【文章內容簡介】 Nirma\interimrpt East China is in intense petition and major players are all national brands market volume by province [’000 ton] Brief analysis Jiangsu Henan Zhejiang Shanghai Anhui ? Jiangsu and Henan have the largest market volume in east China ? Jiamei, Whitecat, GiGE and Fangcao are traditional brands with strong regional market bases ? distribution work is paratively mature with some large distributors in dominance ? Qiqiang has successfully perate east China and established leadership with strong sales campaign ? Libai is planing to perate east China ? Diaopai is also making efforts to enlarge its market share by offering high margin incentive to distributors Total: 778,000 tons East Nirma\interimrpt Lowend market size in South China [’000 Ton] South In South, we remend Hunan and Hubei are target market for market entry because Libai almost control the whole lowend market in Guangdong Competitive landscape 170 Hunan 190 118 179 Hubei Jiangxi Guangdong Fujian 84 ? Libai almost control the whole lowend market in Guangdong ? Resun as a regional brand holds half of Hunan’s lowend market ? One flower and Quanli has 30% and 20% of lowend segment respectively in Hubei Hunan and Hubei are the target market due to their large market size and weak petitors Total: 745,000 tons Nirma\interimrpt West region can only be Nirma’s potential market in the second stage because of its limited market size and strong petitor Lowend market size [’000 ton] 77 Sichuan 154 69 102 Guangxi Yunnan Shanxi Guizhou 69 ? Qiqiang takes 44% of lowend market with three manufacturing sites (Sichuan, Guizhou and Sanxi) ? PG take over one major local brand (Nanfeng) in chongdu to expand lowend market ? Whitecat has setup a manufacturing site with 80,000 ton capacity in Chongqing ? Low population density and per capita consumption West region can only be Nirma’s potential market in the second stage Total: 537,000 tons West Analysis of opportunity Chongqin 65 Nirma\interimrpt Regional and local brands play the major roles in the Northern market Lowend market size in North 1 and North 2 [’000 ton] Competition [volume share] North 2 28% 22% 3% North 1 30% 37% Tiantian Others 2% 14% 30% Qiqiang Yunquan Mulan Jiali Qiqiang Deer Jiali Jianlong Seagull Others Source: by Henkel (Tiantian) and Unilever (Yunquan) Except Qiqiang four local brands are the major players in North 1 and North 2 North1: Liaoning, Jiling, Heilongjiang 458 210 North2: Shandong, Hebei, Shanxi, Beijing Tianjing 14% North 16% Nirma\interimrpt Shandong and Hebei are suggested as strategic focus in early entry period market size in North 2 subregion [’000 ton] Competition 68 Shandong 181 132 Hebei Shanxi Tianjing Beijing ? In Shandong, Deer and Jiali holds 30% and 25% of the lowend market respectively. But weak financial srength and less sophisticated marketing skill undermine their petitiveness ? In Hebei the detergent market is highly fragmented with Qiqiang winning less than 20% market share, the rest are insignificant In Shandong and Hebei a strong and dominant brand is nonexistent yet Total:458,000 tons North Nirma\interimrpt Consumer acceptance Profile of major product form Trend Product feature Average price [RMB/kg] Market share Major brand Production technology Regular Concen trate Ultra concen trate Spray dry Dry mix Agglomera tion ? Tide ? Whitecat ? Qiqiang ? Ariel ? Whitcat ? OMO ? Gaochao (whitecat) 90% 8% 2% ? Hollow ? Low density ? Foaming ? High water solubility ? Solid ? High density ? Nonfoaming ? Excellent stain removing efficacy ? High fluidity ? Excellent stain removing efficacy ? ? ? Well accepted in rural High price undermines affordability and consumer acceptable New product Spraydry technology dominate the laundry powder industry sector Source: Roland Berger Partner interviews Nirma\interimrpt Rural consumer preference Price and money value are two most important factors influencing rural consumers’ purchasing decision ? Foaming ? Fragrant ? Water solubility ? Big package size (400g, 750g) Product ? Primarily through grocery in village / town ? Market / fair especially weekly market Place ? Effective tool to induce trial during introduction period ? Using daily necessities as prize is well accepted Promotion ? Popular acceptable price in rural market: RMB/kg Price range Source: Roland Berger Part