The old rivals P & G and Unilever are setting off a global acquisition battle, and the competitive landscape of the entire daily chemical industry may be quickly rewritten.
Recently, the official website of Unilever headquarters issued a statement saying that it agreed to spend US $ 3.7 billion to acquire hairdressing manufacturer Alberto Culver. This is Unilever ’s largest acquisition in ten years and will become the global leader in hair care products.
Two days later, Procter & Gamble CEO Bob Mc Donald expressed his intention to acquire Beiersdorf in Germany. Baiersdorf has a well-known skin care brand Nivea, and it also acquired the hair care product manufacturer Sibao Group in China.
Obviously, these two acquisitions will further strengthen the monopoly of P & G and Unilever in the daily chemical industry. While Procter & Gamble bought Byersdorf, while fighting Unilever on the left, the right was also fighting L'Oreal to expand the market share of the beauty industry. Global takeover battle
The new CEO of Unilever, born in Procter & Gamble, Polman changed the company's previous conservative style, followed Procter & Gamble's strategy, and used mergers and acquisitions as an important means of expansion in overseas markets.
Zeng Xiwen, vice president of Unilever Greater China, said that buying Yatao is Unilever's global acquisition behavior, and mergers and acquisitions will become one of the company's most important means of future expansion. Before Unilever had been silent for 9 years, Polman did not propose to purchase the nursing business of the American Sally Group until he took office in 2009.
"The acquisition of Yatao demonstrates Unilever's determination to expand in the field of shampoo and hair care products, and this is also an important development direction for the company in the future. If the acquisition is reached, Unilever is expected to become the global leader in hair care products and shampoo market. The second and third place in the styling product market. This is very important for the company to control the market segment. "Zeng Xiwen said.
At present, the high-end hair care brands such as Yatao's "VO5" have been sold in professional channels in China.
"If these two acquisitions are reached, it will further intensify the monopoly of Procter & Gamble and Unilever in the field of shampoo and hair care products, which will have a great impact on local Chinese companies." Huang Zhidong, deputy general manager of Guangdong Piaoying, said that P & G washing The share of hair products in the Chinese market is about 55%, and Unilever is between 11% and 13%. However, compared with P & G's market share of up to 60% in 2006, it has declined slightly in recent years, and the newly launched Qingyang shampoo brand by Unilever has seized 5% to 6% of the market share, which has also caused the two companies The war has clearly escalated.
Procter & Gamble or Curve acquires Sibao
Through the acquisition of Baiersdorf, Procter & Gamble took the curve to win its rival Sibao Group in the Chinese market.
Sibao Group is the only Chinese company that has had direct and comprehensive competition with P & G in the shampoo field. It includes three shampoo brands such as Shu Lei, Fengying and Shun Shuang, as well as the beauty brand Meitao. In 2007, Beiersdorf acquired the Sibao Group. It was believed by the industry that it would compete with Procter & Gamble and Unilever.
Gao Jianfeng, Managing Director of Bogai Consulting, believes that the curve acquisition of Sibao Group is of strategic significance to P & G. Procter & Gamble has eliminated a domestic competitor who cannot be underestimated through acquisitions, and can free up more energy to deal with international brands such as Unilever.
More importantly, the products of the Sibao Group may become a weapon for P & G to go to the countryside. "P & G has always wanted to cover the distribution network in China's township market, but its low-priced products have been questioned by the market, including Rejoice shampoo with a price of 9.9 yuan, which failed to open the rural market. And Sibao's products are in the third and fourth lines It ’s done very well, and there were advertisements for Sibao at the entrance of the township grocery store. â€Gao Jianfeng said.
Huang Zhidong, deputy general manager of Piaoying, also a local brand, said that after the Sibao Group and Procter & Gamble defeated in the modern commercial super channel, they established a circulation department to specialize in the third- and fourth-tier markets. Compared with P & G products, there are more fakes and thin profits, and dealers and small shop owners are more willing to make Sibao products.
The future development of rural markets will be P & G China's strategic focus.
"Sibao's products may also be used by Procter & Gamble as a strategic brand to further suppress local daily chemical brands, thereby stabilizing Procter & Gamble's monopoly in the Chinese market." Yang Huabin, chief consultant of Yingzheng Enterprise Management Consulting, said worriedly.
Offense from L'Oreal
However, this is a one-for-one deal, and P & G's other opponent is L'Oreal.
Procter & Gamble's new CEO Mai Ruibo continued the company's strategy of continuously focusing on the more profitable beauty care products. At present in the Chinese market, after the P & G SK-II brand returns to the market, it still focuses on the high-end. The Olay brand is guarding the mid-end market, but the mass market is still blank.
"Actually, P & G realized early on that it would penetrate the low-end market, but missed opportunities again and again." An industry source said that the two brands of small nurses and Yuxi were both acquisition targets in the P & G prime minister, but the results were both L'Oreal snatched it. Now L'Oreal has completed the product line layout in China: high-end brands Lancome, Helena, mid-end brands Vichy, La Roche-Posay, and low-end brands Paris L'Oreal, Garnier, Yuxi, etc. This puts P & G in an extremely passive position in the competition.
The Nivea brand under Baiersdorf is considered to be P & G once again found the opportunity to expand the low-end skin care brand.
"Now P & G's magnolia oil brand is constantly upgrading its premium grades by raising prices and launching new products. It has gradually transitioned from a supermarket channel to a department store channel, and Nivea is mainly based on supermarket channels in China, so it acquired Nivea. In terms of product positioning and channels, it is a good supplement to P & G. "Daily chemical expert Feng Jianjun believes.
P & G intends to challenge L'Oréal by acquiring Baiersdorf and owning the Nivea brand. And Huang Zhidong said that L'Oreal's channels in the Chinese market have been gradually sinking. In 2010, L'Oreal launched a franchise policy, including four low-end brands such as L'Oreal Paris, Garnier, Yuxi, and small nurses can join, which will allow these brands to quickly penetrate into County-level market. This also stimulates P & G to accelerate the expansion of beauty care products.
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