Performers pose at a news event held to announce the new platform. (Photo/CFP)
Pepsi has recently announced plans to team up with B2C firm Tmall to launching an e-commerce platform named Pepsi Taobao.
Pepsi Taobao will be an e-commerce platform offering goods and services from a variety of brands, with little connection to the sales of Pepsi products.
Industry insiders are puzzled over the function of the platform, since it is unlikely to generate much income and lacks much attraction to young consumers.
Pepsi claims that the platform is meant to create "the first platform of creative daily life dedicated to young people in China." The platform consists of four major blocs: shopping mall, entertainment, food, and creative 108.
"Pepsi thinks it can rely on its brand and young people to foray into other fields in the Chinese market. Its understanding of the Chinese market may be too simple," remarks Li Zhiqi, chairman of CBCT, a consulting firm.
Despite its active marketing activities, including the endorsement of many stars, Pepsi is detached from Chinese consumers, said Li.
In the carbonated drink market in China, Pepsi lags behind its rival Coca-Cola by far, while in the markets of other drinks, such as tea, Pepsi is constrained by Master Kong and Uni-President.
Industrial insiders say that Pepsi has failed to find an effective channel to reach young people.