The competition between Chinese and foreign brands has always been the focus of the daily chemical industry. Even if it is a small toothpaste, local brands and foreign brands also show a high profile of “sufficient competition†and make every move in various fields. However, the current toothpaste market is also obviously strong in foreign countries, and foreign brands such as Colgate, Crest, Black, etc. account for more than 70% of the market share, while Yunnan Baiyao, Cold Sour Spirit, Black Girl, Blue Sky, Six-Bill, Tian Qi, etc. Local brands only have about 30% of the country's total. Fortunately, local brands have been more aggressive in the fields of Chinese herbal medicine toothpaste and functional toothpaste in recent years. Although it is still a long time to change the "37 fields," let us see the hope of Chinese power. Market Pattern The toothpaste market is divided into three parts and seven parts. The “2007-2008 China Toothpaste Market Research Report†predicts that by 2010 China's toothpaste market will reach 18.1 billion yuan. In the face of a huge market capacity, the major toothpaste companies continue to seize and compete for various types of markets in the middle and low, while forming a typical “outside strong and weak†market in the daily chemical industry. According to relevant data in the first half of 2010, P&G's Crest market share is more than 20%, Colgate and Black are both above 15%, and foreign brands still have a large market share.
Zhou Jiuping, assistant general manager of the Yunnan Baiyao Group Health Products Division, told reporters that at present, the market concentration of the toothpaste industry is high, foreign brands account for more than 70% of the market, and the home market accounts for less than 30% of the market. There is still no fundamental change. Xiao Yong, an industry marketing expert, also said that Colgate, P&G, Unilever and other major multinational companies’ brands occupy most of the market and belong to the first tier; local brands belong to the second tier. "According to the current competitive situation, after the first echelon has firmly occupied the first and second tier markets, its marketing center has begun to tilt sharply toward rural areas, prices have penetrated from high prices to low prices, and national brands of the second tier have started from the low end to the middle. High-end price **."
Industry watcher Li Zhizhi stated that foreign brands have established a firm position in the high-end market and are now infiltrating the low-end market. Their development strategy is to maintain high value-added products in the high-end market, intensively deliver advertising, and at the same time to the low end. Market penetration to suppress the survival space of the second and third line brands. According to his analysis, Colgate has always occupied the high end of the toothpaste market, and Crest has entered the Chinese market three years later than Colgate. It has been lagging behind. However, in recent years, the marketing battle between Crest and Colgate in China has become even more intense. Crest’s market share is slightly higher. The obvious move of black toothpaste in recent years was sinking channels. In many third-tier cities and even in rural areas, the sinking of black toothpaste was well done.
Chinese power 1
Yunnan Baiyao high-end breakthrough high-end functional toothpaste is a prominent area of ​​local brands in the segment market performance. The most representative is the Yunnan Baiyao toothpaste. In 2005, Yunnan Baiyao launched the first high-end functional toothpaste with the concept of “full oral careâ€. Its performance made foreign investors fancy this market segment. The industry predicts that high-end efficacy will be the focus of toothpaste market competition in the next two or three years, and the current toothpaste market structure may undergo some changes.
At present, the top places in the toothpaste market are Crest, Colgate, China, and Black, while Yunnan Baiyao is currently ranked fifth, which means that the domestic toothpaste brand has for the first time entered the ranks of the first camp of the Chinese toothpaste market which has been long-held by foreign capital. Yunnan Baiyao Zhou Jiuping told reporters that Yunnan Baiyao toothpaste sales this year reached 10 billion, although the current market share in the national market ranked fifth, but the share with the fourth place is quite close. Industry insider Mr. Zhong said, “According to the data we have obtained in the industry, sales of the top four foreign brands have declined.†In the first half of 2010, Crest’s sales market share was roughly 20%, Colgate and Black More than 15%, their market share is still relatively large, and Yunnan Baiyao toothpaste and Chinese toothpaste in the hypermarket's market share is closer and closer, about 9% to 10%. Zhou Jiuping said that Yunnan Baiyao's current market performance has still not changed the pattern of foreign monopoly, but it has an impact on the structure of the entire toothpaste industry and will enter the first camp this year.
China Power 2
Herbal toothpaste has nearly half of the market's other market segments - Chinese herbal toothpaste is also seen as an important means for local brands to break foreign monopolies and re-demarcate the situation. Although foreign brands have also launched some toothpastes that use the herbal concept, the market response is not optimistic. Experts predict that by 2010, the total output of toothpaste will reach 8 billion standard, and the market scale will reach 18.1 billion yuan, of which Chinese herbal toothpaste will have nearly half of the market. After Yunnan Baiyao succeeded in breaking through the high-end, domestic brands such as Zambia and Tianqi also launched their own high-end Chinese herbal medicine series.
However, even though the domestic toothpaste is getting more and more brave, it is still a long time before they want to expand market share in the market that has already formed the "37" pattern. Zhou Jiuping believes that it cannot be simply considered that local brands can make a Chinese herbal medicine or a medicament-based toothpaste break through. There are several breakthroughs in local brands: first, product innovation combined with market demand; second, pay attention to two-way communication with consumers; Identify the advantages of the channel to break through; fourth is to properly extend the brand on the basis of the original brand.
The relevant person in charge of the China Oral Cleansing and Care Products Industry Association also stated that “China's toothpaste market has long since gotten out of the extensive high-speed growth stage, passed the era of mass marketing, and entered the era of subdivided competition. For local brands, At present, it is a good opportunity to occupy the minds of consumers and seize market segments, and it is also a crucial moment for national brands to cross over.
The series of Chinese power reports 4. Candidate Brand Names for Toothpaste Industry Yunnan Baiyao Yunnan Baiyao is one of the few successful local toothpaste brands in recent years. In 2005, Yunnan Baiyao toothpaste was based on a scientific investigation of the oral health status of Chinese people and a rigorous product research report. It introduced a functional toothpaste with the concept of “comprehensive oral health care†and directly established a high-end image that distinguishes other competing brands. The Yunnan Baiyao toothpaste sales soared. This is the first brand to bring toothpaste to the high end in recent years, and it is also the local brand most likely to enter the first camp of foreign capital.
Explore the Yunnan Baiyao toothpaste marketing model, the core is the differential positioning. In recent days, major foreign companies, especially pharmaceutical companies, have also squeezed into the high-end functional toothpaste market. The sustainability of Yunnan Baiyao is the focus of attention in the industry.
The blue sky and six blue and blue sky and six must-haves can be regarded as the local old toothpaste brand. Its predecessor can be traced back to 1914. In 1992, the two fat people had good teeth and good appetite. The body was twice as good as it was. The advertisements made the blue sky and six beauties swept across the country and established the first flag of the domestically produced drug-type and full-effect toothpaste. However, when the foreign brands entered the Chinese market, the blue sky and six begweed faced many problems. Until November 2005, Guangzhou Libai acquired 90% of its shares, and the blue sky and six begzhi have new developments.
Cold acid and cold acid spirit has been the endorsement of local "resistance sensitive" toothpaste. Its habit is oriented towards the most popular market, and it expands the market through the distribution channels throughout urban and rural areas by lower prices and moderate publicity. Nowadays, in addition to continuing to make a fuss about "resistance," Cold Acid Ling also extended its use of herbal toothpaste. The price of the product has also begun to move toward high-end and is considered by the industry as a "jedi fight back."
Nass Toothpaste The most familiar to Nass Toothpaste is that it frequently appears in CCTV's cartoon ads. For NICE Group, the development of high-end NICE toothpaste is a bit like a life-saving straw. It not only bears the heavy responsibility of the brand strategy, but also absorbs the failure experience of the old “Vulture†brand toothpaste, so it chooses to highlight the “nutrition†concept. In order to distinguish from the functional toothpaste that is commonly used in the market, the concept of "Healthy Tooth" and "Dental Cleansing".
Related information The first phase of the duel between foreign capital and locals in the toothpaste market (1949-1982)
Shanghai China Toothpaste and Tianjin Blue Sky Toothpaste have shared the Chinese toothpaste market with two domestic brands, and they said that “South China has a blue sky in the northâ€.
The second stage (1983-1991)
Domestic brands have mushroomed. Numerous new brands, such as the two-side needle, cold-acid spirit, black girl, grass, grass coral, white rabbit, and yellow peony, have emerged. They are each holding one domain and gradually form a competitive separatist trend.
The third stage (1992-1995)
Foreign brands rush to the Chinese market. In 1992, the world's largest toothpaste brand, Colgate, entered the Chinese market; in 1995, Crest, the world's largest cleaning company, P & G, entered China. In a short period of time, it took advantage of powerful marketing campaigns to seize China's high-end market.
The fourth stage (1996-2002)
Foreign brands shuffle the Chinese market. Foreign brands completely changed the pattern of China's toothpaste market: On the one hand, it acquired domestic brands to gain market share and channels. For example, Unilever obtained the brand management rights of “Zhonghua†and “U.S. and Canada†from the Shanghai Toothpaste Factory; on the other hand, through marketing And price adjustments, let the public accept themselves. In the following years, the domestic brand of Toothpaste Top 10 brands increased from two seats to four seats, while the former domestic brand names such as Blue Sky, Six-Bill, Fangcao, and White Rabbit fell into decline.
Phase 5 (2003-present)
Chinese toothpaste brand reintegration sought a breakthrough. New brands such as Tian Qi, Nai Sisi, Li Bai, and Yunnan Baiyao Ointment, they avoided direct confrontation with foreign brands and secured occupations such as oral care and Chinese herbal medicine.