Amidst the urban expanse of Poole, the iconic Celestial building stood in all its glory.
Eric Robbins, a seasoned sixty-two-year-old, had just concluded a distributor meeting.
With a dinner gathering scheduled for the evening at a local hotel, he could do nothing but rest briefly in his office before mustering enough energy to attend the event later on. However, today had left Eric Robbins feeling somewhat disheartened.
Lately, distributors had grown increasingly influential within the company. In the past, Eric Robbins’s group exerted pressure on these distributors, assessing their performance and coercing them into consistent product purchases and elevated inventory. Moreover, the group often deducted their sales as year-end rebates, fostering a culture of diligence and obedience.
Yet, the advent of e-commerce had tilted the balance against established brands, leaving them without their once-dominant leverage. Especially in the realm of opaquely fast-moving consumer goods like alcohol and tea, new brands proliferated daily, boasting of being the next Moutai or tea monarch.
These new entrants excelled at packaging and narrative, presenting themselves more adeptly than traditional companies. They mastered the art of sourcing a better-packaged product from an OEM manufacturer, slapping a 500 dollar price tag on it online, then garnishing it with a slew of offline promotions. Eventually, the product reached consumers, shipped in sets of 51, with the actual cost barely exceeding five dollars.
With a tea costing a mere five dollars, advertising and traffic buying expense at ten dollars, and logistics costs of two or three dollars, the overall expenditure remained modest.
Selling 51 units to consumers ensured a profit margin of at least thirty.
Tea sales followed a similar pattern.
Eric Robbins offered ordinary mass-grade Pu’er tea at a hundred dollars per cake, with each cake weighing over 300 grams. However, marketing maestros divvied up similar quality tea into five-gram parcels, weaving a custom tale around it. Such a presentation fetched a price of fifty dollars.
Some competitors might lack packaging finesse but they thrived in price wars. They bundled tea meant for kindling and brought it to market, simultaneously overwhelming and overwhelming the consumer. If one cake proved insufficient, they’d throw in another, then another, until they reached a sum of five big cakes, supplemented by three small ones for travel. A tea pot might even be thrown in, all for the grand price of a hundred.
concealed a deeper deceit. Five big cakes and three small cakes amounted to roughly twenty dollars in costs.
competitors’ tactics all too well. He comprehended their success was built upon these strategies, which simultaneously eroded their target market and profits. However, he
it as a brief conduit to profit. They manipulated
these individuals
His stance differed.
passion for tea transformed him into a prominent and prosperous local entrepreneur. His affection for tea was genuine. To him,
and reverence for the craft, however, had failed to
these fraudsters raked in millions overnight. On some occasions, seeing them prosper left Eric Robbins doubting the tea industry’s future. He feared most sectors would
becoming bad money, one had to outpace it. For Eric Robbins,
wasn’t as
where the proprietor toils tirelessly for a year, managing to accumulate hundreds of thousands, yet yearns to sell
only deepened Eric Robbins’s
50% to 40%. They even threatened to minimize or halt their purchases altogether
paying forty for something worth fifty, it equates to a 20% price
have erupted in anger before the agents. This time, however, he controlled
back his frustration, muttering curses at the dealers under his breath—these individuals who burned
his thoughts,
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