Johnson & Johnson Looks At Acquiring Baby-Care Vendor In China

Johnson & Johnson is reportedly considering buying baby-care products company Shanghai Elsker, which could help expand its presence in China’s fast growing baby-care market. Considering the rapid rate of expansion of China’s baby-care market, it makes a lot of sense for Johnson & Johnson to acquire Shanghai Elsker. Founded in 2006, Shanghai Elsker manufactures baby-care products and imports popular brands from Denmark and sells them in China.

"Johnson & Johnson Mulls Acquisition of Baby Product Manufacturer in China", Trefis, August 09, 2012

Foreign Consumer Goods Companies Face Stiffer Competition From Local Counterparts In China

Foreign consumer goods companies are faced with growing competition from local manufacturers in China, where the market for beauty and personal care products is forecast to grow 12 percent to 203 billion yuan ($32 billion) in 2012, and home care products to rise 11 percent to 78 billion yuan ($12.2 billion), according to Euromonitor. Local brands are closing the so-called quality gap with products manufactured by foreign companies. For example, in 2011, Procter & Gamble’s share in the local toothpaste market declined from 20.8 percent to 19.7 percent, while a Chinese herbal toothpaste’s share of the market rose to 8.8 percent from 1.1 percent five years ago. Unilever’s Zhonghua brand’s market share fell from 12.0 percent to 9.9 percent. Hengan International Group Co. grabbed a 10.6 percent share of the market for tissues and hygiene products, taking the lead from Procter & Gamble, which accounted for 10.5 percent of the market.

"In China, Some Imports Get a Local Run for the Money", Wall Street Journal, August 05, 2012

Tesco Plans To Close Four Supermarkets, Realigns Operations In China

Tesco plans to shut down four supermarkets in China as part of its strategic adjustment in the country. Industry analysts described the closure as a response to the slowdown in China’s retail market and as a sign that foreign retailers’ business model is not suited to the country’s less developed urban centers. In 2011, retailers’ labor costs increased 26 percent and rents rose 10 percent, according to business news site jrj.com, citing an industry report issued jointly by China Chain Store & Franchise Association and Deloitte & Touche.

"Tesco to shut down four stores in smaller cities", Global Times, August 24, 2012

Reckitt Benckiser Focuses More On Emerging BRIC Markets

Reckitt Benckiser CEO Rakesh Kapoor said his company plans to expand more aggressively in the emerging markets of Brazil, Russian, India, and China to compensate for the slow growth in European and North American markets. Reckitt Benckiser, which reported its first-half revenue rose 2 percent in 2012, made India its regional headquarters for Southeast Asia after acquiring India-based Paras Pharmaceuticals.

"Reckitt Benckiser to move quicker in markets like India", Economic Times, August 04, 2012

81 Percent Of Urban Consumers In China Prefer Natural Hair-Care Products

Eighty-one percent of urban Chinese consumers said they prefer to purchase all-natural hair-care products, according to Mintel. Results of the survey also show that 10 percent of respondents consider the inclusion of natural ingredients as the most important factor to consider when buying hair-care products. In 2011, almost 64 percent of hair-care products in China claimed to be natural, compared with the global market where 50 percent of products came with similar claims. Among middle-class consumers, 87 percent said they prefer premium products and services over their standard versions; however, 61 percent said they believe more expensive products do not automatically mean better performance than the lower-priced products.

"81% of urban Chinese hair care consumers prefer to purchase all-natural products, reports Mintel", Mintel, August 02, 2012

Foreign Fast Food Outlets Need To Work Harder To Interest Urban Chinese In Breakfast

Market research from Mintel finds an untapped fast food breakfast market in China. Foreign fast food outlets need to work on such key factors as flavor and affordability to boost Chinese interest in fast food breakfasts. Currently, only 21 percent of Chinese city dwellers eat breakfast in fast food restaurants, though 75 percent eat lunch there. Foreign fast food outlets continue to grow – from 36,000 in 2006 to more than 50,000 now – but to break the breakfast barrier they may need to add more local items to the menu.

"Breakfast key to growth of foreign fast food market in China, reports Mintel", Press release, Mintel, August 17, 2012

Unilever Seeks To Triple Online Sales In China

Unilever vice president for digital marketing and ecommerce for North Asia, Dorcas Lau, said she aims to more than triple her company’s online sales in China in 2012. Unilever is aware of the size and growth potential of China’s online market, with 22 percent of white-collar female Internet users buying products online. More than 500 million Internet users in China mean the country’s ecommerce market will become the largest in the world by 2013. Unilever has expanded its digital media spending 11-fold in China in the past four years, Lau said.

"Dorcas Lau Looks to Triple Unilever China's E-Commerce Sales", Advertising Age, July 23, 2012