2013-03-19

The'Retreat and War'of China's Daily Chemical Brands

Source: China Cosmetics Network Time: 2013-02-27

At the end of 2012, two blockbusters, "1942" and "The Last Supper," are hitting the screens in China. "Eating with cloth clothes" and "living with powerful people" appear together, one is the disaster and war of 70 or 80 years ago, the other is the crime and punishment in the late Qin and early Han dynasties; "Back to 1942" is a very insightful film about how refugees "survive". The Last Supper is fundamentally a game of survival that took place in ancient times, with people of every class facing the big problems of life and death.

In 2012 and the next two to three years of domestic industry weather, the development of China's daily chemical industry has met the most ruthless environment, the industry's brand owners are also facing a "survival" dilemma. Although the impact brought by the industry environment to the brand owners is not as cruel as the plot in the two films, it is already a game of "retreat and war" for the industry.

Film "1942" fleeing from hunger - and domestic chemical industry, from the current to the terminal, from offline to online, from the shopkeeper to hong merchants, from category to the item, from generation to generation of the province, from constructions to chain, seemingly is the inevitable outcome of the industry under market economy, the substantial like the film in the 1942 victims of the collective escape a migration direction is not clear, Is due to fierce competition to eat not "full", so as to "escape" from the inherent model, and then produce the current situation of the industry.

In the film "Back to 1942", due to the natural disaster, the corruption of the government at that time, and the Japanese invasion, the people in Henan were displaced and uprooted. On the way to escape, the moral violations happened from time to time, which was really terrible to see. However, due to the overall environment of the industry, the lack of industry supervision and the sinking of channels for international brands lead to the addition of prohibited ingredients in order to survive in the industry, leading to vicious competition and far-reaching negative impact on the industry and consumers. After a series of storms, the once "brilliant" washing and care brands "X Fang", "X Ying" and "X Xue" in the industry are now "retreating" quickly, especially "X Xue" after more than a decade of development. In 2012, the "doomsday year", it is even worse! Because they are in the process of "retreat", there is no retreat for advance to find methods or methods improper. The enterprise boss like the government officials, though also want to save their enterprise and brand, but its "energy" is limited, also can only do it once brilliant achievements "on-line", such as "snow" X boss in industry people who know him say he was a "good man", but the boss is too much of a "good" in the choose and employ persons, Repeated miscalculations and setbacks in the employment of high - level people, and then said that he had been cheated. People outside are lamented, for the grievances, but as the saying goes: poor people, its own hateful place.

In the film "1942", the "old master" played by Zhang Guoli realized that he was just running away aimlessly, but he still could not see hope or future. It would be better to "retreat for advance" and find another way to make a living. From the perspective of economics, when enterprises are faced with difficulties, only seeking transformation and innovation is the only rule of rebirth and development. There is no lack of successful transformation in the domestic cosmetics industry, such as "Danzi" launched "water code", a successful transformation of washing care. Although there are various reasons, but with the enterprise decision maker's vision, and the progress of The Times is inseparable.

Hereby sincerely advise those who are still "quit" brand business owners, please polish your eyes, go deep into the terminal sales line, listen to the voice of agents, terminal stores, consumers, start from the enterprise employment, think more about product structure, media publicity, channel sales, maintenance training and many other aspects. From a number of angles, evaluate the situation, can flourish, full of vitality!

The Last Supper went to war because it was full. Another phenomenon is that after the main brands of domestic cosmetics brands seem to be "full" in the industry, they begin to think about how to make a "breakthrough" again. This breakthrough is not an upgrade of the original brand, but to create a new brand to seize the market. According to the value chain theory, the closer the enterprise is to the customer, the more influential it is. So, the first choice to break out is to develop the end-user brand, which is "control the market." But to be fair, the brand that can achieve "control the market" in a certain field of cosmetics has not appeared really, so, use the mode of "make a new brand" to seek a breakthrough, the final success is not much. Investigate its reason, be "eat full support" of! It does not analyze why the sales volume of the main brand in the industry seems to be good, but what is the real position in the market? It can be analyzed from the following points: First, the proportion of the main brand in the sales revenue collection of similar competing products. Second, the main status quo of similar competing products. Third, the enterprise's production resources, human resources, financial resources how. Fourth, how the boss's own strategic planning. Fifth, the main brand in the product structure, market publicity, channel construction, maintenance and training there is no further improvement and excavation of the space, how much space. Sixth, how will the current situation and future trend of the industry environment. Above all, carefully analyze whether your brand has achieved "market control" status in your industry. Only through careful analysis of the above aspects can we decide whether to upgrade the original brand or develop new products for the market.

At present, the domestic cosmetics market, even if it is the leader in this category, there is still a lot of market space can be explored in the above aspects, and blindly out of the new products is not a must for the development and growth of an enterprise. Moreover, it is not easy to achieve real "control market" when the Chinese cosmetics market is so large and chaotic. Other do not say, say home-made color makeup company, row in the first few almost gave the second, even the third brand. Kefran was first introduced by Kazilan -- but neither cosmetics nor skincare have performed so well in the current domestic market, and later, Lindom, has long since disappeared. Qiao Di company launched Shang Hui and shavers makeup, compared with the main brand sales collection is also a big way court, and affected by the main brand collection and market position but was Karazilan makeup pulled farther, and later catch up with the distance of Mary Dai Jia makeup is getting closer and closer; Wanbang group several cosmetics, the main brand Lanser after years of precipitation and integration, this year can be considered to have a real improvement, while the other two terminal brands have long been half dead. As an old saying goes, "The economy has cycles and technology will progress." This is the objective law governing the development of technological change. Only technology is one of the core competitiveness of the enterprise, and then see Mary daijia makeup, formally entered the market in 2007 to now is still already into the domestic makeup before the three armour, mascara technology is its core competitiveness from beginning to end. The brand boss did not launch another new brand, but still adjusted the market thinking and model through continuous improvement and upgrading of products, publicity, channels and personnel, and continued to work tirelessly on its own brand culture and brand differentiation. So that in many aspects of the brand culture construction has already put the domestic still in the same level of makeup brand more and more far!

In short, domestic cosmetics enterprises are mostly production-oriented enterprises, which leads to the low technical content of the products put into use. The overall position of Chinese cosmetics enterprises is at the bottom of the fluctuation curve of the same industry in the world. Domestic companies, including those in the cosmetics industry, relied first on strong export demand for growth, then on strong domestic demand growth, and then on strong 4 trillion yuan investment. Each wave led to an expansion in the size of the market, and companies simply had to solve the problem of mass production to create a situation of growth and prosperity. However, the current economic situation is reversed, only for the domestic cosmetics industry, in order to reverse this dilemma, we must seek to develop to the two ends of the fluctuation curve -- this is the key link for the industry to seek the advantage of differentiation and core competitiveness. Finally, to use the familiar words: thinking determines the way out, sometimes choice is more important than effort!

 


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