[straight news network Beijing March 25 news] (United Business Network) recently, Overlord group released earnings in 2015, as of December 31, 2015, group net profit loss from 1.16 billion yuan a year narrowed slightly to 1.11 billion yuan. Turnover of over $billion, down 21.2%. In response to last year's performance, the overlord group said that the reason for the loss narrowed because of the cost of sales and administrative expenses of thrift.

It is worth noting that the king group in the earnings report, the board of Directors believes that the implementation of the two child policy since January 1, 2016 will directly stimulate the market for maternal and infant products. In order to seize this opportunity, the group will launch in 2016 for pregnant women and babies of the protection of products, the move can be seen as a new measure of diversification strategy overlord. In this regard, the relevant person in charge of the king said, in the field of baby, the country has emerged a lot of domestic brands, and occupy a certain market share. "Broad prospects for the market, this is an indisputable fact, as long as we insist on good quality product, through word of mouth and consumers continue to establish the confidence of domestic brands, our local brands can have belongs to own place."

Since 2015, 2010 has been the overlord group for sixth years of losses. In order to improve the performance, Overlord group once betting herbal tea, direct, derivative and other non core business products, and is now trying to launch of maternal and infant care products. The industry believes that the main problem is the presence of the king's product image aging, product innovation. If there is no in-depth study, only because of the opening of the two child policy and the blind development of maternal and infant market, the time point for the cost control of stop loss may not be a good choice.

Moreover, Overlord group "sideline" development is not smooth. To herbal tea products, for example, since 2010, the king group gradually increase the construction of Chinese herbal medicine base, herbal tea market, but the results of the feedback has become the difference". Finally, Overlord group had to "out of herbal tea business in July 2013".

For new initiatives in fighter group, the layout of the maternal and child care products, Thain Capital Partners in the summer that overlord group currently has never recovered. 2010 overlord group suffered two incidents, serious damage to the brand image, has yet to regain the trust of consumers.

In addition, the king of the group in the marketing tool of the single has also been criticized by the industry. In the past, the overlord mainly rely on the terminal channel, that is, to train first-line shopping guide team contact with consumers, the brand is far from the brand of the consumer." Summer thinks.

Today, mother market has become a piece of the red sea. The industry believes that the king to enter the maternal and child market will face a lot of pressure. "Maternal and infant market competition is very fierce, the pressure mainly from foreign brands, domestic brands in this market is difficult to taste the sweetness of. Frog Prince flagship Chinese child care, but the growth rate is also very unstable after the listing. Chinese consumers for maternal and child care products is not to care about the price, with the increase in the level of consumption, the majority of consumers are more willing to choose foreign brands of maternal and infant care products. Overlord now want to get involved in this field, probably want to be in the new market, 'gambling'." Summer admits. 3

Editor: Xiao Shen

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