China Washing Investigation Report - Jiangxi

Jiangxi Province, referred to as èµ£. The province has set up 11 districts and cities, including Nanchang, Jiujiang, Jingdezhen, Pingxiang, Xinyu, Yingtan, Zhangzhou, Yichun, Shangrao, Ji'an and Fuzhou , and 99 counties (cities, districts). Nanchang City is the capital of Jiangxi Province.

Jiangxi Province is located in the south bank of the middle and lower reaches of the Yangtze River in the southeast of China. It is adjacent to Zhejiang and Fujian in the east, Guangdong in the south, Hunan in the west, and the Yangtze River in Hubei and Anhui in the north. Jiangxi is the hinterland of the Yangtze River Delta, the Pearl River Delta and the southern Anhui triangle, and the linear distances from Shanghai, Guangzhou, Xiamen, Nanjing, Wuhan, Changsha, Hefei and other major towns and ports are mostly within 600 to 700 kilometers. The ancient name of Jiangxi Province is “Wutou Chuwei, Yuehu Yuting”, which is the “shape of victory”.

Jiangxi Province is near the Tropic of Cancer. The province has a warm climate and abundant rainfall. The average annual precipitation is 1341 mm to 1940 mm. The frost-free period is long and it is a subtropical humid climate. The existing population of Jiangxi Province is 41.398 million.

 

The twin cities in the Jiangxi market

 

Specific to the washing and cosmetics market, Jiangxi Province has two major cities, Nanchang and Zhangzhou, and several small and medium-sized cities such as Yichun, Yingtan, Ji'an and Fuzhou, supplemented by hundreds of county and township markets.

Due to historical reasons, the economic and social development of Ganzhou City has been in parallel with the provincial capital Nanchang, as well as in the cosmetics market. Both Zhangzhou and Nanchang are major consumer cities for high-end cosmetics. Due to regional culture and other factors, the cosmetics market in Zhangzhou is slightly more trend-oriented, more avant-garde or more fashionable. Therefore, the sales of cosmetics from foreign high-end brands such as Maybelline, Shiseido, and Kazilan are very good in Zhangzhou. In Nanchang, brands such as Yuxi, Zheng Mingming, Kazilan, and Maybelline also have counters in some large shopping malls, and the sales are in good condition, mainly facing a group of specific high-end consumers.

In Zhangzhou, Guoguang Supermarket, Zhangzhou Department Store, Chenguang Supermarket and other large-scale shopping malls have always been the places where major brands at home and abroad are keen to enter, and it is also the main place for residents of Zhangzhou to purchase daily cosmetics.

The reporter saw in the high-end shopping malls such as Lihua Shopping Plaza and Nanchang Department Store in Nanchang. In terms of daily necessities, Shulei, Ao Xue, Jiao Xue, Bawang, Liushen, Bain Runfa, and Weini Shi have a lot of well-known brands. Promotion, or place where the shelves are more obvious. On the spot, black Xia Lilian, white Lux, green floating shadow, red and yellow Shu Lei, in the supermarket shelves, three smile toothbrushes, Colgate toothpaste and other products are also the main sales products of these large commercial super. On the Nanchang department store, 800ML 's Shu Lei is promoting at 42.20 . In Lihua Shopping Plaza, 1200 grams and 1800 grams of carved washing powder are sold at 7.50 yuan and 10.20 yuan respectively . Li Bai, Shu Lei and other brands of products also occupy an important position in the supermarket.

These phenomena all indicate that some well-known brands at home and abroad occupy a dominant position in the markets of the two major cities of Nanchang, Ganzhou.

 

Wholesale market-style micro-reflection of the development of the industry

    Hongdu Market is the largest wholesale market in Jiangxi Province and a transit point for all kinds of products to enter the Jiangxi market. However, the wholesale of washing cosmetics in the Hongdu market is only a small part, and the Hongdu market is more of a material transfer station that meets the needs of Jiangxi people. In the Wufa market next to the Hongdu market, there is a street that is specialized in wholesale and washing cosmetics.

The reporter went deep into the Hongdu market and Wufa market and found that the washing and cosmetics wholesale industry here is not the same as many places in the country. Some phenomena are worthy of attention:

First of all, many wholesale stores do the washing and cosmetics business just to take care of it. In many wholesale areas selling food, beverages, clothing and daily necessities, you can see some wholesale stores selling toothpaste, washing powder, shower gel and other daily necessities, scattered around in twos and threes. These wholesale stores, often canned, milk powder and other products occupy half of the cabinet, the other half of the cabinet is the toothpaste soap detergent. The reporter asked some shop owners about the business situation, and quite a few shop owners thought that the washing and cosmetics wholesale business here in Hongdu Market is getting harder and harder. The main reason is that the manufacturers send the products directly to the local markets, and the wholesale market has no market. . It is also used to make products such as daily miscellaneous, tobacco and alcohol, food, stationery, etc., in order to sell more products and make more money.

Secondly, the location is the key to the dealer's business. The reporter saw that some stores are in the street, and the scale may be relatively large, and the signboards are also relatively obvious, but the business may not be good. And some shops in good locations like the street, even if there is no signboard, business is more lively.

In addition, the business of washing cosmetics is wholesale. Wufa Market here is a street of washing cosmetics. It can be said that almost no customers are seen. However, many shops are dragging away piles of products, which was originally shipped to the surrounding markets. Since the facade of the wholesale market has no actual sales function, more of it has become a place for the turnover of goods.

Now, as the market gradually deepens into the terminal, dealers here in the Hongdu market are increasingly developing their own terminals or transforming to sales outlets. Perhaps in the near future, the Hongdu market has not found several dealers specializing in wholesale.

 

The overall market is relatively stable, while the product is biased towards the middle and low range

The journal conducted a survey of hundreds of dealers in Jiangxi, and had a general understanding of the local distribution market in Jiangxi and the consumer market.

According to the survey, 52.3 % of the dealers were basically flat during this year's operation, and another 38 % of the dealers' performance increased. Only less than 10 % of the dealers said that the operating efficiency was poor last year. This shows that the Jiangxi market still has a relatively large development prospects. Of course, 69.6 % of dealers said that the competition was too big and affected the improvement of performance. 21.7 said that the business method was not done well, and only 8.8 said that the product reason affected the performance. In terms of future development, 61.9 % of dealers said that they will only increase their investment slightly and increase their products slightly. 23.8% of the dealers is to maintain the previous scale, while only 14.2 dealers said they would significantly increase the Products. This also shows that Jiangxi local dealers are more cautious about the market.

In terms of market competition, 55 percent of dealers said that Jiangxi's distribution market is relatively stable, mainly because outsiders do not dare to come in to make washing cosmetics, but they have already done it, and they don't want to give up easily. According to the survey, 100 % of dealers feel that the market is highly competitive, and half of the dealers said that the product market share is also very variable. In the vicious competition, 50 % of dealers said that a merchant suddenly cut the price of similar products is the most common means, and that the merchants snatched customers with interest rebates, accounting for 35 %. Of course, 60 % of dealers said that manufacturers to increase publicity and promotion efforts, so that products can be prosperous; and 22 % of dealers said that holidays and Golden Week is the best time for product sales. In addition, the survey also shows that Jiangxi's dealers are relatively conservative, 90 % are manufacturers' products, and only 10 % of dealers will consider branding or cooperating with manufacturers.

In terms of consumers' selection of products, 35 % of consumers are more likely to recognize promotional offers, while 30 % prefer advertising. Also, 16 % of people change their products because of the products they start using and the right ones. As for advertising methods, 62.5 people mainly accept TV commercials, and 12.5 % of people will pay attention to cosmetic information from outdoor advertising. From advertising to newspapers and magazines, only about 8 % of cosmetics ads are concerned .

Specific to the product, shower gel between 10 and 20 yuan is the best-selling, accounting for nearly 72 % of the market share. Toothpaste between 3 and 6 yuan also accounts for about 60 % of the market, and toothpaste below 3 yuan accounts for nearly 30 % of the market. Aspects of skin care products, the price of 20 yuan less, accounting for 31.8%; 20--40 yuan price, accounting for 40.9%; and 40 - 60 yuan price accounted for 22.7%, and the remaining 4.6% of the product is higher than the price of more than $ 60 . This shows that Jiangxi's skin care products are still selling well at low prices.

In terms of water, shampoo, 10--18 yuan of products accounted for 42.3% of the market, while about 10 yuan shampoo also has a 27% share. Products with 19 - 30 yuan have a 30.7 % share. And if the price of shampoo exceeds 30 yuan, there is almost no market.

These phenomena all indicate that Jiangxi's washing and cosmetics market is mainly based on low-end products, and only a small number of high-end products can be sold.

Jiangxi's overall market: market changes are difficult to grasp Business strategy has its own tricks

    In order to understand the overall situation of the washing and cosmetics market in Jiangxi, this magazine interviewed a number of distributors in different regions of Jiangxi, and invited dealers from all over the world to talk about the markets in different places, or more convincing. I hope that the information about the dealers, as well as the experience of the operation, and even their expectations and planning for the market, can have a better reference for the production enterprises.

Jiujiang market is not good, cultivate the market slowly
Jiangxi Milani agent Huang Shuichun:

The market environment in Jiujiang is not very good, and people are not very popular with cosmetics. The biggest problem is that the terminal supermarket costs are too high, what entry fees, display fees, promotion of consumption, etc., regardless of whether the merchants make money, they just want to collect money is to make money. Therefore, it is difficult to do the terminal market.

Now the competition in Jiujiang market is fierce. Some merchants can't keep going and they all quit. Some stores sell for 3,000 yuan a month, and many stores sell for more than 1,000 yuan a month. How to maintain this. And now the young people are working outside the home, leaving the elderly and children, as well as laid-off people, lacking enough consumer groups, so the market is very poor. Of course, the better now is that there are more foreign investments. There may be many factories in the region, bringing a large number of people and driving a large number of markets. And now lay the foundation, in order to have a better harvest.

Of course, as a merchant, since it takes the products of the manufacturers to do it, it is very important to cultivate the market. In the process of cultivating, the manufacturers must provide some practical support. It may not be practical to place TV advertisements in the local, but it must be done. Promotion, purchase or discount support, first let people know the product, through good products, to attract repeat customers, so that the consumer group will slowly cultivate.

Acting for a new brand is risky, and now consumers are recognizing brands. However, due to consumption habits and consumption levels, the second and third tier brands also have great potential.

Change management to find more opportunities
Fengcheng Development Firm Huang Zhijian:

Jiangxi Fengcheng Development Firm has been doing large-scale products in the past, mainly engaged in the sales of Tianqi, Liangbianzhen, Aoqili and Jinlu. In 2003 , I started to make daily chemical products. The biggest feeling is: to make a big brand of products, the dealer is actually just a porter, helping the manufacturers to move goods. The goods are going a lot, but they don’t make money.

Of course, in the local market, dealers are still relatively stable, and everyone can earn a little bit, and this is the situation. The big problem in the market is also the high cost from the terminal supermarkets. It can be said that it is not easy to maintain the market.

The consumers in Fengcheng are now also recognizing the brand. Products without brands are almost sold, unless they have considerable advantages in terms of promotion and price. Because it is not good to do daily, so to Nanchang to participate in the China Merchants through train, is to come to see professional cosmetics, look at what products are suitable, do some new products, I believe that in the Fengcheng market is still feasible.

Nanchang market is very different, product positioning is the key
Tianxian cosmetics firm Yang Yusheng

Tianxian Cosmetics Firm is a relatively large detergent cosmetics distributor in Nanchang. The main brands are Bi-Finnish cosmetics series, Lilan, Aino, Cai Shi skin care, Gemei and other brands of cosmetics. The wholesale of cosmetics has a history of nearly ten years. It used to be wholesale, but now that wholesale can no longer adapt to the market, it has gradually become a terminal. Of course, opening a market by yourself does not make money. It is mainly for some customers to do product circulation and do a good job.

As a dealer, competition is inevitable. The biggest problem is the dumping of goods, but it is still serious. However, Tianxian Daily has always been an agent, and the manufacturers' policies are relatively perfect, so there is generally no dumping phenomenon.

Nowadays, the development trend of the market will be professional. Whether it is cosmetics or detergents, it is a specialization to have a way out. As for cosmetics, the semi-enclosed market in the front and backyards has become popular in Jiangxi. Now the high-end market has also shown certain market competitiveness, so many high-end products will form new competition. As for the middle and low-end market, it will be getting better and better, so I believe that the Jiangxi market is still promising.

Ji'an has high market cost and terminal cost is a problem
Ji'an Huamei Cosmetics Marketing Center   Wang Juhong

Huamei Cosmetics Marketing Center is the general agent of Yiyili brand in Ji'an area. At the same time, the products of Pai Yi, Hao Ya, Xiao Raccoon Children, and Rejuvenation Spots series. The Huamei Cosmetics Marketing Center has been slowly starting from a small wholesale store for more than a decade. I started to do terminals in 2002 because I feel that the trend of distribution is the terminal. After doing it for a few years, it is gradually growing. Specialized in the delivery of goods to the door, to serve customers. Among the several products of the agent, Yi Yili is the earliest brand in the Ji'an area, and now the local has become a strong brand. The small raccoon's product quality is good, the investment is more, the high-end route is taken, so there are a lot of repeat customers, which is quite promising. In addition, some of the agents of the brand also have their own markets, so the operation is good.

Wang Juhong said that the price of cosmetics has become more and more transparent, and everyone knows the profit margin, and the cost of doing the terminal market is beyond the standard. There is a kind of terminal: "Do it is to die, not to wait for death". Therefore, Huamei will change its management and do the circulation while doing the terminal. The terminal mainly serves as the image, and the terminal of the county-level market and the township market, as well as the hypermarket; while the circulation has a little more profit. The combination of the two makes Huamei Daily find a way to survive in the difficult competitive environment of Ji'an.

To be the end market, the most important thing is to stabilize the customer system and stabilize the distributors below. Huamei will be a good cooperative relationship with distributors in the future, not only responsible for delivery, but also provide support policies, as well as personnel to follow the market, provide safety stock, give them ideas, train personnel, follow back visits, etc. In the Ji'an area, it has also made a considerable reputation, and it has also received the support of many customers before it can develop today.

As for the Ji’an market, there are not many high-end cosmetics in general, mainly in the middle and low-end. Mainly because of the laid-off personnel, the consumer is not strong, so the market level is very clear: 10% of consumers prefer to buy brands of products; and 60--70% of consumers buy special special products; and 10% of consumption Those who enter the beauty salon; the rest of the people are more obedient to the shopping guide, buy some promotional products. Shower gel and shampoo are best sold at 8 yuan and 9 yuan. From this we can see the local market situation.

The competition in the Ji'an market is also very big. When the terminal is doing the terminal, it will squeeze out a few brands in two or three months, and some will be eliminated if the business is not good. The biggest problem in the local area is the high cost of the terminal market. Nowadays, doing supermarkets is simply an abnormal cooperative relationship. Too many unreasonable demands are simply taxation. Doing a terminal earns one or two hundred yuan a month, but when it loses, it reaches several thousand yuan, and forms a vicious circle. The dealers complained of bitterness. However, the future is still expected, mainly because Wal-Mart and other hypermarkets are preparing to enter Ji'an. In this case, the cost of other small terminals will definitely decrease, and the competition between terminals will be greater, and the business will be given a little more. Expansion capacity.

Jiangxi market tends to be saturated, Shangchao and terminal stores are the future trend
Nanchang Wanlian Cosmetics Firm   Ke Bin

Nanchang Wanlian Cosmetics Co., Ltd. has been engaged in the distribution of cosmetics industry for four years, mainly dealing with brands such as Bai Dafu, Hua Mulan, Shanghai Yilan, SHE , and French BOSS . The main market is facing specialty stores, as well as terminals such as boutiques and supermarkets. Specialty stores account for about 60 % of the market, and there are more than 60 Shangchao networks in Nanchang .

The future development direction of Wanlian Commercial Bank will continue to be a specialty store, and will develop to the A store B store at the county level or surrounding cities , and make great efforts to develop vigorously.

The largest market in Jiangxi is the Hongdu market, where the most important distributors of washing and cosmetics in Jiangxi are concentrated, and the competition is also very large. In doing so well-known brands here, the profits are not high, mainly because of the potential of the general brand price. And now many brands have opened their offices to Jiangxi, which has brought a greater blow to the wholesale of Hongdu market. So now the dealers in the Hongdu market are starting to run down.

However, the county-level market in Jiangxi is not good, mainly because the county-level population is small, and there are many people going out and the consumer groups are narrow. Therefore, many dealers have their own plans to find their own way of survival in many ways. And now many dealers like to make stores, which has formed a certain trend.

In Jiangxi, there is still a high-end cosmetics market, and a little bit of well-known cosmetics can sell well here.

The dealer business here is not good. Jiangxi is bordered by six provinces. Many customers in remote cities may go to the neighboring provinces to get goods. Therefore, the consumer groups are more dispersed. And now the competition is also very big, the phenomenon of rushing goods, valence and so on is still inevitable. Now the store is a bit saturated, and a large number of brands are waiting to come up, so many agents can't do it.

In order to face fierce competition, Wanlian Commercial Bank has continuously introduced strategies to adapt to the market. In addition to considering the profits that customers should have, it also often launches good promotional programs and buys gifts. Next, we will also put the service in place. Now it is planned for one to two months. We must go to the county-level store to communicate once, understand the market, and ensure the return. Now I am going to make a one-class brand to support the facade; in addition, I will also make a few second- and third-line brands, especially some creative new brands. By cultivating the following network, we should be able to win a little more profit.

The characteristics of the Jiangxi market are complex, scattered, and large-scale changes. Only by doing it with heart can we develop.