1, cosmetic giant into growth “mud”
Unilever announced third quarter revenue growth rate was the lowest in nearly five years. According to the survey of the company, which is lower than the average analyst forecast of 3.7% growth. Sales rose only 0.3% in the quarter, the first two quarter rises by 1.9%. Among them, the degree of decline in the Chinese market is particularly serious, basic revenue fell 20%.
Unilever results analysis at the same time, the current situation is mainly affected by the European market is tanking, the impact of the slowdown in emerging markets such as China, especially in the Chinese market, in response to the economic slowdown and the prospect of lower demand, retailers to reduce the inventory levels in order to deal with, it becomes the main reason for decline in revenue in the Chinese market. Unilever, chief executive officer Paul Polman said in a statement: “the macro economic situation continued to consumers.”
The world’s largest cosmetic giant procter &gamble company recently announced third quarter also shows the problem of revenue growth. Procter & gamble in the third quarter results show that p&g third-quarter net profit of $1.99 billion, revenue fell 0.1% to $20.79 billion, less than analysts’ expectations of $20.83 billion.
Similarly, colgate-palmolive Co. disclosed third quarter financial results also showed that although the net profit of $542 million, total revenue of $4.37 billion, but dropped by 0.7%, compared to the same $70 million lower than market expectations.
Just two years ago, unilever had predicted that China’s economic growth speed slow down the impact on its performance will be small, then the unilever north President Alan Jope (Alan Jope) said at the time, compared with the high-end consumer goods, he “believes” fast-moving consumer goods industry is a more stable industry. However, a few big foreign cosmetic giant in the past two years has made the “confidence” into “blind optimism”.
2, why “bottleneck” appear?
Why foreign cosmetic giant collective downturn? Companies in their foreign report more would slow reason attributable to the market environment, and in the industry point of view, the reasons are complex.
Daily chemical industry experts said Wu Zhigang analysis, pull the daily chemical industry company motivation of earnings growth of endogenous and exogenous factors. Now call the “slowdown” environment is an important negative exogenous factors, other levels of the chemical giants such as procter & gamble, basic is developing new market area, new brand mergers and acquisitions also lack strong selection, so into the bottleneck of growth. In this context, the big giant, the defects of factors has been exposed, such as aging, lack of innovation and brand.
“In conclusion, the major chemical giant brand influence has reached the height of the hard to transcend ourselves, global market environment not good, open new channels of the marginal effect is low, no breakthrough in product research and development, marketing innovation and no surprise, coupled with the rise of electronic commerce brings to the market also failed to adapt to a sharp change of these factors combine to cause a major cosmetic giant now facing a” bottleneck “of the situation.” Wu Zhigang said.
Wu Zhigang believe that growth to break through the dilemma, the cosmetic giant will need to change from three aspects: first, the macro market environment, warm; Second, the product innovation breakthrough; Third, to adapt to the new business environment, for the corresponding more effective marketing, dissemination and communication methods.
In fact, not all international cosmetic giant all fell into the “hole” in the Chinese market, such as South Korea enterprise amorepacific group performance in China is a bright. In recent 10 years, amorepacific China sales average annual growth of 47%. In the first half of 2014, China’s total sales of 220.9 billion won, equivalent to 1.28 billion yuan, to continue to rise 26.5% from a year earlier. Its anti-aging products for Chinese market, collagen protein beverage, urban purification series have achieved satisfactory results, determined “localization” strategy in China is considered to be amore winning a magic weapon.