The Japanese market foreign capital fierce seek "snapped up" local brand

Source: Internet
Author: User
Keywords Local enterprises local brands foreign acquisitions foreign brands daily-owned enterprises
Tags .mall business channel classic company consortium daily economic news domestic brands
Every reporter Lu Xi from Shanghai Feng Jianjun that the local daily business sales of more than 1 billion yuan, only a handful of 8, foreign capital If you want to occupy this market, the goal is very concentrated, the operation is not complicated. More than 10 years before and after 2000, small nurses, big treasure and other classic brands were foreign acquisitions.  After a brief lull, foreign investment seems poised to launch a "snapping up" of emerging Japanese brands. "Foreign investors are frantically chasing China's low-end Japanese brands, a rare phenomenon this year.  "Feng Jianjun, a senior marketing expert who has been in the Japanese industry for more than 15 years, told the Daily economic news," he said. The financial crisis under the foreign investment more fierce in the first quarter of this year, the world's cosmetics giants released a year-on-year decline in sales of quarterly.  While the cosmetics market in Europe and the United States is bleak, the Chinese market is still growing strongly.  L ' Oreal has achieved double-digit growth in China for 8 consecutive years, and the sales of Lauder in China have also been double-digit growth last year.  In Japan, the second of the market share of the company responsible to the reporter disclosed that the Japanese economic and Industrial province released 2008 years of cosmetics shipments statistics show that the Japanese cosmetics market total negative growth, is the previous year's 99.6%, and Scarlett in China 2008 sales rose more than 40%. Chinese and foreign cosmetics market "ice fire Double Day", the international financial crisis may be the emergence of foreign brands in the Chinese market more violent offensive.  The impact of domestic brands at the same time, the competition between foreign brands will intensify.  Feng Jianjun revealed that foreign investment into China, the path is different, those who slow a step of the foreign-funded enterprises, it is also difficult to avoid slipping to the fate of the third camp. Some of the established Japanese enterprises in Europe, after entering China market strategy is not effective, missed a lot of opportunities, gradually began to decline.  Some foreign-owned brands that have entered China later are now only regretting while struggling to catch up. In the day of the industry has been talked about is "one of Henan top France", China is regarded as the largest market in the international financial crisis, become foreign capital "not around the complex."  The current strategy of foreign investment is to rely on overseas brands to enhance the market position in China. L ' oreal acquisition of small nurses, feather West, Johnson acquisition of the Big Treasure, Beiersdorf acquisition of silk Treasure, in these classic acquisition cases, China's old local brands have left little.  With some advantages or characteristics of the new local brand, may become the next round of acquisition of foreign brands to compete for the target. High-quality local second-line brand in mid-May, the reporter received a copy of the internal information from well-known foreign consortia, 5 domestic influential local and joint-venture brands of various indicators were in-depth study.  The consortium insiders say foreign investors are taking a keen interest in the acquisition of local brands in China. Two joint-venture brands and 3 local brands were classified for technical analysis, according to the insider's internal data, entitled "China Personal Care products".  It is not difficult to see that these 5 brands have their own strengths. A joint venture is the most bullish, and itsAdvantages include: Sunscreen products market share of 8.9%, ranked third; products because of the concept of Chinese herbal whitening ingredients, in China to enjoy a higher visibility. Another company is eyeing the advantage of selling over 30 provinces in China, with more than 2000 distributors.  Similarly, there is a Guangdong private cosmetics company, described in the description of the company "has a strong distribution network, covering 31 provinces in the country."  Fujian, a joint venture hair products are also seen, it not only has two major production bases, as well as international research and Development Center, sales network all over the country 85% of the township, comparable to Procter and Gamble. Surprisingly, one of Shanghai's older Japanese-owned companies has raised concerns about foreign investment because of its "affordable" ultra-low price, the largest consumer base, and 128 first-tier distributors across 31 provinces.  It is estimated that the company's annual sales of money has already exceeded 400 million yuan. "The Shanghai company's consumer loyalty, may be better than the big treasure, can attract a group of consumers with Shanghai Beach complex."  "Feng Jianjun that the company currently sells more than 10 yuan of products below the market size of more than 400 million yuan, if the acquisition of foreign capital, the extension of its product line, in 15~20 yuan and 20~25 yuan price of the creation of the brand, then, the sales back to the index to 1 billion yuan level, it is only a matter of time. The people familiar with the matter said: "We have to admit that foreign investment is very good, in the present China is not easy to achieve breakthrough in the quality of second-line brand." Reporters on the matter to the 5 companies to verify, each side said the consortium has not yet begun to contact with. People familiar with the matter said the consortium is still in the investigation stage.  Once the acquisition is initiated, the initiative is still in the hands of the sellers.  Or it will penetrate the entire industry "in addition to listed companies, the consortium hopes to acquire wholly domestic brands, only equity participation does not satisfy their appetite," the person said. It is said that the wishful thinking of foreign investors may be: buy several smaller brands and try to hold other larger brands. To some sunscreen, shampoo and hair care, washing and other major brands for the full penetration. Before the death of the local brand, once the full infiltration of foreign capital, will become a family, no longer "war" with each other.  Once the foreign capital realizes the control to a certain subdivision industry, will no longer worry about the consumption of competition, thus can make money easily. "They want to buy all the good brands in the country all at once, lest they leave their rivals behind."  "The consortium has strong financial strength," said the person familiar with the matter. Feng Jianjun also believes that if the foreign consortium decides to acquire the local brand, its purpose is not the same as L ' Oréal's acquisition of the little nurse and Johnson's acquisition of the Grand Treasure. Cosmetic groups buy local brands, usually to supplement their product line, after the acquisition to long-term brand, to achieve sustained benefits.  In the case of a consortium that buys a local brand, it will try to make it bigger and sell it at a premium for a few years. Feng Jianjun A picture of a local brand "goldCharacter Tower structure ": Sales in more than 3 billion yuan, only 3" Big day "enterprises, in addition to washing supplies main industry, but also involved in cosmetics business, 2 billion ~30 billion has 2, 1 billion ~20 billion of 3.  More than 100 million yuan sales of the threshold of the local day of the enterprise, a total of only 37. "Local Japanese enterprises more than 1 billion yuan in sales of only a handful of 8, foreign capital If you want to occupy this market, the goal is very concentrated, the operation is not complicated."  "Feng Jianjun thinks. China's daily market of foreign brands into the Japanese market, especially high-end market, foreign capital has already occupied a dominant position. Local brands are now focused on low-end markets and are fighting and retiring.  Two or three-line city of the day of the franchise stores, now become the local brand of the main battlefield, but foreign brands have begun to attack this channel. Foreign brand control high-end market Guangdong province, Japan, the Chamber of Commerce Secretary General Yusheling in the daily economic news reporter, said the dominant position of foreign capital in China's daily market has been stable, it is difficult to have new power to break it, Chinese consumers have even been trained to "worship" mentality.  Local brands not only can not touch the high-end market, in the low-end market share is also very small, only in the field of shampoo performance. Yusheling to reporters that the current high-end cosmetics market, foreign investment accounted for 80% of the market share.  In the area of shampoo, the Procter and Gamble account for 40% of the market share. Kunming Dianhong Pharmaceutical Industry Chairman Guo Zhenyu has disclosed that China's skincare market is large, but foreign skin care products take away more than 90% of the money. Local skin care products accounted for 90% of the total, market share accounted for only 10%.  Even in the market scale of only 3 billion yuan, commonly known as "medicine makeup" of the medical skin care field, L ' Oreal's Vichy series products also accounted for 60% share, the share of local brands less than 20%. In the 2008, Procter and Gamble remained the eldest in China's daily market. L ' Oreal ranked second in China with sales of 6.952 billion yuan, and achieved up to 27.7% year-on-year growth.  Deep in China for many years Maybelline brand, this year from the makeup field extended to the field of skincare products, a fierce impact on China's low-end skincare market.  Top of the ranking also has a strong Unilever, Shanghai home in the scale of sales has been allowed to be underestimated, but the biggest contribution is the low-end brand six gods and growth of the brand Bai Cao set. Most of the local brands together in the low-end of the daily market.  Already has some well-known brands, mostly originated in the 90 's, they can only survive in the gap between foreign capital, so the number is not much, the market size is not a fraction of the foreign giants. Local brands have moved to the two or three-line L ' oreal Group's China president Gaipaolo revealed that when L ' Oreal entered China 13 years ago, almost all cosmetic business was concentrated in department stores.  L ' Oreal began to open up the Chinese market through the department store image counter, then gradually expanded to the shelf-style sales, then entered the big supermarkets, chain stores. As for the acquisition of small nurses, Gaipaolo said that the acquisition of smallA nurse is a popular distribution channel that wants to enter China. L ' Oreal was in China only in the high-end and mid-range product line products, there is no product line on the Chinese mass market completely.  L ' Oreal entered the new market by acquiring a small nurse and then listed another mass product Garnier.  Like L ' oreal, many foreign giants have entered China early and established solid channels. At present, the daily product of several major sales terminals, including shopping malls, supermarkets and day of the franchise store (also known as boutique). In shopping malls and supermarkets, it is still foreign capital.  And a total of more than 4,200 local-day enterprises, 80% of the sales are in a small boutique shop completed.  A well-known local enterprise marketing staff to the reporter sigh, shopping malls are too high, supermarket sales and spell foreign brands, the company can only turn to boutiques, and consider the development of direct marketing model. The two or three-line boutique in the city is now the main battleground for local brands.  But foreign brands are also beginning to have a strong interest in the channel, and boutiques often appear in foreign brands including Shiseido's leisurely, Poisson's, South Korea's love Jasmine's dream makeup, as well as a small amount of L ' oreal and Olay. Break through the foreign monopoly need time to be backed by foreign capital of the local daily brand, and even invented a "chang" of the new terminal sales model.  In some two or three-line cities, specializing in day-brand agents in the shopping malls under the package all day, washing supplies shelves or daily washing area. Feng Jianjun For example, a company and local shopping malls to reach an agreement: each year to the mall 6 million yuan, the condition is the market in the day of the purchase of business, from commodity procurement, promotion to personnel management, all-round overall management. This model has been in use since 2000, and its inventor is a native of Guangdong daily-owned enterprises, the current operating conditions are still good.  This model is also gradually imitated by other local enterprises.  Arden's China president, Chen Zhi-wan, told reporters that the local Japanese brand concentrated on the bottom of the entire day-long pyramid, the spire of foreign monopolies is not without opportunity, but need time, because the Chinese market still has a lot of space.  The current difficult survival of the local brands have their own survival rules, while facing the various pressures from within. Chen Zhi-wan that the local brands the most difficult to overcome the problem there are two: first, the family-style management, the second is the new enterprise quickly, but the old product is slow, not timely processing inventory, funds into a "stay money."
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