Bustle behind the withered and confused - China 2002 wash of Industry Perspective

Bustle behind the withered and confused - China 2002 wash of Industry Perspective Bustle behind the withered and confused - China 2002 wash of Industry Perspective Review With little to China in 2002 to describe the performance of daily chemical industry fear is not an exaggeration. In the eyes of the consumers at large this year, often in the face of the brand, remains active in previous years, a few products. Truly accepted by consumers or Procter & Gamble, Unilever, silk treasure these old enterprises and other players who LAF products. A lot on advertising last year, companies grappling unusually fierce this year, have long since disappeared. In Diaopai, SLEK and other domestic brands have brand for many years to break the monopoly of foreign capital, after two years of domestic brands has become the domestic market of beach-goers. In the current per capita consumption of cosmetics market by about 28 yuan, and annual sales of USD 36-70 per capita in developed countries is clear there is great room for development compared to the temptation, the batch after batch of manufacturers have entered the piece looks like fertile market. Insiders cosmetics companies launched competing in this 1 industry is mainly due to less investment and quick, not easy to influence the situation by the market downturn. But precisely because the barriers to entry is low, a lot of idle money poured in small units, resulting in million Qi in single picture. An attractive cake placed in front of the fish can only envy Pro-yuan. The current reality is that the vast majority of the market share focused on the well-known enterprises, leaving little room for the many small and medium enterprises, how to break the bottleneck, as soon as possible into the mainstream ranks of small and medium enterprises are racking their brains to think a lot of ways. But now, these breakthroughs have not much success, many enterprises are your side Changba my debut and quickly came rushing away. In terms of the shampoo, Procter & Gamble, Unilever these foreign products still represent the first trend of the weather vane, while the C-BONS has been basically established a tripartite balance of forces. La-fang, Gone with the Wind film, also began to gradually been taking root, but the sales seem to have reached the ultimate. From the market news is just brisk sales of these products have been a couple of years so that dealers are not making money, and shortening of product life is an embarrassing problem shampoo rookie. 2 Detergent is still Diaopai, extraordinary strong formation of exchange that, but this year in many places, the two manufacturers sales have suffered different degrees of decline. Decline in profits, competition, cruelty, so that the two giants started to slow down the rising trend line, a new round of adjustment is also quietly conducting. And occupies a southern China, by Li Bai of the National Games in Guangzhou Dongfeng swept the beginning of the journey undertaken by the city can be described as so smooth. In contrast, Waves comeback seems to have been set off any odd ripple fluttering, but such as white, vitality 28 of these old products no longer have any signs of football mania. Hand-washing liquid, shower gel and other small daily chemical products is still anybody’s game, because there is no appearance of leading brands in the price of many products on the gradient of the gap between large, so that consumers choices confusing exception. As for toothpaste, soap market is almost subdued. Overall, in 2002 the Japanese market has not been fundamentally based on the major changes, the only change is probably more difficult market, dealers Ye Hao, manufacturers Ye Hao, less and less easy to make money. 3 Features With China’s accession to WTO, foreign multinational companies have China as its territory market strategy, the most important part of a large number of multinational companies to enter, but also so that the local daily chemical enterprises feel the storm clouds gather in the wind once again a prelude to full House. We can see that in 2002 changes in Chinese and foreign enterprises of both sides is becoming increasingly apparent. 1, wholly foreign-owned, the general trend of With China’s continued liberalization of foreign investment policy, once joint ventures into China’s foreign faces have a face-lift own company, operating in China began in earnest in this vast and great potential market. This will naturally have to own the management and market operations have arbitrary power. Disintegration of the joint venture has been so for their own camp, started a real contest. Lonkey separated from the Procter & Gamble and Unilever, Henkel became independent, can be clearly felt this trend. 2, the local operation, better and better With foreign brands in China and in-depth understanding of 4 foreign capital began to change in a new marketing strategy. For those who disdain the price war, foreign capital began to flexible use. In May 2002 at the beginning, ‘P & G’s’ devil take the lead in creating low-cost chain, from ‘Ariel’, ‘Tide’, to ‘bang bao fitness’, ‘Pantene’, P & G cut prices of many high-priced products with great fanfare. Coincidentally, Avon at the introductory price of ultra-low sub-brand ‘UP2U’ stationed in youth market, Avon developed by China’s ‘herbal Family’ series will be ultra-low-cost reached the shampoo market. Shiseido the successful launch of ‘Oupo Lai’, ‘Zhuo scene in’, after pushing ‘Za’ series in order to snatch the mid-market. The L’Oreal brands with a local following due to the purchase price broke up, but also emergency calls Japanese ‘Shu Uemura’ into China, and desire in the rapidly growing low-end market offensive. At this point, the original camp, clear, high, medium and low camp began three interlocking, become blurred and bad identification. 3, high-end boutique, foreign independent clock Despite a steady decline in prices, but the high-end market 5 has been high foreign Dior gesture. For this high-profit areas, foreign investment has been made not to give up, but the reality is that they indeed become a high-end king. Like the Adidas shower gel 200ml bottle price is only 60 yuan, the price of the high staggering, while the toothpaste is also a move is a ten-dollar Twenty dollars. In contrast, domestic brand in the high-end market, as has been little. 4, multiple expansion, go hand in hand At present, almost all of Japanese enterprise embarked on a diverse path, with the previous daily chemical products related to the development of different, many companies began to get involved in many fields. As this is the diversified development of the multinational companies do not have to say, domestic enterprises, such as white, southerly areas of the pharmaceutical industry with the entry, then enter the pass-oriented agriculture and bio-chemicals, while the best we developed hydropower, tourism and mining resources, these phenomena show that the local daily chemical enterprises are moving to a full range of enterprise groups. 5, technical leader, resource sharing Although the products are low on technical barriers to trade, but with the increasing people’s standard of living, increasing 6 demand for consumer goods, so the introduction and application of high-tech enterprises have become an increasingly significant market behavior. Tsinghua University in Beijing, foreign investment, such as Procter & Gamble, Henkel in Tianjin, Unilever in Shanghai have set up strong R & D center; southerly set up a national R & D Center and Tsinghua University, Wuxi University of Light Industry cooperation; Chuanhua Japan and China of the scientific research institutes such as technical cooperation; white first-class scientific research facility built building; Blue Moon has even more R & D centers are located in the United States. This shows that Chinese and foreign parties are doing to adjust to a new round of contest where to grasp the opportunity to win a final victory. However, daily chemical industry in 2002, the most obvious characteristics of three. First, more and more large companies move closer to the stores, and small businesses began to avoid the supermarket. This is because the past two years, hypermarket, supermarket chains to open more and more, as hypermarkets, supermarket chains such as HyperTerminal huge sales, it has a strong bargaining power. And some supermarkets, chain 7 supermarkets can supply their own organizations, so that factory-to-end sales channels flat on the dealer’s business impact is very great. The face of hypermarkets, supermarkets pressure washing of the market is now a developing trend in product sales to large manufacturers, famous brand focus, as more and more easy to sell brand-name products, but not well-known brand products are becoming more difficult to sell. Therefore, the dealer operation and development trend is to gradually give up some small manufacturers, to large manufacturers, well-known brands to move closer. However, the subsequent profits of the big brand manufacturers are increasingly thin, dealers benefit from more and more difficult. As a part of daily life often cosmetic, and only access to a variety of supermarkets, in order to expand the visibility, can we truly into the hearts of consumers. However, the threshold for large-scale supermarkets have become more and more products into the supermarket, a year an additional Expenditures 20 million, which was prohibitive for many small businesses. Even into the supermarket, no high-density advertising, but also difficult to attract consumers away from supermarkets, so a lot of SMEs have become the choice of helplessness. The district towns a market is still dominated by 8 brand-name, subject to the channels and the price of branded products is difficult stationed, large packing, low prices make these products, companies live pretty good. Adjust the channel is in 2002 on the second major product changes. Since the rise of hypermarkets and supermarkets, a market has become dominated by the terminal, but when SLEK pay homage to the terminal by many peers when they are no longer difficult to see another one SLEK appear. For many Japanese-based enterprises, the terminal is no longer the original terminals. When consumers into a supermarket, no longer has the original God-like feel, the face of dazzling and even unheard of products, the only option is to avoid and much of the. The role of the terminal display fewer and fewer, terminal shampoo for small and medium enterprises are also more magic, as tasteless, tasteless but wasteful to discard. In addition there is no huge investment in advertising, it is difficult to attract consumers from the terminal, many cosmetic manufacturers have gradually abandoned the supermarket terminal, turned to large circulation, the direct product into secondary and tertiary markets. Day of line products and professional line of products, 9 mutual penetration is also a prominent phenomenon. Sales of beauty products generally have two ways: on-line and professional line-oriented. Japan-based line is mainly for the mass retail market to go to enter department stores, supermarkets, shopping malls mainly rely on mass media advertising, promotional activities to promote sales of the counter; the professional line of products to go beauty salon line, the manufacturer through agents, the product shop into the beauty salon, and, to beauty salons to provide a good after-sales service, such as technical training, end advertising promotions. Professional line of products and on-line product and go their way, never Hunzhe to come along. However, since the beginning of Guangdong affectionate into beauty parlors, Shan Rana into the beauty market, and Ya-Wei began a two-pronged, the original boundaries have begun to draw a clear line Hunrong. In fact, this hybrid business background to this is because both sides of their meager profits of the industry, hoping to have another way to new gains. Advertising is still vigorous, but no longer a company killer, an increasingly prominent in the homogenization of today, the Chinese daily chemical industry are looking forward to breaking new cocoon rebirth. 10 Analysis The local daily chemical enterprises in these two years the older generation of Japanese brand lessons learned, recklessly not, weak links from foreign-funded enterprises surgery, come to a halt the enemy’s seven inches, limited resources to focus on one point, from the point to face, began to expand their market share. Because, without exception, the higher cost of foreign brands, high quality, high-priced high-end line, the face of reduction in the level of consumption in recent years did not grasp the opportunity, local enterprises to use the price advantage of playing a nice turnaround. Recalling that have been brilliant and the sinking of Chinese Japanese brand has a more clear understanding should be a temporary victory can only bring temporary pleasure, not to mention opponents will not let go, already eyeing the next round of the brewing fight back. The face of all this, China Day of the brand’s future road hidden dangers. 1, who moved the cheese Who? You can see that China’s rise on the re-brand, are in the middle and low market success, due to decline in recent years, consumer prices, for daily chemical products, the high-end 11 market, highbrow, middle and low market will become a factory the focus of competition. So, not really Buxing Le foreign, but domestic brands itself out Shiran. Procter & Gamble and other foreign brands accounted for a half into a share of shampoo, SLEK, pull-fang’s sudden emergence only in the other half has been the foundation of chaos. Soap is a foreign market is still dominating the world, while the toothpaste market, domestic enterprises is still below the price of 3 yuan on the life and death struggle. Can be seen only in the Chinese daily chemical brands its own internal integration, and foreign real close combat, and not yet begun. 2, the embarrassing situation of high-end market While domestic brands expand the rural market in a huge space, but the urban market has been its sore spot. Low prices tend to go hand in hand with the low quality, such as, resulting in low level of state-owned brand’s image. Although the current limited capacity of high-end market, but the huge profits, while foreign investment in these early years of shaping and maintaining the brand image to consumers a high-quality impression. Therefore, the lack of domestic brand image has always been weak. Although some enterprises, such 12 as the current efforts to build a premium brand Jahwa start ‘Herborist’ and so on, but the national appeal to be strengthened. Like toothpaste, try and pin both sides of high-grade products, but the market is lukewarm. Domestic brand market share of high, but sales and profit was far better than foreign brands, domestic brands of its own which makes it difficult to truly improve the strength, even in the middle and low price with the market, but we can not develop their own high-profile brand, once the market consumption, heating, domestic brands will miss an opportunity. 3, a wide range of tepid Since most state-owned brand is taking the cheap route, so the profit is very low, we must rely on the scale of development, we must win. Currently, almost all brands have begun a diversified expansion. However, apart from in a few areas Diaopai accomplish something, the other is not tepid. Such as bear gall produced southerly chemical shampoo, shower gel, listing to promote vigorous, but today has long and almost invisible trace; white cat Sanglai Si moisturizing soap is silent; black girl, after following the toothpaste, have also launched the Xihu series are also did not amount to anything. We should know that a series of foreign investors in 13 each of the launch of the brand, all have a detailed marketing plan, market operations, and achievements are obvious, but the China Day of the diversification of the brand was more like a casual game, not only a waste of resources, but will a serious threat to their core business. There are a number of daily chemical enterprises of non-related diversification was worried the expansion also makes the cold sweat. The diversification of China’s countless enterprises defeat vivid, daily chemical enterprises will not repeat the same mistakes? 4, the rampant counterfeit and inferior goods Domestic brand to seize the day, another opportunity is subject to counterfeiting of foreign capital, causing consumers do not trust the product, a number of good quality domestic brands take advantage of. But with the rise of these brands, which filled a great headache for the problem of foreign capital placed in front of them. It is reported that Procter & Gamble is about a yearly loss of more than 10 billion, Unilever lost more than 3 million, Jahwa loss of more than 1 million, while the black girl, two needles are also copied, SLEK, pull-fang, also appeared a large number of fakes. Profits drive the market for these products have been seriously affected, but also for the growth of the market have cast a 14 shadow. In the vast rural market and remote areas, counterfeiting is rampant. Use these to inferior raw materials, crude technology and health security conditions in the absence of machined products, on human health will not be any good. However, these products in the rural areas and many remote areas sounds like a market, the fundamental reason is that the level of consumption in these areas is very low, it is the first factor of consumer goods still depends on the price. In contrast, low-priced counterfeit goods, which dictated that they occupy in these areas, a large market share. The high profits of fake brand-name products is unmatched by dealers also fueled their popularity. How to crack down on counterfeit products became a Chinese daily chemical industry a problem without delay. 5, the price double-edged sword defection Diao Pai led the day with the use of price leverage brand hit a nice counter-war, but followed the Japanese market, put into a low-profit-oriented era. This is not only brought to the Chinese daily chemical industry, countless injuries, more importantly, serious damage to the domestic Japanese brand’s image. And the price of foreign-owned companies 15 have begun waving machetes, subtle washing powder a price reduction, immediate sales volume, market share, to fourth string. Rejoice Shampoo 40 yuan a bottle of water from less than 20 yuan, the market position of the first no one could shake. Colgate toothpaste also introduced a mid-priced products, and compete for share of domestic brands. Since 2002, ‘P & G’s’ arm of public branding started to civilian-oriented attitude to words against fake and domestic brands. In March 2001, ‘P & G’ in the national level, quietly introduced a popular package of ‘Tide’ (the price from 5.9 yuan to 3.5 yuan), after April, ‘Tide’, ‘Persil’ start turns lower prices, the price briefly dropped to 3 yuan less, almost equal to NICE’s ‘Diaopai’. From the market news is that the first round of price cuts had been initial victory, ‘Tide’ sales climbed, in some medium-sized cities and even sold out of supplies. At the same time, ‘P & G’ flag of another trench brands ‘Rejoice’ ultra-low prices has become a benchmark for pricing new varieties. In addition, P & G has also stirred up in seven cities nationwide Yi Gu ‘Body Hit’ whirlwind, its ‘Zest’ complemented by the low price, sentiment reached the youth 16 market. The ‘Zest’ since it went public in April of this year, with sales increasing rapidly. Of course, ‘Zest’ goal must not only this, it is the market share ambitions to become the first in this category, becoming the first choice of young people bathing. In the new round of ‘access movement’ after the breakdown of Avon trying to price the years (for different ages of consumer launch the product), by Japan-based high-end market to the low-end market penetration. Avon developed ‘UP2U’ is an attempt to Bode young women under the age of 20, the trust in order to win this group with limited financial resources but the product in great demand in consumers. It is learned that, ‘UP2U’ listing, sales all the way sells the country has set up 350 counters. It is estimated that by the end of this year, ‘UP2U’ sales of 8,000 million million yuan to the sprint. Shiseido executives recently revealed to expect through the fast-growing mid-priced day of business to expand sales. This includes the ‘take the most suited to China’s Famous delivery’ approach, and starting in March of this year, pushing China’s mid-range cosmetics, shampoo, etc. will be put into the Chinese market. Shiseido in 1994, invested in 17 China, China-specific ‘Ou Polai AUPRES’, the annual sales of about 50 billion yen. In the fiscal year ending in March next year, the Shiseido’s sales in China will be up to 108 billion yen. To this end, specifically the recent establishment of Shiseido China’s strategic room to advance beyond the increase in the main mid-priced luxury goods, quantity, etc. Famous countermeasures can expect sales in 2004 to the present 3 times. Before that, Shiseido has passed under the ‘Za’ series of wading in the low market. So far, Za series of 30 cities in China, sales, annual output of up to 200 million. Foreign investors have lower prices and new product introductions, starting with the price factor is still attractive. Second, with the localization of speed, gradually declining production costs, prices have room for downward adjustment. In addition, as new products are constantly emerging, price reductions, rebates have become foreign investment to maintain their market leading position in the external appearance. The industry believes that once the middle and low foreign brands to enter the market, domestic brands will lose their price advantage, cosmetics industry will face a new round of reshuffle. And one should not be overlooked phenomenon is that foreign brands are more product 18 categories, market segments in place, they come up with a number of species as a magic weapon against the domestic brands, and some will continue to maintain high image and strive to have a product to participate in all aspects of competition. Such as Tide laundry detergent prices to move closer to the mid-range, but Ariel is still prohibitively high, high platform diving Rejoice, Pantene, Head & Shoulders billows. Foreign investment in the face of price wars, domestic brands continued to price cuts and the abandonment of the market only two options, which for domestic brands is a silent tragedy of the outcome. Their main market is the domestic brands middle and low price products, if it continues to lower prices, will only make less and less profit or even losses, then there is strength and foreign-invested enterprises do to compete? 6, the local strategy for high-voltage encounter of foreign capital Coordination of China’s domestic and global resources, integration of local and global culture of multinational corporations in China, an important symbol of the strategic shift. Sunsilk Black sesame shampoo is a good example. Prior to this, domestic brands have been relying on plant formula 19 Olive Shouwu hot 1:00, while the Sunsilk The advent of the West and China Science and Technology of the classic combination of natural ingredients, while its innovative ingredients to meet the needs of local consumers. Crest, Colgate toothpaste introduction of Chinese medicine has also been proved to accelerate the pace of localization of transnational corporations. In addition to product localization, localization of human resources is also a threat to Chinese daily chemical enterprises an important factor in the use of local resources are more conducive to communication and familiar with the market. Localization also made purchases of foreign capital has been the high cost of production dropped drastically increased market competitiveness. More importantly, in the image on the localization of foreign capital is even more spare no effort in trying to create and close neighbor the image of local consumers. This is so that the local daily chemical enterprises are increasingly passive. On the contrary made on the unsatisfactory performance of the brand, there is no serious study of the real needs of consumers just blindly follow the trend of the foreign brands of whitening toothpaste, and domestic brand was finally able 20 to spend the concept. Foreign mint shampoo added factor, domestic brands only have to imitate. There’s even some companies come up with some strange ideas, what cure stomach ailments of the toothpaste, shampoo rule presbyopia, because consumer demand can not be adapted to such speculation Qu dismal fate of the first and end up in a bleak outcome. 7, integrated marketing is still the Achilles heel At present the Chinese market is still a non-standard market, the relationship between customer and manufacturer is still in the swing state, especially state-owned brand and dealer relationships are not long-term stability, while dealing with dealers and foreign investment is not only strength, good reputation, but also is important that high quality, comprehensive set of standardized management system. Marketing strategy, the foreign offensive in the face of domestic brands, have also been some consolidation, such as the latest hair salon in the store is a new direction for P & G terminal. Other hand, domestic enterprises, SLEK the terminal building into a number of small and medium enterprises, life-saving straw, the herd phenomenon, with no innovation. La-fang’s mid-range low-cost effective, a large 21 number of similar products out in force. Advertising, too, quite similar to the shape of a lot of people tired of endless publicity and repeated repetition, nothing new promotions allow consumers to avoid less. The overall image of the entire domestic brands is not clear to consumers feel. The surprise is that in the 23 markets, the brand cargo terminal is still long and almost invisible shadow, in the capacity of a huge rural market, daily chemical brands still do not lord it over. Terminal, consumers clamor for many years these words still do not get in the market really is all about. On the contrary, he could not hide a vigorous advertising enterprises in the management of the pale. A famous Japanese-based company a one-time recruit 50 marketing personnel, were each receive 500 yuan to go out looking for distributors. Results Some people receive the money on this without a trace, some people reach their destinations and then Mailiaojupiao no news. While the enterprise, as long as there is a dealer there, this input can be received back. The two sides are not in a serious manner in the treatment of sales of this sacred topic. There is a one-time sale of businesses, in the right sales staff in the guidance, repeatedly is that one sentence: one is a lie. Do not know these words to hear the sale of those companies making every effort 22 to master planning, the expert’s ear, the mind is what it’s like. 8, high-profit has become a distant topic In the industry, cosmetics industry is seen as second only to drug trafficking, high profits can be imagined. In the interests of the drive, no matter how fierce competition, people still waging break. The most direct expression is an endless stream of new brands in order to grab the market, one after another in vicious competition. In fact, the domestic cosmetics market, in terms of raw materials, formulations, or quality of the product point of view, the difference is not large. From a technical perspective, the market entry threshold is very low. The results of the whole industry is fatal. As the true and false Nanbian, hurt consumers often do not trust domestic brands throughout the years, the purchasing power went slightly stronger choose a foreign brand. With low-end products into the brand ahead of competition stage, product development, market operations, personnel costs have swallowed the profits of the product an attractive one empty, one year to do a lot of the brand down, they usually make a profit of a youngest drink. Insiders pointed out that the original product cost only a small amount, plus some 23 advertising, you can do together, and now heads like dew in the market face, 20 million do not even think about playing the market. ] b [9, becoming shorter and shorter product life cycle [/ b] Due to intense competition, new listing in 2012, the price will be close to the bottom line, dealers will no longer make money, sell passion blocked, to promote their products are no longer active, turned to other profitable new products, which forced the enterprises to convert their packaging and brand, a new one wheel-made brand campaign, the result is input again, and then one of the shake-up, that it has become a vicious circle. Since the various cleaning products have many varieties, there are dozens of varieties of shampoo, cosmetics and more homogenous phenomenon makes the product more serious, the lack of individual products. The result will inevitably lead to price competition, while the price war has also caused a substantial decline in corporate profits or even losses. Dealers generally believed that companies in an invincible position in the market, should continue to introduce new product and innovative business ideas to win the market. Future 24 In the event of such a move towards each other - foreign investment into China and Chinese efforts to gradually adapt to accept the process, who will be the biggest beneficiaries of this confrontation? And who would like to seize the initiative in the game? Perhaps, all is far from to talk about the result. To Nice, represented by the rapid rise of a group of local enterprises, which have accumulated not only beat the strength of multinational corporations and, more importantly, they have "ambitions", just be satisfied with a partial victory is not enough, a full-scale a complete victory in the field of multi-product is becoming their new desire. Cosmetics market, however, significantly increase the polarization, in order to cast a shadow over their prospects. In the high-end market is still foreign control, low-end is a melee of domestic brands. Technically, due to large capital investment, many companies are reluctant to take risks, resulting in a local brand in the low-end market, get into real trouble and can not hit high-end market. With the change in sales channels, particularly in the wholesale market shrinking and stores the formation of simply relying on advertising has gone era of consumer driven, 25 integrated marketing, domestic enterprises to become placed in front of a new topic. Among luxury brands to suppress the growing low-end brands to domestic corporations to stay in the choice seems very simple: either stick to the final success or failure; or to find a new model, toward a win-win. But this would be a difficult and lengthy and even difficult to predict the outcome of the fight. Lesson guide for the future, only the truly identify themselves and their opponents can really go a solid and long-term. China Day brand is filled with tremendous self-confidence to go on the road in the sunny future, toward China Day to show a beautiful brand new world, sunny, fine spring’s bright future seems within reach. Let us sincerely wish China Day brand a better tomorrow! 26