{"id":1456,"date":"2023-01-05T05:48:05","date_gmt":"2023-01-05T05:48:05","guid":{"rendered":"http:\/\/wanginnovation.com\/?post_type=portfolio&p=1456"},"modified":"2023-03-14T02:14:51","modified_gmt":"2023-03-14T02:14:51","slug":"ocm%e5%8d%8e%e6%ba%90%e9%a3%9f%e5%93%81","status":"publish","type":"portfolio","link":"https:\/\/wanginnovation.com\/en\/portfolio\/ocm%e5%8d%8e%e6%ba%90%e9%a3%9f%e5%93%81\/","title":{"rendered":"OCM Globe"},"content":{"rendered":"
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Two<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Choose the right timing<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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OCM Globe<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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building the No.1 Chinese food and beverages distribution platform \nby choosing the perfect timing<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\u00a0 \u00a0 \u201c There is no so-called Jack Ma era, only an era in which there is Jack Ma.\u201d<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u2e3a People\u2019s Daily<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Time makes heroes, with a combination of trend and timing. Only if we can correctly \nrecognize our times and deeply understand the macroeconomic situations, the \ncompany will be able to adapt itself to overcome the short-term hard times and seize \nthe long-term trend.<\/div><\/p>

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Electric car was not born in the 21st century. In fact, Thomas Davenport invented the \nbattery-powered car as early as 1834, the first electric car in the world. By the \nbeginning of 20th century, electric car, internal combustion engine car and steam-powered car contributed equally to the total automobile industry in the United States.<\/div><\/p>

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In 1899, American engineer Walter Baker founded the Baker Motor Vehicle Company in \nCleveland, focusing on electric automobile. The first Baker vehicle was priced at 850 \ndollars. It was sold to the inventor Thomas Edison and the American president William \nHoward Taft. In 1906, Baker Motor Vehicle Company was already the largest electric \nautomobile manufacturer in the world. In 1910, Baker\u2019s new chief engineer, Emil \nGruenfeldt, set a world record for distance driven on a single charge with 323km. In the \nearly 20th century, to overcome the inconvenience of charging, similar to what electric \nmanufacturers are doing nowadays, Baker Company invested in battery-charging \ninfrastructure. The company announced plans to open stations at every major \nintersection in Cleveland and to grow the network from there, although this effort \nbecame cost prohibitive and never came to fruition. The actions taken by Baker \nCompany in the 20th century seem to be not outdated even under current context. \nUnfortunately, the ideas and actions were too forward-looking. Consequently, there \nwere not accepted and implemented.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 2.1 The Baker Electric Car in 1903<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In 1910, Ford introduced the mass-produced internal combustion engine car with \nsignificant reduction in costs. The heavy battery of Baker cars made it notorious for its \nsmall space, weak engine and complicated maintenance. Baker Company almost lost \nthe electric car business overnight. Eventually, Baker Company filed bankruptcy in \n1966 after a few failure attempts at reestablishing the market.<\/div><\/p>

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Within less than 7 years following Baker\u2019s bankruptcy, during the 1973 Arab-Israeli War, \nArab members of the Organization of Petroleum Exporting Countries (OPEC) imposed \nan embargo against the United States in retaliation for its decision to supply the Israeli \nmilitary. As a consequence, the petrol price was skyrocketing. In order to alleviate the \nreliance on petrol, many countries started to announce favorable policy to support the \ndevelopment of electric vehicles.<\/div><\/p>

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Toyota Prius was introduced at the end of October 1997 right after the energy crisis. It \nis the first mass-produced hybrid electric vehicle. Toyota Prius revolutionarily reduces \nthe energy consumption and exhaust emission. Basing on the volume of CO2 \nemission, US Environmental Protection Agency and California Air Resources Board \nrecognize that Prius is the cleanest and the most petrol efficient vehicle in the United \nStates. United Kingdom Department for Transport ranks the CO2 emission of Prius as bottom 2. In 25 years, Prius has sold 5 million units, helping Toyota become the No.1 in \nsales unit among global automobile manufacturers.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 2.2 The 1st Generation of Prius in 1997<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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On the 1st July 2003, Tesla Motors was founded. Tesla\u2019s mission is \u201cto accelerate the \nadvent of sustainable transport\u201d. In 2008, Tesla unveiled its first car \u2013 an open two-seat \nsports car Roadster; In 2012, the second car was released \u2013 the Model S luxury \nelectric sedan; the third car was named Model X, luxury electric SUV, hit the market in \nSeptember 2015; the fourth car was economy sedan Model 3, launched at the end of \n2017. By October 2022, Tesla has sold 3.23 million units worldwide. Currently, Tesla \nhas a market value over 600 billion dollars, the global No.1 in automobile industry.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 2.3 Tesla\u2019s First Car \u2013 Roadster<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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BYD (Biyadi) Company was also founded in 2003, who is the global No.2 in automobile \nindustry.<\/div><\/p>

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With the same objective of developing electric car, what made the difference among \nBaker, Toyota, Tesla and BYD?<\/div><\/p>

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Times.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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JFC Benefiting from the Increasing Population of Asian Americans<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In 2020, the total population in the United States reached 330 million. Compared to the \nsize a decade ago, there was only 7.4% growth, among which the population of Asian \nAmericans grew over 30%, the fastest of all. The population of Asian Americans \nreached 24 million by 2020, contributing 7% of the total population. According to the \nforecast of Pew Research Center, till the middle of this century, the population of Asian \nAmericans will be 46 million, exceeding Spanish Americans, becoming the largest \nimmigrant groups.<\/div><\/p>

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JFC International, founded in 1958, is a well-known wholesaler and distributor of \nJapanese and Asian food products in the United Sates. Japanese KIKKOMAN group, \nknown for its soy sauce and sake products, acquired JFC International in 1970. In the \nfollowing 40 years, JFC International expanded its business by importing and \ndistributing more Japanese and Asian food products, including rice, packaged food \nand snacks etc. Nowadays, besides distributing major brands such as Itoen, Yakult \nand Sapporo, JFC International also owns popular brand such as Nongshim from \nKorea and Suntropics from Southeast Asia. JFC International imports and distributes \nmore than 15,000 products from Asia. The revenue of KIKKOMAN group reached its \nhighest level with a record of 2.98 billion dollars.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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OCM Benefiting from the Increasing Population of New Immigrants from \nMainland China<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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2017 is a critical milestone year, which marked that for the first time the new \nimmigrants from Mainland China contributed over 50% of Chinese Americans in the \nUnited States. Besides, over recent ten years, Chinese has been the top source of \ninternational students in the United States. In 2021, international students from China \nreached 348,900 people, followed by India. China and India together accounted. \n71.9% of the total international students in the United States. The demographic \nchange brings market needs change. Asian Americans, especially Chinese Americans, \nneed more and more food and beverages from mainland China. However, the reality is \nthat the share of shelf of Chinese food and beverage brands is less than 10% in the \nUnited States.<\/div><\/p>

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The newly founded OCM took this perfect timing, focusing on importing and \ndistributing top Chinese food and beverage brands in the United States since 2018, \nwith the mission of \u201cmaking the world adore and adopt Chinese tastes\u201d and the vision \nof \u201cbecoming the JFC for Chinese foods\u201d. The brands OCM distributes fall into two \ngroups. The first group is the top brands of Chinese food and beverages which have \nheritage for dozens of year, such as Arawana, Mengniu and Wanglaoji. All those brands \nhave strong brand equity and take leading share of mind across all different \ngenerations. The other group is the newly popular brands, such as Genki Forest and \nSaturnbird. Those brands have high level of awareness among Gen Z and international \nstudents thanks to massive communications on the internet. No matter the brands with \nheritage or the brands newly created, all of them help OCM build a solid starting point, \npaving the way to expand into the national markets in the United States. From the \nmarket expansion perspective, OCM set up its sales offices and warehouses in \nChinese populated cities, starting from Los Angeles, followed by New York, Chicago, \nHuston, San Francisco and Atlanta etc., from centers to suburban areas, constantly \nenhancing the distribution networks.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 2.4 OCM Offices across the United States<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Regarding the marketing communication, OCM invests in both online and offline \nmedia. OCM participates all types of exhibitions in China, such as China Food & Drinks \nFair (CFDF), China Import and Export Fair and SIAL China, actively introducing the \noversea opportunities for Chinese food and drinks manufacturers. Meanwhile, OCM \nholds events similar with CFDF \u2013 the United States Authentic Chinese Food Expo, \nwhich has already five editions, becoming the largest Asian Food Expo in the United \nStates. Every year since 2020, OCM rents the most influential media screen dubbed \u201cThe 1\u201d in the Times Square during Chinese New Year. The screen runs continuously \nthe Chinese New Year commercials of all the brands that OCM imports and distributes. \nThe coverage such as \u201cChinese Brands Landing on New York Times Square\u201d further \nserved as contents for domestic communications in China, strengthening brands \nimpact in the market. Regarding online media, OCM taps into international social \nnetworks such as Twitter, Facebook and Instagram etc., and partners with leading KOL \n(key opinion leader) to promote Chinese food to the mainstream market by all different \ntypes of ways such as mystery boxes and visiting stores.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 2.5 Chinese Brands Landing on New York Times Square<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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From several million dollars to over 100 million dollars, from Los Angeles to the whole \nUnited States, from offline retailers to omni-channel, OCM achieved exponential \ngrowth, becoming the largest Chinese food and drinks distributor in the United States \nwithin a few years. The success is not only attributed to seize the trend by learning \nfrom JFC, but also to choose the right timing in tapping into the opportunities created \nby increasing population of Asian Americans, especially the new immigrants from \nmainland China.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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INNOVATION CASES<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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