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TakeRevengeonPamp;GandUnilever.doc
Take Revenge on PG and Unilever
Years ago, Procter Gamble(PG) and Unilever were two powerful giants that dominated the daily consumer goods market in China, while Local companies, suppressed by the two companies and other foreign brands, were struggling on the verge of collapse.
But the distress for local daily consumer goods companies might be swept away these days, as the market share of PG and Unilever had dropped, while local companies, by contrast, saw an increasing share in the market.
The data from the China Association of Daily Consumer Goods revealed that the market share of local companies had already climbed to 45% by the end of May 2013.
Many local brands benefited greatly from this resurrection. Take Blue Moon for example, in 2007, this brand only took 14% of the detergent market in China, but the share increased to the startling 63% in 2013. The market calls it “an avenging increase”.
The fall of foreign companies started from 2008 and is yet to end by now. Many Chinese companies want to gasp this opportunity to reverse their situation. Softto is one of them.
Softto is one of the first established local daily consumer goods companies in China. When the supply was in shortage, it was quite popular in China. Then here came the age of advertising, when every Chinese people could see the advertisements of Softto once they turned on the TV.
Its board chairman Liang Guojian was previously a physician. He gave up his medical expertise and founded Softto. Its first knockout products were the “soaps with the effect of weight-reduction”. After several rounds of expansions, it became one of the few daily consumer goods companies that got listed in the Ashare market.
However, Softto began to suffer a falling business from 2008, thanks to the external stress from foreign companies and the internal managerial malpractices. Along with Soffto are Little Nurse, Tjoy and other local companies also had a hard life and were then sold to foreign co
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