the fields that the new handsome is quite good at. According to public data, under the leadership of Xie Changan, PepsiCo Greater China established an e-commerce team in 2012, becoming one of the first food and beverage enterprises to enter the field, and achieved rapid growth year after year.

“In 2012, the e-commerce we talked about may be just today’s traditional e-commerce, but now we have expanded to four different sectors, including o2o global operation laid out early in 2017, so that we can continue to serve our consumers and improve their shopping experience in the epidemic and post epidemic period.” She said that in addition, the company is also empowering its distribution system to reach more small stores directly. At the same time, it uses digitization to help retailer customers achieve wider and more accurate coverage.

Due to different product characteristics, the proportion of e-commerce sales in different businesses of PepsiCo varies greatly. The snack generation learned that at present, the sales of beverage categories such as Pepsi Cola are still mainly offline. The sales of more planned nutritional foods such as Quaker Oats from e-commerce account for the highest proportion, while the leisure snack business is “in between”.

In the future, PepsiCo will play differently for different categories of e-commerce business.

“For example, in the beverage category, our e-commerce is an important part of the launch of new products, so that they can be listed more quickly so that consumers can see and grow grass. In addition, we also use e-commerce to interact with consumers, just like Pepsi Gainian store, mainly to give young consumers a different brand experience. Therefore, the ‘products’ and The focus of “efficiency” is different. ” Xie Changan said.

From the perspective of PepsiCo’s overall digital strategy, e-commerce is only a “Puzzle”.

Xie Changan told the snack generation that in the future, the food and beverage giant plans to further promote the “digital transformation of the whole link” from the consumer end, the production end to the enterprise end.

Taking content creativity as an example, PepsiCo has used artificial intelligence to generate and distribute content in a programmed way through deep insight and accurate labeling. “This allows us to do more accurate consumer touch next.” She said that due to better understanding of consumers, “we can also dig deep into their needs and give better product design and even new formulas.”

In addition, Xie Changan said that for traditional offline retail partners, PepsiCo has continued to deepen its digital cooperation with them in recent years. “The most common application scenario is to help customers optimize their selection, help retailer customers use the membership system, increase the stickiness between consumers and them, and so on.” She said.

Force product innovation

In recent years, PepsiCo has launched many “Chinese flavor” products, and the localization R & D and innovation have been significantly accelerated. In Xie Changan’s view, this will still be one of the company’s future growth points.

“The product portfolio is more localized. It is called East for East and China for China, which is a particularly important innovation direction for us. In the past few years, we have successfully launched many innovative products welcomed by consumers by learning from Oriental food culture.” She said, for example, sweet scented Pepsi Cola, Quaker’s five black oats, and potato chips of different barbecue cultures in the north and south of the river.

“Basically, we launch new products every quarter. Recently, our team is just talking about the new products planned to be launched in the second quarter of next year.” Xie Changan told xiaoshidai.

So, in the case of a large number of new products every year, how does the giant manage its huge product portfolio and eliminate the fittest?

“We do have a more rigorous process and system to launch, track, eliminate or optimize products.” Xie Changan said that among them, an important measure to test whether these new products “can play” is the repurchase rate.

“Although different categories will be different, generally speaking, our repurchase rate is above the industry average.” She said, “for Quaker, which has a high frequency of daily consumption, our expectation of its new product repurchase rate will be higher. For leisure snacks, which pay more attention to multi taste experience, it pays more attention to single product innovation and whole brand repurchase in a single new taste.”

“In the future, the ‘quantity’ of our product innovation will be the same as now, but we hope that the ‘quality’ will be better. That is to say, new products will contribute more to the increment of business, more lasting vitality and better contribution to our profits.” She said.

“Treasure assets”

To achieve the above, PepsiCo is inseparable from a talent team that “can win the war”.

“I think the most valuable asset of PepsiCo is our employees. Only with their investment and desire for growth can we have the continuous development of our business. Therefore, I will attach great importance to corporate culture and team ability.” She said.

Xie Changan mentioned that in terms of talent structure, PepsiCo advocates “diversity”, including diversity of race, gender and age. At the same time, in the workplace culture, employees from different backgrounds are encouraged to make their different voices and collide with each other for inspiration.

“PepsiCo adheres to people-oriented, constantly trains excellent leaders and creates a management layer with diversified experience. In recent years, PepsiCo’s Chinese talents are also exported, and its management in the Asia Pacific region is basically dominated by local or Chinese talents in Asia.” She said.

In addition, she mentioned that PepsiCo provides a broad stage for employees of different ages to display their talents, encourage innovation and bold trial and error, including next big idea project and career development model project, encourage employees to participate in projects other than their own work, encourage employees to change jobs and obtain more key experience.

In 2021, PepsiCo won the title of “outstanding employer in China” for the tenth time

However, in terms of talent diversification, the most remarkable thing is that this food and beverage giant has a large number of “women’s army”.

According to official disclosure, more than 50% of PepsiCo’s employees are female employees; PepsiCo’s female executives account for 41% worldwide, while greater China accounts for more than 50%, in which women really “hold up half the sky”.

Xie Changan told xiaoshidai that “female leadership” is a topic she pays more attention to and gives strong support. She believes that enterprises “must have a good talent structure” to lead innovation and development.

At a time when the plight of modern working women is frequently searched and triggered a lot of social discussion, PepsiCo undoubtedly provides an “alternative model”.

“We have a complete and flexible management system in promoting female employees, encouraging the development of female employees, improving the comfort of working environment and the welfare of female employees.” Xie Chang’an told the snack generation, for example, to provide facilities such as nursery and yoga room in the office building, and to provide rotational leave to take care of children.

In addition, Xie Changan will also enthusiastically participate in the company’s internal seminars on cultivating women’s leadership, encourage women employees to break through gender restrictions and thinking shackles and plan their own career route.

“In fact, female leaders have unique advantages. For example, they are generally more empathetic, sensitive and careful, and have a sense of awe. Especially in our consumer oriented industry, these are very valuable characteristics.” She said.

“Ongoing plan”

In the strategic transformation of the overall business, the food and beverage giant has also formulated a new “big framework”.

Xiaoshidai noted that in September this year, the company released the new sustainable development strategy “PepsiCo positive plan (PEP +)”. The plan is driven by three pillars: positive agriculture, positive value chain and positive products, and announced the industry-leading 2030 goal.

For example, in the positive value chain, by 2030, PepsiCo will reduce the use of primary plastic by 50% in the packaging of each product in its global food and beverage product portfolio, use recycled materials in 50% plastic packaging, and expand sodastream business worldwide. This innovative platform hardly needs beverage packaging and other traditional models. By 2040, PepsiCo will It is planned to achieve net zero emission.

“PepsiCo Greater China will also take this as a framework to reconstruct our overall business strategic transformation.” Xie Changan said.

Xie Changan, CEO of PepsiCo Greater China

She said, for example, in the aspect of positive agriculture, PepsiCo is a major purchaser of potatoes. Previously, it effectively reduced the use of water resources by sharing drip irrigation and other technologies with cooperative farmers. ” In addition, it is reported that the water efficiency of PepsiCo’s Greater China plant has increased by 24% compared with 2015, and the food plant in Daxing District of Beijing has also realized the first stage of 80% water replenishment to the local community.

When talking about the next plan, she mentioned to the snack generation that in terms of maintaining the value chain, she hopes to promote the use of food grade RPT plastic bottles in the Chinese market, including the construction of relevant regulations and improving consumer awareness. At present, the company has provided Pepsi Cola products with 100% RPT packaging in 22 markets around the world.

In the process of promoting the transformation of business towards the goal of “better”, this “China rooted” multinational enterprise has also carried out and supported a series of social welfare projects in China. So far, PepsiCo foundation, PepsiCo Greater China and employees have donated more than 200 million yuan to China’s public welfare undertakings.

Xie Changan said that in the future, under the guidance of PepsiCo’s ongoing plan (PEP +) framework, PepsiCo’s long-term plan for Greater China will always focus on consumers and be driven by digitization, constantly expand categories, make localized investment and adhere to the strategy of sustainable development.

Pay attention to “snack generation” (wechat: foodinc) “and reply to” Pepsi “to see wonderful news.

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