Pharmaceutical enterprises marching into the daily analysis report

Foreword

once Upon a time? The domestic daily chemical industry is still the world of foreign giants and domestic small and medium-sized capital competition. The foreign giants have obtained the basic monopoly of the industry status with unmatched financial strength and brand heritage, and have been leading the trend of daily consumption. The local Japanese companies have been living in the cracks, aiming at the small living space left by the international giants, using market segmentation and differentiated competition strategies to support them. Although they have achieved certain living space and market share, some enterprises have indeed It has put a lot of pressure on the international giants. But after all, on the whole, domestic Japanese companies are generally in a relatively disadvantaged position. In the final analysis, strength and heritage are the fatal shortcomings of domestic brand development. The strong financial strength and long-standing brand heritage of international giants are not comparable to those of local enterprises in the short term. The localization and development of the basic strategy The competition of international giants has its own inherent defects.

In the past few years, I have heard news that domestic pharmaceutical giants are going to enter the Japanese market. I have also seen that many pharmaceutical companies have begun to develop daily chemical products. Many advertisements have appeared in many media such as TV and newspapers. For a time, the concept of cosmeceuticals began to flourish in the local economy, forming a fresh and new force. Therefore, everyone is expecting that with the strong financial strength of the pharmaceutical giants and the reuse of brand resources, or the competitive situation of the daily chemical industry will change, pharmaceutical companies will be a new force in the daily chemical industry? Will cosmeceuticals become a new cake in the daily market?

Where it is: the pharmaceutical industry, the new force in the daily chemical industry

Under the premise of the country's continuous regulation of the operation of the pharmaceutical industry, many pharmaceutical companies have encountered bottlenecks in their development, and the operating space is getting smaller and smaller. So many pharmaceutical giants have set their sights on the daily market, Shenghuo, Jingxiutang, Wang Laoji, Tongrentang. Kang Enbei, Renhe, etc. have already tried water and daily, and launched some products in an attempt to take a share in the daily chemical market.

The diversified development of enterprises is one of the characteristics of modern enterprises. As a pharmaceutical company entering the daily chemical industry, it can be said that resources are shared and advantages are integrated. China has a tradition of Chinese medicine skin since ancient times. It is also an indisputable fact that the skin must be adjusted externally. Since 4,000 years ago, China's cosmetics have been homologous to medicine and developed together. According to Western theory, medicine and daily chemicals belong to fine chemicals. From the point of view of consumption, both are consumer goods, fast-moving consumer goods, but the functions are different, but usually complement each other. From the perspective of market operation mode, the two are almost interoperable in channel construction, brand promotion and point-of-sale management. There are many examples: Shiseido is made from red syrup, and red syrup is the base of many acne products. In addition, Vichy, Avene and other cosmeceuticals are very successful!

When pharmaceutical companies enter the daily market, they do have unique advantages. This is where they are:

First of all, they have strong financial strength. Most pharmaceutical companies have already completed the original accumulation, and most of them have already been listed. As a listed company, to expand a project, the funds are definitely not a problem, and it cannot be imitated by ordinary Japanese companies.

Secondly, the advantages of using brand resources are enormous. The pharmaceutical giants have well-known brands that are well-known in the industry or familiar to consumers. This brand advantage is difficult to establish without 3-5 years of investment. As a brand extension, it can quickly form joint consumption.

Third, the sales force is strong. The success of many pharmaceutical companies basically has a strong and loyal sales team. They have mature management and operation modes. If they are used to operate daily, it will be a very powerful marketing force.

Fourth, the advertising resources are huge. The advertising of pharmaceutical companies is the highest among all industries. The huge advertising expenses industry has accumulated huge resources of domestic media. If you can use the daily commercialization advertisements, the cost will be relatively low.

Fifth, the channel resources are abundant. The pharmacy channel is the main channel for pharmaceutical companies to sell. As a drug makeup, pharmacies can be one of the main sales channels. Drug companies develop drug makeup and enter the pharmacy channel. Whether it is speed or cost, it will be much easier than other companies. .

Sixth, product development advantages. As a brand with a medical background, it will increase the credibility of product functions, and consumers will be more acceptable. At the same time, in the production and research and development of cosmeceuticals, pharmaceutical companies also have production conditions and technological research and development advantages that are not available in ordinary daily chemical industry. .

Therefore, no matter from which aspect analysis, pharmaceutical companies enter the military daily, there are unique advantages, they may become a new force in the daily market. From another angle of analysis, is the drug makeup route they choose is a new growth point in the daily market?

Where it is: cosmeceuticals, new cakes in the daily market

The cosmeceutical market has broad prospects

International brands are eager for the Chinese cosmeceutical market and are fierce. In 1998, the French cosmeceutical brand Vichy (VICHY) landed in China, bringing the concept of “drug makeup” to China for the first time. Later, Yiquan, Lifanquan and Yara also came to China and joined the competition. Through several years of operation, the brand image of “health skin care products”, “dermatology auxiliary treatment products” and “sensitive skin-specific products” has gradually gained popularity. Consumers have gradually accepted that in many cities, it has become a kind of pilling to buy cosmetics. fashion. British Qingyi, Japan Fu Lifangsi, Germany De Lifu and other brands have entered the market.

Foreign brands represented by "Vichy" have occupied the first-line market. By the end of 2007, Vichy of France's L'Oreal has 1,500 counters in nearly 100 cities in China, and the sales performance of each counter can reach more than 300,000 in the peak season, and can reach 100,000. Although several other brands can't compare with Vichy, they also have a large market share. With an annual sales of 1.5 billion, Vichy has become a benchmark for the Chinese cosmeceutical market.

There are only a handful of domestic cosmeceutical brands, and the products are single and short-lived. The domestic market for cosmeceuticals and skin care products is not very mature. Every once in a while, there will be a brand that has sprung up everywhere. In the early years, 姗Lana ran across the world with a “pox adhesive cream”. The poetry relied on “pox-eliminating” to complete the rapid development of the company, and the mid-term Sophot’s “Papaya Whitening” And "OB minus soap" has created a kingdom of functional skin care products, the recent Jilin Jiuxin "Yu Ting" soap, Fujian "Didou", Guangdong "White Doctor" freckle products, etc., the development of these brands depends on They all adhere to the path of differentiated functional products, and all have the same characteristics. The development is very fast. Although many companies are now declining, their staged glory at least indicates that the future of cosmeceuticals is Very pre-development.

The overall market of cosmeceuticals is showing a booming scene. The sales of cosmeceuticals in the first-line market are booming. International brands are competing to seize the pharmacy channels. Apart from Vichy, other brands have no obvious market advantage.

The second- and third-line market OTC channels and cosmetics franchise stores are currently not the focus of other cosmeceutical brands. If we can seize this opportunity to enter quickly and take the lead, then we will seize the commanding heights of the market. The potential consumer demand for cosmeceuticals is obvious:

1, demand analysis shows that all women have obvious functional requirements for cosmetics.
2, consumer description

3, behavioral insight: gradually lose confidence in the product, urgent need for branded drug cosmetics

There are three kinds of measures and ways for consumers to take acne, spots and wrinkles: go to hospitals, beauty salons, and supermarkets. overall evaluation:

It is very expensive to go to the hospital for treatment.

Going to a beauty salon is easy to be deceived, the cost is high, and the product is highly harmful;

Faster effect, unstable effect, and drug resistance;

Easy to be allergic, obviously printed, not easy to remove;

Adding hormones and chemical ingredients, the skin is extremely susceptible to allergies and damage to the skin;

The skin care products purchased by the mall are not effective;

I hope to purchase skin care products that are safe and have no side effects and are effective in medical ingredients.

The space for cosmeceutical development is huge

From the perspective of the development of cosmetics in the world, in some countries in Europe, the sales of cosmeceuticals account for 1/4 of the total cosmetics sales, Asia, Japan and South Korea are even close to 1/3, and only 5% in China, the overall market capacity huge;

From the perspective of growth rate, the foreign mature cosmeceutical market has an annual growth rate of about 7%. The data of China 2003-2006 shows that the growth rate of basic skin care is about 10%, while the growth rate of functional cosmetics is 20%-30. %, the overall growth rate is strong, indicating that the future development will be very fast.

From the perspective of market demand, domestic consumers have lost confidence in the function of ordinary cosmetics, especially the hormone and antibiotic incidents that have been exposed in the past two years, and the confidence in consumers is a devastating blow. If there is a product that can provide safe and effective functions, it will undoubtedly become the focus of many consumers.

As can be seen from the above data, the development prospects of cosmeceuticals are very attractive, so domestic pharmaceutical companies have joined the ranks, and international brands have continued to hear news, except for brands such as Vichy, La Roche-Posay, and Avene, which entered the market earlier. And other brands to join. It is foreseeable that in the next five years, it will be the rapid development stage of domestic cosmeceutical products. The international makeup giant is still infiltrating at the high end, giving the domestic daily chemical industry a large market space. Who will first Enter, whoever seizes an infinite opportunity, unlimited wealth.
The current situation of the pharmaceutical giant daily market is worrying
According to the above analysis, the author believes that domestic pharmaceutical companies have entered the daily chemical industry. It is strategically very successful. The pharmaceutical and cosmetic market has a very large space. Pharmaceutical companies have entered the market of the drug and cosmetic market and have advantages that ordinary Japanese companies cannot match. So what is the status of the companies that have entered or are entering?

Shenghuo Pharmaceutical: It has entered the market with high-profile 12-flavored cosmeceuticals. The products cover a variety of functions, such as daily chemicals, specialty stores, beauty salons, etc. It is the highest pharmaceutical company in the pharmaceutical market in China. The strange thing is that it is difficult to see its products on the channel.

Tong Ren Tang Pharmaceutical: The Chinese medicine mask and other skin care products based on Chinese medicine ingredients are developed under the brand of medical saint, but only in some pharmacies.

Kang Enbei Pharmaceutical: Developed a personal care product mainly for pregnant women and babies under the brand of skin care. It is said to be a pharmacy channel and a monopoly channel, which is rarely seen on the market.

Wang Laoji Pharmaceutical: Developed acne products specifically for school students. It is said that Guangzhou sells well, but its influence in the market is still small.

Jingxiutang Pharmaceutical: The products launched include nearly 70 kinds of products such as mask, cream, essential oil and medicine package, which are positioned in the mid-end cosmetics market. Last year, it launched a heat-clearing toothpaste, which has been listed this year.

Yuhong Pharmaceutical: Following the successful launch of Kangwang shampoo, it is planning skincare cosmeceuticals, or will be listed at the end of the year.

Renhe Pharmaceutical: The launch of Shining Teeth, which is currently being broadcasted rapidly, is attracting investment across the country.

The above is the status quo of some domestic pharmaceutical companies that have entered the daily chemical industry. Although they have entered the daily chemical industry in a high-profile manner at the beginning, they are inevitably in an embarrassing situation. That is, they have been seen for two or three years. Some of their products are only biased, and sales and market influence are far from meeting our expectations. So what is the reason for this embarrassing situation?
Worry: The Lost Positioning <br> The key to entering a new industry is positioning. The company has successfully positioned itself and its business has been successful. The concept of positioning here is that the business owner should locate the enterprise according to the effective resources of the enterprise, including brands, consumers, channels, products, etc., that is, the enterprise must effectively extend or integrate the original resources. Finding the most suitable company and brand positioning, the success of the company is more secure. In fact, our company sometimes has some lost.

For example, Renhe Pharmaceutical developed the dental detergent, which is personally considered to be the loss of positioning. why? Because Renhe Pharmaceutical is the most successful brand of “Fuyanjie”, its sales volume is nearly 2 billion yuan a year, and there are a large number of loyal consumer groups in China. If Renhe originally developed a daily product around this group to satisfy their consumption, the market status will definitely be better than now. Tequila does not make good use of this resource, it is the loss of positioning.

Another example: Yunnan Baiyao toothpaste, Yunnan Baiyao has always been the first choice for the national blood stasis and anti-inflammatory. It is made into toothpaste, and the function of anti-inflammatory and hemostasis is extended. Consumers accept it and let it go, so the market sales and popularity are also improved. Last year's dark horse, this is the success of positioning.

Worry: the misplacement of market operations <br> In addition to the loss of positioning, they also have fatal flaws in the market operation, which also leads to many existing enterprise dilemmas:

The first is the rigid business ideas: basically all the bosses of pharmaceutical companies are very successful. They also find a set of successful rules on the road to success. Therefore, they are super-confident and use their own medicines in the operation of daily chemicals. Thoughts, stubborn opinions. I don’t know if the interlacing is like a mountain. The previous success does not mean the success of the present.

Business objectives are free: Many companies enter the daily chemical industry with a mentality of trying. There is no independent operation department, no professional traders and marketing teams. The personnel structure, production system, and distribution system are extremely unstable. At the same time, the development direction is free. There is no established goal and planning. There is no certain belief. How easy is it to talk about success?

The management team simply uses: After entering the daily chemical industry, many pharmaceutical companies basically use the original drug sales team to make daily sales. They are not familiar with the rules of the daily chemical industry, are not familiar with the channels and operation modes of the daily chemical industry, and even I don't know how to find agents and negotiate with agents. Imagine that there are big differences between the daily channels and the different channels of circulation in the same industry, let alone different industries?

The choice of channels is not clear: From the current situation, many companies have a wide choice of channels, and some channels, some even regardless of channels, whoever is willing to act as agents can act. Some skin care products are only sold in pharmacies, but in fact, the habits of domestic consumers to pharmacies to consume skin care products have not yet formed, and pharmacies only account for less than 10% of cosmetics. In fact, in the long run, I think we should choose sales channels based on product characteristics. For example, dental care products are definitely larger sales of large-scale supermarkets. If it is a functional skin care product, it is a combination of cosmetics stores and pharmacies.

Products blindly follow: When they enter, they choose a daily chemical company to imitate, positioning is more advertising than him, the price is not cheap, and so on, follow the strategy, I don’t know the "character" of each enterprise is different, 岂It can be learned. The product packaging does not conform to the modern trend, and all of them are made into medicine. I don't know that skin care products consumers like "beauty", and the packaging of medicines is resisted. The price of the product is also high, and there is no distance from the international brand to form a differentiated competitive strategy.

There is no system brand promotion: Many companies can make full use of media resources to advertise when brand promotion, but lack systematic brand promotion ideas, and do not pay attention to channel construction and terminal image promotion. Without a clear brand image and unique brand culture support, the products are only known and have no reputation, and it is difficult to form a large-scale market consumption.

The movement of pharmaceutical companies into the daily chemical market continues, and the market competition is far from over! It is indeed very promising for pharmaceutical companies to enter the daily market. The cosmeceutical market is a very promising target market! We have drawn some of the above views from the appearance of the market, and some are biased. In fact, the corporate strategy and development goals are only the business owners themselves. Is it good for pharmaceutical companies to enter the daily economy? Is it worry? We will wait and see!

Welcome to discuss your views and opinions with the author. The author is the marketing director of Guangzhou Meihao Cosmetics Co., Ltd., contact phone number, email:

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