Google Answers Logo
View Question
 
Q: business growth in China ( No Answer,   4 Comments )
Question  
Subject: business growth in China
Category: Business and Money > Advertising and Marketing
Asked by: seekinfoalways-ga
List Price: $20.00
Posted: 15 Jan 2006 01:07 PST
Expires: 14 Feb 2006 01:07 PST
Question ID: 433597
what are the sales growth rates of major US fast moving consumer
products companies in China in the recent 5 years?
Answer  
There is no answer at this time.

Comments  
Subject: Re: business growth in China
From: antontodorov-ga on 20 Jan 2006 09:07 PST
 
Hi
hope this helps :)

According to ACNielsen's China Market Information Digest from 2005,
the 30 major categories tracked on a national base in China, recorded
an average 7 per cent growth in 2004
The report also said that 20 out of the 30 major categories
experienced growth, and 10 out of the 20 categories achieved a robust
double-digit expansion
Yoghurt and yoghurt drinks topped the fastest growing list with a 38
per cent value growth, followed by hair conditioners (33 percent) and
infant milk formulae (23 percent).
Carbonated soft drink products continued to dominate the food and
beverage category with a sales value of 14.5 billion yuan (US$1.79
billion), followed by instant noodles, yoghurt and yoghurt drinks and
biscuits
In non-food categories, shampoo, skin moisturizers, laundry
detergents, toothpaste and sanitary protection products are the top
five categories with the largest share of sales value.

The development of modern trade has been a strong growth driver for
most FMCG categories, with a 30 per cent increase in modern trade
outlets and 18 per cent growth in FMCG sales value recorded by
ACNielsen last year.

Among the 30 categories identified by ACNielsen, the increasing
importance of modern trade is best demonstrated by the heavy
contribution of hyper/supermarkets - as 21 out of 30 the categories
are sold mainly through these outlets.

This trend is especially apparent in categories like baby cereals,
tonic drinks, and infant milk formulae, nappies and facial cleansers,
where sales of hyper/supermarket contributed over 80 per cent of
category turnover.



We could suggest that the average market growth for the whole FMCG
sector in China is also valid for US companies.  I did not find any
aggregated statiscital or research data to prove me right (or wrong),
so I decided to find out more about the industry leaders in the
sector. So here is, what I managed to find additionally:

Procter & Gamble (P&G) is widely regarded as one of the most
successful foreign companies in China.  (source - China Business
Weekly)
Its hair care and cosmetics products, among others, are leaders in
these respective spaces. According to the Economist, P&G's China
revenue exceeded $1.8 billion at the end of 2003 and profit has been
increasing at a rate of 140 per cent per year.  Today, China is the
sixth largest market for P&G in revenue terms and it is forecasted to
become the second largest after the US in a few years. When P&G
entered China over a decade ago, Wella, another MNC hair caremarketer,
also set up in the country. Wella was never able to make its business
model work in China and eventually sold its business to P&G.

So, an excerpt from P&Gs Annual Report gives the following confirmation:
	

In China, P&G serves consumers in 2,000 cities and more than 11,000
towns and villages.
Crest toothpaste share in China increased > 8% points to over 25%.
Oral Care delivered modest volume growth, despite aggressive
competitive activity and contraction of the tooth-whitening market,
based on strong performance in China and Russia on the Crest and
Blenda- Med brands. In the U.S.,


Unit volume in 2005 for the whole company increased 8%. Organic
volume, which excludes the impacts of acquisitions and divestitures,
also increased 8%.
The increase in volume versus the prior year was driven by: ... ...
... Continued strength in developing markets, particularly Greater
China and Central and Eastern Europe/Middle East/Africa.
Net sales (overall) reached a record level of $56.74 billion, an
increase of 10% versus the prior year.

If you need more info - pls specify companies or sectors... 
Otherwise, I will be happy to receive some feedback on this answer.
Post it here or send a mail to "anton "dot" other part of username
ending "ov" (at) gmail :) .com

bests
Subject: Re: business growth in China
From: seekinfoalways-ga on 20 Jan 2006 23:42 PST
 
thanks
this is a good starting point
I am interestd in foreign multi nationals
so the P&G example is a good one
will this be possible to include companies like Unilever, Nestle,
Mars, Seagram, Danone, the beer companies like A-B, milk powder
companies from new zealand, consumer electronics like Sony, Philips
regards
Subject: Re: business growth in China
From: antontodorov-ga on 21 Jan 2006 08:38 PST
 
Hi again
as you have probably noticed already , I am not a Researcher (not YET that is :) )
***
The info is actually easy to find but time consuming and labour-intensive.
This is the first and last time that I will ever post a comment with
such valuable info. I guess you should consider yourself lucky :)
And also note - some of the companies you are interested in are not US
as initially defined in the search. $20.00 ?! ha ha
***
***
Anyway = here you go:
***
***
important facts/developments/trends/statistics in the FMCG sector in CHINA:
***
InBev NV, the brewer of Stella Artois and Beck's, agreed to pay $15
million to increase its stake in China's Zhujiang Brewery to expand in
the world's largest beer market.
***
China's beer market will expand as much as 5 % annually until 2008(
compared with 0.7 % growth for the United States and 2.5 percent for
Europe through this year  source: Canadean research
also see http://www.beveragedaily.com/news/ng.asp?id=52607-china-s-beer
***
Unilever

The Chinese hot drinks industry showed signs of slow-down in 2004 with
volume sales increasing by slightly less than 7% in comparison to an
8% CAGR over the 1999-2004 review period. One main factor preventing
greater growth is the slowing performance of other hot drinks, which
in the Chinese context is primarily comprised of cereal and soy-based
instant drink mixes. Although household penetration still remains low
at only around 600 grams per capita, there are discernible signs that
consumers, especially those in urban areas, are turning their backs on
those cereal/soy-based products and switching to soft drinks and dairy
products for reasons of image and health. The proliferation of chained
coffee houses and tea houses over the review period has left a
profound impact on Chinese consumers? hot drink consumption patterns.
As a consequence, on-trade growth of hot drinks has been significantly
higher than off-trade growth. Coffee ? considered a foreign beverage -
has increasingly become a standard menu item in foodservice channels
while offering an opening for fresh coffee products in China. The
resurgence of tea in the form of chained teahouses has not only
refined the tea-drinking culture but has also subtly influenced
consumers? preferences. Speciality teas, such as Oolong and Pu-Er,
which were largely restricted to the South region, have found a
growing number of followers in other regions.
Coffee enjoyed the fastest growth in retail value and volume in 2004.
Instant coffee continues to power the growth of retail consumption.
Nescaf? from Nestl? China Ltd and Maxwell House from Guangzhou Kraft
Food Co Ltd continue to account for the majority of retail sales, with
the former being the dominant force. This, however, has not deterred
the entry of other brands, many of which are cereal-based instant mix
makers enticed by the higher margins and brighter prospects of coffee


Nestle dominates the Chinese hot drinks market, with a nearly 50%
market volume share. Another example is Kraft Foods with 1,4%. Nestle
S.A. also holds a 14.8% share of the Chinese confectionery market
(cereal bars, chocolate, gum and sugar confectionery) , with  Mars,
Inc. over 11%, Yi Li - over 6%, Private Label - nearly 1%,
The head of Nestle Asia says he expects organic sales growth of 10%
over the next 3-5 years in the region, excluding Japan and Korea.
--
Following the company's withdrawal of two milk-powder products from
Chinese grocery store shelves Nestle is expecting sales growth in
China to rebound this year

*** 
Unliever increased its China sales by 20% year-on-year to EUR 500
million in 2004. The performance still fell far short of the target,
and Unilever needed to expand presence in the fastest-growing Chinese
market, especially in the huge home care market. U. expects to
quadruple its China sales to EUR 2 billion in the future,
Source: interview of Patrick Cescau / Dec 2005
other source: http://www.euromonitor.com/Hot_Drinks_in_China
-
In another interview the same manger said that Unilever needs to
increase its scale in China fourfold to Euro 2 billion (Pounds 1.34
billion) if it is compete effectively.
That rate of growth is affordable, he says, because Chinese attitudes
to new products are still fluid. "The Chinese are not locked into
their brands. In the supermarket they don't just grab it off the
shelf. They look at it, they smell it and they make up their minds."
Unilever is eyeing China's small and medium-sized cities and rural
areas to expand its business, reported China Daily -
http://en.ce.cn/subject/RetailinginChina/Cosmetic/200409/28/t20040928_1871707.shtml
*** 
According to another 2005 market research,  Unilever is the leading
player in the chinese personal market for bath products deodorants and
soaps, accounting for over 31% of the market's value.  P&G generates a
further 30%, Private Label close to 5%
***
Mars
As far as - sugar Confectionery is concerned, Australia, Japan and
China make up about 3/4th of the Asia-Pacific sugar confectionary
market, with China being the largest. All three markets are quite
fragmented, with large proportions of sales taken smaller companies
with individually tiny market shares.
In China, Mars has a leading share, while Chupa Chups and Nestlé have
only dented the market. Most of the leading companies are domestic
having only local reach.
***
Mars' petcare division has embarked on a major drive to boost pet food
purchases in China with two new campaigns targeting people who feed
their pets home-prepared food. / Previously Masterfoods has launched a
new brand of cooking sauces base d on the flavours of beef, chicken,
seafood and mushroom in China in 2004
***
Cadbury Schweppes (UK co)  CS Asia Pacific Dividion said in 2005 it
expected the company's sales in Asia to rise by around 7 percent in
2005 after a rise of 6 percent to $903 million in the first six months
of the year.  Cadbury Schweppes, the world's largest confectioner, has
a group target for annual sales growth of 3 to 5 percent and posted
sales of just under 1.1 billion pounds ($1.9 billion) in Asia in 2004.
The maker of Cadbury chocolate and Trident chewing gum, as well as
Schweppes Tonic Water, 7 UP and Dr Pepper soft drinks, aims to make
Asia its strongest growing market and raise the region's share of
group sales to at least a quarter from 16 percent.
****
Soft Drinks 
The Asia-Pacific carbonated soft drinks market is dominated by
Coca-Cola. Other significant players are PepsiCo , Cadbury , Japanese
giants Asahi Soft Drinks and Suntory, and China's Guandong Jian Li
Bao. Datamonitr states that "It could be argued that Asia-Pacific,
more than either Europe or North America, offers greater opportunities
for smaller carbonated soft drinks manufacturers. This is because the
market is far from mature and the massive marketing power of Coca-Cola
and PepsiCo is weaker in this region than in the west"
*****
Seagram : visit  	 Annual report ---> Pernod Ricard  ---> 
http://www.pernod-ricard.com/PERNOD/resources///static/rapport_interactif/2005-11-18/ra_2005_uk/index.htm
			search term - CHINA
The maker of Jacob's Creek and Jameson whiskey -  Martell and Chivas
brands had performed particularly well in China and South America.
Pernod Ricard acquired the brands four years ago for $3.2bn from
Seagram.
*****
Danone
According to fdi.gov.cn: Due to the shrinking of the French dairy
market, the world?s top dairy producer Danone is speeding up
investment in the China market. According to an article in a French
newspaper on November 2, China will overtake France and Spain as
Danone?s largest sales market. The article also indicates, Danone
President Franck Riboud has recently announced to spend 72.21 million
RMB buying 1.85% stake in the Shanghai-based Bright Dairy Group, which
will bring up its shareholding in Bright to 11.55%
According to a recent interview Danone expects China's contribution to
its global revenue to almost double to 15 percent by 2015, as sales in
the country it dubs "a new frontier" gallop upward at double-digit
rates.
China accounted for just 9 percent of global revenues, which hit 9.853
billion euros ($11.89 billion) in the first nine months of 2005.
Danone, the maker of Evian water and LU biscuits, has been profitable
in China since 1990 and sales have been growing by double digits in
the past five years.
*****
the beer companies
*
In 2004, beer output increased steadily in China. There is strong
momentum for market demand. As consolidation strengthens in the
industry, brand concentration rises; enterprises' performance improves
slowly, with notable polarization trend. Foreign beer makers are
staging "enclosure movement" in a big way in China's beer market.
Price war remains the main competition means. Efforts to revamp
product structure have produced preliminary result, as the market
share of high-end beer climbs quickly. In the next few years,
production capacity in the beer industry will further converge towards
beer giants, and the high-end trend will become more notable. Sales
channels will get thinner. Despite the decrease in the number of
players, output will grow steadily. Two foreign breweries, Suntory of
Japan and Heineken of the Netherlands, appear close to expanding their
presence in the huge but fragmented Chinese beer market. Suntory is
planning to acquire a 70% stake in Shanghai Donghai Brewery, the
municipality's second-largest beer maker.
Heineken is trying to expand its share of the Pear River Delta market
by boosting its 21% stake in Shenzhen-based Kingway Brewery Holdings.
Heineken expects its beer production in China to outpace its forecast
for total market growth of 4-6 percent per year in the coming years
*****
milk powder companies from new zealand - 
	- Fonterra
Fonterra has increased its foothold in the Chinese dairy food market.
Fonterra will buy 43% of Shijiazhuang San Lu for $NZ107 million ($A101
million). The Chinese group produces milk powder and sells milk and
yoghurt in China
San Lu competes with companies that include Bright Dairy & Food, which
is 11.6 percent owned by Groupe Danone, the world's largest yogurt
maker, and Hong Kong-listed China Mengniu Dairy, the nation's biggest
liquid milk supplier. China's wholesale dairy market is valued at
about $9 billion . Fonterra annual sales in China are now about 200
million New Zealand dollars, or $140 million, mainly from milk powder
and food ingredients
*****
Sanyo, Philips, Sharp, and Sony. 
---- Sony, Matsushita and Philips have become some of the leading
companies in the Chinese consumer electronics market: these companies
have worldwide reputations for both technology development and
quality, and their primary market is the top-end of the mass market.
The capacity of the home electronic appliance maintenance market in
China will reach RMB10b.
Foreign home appliance manufacturers make forays into Chinese
after-sale service industry.
According to statistics, China's home appliance after-sale service
market can reach CNY 10 billion, and its profit margin is much higher
than those of home appliance manufacturing and selling.
Philips, Sharp, and Sony ramped up investments in Chinese after-sale
service market.
It is reported that Philips has increased its investment in Chinese
after-sale service market from millions of yuan to over CNY 10 million
annually to set up flagship shops and demo stores, and it will also
integrate its over 1,000 franchised maintenance outlets in China this
year.
In China Philips has 35 factories and offices with 20,000 employees
and another 30,000 Chinese workers employed by contract manufacturers
and minority-owned joint ventures.
If interested on the topic, read the article of Robyn Meredith in
Forbes. (Split Personality -  Philips uses very different business
plans for China and India)
Sharp has planned to establish 20 A-class demo stores in China, and
the first store was completed in Tianjin last year.
Sony invested USD 10 million in after-sale service last year, and it
will continue to expand its services ...

Overalll Global Sources' China Industry Outlook says that their
Consumer Electronics report shows mainland China production of
consumer electronics will reach US$67.3 billion in 2005 -- up 22
percent from 2004.
  In 2005, makers expect to produce:
  -- 102.7 million DVD players -- up 19 percent from 2004
  -- 88.5 million air conditioners -- up 33 percent
  -- 79.0 million color TVs -- up 12 percent
  -- 37.9 million in-car entertainment systems -- up 23 percent
  -- 33.5 million digital cameras -- up 29 percent
  -- 16.5 million MP3 players -- up 61 percent
  -- 7.9 million home theater systems -- up 6 percent

The Chinese consumer electr-s market generated total revenues of $13.8
billion in 2004, representing a compound annual g. rate of 14.5% for
the five-year period spanning 2000-2004. This is the highest growth in
the region and is significantly outperforming India, which is the next
most successful market with a growth rate of 8.2%.
***

Bests

... please delete comment if possible ...
Subject: Re: business growth in China
From: myoarin-ga on 14 Feb 2006 04:21 PST
 
Congratulations, Anton.  A great effort.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy