What is the difference between Chinese and foreign cosmetics brand

There are great opportunities to the market, but we need objective understanding disparities, and then to catch and hyper.

Daily chemical products industry is a very attractive prospects for the market. Per capita consumption cosmetics, China is a one-year $ 2, $ up to 35 in Europe and America; detergent we, per capita consumption 3.6 kg, United States, Japan is 32 kg 9 kg. Experts expect the next few years cosmetic market sales will be based on average annual 12.9% growth, the market potential is huge. But local brands must find gaps in order to turn the chance.

"Why hurt me?"

China's domestic cosmetics brand development, through a number of ups and downs. The initial investment into China, has launched the first round of the joint venture, some well-known domestic cosmetics enterprises along with it. Subsequent to the ad-funded enterprise began to open dominates the market, we stand at the Procter and Gamble grab wealth every year to 50% speed increase. Until 1998, some Chinese chemical enterprises finally began exerting force, coupled with Procter's mistakes its own strategic decisions, local cosmetic brand enterprises sprang steadily climbing. For a time, like: sculpture, shulei, lafang can't wait to start dozens of brand under its debut, active in China daily market arena.

In this way, the daily new expensive ' fierce, local chemical company ushered in his youth in the season. However, in this batch of daily new expensive have just will have a firm foothold in preparation for the local daily chemical enterprises were started in meaningless "brand segmentation of combat". While the Procter and Gamble, Unilever, and other international cosmetics giant then took the opportunity to quietly changing the market strategy, all in the price, is fully comprehensive relinquished daily chemical enterprises low-end encircle the local brand. Foreign giants through successive reduction of numerous local territorial conquests, daily chemical enterprises survive stress of getting bigger. At the same time, foreign-funded enterprises also isolationism low-key style, strengthened in the Chinese market marketing strategy and communications strategies.

Let local enterprises to make matters worse, the sharp rise in raw material prices, product marketing pressure increases, the sharp decline in profit margin. Many small and medium-sized enterprises of chemical industry began in the profit and loss on line, or even crossed the picket line. In this way, just facing youth season local daily chemical enterprise and at the door in a "ambush".

After several ups and downs, why hurt local brand? gap and foreign cosmetics enterprises what?

Location height coincide, strife continues

Brand positioning of highly coincident that Chinese enterprises face a grim reality: when the launch of new brands, yet competition's brand, but to beat their own brand. But a phenomenon, foreign brand of product category, market segment, they took out some variety as a magic weapon to fight domestic brands, and some will continue to maintain the high quality image to all aspects of a product to participate in the competition: as the price to mid-range taizi detergent gets close, but still high above bilang; floating flexible highboard diving, panting, but still roaring. haifeisi Faced with foreign capital participation price war, domestic brands can only continue to price cuts and abandon market two choices, and this for domestic brands is a silent tragedy. Originally, the main domestic brands in the market price of the product is the basic level, if you continue to lower the price, will only make less profit, even in a loss. In this case, there is strength and foreign-funded enterprises to compete?

High-end market awkward

Although domestic brand extends the huge space of rural markets, but urban market has been a sore spot. While low prices often accompanies with low quality is like a shadow, resulting in domestic brand image of low grade. Although the current high-end market, but the limited margins, and foreign investment in these years of brand image building and maintenance to the consumer the impression of a high quality. Although there are some enterprises, such as: Shanghai jahwa began to build up high quality brand "Nigel grass set", etc., but the national appeal remains to be strengthened; another example: both sides of the needle toothpaste attempted to launch high-grade products, but the market is reflected in the cold. Although domestic brand market share, sales and profits are far inferior to foreign brands, which makes the domestic brands in their own strength to really improve. Even in the middle price with the market, but will not be able to cultivate their own high-profile brand, once market consumption heating, domestic brands the opportunity will be lost.

Imitation sexually transmitted, means the single

Brand is a comprehensive concept, a brand can the hearts of the people, that is to see how effective dissemination of the brand to consumers positive education. Currently, the industry generally adopted the imitative means of communication strategy, was a single, TV advertising, aerial bombardment. Not saying that using imitation strategy are incorrect, in the beginning, but one not used much.

Media publicity, is the local daily and very different from foreign investment. L'Oreal acquires small nurse, the media began reporting, but buy kongfengchun piaoying without "blowing a rippled". The media's "things" that consumers in a long time that local enterprise products as foreign capital enterprise. In fact, in terms of enterprise development, and product quality, the local enterprise are not inferior to foreign companies. $ 200 million investment from liby building a high standard, high starting point of the production base and scientific research base, set up a Center for international studies, lafang piaoying products go out of the ... You can see, the local daily chemical enterprises are gradually emerging from the past "family workshop" image.

Along with the foreign capital enterprise of low prices, price is not the local brand of weapons. No advertising and price advantages, it seems cannot be seen from the local enterprise was able to struggle with foreign capital, the magic weapon to enable consumers to lose on the product itself. But this needs to be addressed on from spreading.

Brand growth cycle short

Foreign-funded enterprises in sculpturing attention to brand into cultural elements, innovation disseminate ways and means to enhance the brand affinity, cohesion and appeal, brand gravity works. It is the difference between

To consumer rally, and also different from advertising thrust, it guide consumption to intangible, it is everywhere, across the enterprise by every employee and every link, its consumer demand response optimization, it attaches to detail, focus on the needs of consumers. It enables consumers and brands have more "focal points" or "contact points" that enables brands and consumers formed no barriers of interactive communication. And local brands often can only win a battle, the lack of continuous product innovation, the concept of innovation. Once on the formula 1 hot plants will first Ukrainian shampoo, because of the lack of follow-up capacity and scenery.

Do not understand the real needs of consumers

Coordination of local and global resources, the integration of local and global culture, is a multinational corporation in China's strategic shift symbol. Xia Shi Lin black sesame shampoo is a good example. Prior to this, the first Ukrainian domestic brands will have to rely on formula 1, plants and hot in summer, Lotus introduced is the Western science and technology and China to the classical combination of natural ingredients, its innovative composition you meet the local needs of the consumers. Anti, Colgate toothpaste, Chinese medicine also proves that the pace of transnational corporations (TNCs) localization.

In addition to product localization, localization of human resources is a threat to China's chemical enterprises of important factors, use of local resources, more conducive to communication and become familiar with the market. Purchase localization also let foreign consistently high production costs dropped significantly increase market competitiveness. More importantly, in the image localization, foreign investment is sparing no effort to create and close to local consumer image next door.

On the contrary domestic brand performance is unsatisfactory, not seriously consider the real needs of consumers, just blindly follow the trend: foreign brands of whitening toothpaste out of the domestic brands use only gradually; this concept with foreign shampoo, mint factor have domestic brands again. Even some enterprises come up with some strange ideas, what a bad stomach toothpaste, cure presbyopia shampoo, cannot be adapted to the needs of consumers, the hype of stunts and ultimately end up dismal bleak ending.

Integrated marketing is soft rib

At present, China's market or a market, the relationship between customers and manufacturers are still in swing state, in particular the State-owned brand and dealer relations are not stable, and dealing with foreign distributors not only powerful and reputable, high quality, a complete management system.

Sales strategies, foreign capital in the face of the offensive of the domestic brands, also had a consolidation, such as: the latest hairdressing shop in shop is the new direction of the Procter and Gamble Terminal. On the other hand, domestic enterprises, the building became shulei Terminal many small and medium-sized enterprises resort, yihongershang, innovation. The mid-range price effective lafang, attracted a large number of similar products is about to come. Advertising too, a lot of publicity for likeness but irksome, repeated, FAC promotions allow consumers to avoid. Overall image not sharp is the entire domestic brands to consumers.