China’s daily chemical industry started in the 1980’s and once occupied an irreplaceable position in the people’s minds. The development has been extremely rapid. From the relatively fragmented industrial structure in the past to the current multi-polar competition, no matter which brand wants to China’s big market has won a “cupâ€. However, with the maturation and development of the market, the competition among Japanese companies has become increasingly fierce, and the competition for competition has become increasingly evident. Apart from the competition among domestic daily chemical companies, What is more important is the need to face external competition. The dilemmas faced by China's daily chemical companies are as follows:
I. Challenges Provided by Existing Competitors Domestic chemical production was one of the first industries opened to foreign countries since the founding of New China. In 1923, Unilever’s predecessor, Lihua Brothers, built a soap factory in Shanghai. In the last century, In the 1980s, with the establishment of Guangzhou P&G in the country and the return of Unilever to China, China, which has just undergone reform and opening up, ushered in the most representative of the two major transnational giants. At that time, China's domestic chemical companies had only just begun. It can be seen that at the time of “birth of birthâ€, China’s daily chemical companies are destined to grow in an environment that is extremely challenging, and the road to success is full of **.
Procter & Gamble, Unilever, Johnson & Johnson, Avon and other foreign daily chemical companies have their own characteristics in their success, but at the same time, they also share common features. They are actively investing large sums of money in scientific research and development, selecting suitable target markets, and using highly efficient Marketing tools will bring new products to the market and attract consumers' attention, thereby defeating competitors. For example, Head & Shoulders launched by Procter & Gamble to “remove dandruff†has left a deep impression on consumers whether it is “a leap step, better dandruff†in the slogan, or “teaching†in advertising. Procter & Gamble Company attaches great importance to the positioning of the product, Rejoice to supple positioning, Pantene is located in nursing experts.
Many cosmetic websites often do some research on the "most popular cosmetics top 10 rankings". Although the rankings on various websites may still differ, one thing is surely that a large proportion of the rankings are still foreign. Brands, domestic products can rarely enter them. It can be seen that the impact of foreign daily chemical companies on the local community is still quite large. The joining of many companies and the emergence of professional OEM manufacturers have caused a serious surplus in the production capacity of the daily chemical industry. In particular, shampoo products, Procter & Gamble, Sibao, Unilever and other industry giants have competed to lower prices, which also makes the daily chemical companies living environment more deterioration.
Second, the pressure of potential competitors Some diversified companies have also begun to look toward the daily chemical industry: the liquor giant Wuliangye marches into the daily chemical industry, launches the “Siszi†brand; Wahaha Group tests children's cosmetics, etc.; Health Pharmacy and Jinan Dongfeng Pharmaceutical Co., Ltd. jointly develops new skin care products. Some experienced and powerful distributors have started to establish their own brands, such as the “Jin Ting†brand created by Jiuxin Group. This kind of power has exerted great pressure on the existing daily chemical companies. The Jiuxin Company's new skin cream formula was tested by the Jilin Market in 1996. Through the OTC channel, it achieved sales of 300 million yuan in single products in 2000. In July 2002, Man Ting soap was put into the market. In the month of listing, it created a record of breaking 20 million in single-item sales in the domestic daily necessities market.
Third, alternatives to alternatives**
The rapid development of scientific research and technology has brought challenges to the traditional daily chemical industry. People can not only meet the needs of the United States through cosmetics and other daily necessities, and the development of some medicines and devices gives people more choices. The functions of daily chemical products are mainly health care and maintenance. Because homogeneity of products tends to be serious, and many products simply cannot achieve the "effects" it promises, many people in the industry even think that if they can't afford negative effects, they are good products. It seems inevitable that the efficacy and immediacy of medicines make it a substitute. In particular, the use of some natural or homemade cosmetic drugs that do not contain any chemical additives, such as homemade aloe masks, skins made of pearls, etc., and more importantly, taking some Chinese herbs without side effects, proceeding from the inside out Adjustments, and daily chemical products are mostly "corrected" from the surface. Another is the device, people have now developed a number of complementary beauty equipment, "Ultrasonic Body Weight Loss Instrument" and various massage machines often used in beauty salons. There is also a way to achieve beneficial body effects through qigong: Shen Chang's technique. These are the interpretations of human body maintenance in different ways. So for Japanese products, the alternatives can't be overlooked.
Fourth, the bargaining power of suppliers and consumers The suppliers often exert pressure on the downstream enterprises in the industrial chain by means of increasing prices or reducing quality and services. In particular, some more advantageous suppliers have stronger bargaining power for bargaining. . The proportion of daily corporate purchasing volume to its total sales is the key to determining its degree of concessions. Some new types of daily chemical raw materials have no substitutes or too high conversion costs, or companies rely too much on suppliers' technologies and services or because the scale of the enterprises is too small, they do not have a mature industrial structure. Daily chemical companies can only accept suppliers' Conditions and prices. The supplier's forward integration capability can also increase its bargaining power. One problem that currently exists is the homogeneity of products. The efficacy of products of many daily chemical companies is similar to that of formulas. Due to differences in the positioning of brands or distribution channels, prices vary. When consumers purchase, they will consider the "customer's transfer value" and the cost of the customer's conversion is very low. The emergence of substitute products in the market further enhances the consumer's bargaining power.
I. Challenges Provided by Existing Competitors Domestic chemical production was one of the first industries opened to foreign countries since the founding of New China. In 1923, Unilever’s predecessor, Lihua Brothers, built a soap factory in Shanghai. In the last century, In the 1980s, with the establishment of Guangzhou P&G in the country and the return of Unilever to China, China, which has just undergone reform and opening up, ushered in the most representative of the two major transnational giants. At that time, China's domestic chemical companies had only just begun. It can be seen that at the time of “birth of birthâ€, China’s daily chemical companies are destined to grow in an environment that is extremely challenging, and the road to success is full of **.
Procter & Gamble, Unilever, Johnson & Johnson, Avon and other foreign daily chemical companies have their own characteristics in their success, but at the same time, they also share common features. They are actively investing large sums of money in scientific research and development, selecting suitable target markets, and using highly efficient Marketing tools will bring new products to the market and attract consumers' attention, thereby defeating competitors. For example, Head & Shoulders launched by Procter & Gamble to “remove dandruff†has left a deep impression on consumers whether it is “a leap step, better dandruff†in the slogan, or “teaching†in advertising. Procter & Gamble Company attaches great importance to the positioning of the product, Rejoice to supple positioning, Pantene is located in nursing experts.
Many cosmetic websites often do some research on the "most popular cosmetics top 10 rankings". Although the rankings on various websites may still differ, one thing is surely that a large proportion of the rankings are still foreign. Brands, domestic products can rarely enter them. It can be seen that the impact of foreign daily chemical companies on the local community is still quite large. The joining of many companies and the emergence of professional OEM manufacturers have caused a serious surplus in the production capacity of the daily chemical industry. In particular, shampoo products, Procter & Gamble, Sibao, Unilever and other industry giants have competed to lower prices, which also makes the daily chemical companies living environment more deterioration.
Second, the pressure of potential competitors Some diversified companies have also begun to look toward the daily chemical industry: the liquor giant Wuliangye marches into the daily chemical industry, launches the “Siszi†brand; Wahaha Group tests children's cosmetics, etc.; Health Pharmacy and Jinan Dongfeng Pharmaceutical Co., Ltd. jointly develops new skin care products. Some experienced and powerful distributors have started to establish their own brands, such as the “Jin Ting†brand created by Jiuxin Group. This kind of power has exerted great pressure on the existing daily chemical companies. The Jiuxin Company's new skin cream formula was tested by the Jilin Market in 1996. Through the OTC channel, it achieved sales of 300 million yuan in single products in 2000. In July 2002, Man Ting soap was put into the market. In the month of listing, it created a record of breaking 20 million in single-item sales in the domestic daily necessities market.
Third, alternatives to alternatives**
The rapid development of scientific research and technology has brought challenges to the traditional daily chemical industry. People can not only meet the needs of the United States through cosmetics and other daily necessities, and the development of some medicines and devices gives people more choices. The functions of daily chemical products are mainly health care and maintenance. Because homogeneity of products tends to be serious, and many products simply cannot achieve the "effects" it promises, many people in the industry even think that if they can't afford negative effects, they are good products. It seems inevitable that the efficacy and immediacy of medicines make it a substitute. In particular, the use of some natural or homemade cosmetic drugs that do not contain any chemical additives, such as homemade aloe masks, skins made of pearls, etc., and more importantly, taking some Chinese herbs without side effects, proceeding from the inside out Adjustments, and daily chemical products are mostly "corrected" from the surface. Another is the device, people have now developed a number of complementary beauty equipment, "Ultrasonic Body Weight Loss Instrument" and various massage machines often used in beauty salons. There is also a way to achieve beneficial body effects through qigong: Shen Chang's technique. These are the interpretations of human body maintenance in different ways. So for Japanese products, the alternatives can't be overlooked.
Fourth, the bargaining power of suppliers and consumers The suppliers often exert pressure on the downstream enterprises in the industrial chain by means of increasing prices or reducing quality and services. In particular, some more advantageous suppliers have stronger bargaining power for bargaining. . The proportion of daily corporate purchasing volume to its total sales is the key to determining its degree of concessions. Some new types of daily chemical raw materials have no substitutes or too high conversion costs, or companies rely too much on suppliers' technologies and services or because the scale of the enterprises is too small, they do not have a mature industrial structure. Daily chemical companies can only accept suppliers' Conditions and prices. The supplier's forward integration capability can also increase its bargaining power. One problem that currently exists is the homogeneity of products. The efficacy of products of many daily chemical companies is similar to that of formulas. Due to differences in the positioning of brands or distribution channels, prices vary. When consumers purchase, they will consider the "customer's transfer value" and the cost of the customer's conversion is very low. The emergence of substitute products in the market further enhances the consumer's bargaining power.
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