Chinas detergent industry- maturity and Innovation.docVIP

 PAGE \* MERGEFORMAT 11 China’s detergent industry: maturity and Innovation 1 Since 1995, China’s detergent market, presents the following general characteristics: 1. Key technologies mature Decontamination technology has been the dominant synthetic detergent product competition a comprehensive key technologies. With this technology a wide range, long-term development and application of the industry has gradually transformed into the basis of technical, very difficult to have more breakthroughs in space. The maturity of key technologies improve, directly leading to narrowing the gap in the product, adding to price and cost competition, so price competition as a basic detergent market competition order. As long as a breakthrough new product does not appear, it will be between the existing competitors to maintain a high input, low growth deadlock. 2. Production capacity is relatively small excess product differentiation have been unable to stimulate consumer demand for rapid growth in the overall size of laundry detergent market is gradually stabilizing. The previous stage too much duplication of today’s ‘enough to go round’ situation, in this situation, incremental sales of certain manufacturers may be equal to its competitor’s sales reductions of, and, if the product differentiation continues to shrink, will inevitably lead to larger changes in market structure. 3. Margins Qujiang A lower level of industry profit margins can be said to be ‘enough to go round’ is an inevitable result, the results also reflected in the manufacturers and vendors, manufacturers and wholesalers in between the wholesalers and retailers of competition between the induced structural . Will not be reduced due to consumer demand, market trading volume, will not decrease, then the sellers of lower profit margins and strive to enter a market, the objective was to price factors, in order to obtain large sums of commercial credit investments to the other , more profitable produc