2015-10-20 14:28

 

I bet Chinese market brand become the biggest obstacle

 

[CNDSN10] 20 days (China business network) and the United States and Japan, the Japanese giant profits fell serious, growth is weak, and Japan and South Korea, Japan, the company's performance growth, performance. Recently, from South Korea amore Pacific Group (hereinafter referred to as "amore Pacific") again China market layout code. On September 9, amore Pacific representative director Xu Qingpei in group was created to commemorate the 70th anniversary of the forum announced the 2020 towards "outstanding global brand company's development plan.
In this plan, China is clearly listed as the biggest and most important overseas markets. Amore Pacific to "China runs a newspaper" the reporter said that through this global goal, amore Pacific is expected to will be in 2020 to reach sales of 12 trillion won, profit margin of 15%, 50% of the global share of the business goals.
"Even though the amore Pacific product line is very rich, product updates faster, but compared with the rest of the world brand in the cosmetic, amore Pacific in product quality, channel development, marketing ability obvious disadvantage, lack of international competitive advantage, so its internationalization process and not smooth." Investment advisor in the chemical industry researcher Li Jianan analysis.
Chinese betting market
Now many overseas cosmetics group saw Chinese market flash points, the market has become the mainstream of foreign China digging. Last October, amore Pacific Investment in Shanghai to build the production, research and development, logistics and other functions in one of the "amore Shanghai beautiful makeup Park" completed and put into production. "Amore Shanghai beautiful makeup park with a total investment of 7.5 billion yuan, which is amore Pacific Group so far in and outside of Korea in the construction of the largest production research and development of the logistics base. Day of expert Gu Jun told reporters, this shows that about China amore Pacific market also intended to save cost.
In the Chinese market cultivated 25 years of amore Pacific 2013 China market total sales reached 3387 million won, 2014 amore Pacific sales for 4.7119 trillion won. Data shows, 17.6% of sales revenue from overseas markets, in 8325 billion won sales in overseas markets, the Chinese market sales of 46.73 million won, which sales in the Chinese market accounted for more than 56%, several times in other Asian countries, Europe, North America.
Gujun analysis, amore Pacific on the Chinese market, unprecedented attention is forced to move, in the local market amorepacific has encountered development bottleneck, and China market is the domestic and foreign chemical giants most market attention, amore Pacific is certainly not willing to drop people.
Xu Qingpei said as "Asian beauty creator of" amore Pacific Group began very early attention to the huge potential of the Chinese market. China has always been the largest market for the group, and the focus of the development of overseas Chinese, both in terms of the number of employees and the size of the sale. "China's use of cosmetics, the population has more than 50000000 100000000, the future may be more than 50000000 200000000, which is all you can predict."
"The demand for cosmetics is related to the changes in disposable income. In the future, China's middle class will continue to increase, and our future market and outlook is bright. Because we have seen such a prospect, many multinational companies have begun to enter the Chinese market. Chinese local enterprises have also got a great development, they are full of innovation, and has a good business ability." Xu Qingpei said.
Amore Pacific is the value of Chinese market huge consumption potential. Li Jianan said that with the implementation of China and South Korea FTA, will greatly reduce the tariff barriers of South Korea, South Korea's daily chemical products in the Chinese market competitiveness will be promoted, this time is undoubtedly a good opportunity to seize the Chinese market in japan.
Just China daily chemical products on the market many brands, competition is very fierce, amore Pacific in the China market face to the double pressure of the high-end brand in Europe and America and China's domestic low-end brand. At the same time, Japanese and other foreign giants also overweight Chinese market, the rise of Chinese cosmetic brand are amore Pacific in the Chinese market challenges.
Market response to caution
Since its inception in 1945, amore Pacific has become ranking first in the Korean cosmetics group, amore Pacific Group has nearly 30 brands.
Since 1992, amore Pacific is in China set up branch, is introduced to LANEIGE brand at from 2002, then continue to expand brand portfolio in China. At present, amore Pacific in the Chinese market has five brand snow show, Lange, makeup, Innisfree, Edith house. May 2015, amore Pacific's high-end features beauty makeup brand IOPE Aino Bi and high-end toiletries brand "Lv" also declared to enter the Chinese market.
Xu Qingpei said that from the development of the five brands, to achieve the goal is not difficult. "The current plan is to make sure that we have launched the five global champion brand in China to get the favor of consumers. As for the introduction of other brands, we will be based on the needs of consumers, in a rigorous research, then make a decision."
In order to adapt to the development of the Chinese market, amore Pacific said senior managers in the Chinese market is served by the Chinese people. "We want to understand the Chinese market through the management and operation of the localization, and to develop into the Chinese consumers like enterprises." Just although the previous executives also served by the Chinese people, but in the product and the consumer's understanding of the strain is not enough, the product update is relatively slow.
Some analysts pointed out that when the face of domestic and foreign chemical giants repression, amore Pacific only 6 products in the Chinese market sale, affecting the rapid development in the Chinese market.
These years, the rise of local brands also to amore, Shiseido this, Japan and South Korea brand impact, which also lead to amore Pacific were hit with a double whammy. "Cautious, low-key" is the general impression of the cosmetics companies from South Korea in the Chinese market. Li Jia Nan said that there is a large gap between the world from the point of view of the global market, amore and Shiseido, L'Oreal cosmetic brand.
For the above statement, Xu Qingpei said, for us, the biggest competitor is not others, it is our customers. We must keep on the customer's heart. All along, we have been to the customer as the center, to understand the customer's preferences, customer makeup habits, as well as the climate, environment, etc., and to carry out a comprehensive system of research." He said, not only in South Korea, but also carried out a lot of research in china.
In recent years, some foreign cosmetic companies in the Chinese market sales growth is slowing, but amore Pacific in China sales performance indeed "soaring", the market share accounted for continuously improve, development is very rapid. This is mainly due to amore Pacific strong product innovation capabilities and swept the world of the "Korean wave".
Brand marketing conservative
"Lack of brand strength is the biggest handicap of amore pacific." Gujun analysis pointed out that compared to L'Oreal and other big names in Europe and America, although amore Pacific is the flagship high-end market, the channel has been at counters in department stores mainly, but amore Pacific in the marketing of the conservative cannot win more consumers of all ages, awareness is not enough.
Compared to "L'Oreal" and other international major suit, amore Pacific's brand in the Chinese market awareness is not high. And "L'Oreal" and other international big investment large amount of advertising costs to do marketing and closer with different distance from consumers, amore Pacific in marketing is quite cautious. "
Perhaps amore Pacific also recognize its own brand in the minds of consumers is limited. According to Xu Qingpei revealed that at present they are mainly used in the national department store channel, followed by the brand store. In recent years, due to the rapid development of e-commerce in China, it has also been settled lynx, the future will continue to expand the electricity suppliers channels. In the brand, at present in mainland China have snow show, Lange, Innisfree, Aino Bi Lu, five brands, hope these brands in the Chinese market can get more attention and recognition. In addition, the "HERA" brand this year has also been testing the waters in Hongkong. In the future, it will be through consumer research and market reaction to consider whether the HERA into the Chinese mainland.
The reporter understands, currently amore Pacific Development of new sales channels in China can be divided to strengthen tax and e-commerce channels two, these two channels in 2010 to 2014 years compound annual growth rate of up to 43%, far higher than the growth rate of other channels. Among them, the compound annual growth rate from the duty-free shop channel is as high as 60%.
However, in Li Jianan view, sales channels mainly rely on electricity suppliers and duty-free shops on the one hand will restrict access to consumers, is not conducive to the further expansion of the market scale; on the other hand, the electricity suppliers may make the product image discount, is not conducive to high-end brands. 3
(original title: Emily Chinese brand power shortage into betting market the biggest obstacle)
Editor: small Shen
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