Supermarket channels, good prospects for local daily chemical brands

In 2010, the domestic cosmetics market continued to show rapid development and the market scale continued to expand. However, even so, the local cosmetics companies still have endless bitterness - the pace of foreign brands entering the domestic market is accelerating, the sales channels of foreign brands sink, the trend of flattening is more obvious, the competition for products is constantly escalating, and the brand concentration is further enhanced. The competition in the local brand market is fierce and the market share is getting smaller and smaller.

In 2010, the competitive pressures of local daily chemical brands on commercial channels have only increased. In addition to the rising costs of raw materials and human resources, and the increasing cost of various items, they have to face direct pressure from foreign brands. . In mid-2010, there were reports that a foreign-capitalized giant combined with Carrefour to increase the cost of entering the local daily chemical brand, in order to further eliminate the profit margin of local brands. How about the future of local daily chemical brands in supermarkets? What is its evolutionary trend? How do local brands break through the Supermarket channels? For this reason, the reporter of the “China Washing Cosmetics Weekly” interviewed several daily distributors of main terminals in Anhui, Sichuan, and Hebei provinces.

The local daily chemical brands are faced with multiple pressures as the most important sales channels for Japanese companies to cultivate their brands and obtain profits. Supermarket has always been the most intense field of Japanese chemical brand competition. In 2010, foreign brands still dominated the domestic daily chemical market and supermarkets, but local ethnic brands in various segments also showed their own strength.

According to many day-to-day dealers, the suppression of foreign brands and the impact of other factors have made it difficult for local brands to develop. “Now the local daily chemical brand is not in a very good position in the super channel, facing multiple pressures, first is the competition of brand influence and product quality, followed by the competition of consumers. Nowadays, the customer groups are mostly after 80 and 90. In principle, their concept of consumption likes to choose well-known brands, and they think that well-known brands mean quality and grades, which largely occupy the psychological needs of consumers.In addition, factors such as rising costs and increasing store costs are also local days. The main reason for the difficult situation of the brand.” Mr. Zhou Jianguo, general manager of Huai'an Runyi Trading Co., Ltd. told reporters.

Zhang Jun, general manager of Huaibei Yifeng Trading Co., Ltd., also believes that compared with foreign brands, the overall expressiveness of local daily chemical brands in the supermarket channels is still insufficient. “Although some domestic brands are doing well in the field of hypermarkets, such as affordable herbal medicine, overlord, Libai, Blue Moon, etc., our domestic companies have a large gap between their overall strength and foreign-funded enterprises. This comprehensive strength includes funds, R&D investment, Brand positioning, brand culture, consumer guidance and many other aspects."

Positioning is a major weakness of the local daily chemical brand In the current domestic cosmetics market, foreign brands have long occupied a high-end, dominant position. This is a fact; there is a gap between local brands and foreign brands, which is also true. "Businesses do not count, support is not enough, marketing measures are not strict enough, do not work according to the contract," are often criticized by the Japanese chemical distributors gap. However, where is the biggest gap between local brands and foreign brands? In this regard, Du Yali, general manager of Mianyang Huatai Trading Co., Ltd. believes that "positioning" is the biggest weakness of local brands. “At present, most local brands are relatively price-conscious, and with a better store, your positioning and popularity cannot reach. People don’t want you; the next-to-market store can only serve as a living space for the company, not as a development space. Once the store itself is raised, In terms of grade, your brand will still be squeezed in. In fact, the store is the most realistic, as long as it can obtain benefits, it does not matter whether you are a national or foreign brand, your product is selling well, it will naturally give you the survival Space, like domestic affordable herbal products, its positioning accuracy, brand image and market control are all well done, and sales channels are flourishing in the supermarkets. Who cares if you are a foreign brand or a national brand?”

In addition to the positioning of the brand itself, Du Yali believes that it is equally important to maintain a “people-oriented” approach at the strategic level of the company. “People-oriented concept includes two aspects. First, the dealers must be people-centered. Enterprises must expand the market and create a brand that requires the efforts of dealers. Therefore, enterprises must give distributors confidence and profitability. Second, they must be people-oriented. Your products are not sold to dealers but sold to consumers. Therefore, on the basis of ensuring product quality, there must be connotation and culture. This has been fully verified by those well-known brands."

Dealing with the relationship between the company and its distributors is a prerequisite for the company's development. In response, Han Dafei, general manager of Baoding Purple Morning Trading Co., Ltd., told the reporter of the “China Washing Cosmetics Weekly” that “Either companies or distributors need to cooperate with a pragmatic attitude. Manufacturers and businesses are like two people. Legs, only two legs sound, can only get up fast and steady. Local brands are not necessarily worse than foreign brands. As long as companies and dealers can communicate well and coordinate well, local brands can do well."

The circuitous tactical deciding terminal is the way out to describe the current situation of the local daily chemical brand of super-traffic channel. In 2010, there was a certain foreign-funded daily chemical giant united with Carrefour to raise the entry fee of the local daily chemical brand. In order to combat local brands, further stifle the survival of local brands. In this regard, Han Dingfei, general manager of Baoding Zichen Trading Co., Ltd., said that the current state of the business is still at a rapid development stage in the country, and in the face of steadily increasing costs, companies should unite and respond together. "As the saying goes, it's good to do something, whether it's a hypermarket or a small store. For the overlord clause, manufacturers can implement the "soft approach" approach. The cost of the store's names can be raised by the vendor. Manufacturers can also use their efforts. See There is still a chance for change, such as not paying cash in order to increase sales incentives or cashing in other nominal forms.”

How to deal with the impact of foreign brands, said Ms. Du Yali, general manager of Mianyang Huatai Trading Co., Ltd., to maintain the development of its own brand, manufacturers should work together to jointly defend against foreign enemies. “Enterprises should give dealers certain confidence to support and drive their interests. Everything is handled in accordance with the contents of the contract, and the terms of the contract are not arbitrarily changed. There are now more than one brand of dealer agencies. If there are profitable brands, he will do it. There is no profit or even Losing money will certainly not be done. Therefore, if a company wants to develop its brand, it must let its dealers have a solid attitude to deal with the challenges of competing products."

Supermarket channels, promising prospects for the brand of daily chemical Although franchise stores have become a very important sales channel for cosmetics, Shangchao is still an important choice for the strategic level of many cosmetic manufacturers. When the reporter asked about the development trend of the local daily chemical brand in the supermarket over the next three to five years, all dealers were optimistic about the future prospects of the local brand in the supermarket.

Han Dingfei, general manager of Baoding Zichen Trading Co., Ltd., said that in the future, the share of local daily chemical brands in supermarkets will be further improved, because the current business status of supermarkets has not yet reached a mature stage, and the number of consumers will be further expanded. Third- and fourth-tier cities, and the further development of the township market, Japanese chemical brands all have greater market opportunities. As long as local companies can keep abreast of the facts, shape product development and brand culture, and brand marketing can keep up with the times and keep up with the trend, they can achieve their own development. Du Yali, general manager of Mianyang Huatai Trading Co., Ltd., also told the reporter of “China Washing Cosmetics Weekly” that “Although it is plagued by multiple factors, the advantages of local brands are higher gross margins, faster product replacement, and higher levels of concept guidance and category guidance. Foreign brands have advantages, as long as the links between companies, distributors, and terminals are in good order, the prospects for the local cosmetics brand are still good.”