2016-07-21 17:06
International giants in China trap dilemma: Chinese consumers are too picky
[straight news network Beijing on July 20 news] (die Zeit) now, Procter & Gamble CEO David Taylor, finally began to admit a mistake: Procter & Gamble has been the China as a developing market, and in fact, China has become the consumers all over the world's most demanding market.
Senior Chinese enterprise poaching CEO Chinese that frequently the most discerning consumers
Procter & Gamble China dilemma
Procter & Gamble, the world's largest daily goods company, is suffering from an unprecedented problem in China.
Huanshuai, layoffs, downsizing, cut ad budget, sparing no effort to Procter & Gamble a draft of the fertility decline. However, in China market performance is still no progress: fiscal year 2016 third quarter results show that the in the Chinese market organic sales growth of only 1%. Worldwide sales are even more dismal: P & G's net turnover has fallen from $54 billion 200 million to $49 billion 200 million, down 9% from a year earlier.
At the same time, Procter & Gamble executives were also frequently heard Chinese enterprise poaching, market share has been eroded rival news.
. Procter & Gamble CEO David Taylor, finally began to admit mistakes: Procter & Gamble has always regarded China as a developing market, and in fact, China has become the consumers all over the world's most demanding market.
Group chief financial officer Chang Muller has repeatedly stressed that P & G's strategy in China is wrong positioning is too low, must be made to adjust.
Open self rescue mode
Procter & Gamble as the second largest market, the Chinese market is very critical for P & G. However, in recent years, P & G in the Chinese market to hand over the results are not very good.
From Euromonitor International data show, 2009-2014, in Chinese beauty and personal care market, Procter & Gamble's market share has been from 15.2% decreased year by year, dropped to 12.7%; home care market in China, 2010-2015, P & G's market share from 7.3% to 6.6%, the achievement than Chinese local brands Liby, latter market share has from 14.9% rising year by year to 16.2%.
In the face of Procter & Gamble's decline, the industry analysts believe that the lack of innovation is a major reason. "In the last five years, Procter & Gamble in the Chinese market the lack of innovation, the introduction of new products is not much," a familiar with people in daily chemical industry to times weekly reporter revealed, such as washing liquid, Procter & Gamble fully than blue moon late 4 years before the launch of laundry detergent products. Wait until the other side of the market to enter, there is no advantage. "
In order to reverse this decline, Procter & Gamble opened the history of the most large-scale strategic transformation of downsizing and layoffs. With has sold the Fu grand coffee, Giff peanut butter, Pringles potato chips and other food brands, and recently quit the Duracell, Nanfu battery battery brand, Procter & Gamble announced before the fiscal year 2016 reduced spending by $100 billion, sell, termination or elimination of P & G's half of the annual sales sales under $1 billion of non core brands.
"Sale of Procter & Gamble's multiple beauty brand is not only to short-term performance, but also for the long-term development of the company," in this regard, the investment adviser in the chemical industry researcher Li Jia Nan analyzed, in his view, Procter & Gamble's products are numerous, extent will disperse enterprise for a single product energy. "So Procter & Gamble needs to abandon its development is not a good brand, put our efforts on a limited sub brand. "
Cross border electricity suppliers is straw?
2015, Procter & Gamble in the Chinese market opened a cross-border electricity suppliers, hoping to get back to the erosion of the share of cross-border electricity suppliers.
In this year during the two eleven, P & G China's first overseas flagship store landing lynx international, introduced the company from the United States, Canada, Japan, Germany, France, Australia and other six countries covers maternal and child, hair care, body care, laundry care, category of variety in the Chinese market has yet to sell the popularity of a single product.
According to Procter & Gamble Greater China, Xu Min, President of E - commerce, Procter & Gamble as early as March 2015 began planning overseas flagship store.
We have done a lot of consumer research in the early, but also with the electricity business partner with big data to pick the potential of the product. Xu Min said. To some extent, the cross-border electricity suppliers to become Procter & Gamble test consumer tastes an important platform.
"Product selection criteria are the first to refer to the most popular cross-border category, so which accounted for the largest is the maternal and infant products. Followed by the most popular in the local. Xu Min believes that with the increasing number of overseas tourists, returnees groups, the purchase and use of overseas products, the consumption habits of more and more widely used radiation.
The industry believes that in the past, Procter & Gamble has been over reliance on traditional channels, rarely involved in e-commerce channels, is not conducive to the expansion of its consumer groups, especially the expansion of young consumers.
In Procter & Gamble, the electricity suppliers are not only defined as an important sales channel, but also to further establish a brand, deepen dialogue and communication with consumers, enhance the platform of consumer shopping experience.
"We are strengthening the store and business. Our business is about 20% of the speed of growth, although still can not be compared to the next line sales, but the current development momentum is very good. Procter & Gamble chief financial officer Moeller said that Procter & Gamble is in the supermarket and supermarket channels to carry out the action to inventory.
"We are making progress in the Chinese market, but there is still a lot of work to be done. "Moeller said," we slow down half of sales in the third quarter, the fourth quarter is expected to further improve the situation. "
Clearly, the company is still trying to catch up with the pace of the growth of the income level of Chinese residents. 3
(original title: Japanese goods giant in China trap dilemma: Chinese consumers are too picky
Editor: Xiaoqing
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