With the advancement of the "Tingyi-Pepsi alliance," many of Master Kong's resources are also shifting toward Shanghai, with the company intending to develop Shanghai into its second headquarters.

　　Master Kong recently announced that it will spend nearly 2.5 billion yuan to acquire all equity in WealthCity from major shareholder and executive director Wei Ying-Chiao, and plans to add an operating center in Shanghai to enhance the group's image, improve efficiency and promote international connections.

　　Yesterday (April 3), Master Kong news spokesperson Chen Gongru told reporters that the company's addition of an operating center in Shanghai is aimed at creating a "dual headquarters," as well as attracting talent and getting closer to the market, while also making it more convenient to advance cooperation with Pepsi.

　　In fact, in recent years, Shanghai has had obvious advantages in finance, logistics, infrastructure and other areas, and has been favored by consumer goods companies. Shanghai directly faces the market, and the trend toward separating production and sales has also led companies to place greater value on Shanghai's advantages in high-end operations, management, sales and other personnel.

　　Establishing a Shanghai "Second Headquarters"

　　It is reported that WealthCity's sole asset is the property development company Shanghai Jinqiu Minghao, whose projects include four office and commercial buildings and related supporting facilities, with a total gross floor area of about 140,000 square meters. The project is currently in the late stage of development and is expected to be completed before the end of March next year.

　　Master Kong stated that the company plans to add an operating center in Shanghai to enhance the group's image, improve efficiency and promote international connections.

　　In fact, this is not the first time Master Kong has wanted to establish important management departments in Shanghai. Reporters learned from the company's 2013 interim report that in July last year, Master Kong Beverages had already set up a management center in Shanghai. The company said the move was intended to further grasp the highly competitive frontline market, attract talent, and better leverage the advantages of the Master Kong-Pepsi alliance.

　　Reporters learned that Master Kong's East China factory is located in Hangzhou, while the acquired WealthCity project is located in the Hongqiao Business District. Master Kong believes that the newly acquired project is close to Asia's largest transportation hub, which will also greatly save transportation costs.

　　Regarding the establishment of an operating center in Shanghai, Master Kong said, "Shanghai is a gathering place of talent and culture. If we have the opportunity to let more people see Master Kong in Shanghai, we will have more opportunities to face the whole world." Chen Gongru told reporters, "Previously our office building was rented; now it has become our own. Simply put, with the company's future dual headquarters, efficiency will be somewhat higher."

　　Master Kong started out in Tianjin, and its headquarters is also located in Tianjin. However, with business development, the company has had to consider "moving south," one important reason for which is its cooperation with Pepsi. In March 2012, Master Kong reached a strategic cooperation with Pepsi, and it has now become China's largest beverage system.

　　In addition, in February this year, Master Kong also announced a cooperation with Shanghai Disney Resort, signing a multi-year strategic alliance agreement that marks Pepsi and Master Kong as the resort's primary beverage suppliers.

　　"Pepsi's original personnel were already in Shanghai. The simplest way is for some of our people to come over, which also makes our cooperation more efficient," Chen Gongru said, adding that this also takes into account the major client Shanghai Disney, and further cooperation is not ruled out in the future.

　　Consumer Goods Companies Favor Shanghai

　　In fact, in recent years, the China headquarters of consumer goods companies, especially sales and marketing headquarters, have shown a preference for Shanghai. Many consumer goods companies are willing to establish their China headquarters in Shanghai, especially multinational companies.

　　In mid-2012, Procter & Gamble moved its marketing headquarters to Shanghai, directly facing competitors that had been entrenched here for many years. In 2009, Unilever, which had once moved out of Shanghai, made a high-profile return and spent 50 million euros to establish a global R&D center in Shanghai.

　　Gao Jianfeng, managing director of Bogai Consulting, said in an interview with the Daily Economic News that Shanghai has advantages in services, finance, logistics, infrastructure and other areas. "As the market continues to penetrate, the trend of separating manufacturing from operations and marketing is becoming increasingly obvious."

　　Gao Jianfeng said, "The separation of production and sales means that once companies reach a certain scale, they highlight professionalism, and the needs of different functions are also different. For example, manufacturing needs to be close to logistics and raw materials, while marketing needs to be placed in large cities, closer to the market, and business exchanges are also much more convenient."

　　In addition, industry insiders said that East China's consumer spending power and its advantages in modern service industries such as financial services and commercial circulation are more obvious, making it the first choice for many companies seeking breakthroughs in high-end products.