Overlord: Relying on marketing war to "regain lost ground" and "differentiation" easier

July 27, 2012, the Hong Kong-listed overlord group issued a profit warning announcement, the first half of this year's results are expected to be a loss.

This is not the first time the bully issued an early warning, according to its 2011 earnings, its full-year revenue of 889 million yuan, compared with 2010, a sharp decline of 1.475 billion yuan 40%; Gross margins narrowed from 61.8% in 2010 to 38.3%, the worst performance since the IPO.

Under the influence of these news, Overlord shares tumbled 10.1%, setting a record low of HK $0.445, which was rated "Immortal Stock" by Hong Kong media.

But Overlord Group CEO Wan Yuhua don't think so, she bluntly: "Overlord has gone through the most difficult two years, but I am proud to say, Overlord survived!" ”

"Dioxane" Hit

"In fact, I speak bully very pressure!" Jackie Chan, who has been a spokesman for Overlord Shampoo, admits. He said: "Since the outbreak of the dioxin storm, many people also asked me, you endorse the product exactly?" I said you try it on your own! ”

Overlord Group An executive told the China Economic Weekly, "carcinogenic dioxins" before the storm, overlord some areas of shampoo can and gamble similar products, such as South China market share is about 1:1.6. In the field of anti-stripping shampoo, Overlord Sales is a national alone, only the annual advertising investment amounted to 300 million yuan, the invitation to Jackie Chan, Faye Wong, Hee, Donnie Yen and other big-name stars endorsement, a time of unlimited scenery.

July 14, 2010, Hong Kong Media "one weekly" reported that Overlord shampoo contains carcinogens two. Dioxane is a kind of organic compound, is a kind of micro-toxin, is listed as one of carcinogenic substances in the United States, belongs to the daily ban supplies.

Two days later, the state Food and Drug Administration issued a circular stating that the products of the Overlord were tested and that the second alkane content was minimal and would not endanger health.

In the first working day after being certified "innocent", Overlord issued a statement saying that he wanted to sue "one weekly" and must use the law to recover his reputation.

Although Overlord has repeatedly stressed in a series of subsequent responses, all products are strictly in accordance with China's existing laws, regulations and standards required to standardize production, and pointed out that dioxins for the production process of by-products, the content of the human body harmless, but the capital market and sales market reaction, from south to north, overlord products have been off the shelves, almost nobody.

"Because consumers do not understand the Overlord, at that time on the Internet, a search is all negative news, we lost really big." Wan Yuhua told China Economic Weekly. She admits that in the past two years has been suffering from the "dioxin" storm, the impact of their own unforgettable. "This makes overlord feel very wronged, the fact is not like that." These two years we have been using the action to prove that in the future I will fight overlord to create a transparent factory. "Wan Yuhua said.

After the storm, Overlord's market performance plummeted, only in the second half of 2010, overlord performance from the first half of the fall 16% to 1.475 billion, of which overlord shampoo sales fell 63.2% year-on-year.

On the one hand, the star product was hit the other hand, new sales rose slowly, Overlord faced with a market after the biggest crisis.

Wan Yuhua to reporters, Overlord sued "one weekly" lawsuit will be held in January 2013, asked about the amount of compensation and "dioxin incident" to the loss of overlord, Wan Yuhua No positive response, said "Overlord this year in the report will be announced at the end of August, the amount of detail written very clearly."

"Regain lost ground" by marketing war

After more than a year of silence, Overlord finally started to force again.

August 19, Overlord Group announced that the investment of 800 million yuan, covering an area of 325 mu of Chinese Medicine day of the industrial park began production. On that day, Overlord officially released its first female hair loss, hair problems and research and development of new products-Miss Overlord series.

Shen, vice president of Overlord Group, told China Economic Weekly: "We have introduced the automatic filling production line from Germany, all the equipments adopt the most advanced technology in the world, can realize automatic bottle, automatic filling, automatic cover, automatic labeling, automatic loading box, automatic spray code, automatic check weight and automatic packing etc. fully automated production. He said that the "dioxin incident," the impact of the Overlord, an urgent need for a marketing campaign to regain lost ground. In the eyes of Overlord management, the project of Traditional Chinese Medicine industrial park will be the landmark event to realize brand revitalization.

Since the establishment of Chinese herbal medicine planting base in Guangdong Province in early 2010, Overlord Group has gradually strengthened its control of upstream industrial chain since 2011.

"We have begun to establish a base in Guangxi, and will also be in Jilin, Shandong, Hangzhou, Fujian, Gansu, Guangxi and other eight medicinal plants to develop ginseng, honeysuckle, hang chrysanthemum, cool grass powder and other plantations, Overlord will use their own way will be the Overlord brand better." "Wan Yuhua is full of confidence.

Zhang Junxiu, vice president of Guangdong Pharmaceutical Association, said that in recent years international market demand for Chinese herbal medicines has increased, Chinese medicine raw materials prices in the year, some of the Chinese herbal medicine prices since the beginning of 2011 has risen 5%~10%, overlord from the source, built production base, coupled with various measures to expand the market, will help upgrade will be expected to become "Pearl River Delta Manufacturing set up a typical sample."

"Differentiated" easier

"The economic situation in these two years is not very good, on the one hand we have to make a positive clarification through litigation, on the one hand, self-help." Overlord only take the difference road, in the Chinese medicine profession plowing, can in the competition unbeaten. "Wan Yuhua to China Economic Weekly reporter said.

At present, domestic daily supplies market competition is very fierce. Overlord Group is located in Guangzhou Baiyun District, including a number of well-known brands of more than 600 days of enterprise, and the whole of Guangdong's daily business is more than 3,000. Although Overlord has been known as a family of traditional Chinese medicine, the main product, but also face a lot of foreign brands encirclement: As early as 2006, Procter and Gamble company launched the Pantene series; in 2009, Procter and Gamble introduced the floating soft Han grass to prevent hair shampoo, to Hanfang herbal culture learning, and gradually in the market to gain a foothold. At the same time, Procter and Gamble and Unilever continued to sink into the three or four-line cities, using the price advantage to further erode the market of domestic Japanese-made enterprises. Overlord wants to break through in it, difficult to imagine.

Marketing expert Li Zhiqi told "China Economic Weekly", currently in the Wash the field of foreign brands a single big, domestic brand enterprises have a strong family color, its talent, management, business thinking and the ability to resist risk are relatively weak, coupled with the frequent outbreak of irregular business events, undermining the consumer's trust in the brand , some domestic brands have begun to decline.

"I believe that our advantages, especially in the field of traditional Chinese medicine, as long as we have thousands of years of Chinese herbal culture as well known to the people, Chinese herbal medicine daily industry can stand out." "Wan Yuhua is very confident.

According to the data from China Daily Chemical Association, China has become the world's highest shampoo sales country, shampoo market size is expected to exceed 30 billion yuan, and the market is only about 4% of the national Shampoo market, and showed a composite growth trend, China's huge hair loss market has also attracted the attention of many international day-makers, and has begun to inject capital into the sector.

"At present, the industry pattern is entirely different, domestic brands to face long-term asymmetric competition, overlord walk specialization and differentiation line in line with market development law, only through the rich product line, aggravating the daily chemical industry and many foreign brands competition in the winning weights, in order to break through success." "Li the evaluation.