China's Largest Daily Chemicals Titan Born: Earns 50B Annually

China's Largest Daily Chemicals Titan Born: Earns 50B Annually

2024-09-21 156 88

The daily chemical market is a consumer field closely related to everyone's life, such as toothpaste, shampoo, shower gel, laundry detergent, soap, and other daily necessities.

The daily consumption is huge, and this market has also emerged with many brands.

However, most of the domestic daily chemical market is occupied by foreign brands, and the market share of domestic brands is relatively small.

Brands like Head & Shoulders, Pantene, Rejoice, Vidal Sassoon, Crest, Safeguard, Olay, Pampers, Tide, and Gillette are very familiar to the Chinese people, but these brands all come from the same company - the American Procter & Gamble Company.

The company is the world's largest daily chemical brand and also the largest daily chemical consumer goods company in the Chinese market.

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Every year, it "mines gold" of 50 billion from the Chinese market.

Procter & Gamble has been founded for more than 180 years and has stood out in fierce market competition, becoming the world's largest daily chemical consumer goods giant.

It has a large number of brands, and its global sales have reached 500 billion yuan.

As early as 1988, Procter & Gamble began to enter the Chinese market, so many Chinese people born in the 1980s and 1990s may have been exposed to and used Procter & Gamble's products since birth.

Due to the advantages of capital and technology, Procter & Gamble continues to launch products suitable for Chinese consumers, and the brand names are also more "localized," making people think they are domestic brands.

According to the latest financial report released by Procter & Gamble, in 2021, Procter & Gamble's global sales were $80.2 billion, and the net profit was $14.7 billion.

Despite being impacted by the global pandemic, Procter & Gamble still achieved a global sales of 500 billion yuan, and the net profit level also reached a new high.

However, Procter & Gamble's sales in the Greater China region decreased by 4%.

According to the annual market sales data, the Chinese market accounts for about 10% of Procter & Gamble's global sales, close to 50 billion yuan.

Therefore, Procter & Gamble can "mine gold" of nearly 50 billion yuan in the Chinese market every year.

In the Chinese daily chemical market, foreign capital occupies a larger share.

According to data released by market research companies, among the top ten daily chemical brands in China, the top five are all foreign brands, namely: American Procter & Gamble, French L'Oréal, Japanese Shiseido, American Colgate, and British Unilever.

Among them, American Procter & Gamble occupies 60% of the market share, and these five foreign giants together occupy 85% of China's daily chemical market.

Colgate is also an American company that has been established for more than 200 years.

Colgate is the world's largest toothpaste manufacturer, and in addition to toothpaste, Colgate is also involved in home and personal care and other sub-markets.

Unilever is a British company, which can also be said to be a Dutch company, because it is a joint venture between British and Dutch companies, adopting a dual headquarters (London, Rotterdam), with brands such as Dove, Omo, Zhonghua Toothpaste, Sunsilk, Pond's, and many others.

In the domestic mid-to-high-end daily chemical market, it has basically been occupied by foreign brands.

After all, they have been operating in the industry for a hundred years, with rich brand management and market operation experience, and they entered the Chinese market earlier.

The early domestic brands are difficult to compete with them.

At present, domestic brands are mainly concentrated in the mid-to-low-end daily chemical market.

Domestic brands are rising strongly.

With the operation of domestic brands' brand concepts, the improvement of management experience, coupled with the overall improvement of technical strength, domestic brands are rising in various industries, and this is inseparable from the strong support of the Chinese people for domestic brands.

Chinese domestic daily chemical brands include Liby, Nais, Shanghai Jahwa, and Yunnan Baiyao, among others.

Among them, Liby is the largest domestic daily chemical brand in China, with annual sales exceeding 20 billion yuan, and it holds a leading position in the laundry powder and dishwashing liquid sub-markets.

Nais Group is also a domestic daily chemical giant in China, with annual revenue also exceeding 20 billion yuan, and it has brands such as Diao, Chaoneng, and Nais.

Shanghai Jahwa is also a domestic daily chemical enterprise, with revenue of 7.6 billion yuan last year, and it has brands such as Herborist, Liu Shen, Meijing, and Gao Fu.

It is worth mentioning that in the Chinese toothpaste market, domestic brands have successfully counterattacked.

At present, the leading enterprise in the domestic toothpaste market is Yunnan Baiyao, accounting for more than 20% of the share, followed by Good Morning, which was formerly known as Black People Toothpaste and is also a domestic brand.

The former toothpaste market leader - Crest and Colgate's market share has declined significantly, and domestic brands now occupy a larger share.

With the improvement of domestic brands in various aspects of operation, the high demand for product quality, and the support of the Chinese people for domestic brands, more domestic brands will stand out in various industries in the future.

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