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Achieving leadership in China detergent market– Project proposal –Henkel (China) Investment Co. Ltd. ,;Contents Page;A. Fierce competition from international and domestic players has imposed great challenge on Henkel ;After fast increase in earlier 1990th, annual growth of China detergent market has slowed down in these years;Gross profitability of Whitecat regular powder;After having established prominent position in high end market, PG and Unilever begin to penetrate middle and low end market;Brand Share Company
Tide 6.0% PG
Ariel 2.2% PG
OMO 2.4% Unilever
Power 28 1.1% Benckiser
Persil 0.1% Henkel;Although a late comer, Benckiser has successful penetrated north market with Dosia through well-designed entry strategy ;Some domestic players are also making efforts to achieve fast growth and national presence;Fast growths of domestic players are supported by their rural focus strategy, nationwide manufacturing network and direct sales model ;In order to achieve turnaround, Henkel should adopt an aggressive expansion strategy;Strategy formulation should be based on full understanding of China detergent market and full consideration of three strategic issues;Per capita consumption gradually decreases from south to north and from east to west;2512(Shanghai);For different region, market segment structure is also different because of various income level and consumption habit;East China is in intense competition and major players are all national brands;Low-end market size in South China[’000 Ton];West region can only be Nirma’s potential market in the second stage because of its limited market size and strong competitor;Regional and local brands play the major roles in the Northern market;Shandong and Hebei are suggested as strategic focus in early entry period;;;Qiqiang’s low price strategy proves to be successful in the low-end segment;Rural consumer
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