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Period: August 1, 2011 to September 1, 2011
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends
Companies, Organizations  

Herbalife To Build Production Plants, Manufacture Products In-House

Herbalife plans to increase its manufacturing operations in order to make more products in-house and also either boost margins or reduce prices. The company is looking at Brazil, India, and Eastern Europe have emerged as possible sites for the planned factories which forms part of its effort to produce 80% of its products in-house by the end of the decade. Herbalife is doing well direct-selling its supplements: revenue grew 27.7 percent to $879.65 million in the quarter ending June 30. and it aims to triple sales by 2020 by expanding its presence in emerging markets and enhancing distribution in mature markets. Sales dropped slightly in China as it transitioned to a daily consumption model, but surged 121 percent in India, while Mexico and Asia Pacific saw double-digit growth rates. 

"Herbalife to expand manufacturing footprint", NutraIngredientsUSA, August 03, 2011

Estee Lauder Expands Presence In China, Launches Online Outlets

Estee Lauder plans to open more retail outlets in China, adding five more cities to the 38 it currently has. It also indicated it will launch ecommerce channels in the country which is now the world's third-largest market for cosmetics and toiletries.  Estee Lauder's sales grew 13 percent in 2010, with China accounting for a large part of the jump in sales. Chinese consumers no longer look at cosmetics as luxury items are and increasingly are able to purchase a wide range of products in the country rather than overseas. The market is increasingly competitive and other cosmetics companies are expected to follow Estee Lauder's move.

"Estee Lauder expands China's cosmetics universe", Independent, August 22, 2011

E-commerce is going mobile

China Daily, August 29, 2011

Unbeatable Drama

Cream Global, July 05, 2011

Market News  

Coca-Cola And Partners Invest US$4 Billion More In China

Coca-Cola Company and bottling partners Swire Beverages Ltd. and COFCO Coca-Cola Beverage Co., Ltd. plan to invest US$4 billion in China over the next three years from 2012. The companies aim to enhance the sustainability of their operations in China and will have invested more than $3 billion in the country for the last three years, by the end of 2011, with total investments reaching $7 billion in 2009-2014. Coca-Cola's sales grew 6 percent worldwide, according to its second quarter 2011 financial results. China accounts for 7 percent of the global volume of Coca-Cola, which now operates more than 40 plants in the largest and fastest-growing consumer market.

"Coca-Cola Invests US$4 Billion for Long-Term Sustainable Growth in China", Coca-Cola, August 18, 2011

Consumer Research And Targeted Marketing Help Western Consumer Goods Companies Flourish In Russia

Western consumer packaged goods companies are investing in consumer research to adapt their marketing campaigns to local conditions in Russia. Reckitt Benckiser spends around 12 percent of its $440 million revenue from the former Soviet countries on consumer research and marketing, an investment that helped the company launch a successful advertising campaign for its Calgonit dishwasher tablets after research found that Russian women spend inordinate amounts of time on washing dishes because dishwashers are not common in Russian homes. The company also found success in marketing its Clearasil anti-acne treatment although Russian teenagers had been using soap and water until ten years ago. Unilever signed up Russian celebrity Vera Brezhneva to endorse its Rexona deodorant after research showed majority of Russian women viewed her as their ideal of a perfect woman.

"Consumer Companies Teach Western Ways to Russians", The St. Petersburg Times, August 03, 2011

Marketing & Advertising  

Walmart Expands Presence In China's Smaller Cities

After growing from 70 stores in 2007 to more than 300 stores in 2011 Walmart said it will focus its China business on smaller cities and online opportunities, both areas where the company sees faster growth opportunities.  Walmart’s plans include opening supermarkets and Sam's Club warehouse markets in the country. China currently accounts for less than 10 percent of Walmart's revenue outside the United States although the market is expected to quickly grow in sophistication and size; sales revenue in China's retail sector is forecast to grow 14.5 percent annually to reach $5 trillion in 2016, according to Bloomberg News.

"Walmart China has big plans in small cities", China Daily, August 25, 2011

Nestlé Looking To Boost Share Of China’s Infant Nutrition Market Through Acquisitions

Bloomberg News reports that Nestlé SA may be looking to significantly increase its share of  China’s infant nutrition market by acquiring U.K. infant formula maker SMA Nutrition. Citing market analysts, Bloomberg says a purchase of SMA would boost the Swiss company to No. 3 from No. 6 in the market, and would result in cost savings of as much as 10 percent of the unit’s sales. Analysts say Nestlé may be preparing a bid for the baby food unit of Pfizer Inc., which last month said it was considering selling or spinning off its nutrition business. “China is the single most attractive baby food market and [Nestlé] has been losing share there,” a Euromonitor analyst said. “It’s a priority for them.”

"Nestlé May Aim to Rebuild in Chinese Baby Food With Pfizer Unit", Bloomberg News, August 09, 2011

Wal-Mart Different with Chinese Peers in Online Expansion

Technology Marketing Corporation, August 12, 2011

Online still a growing market

China Daily, August 09, 2011

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