Procter & gamble with "downsizing" to save the tide

Procter & Gamble US dollars short video USA

guanchazhewangcaijing· 2017-08-01 10:23:51

is a former Procter & Gamble FMCG field king, Procter & Gamble lost its glory today. Procter & Gamble recently announced that the group will reduce 30% of the brand, hoping to become thinner while becoming stronger. However, investors do not buy it, the big boat turned around Procter & Gamble is too slow to change. No matter in the largest market in the United States, or second of the Chinese market, Procter & Gamble are faced with competitors to snatch strength.

retains only 65 brands,

, after cutting off more than 100 brands, Procter & Gamble brand territory still does not meet the group considered reasonable. Procter & Gamble recently announced a continued reduction in the total number of brands, from over 200 at present to about 65. Prior to this, P & G has cut over 100 brands, including China consumers familiar with the card Mei Seoul, zest etc.. Procter & Gamble believes that these brands do not perform well, hoping to get rid of the cumbersome and focus on core brands with growth potential. Xu Youjie,

, vice president of communications and public relations at greater China, said that brand contraction would not have much impact on the Chinese market. At present, P & G introduced only 20 brands in china. Even if the number of P & G's global brands is reduced to 65, there are still many brands that can be introduced into the Chinese market.

after nearly two years of reform, Procter & Gamble performance levels compared to the previous stagnation has improved. In fiscal year 2017, Procter & Gamble released the latest data, as of June 30th, Procter & Gamble net profit rose to $15 billion 400 million, an increase of 45%; net sales of $65 billion 100 million, with the same period last year, excluding unfavorable exchange rate fluctuations, organic growth of 2%. Despite a 2% organic growth rate,

's investors still think growth is too slow. Similar to competitors in the industry, P & G grew by an average of 3% in line with Colgate's organic growth over the same period. In part, P & G's only health care sector, textiles and home care sector grew. The beauty Department operating profit was $1 billion 914 million, down 3%; men's skin care products sector operating profit of $1 billion 540 million, down 1%; infants, women and family care sector operating profit of $2 billion 503 million, down 6%. The new

CEO David of weak Procter & Gamble Taylor stressed in a conference call, the group will not only sell Procter & Gamble brands, but also actively looking for acquisitions, "we hope to be able to find can enhance the technical ability to complement the potential targets of the existing product line".

in the past for a considerable period of time, P & G's strategy has been "reduction" based. According to the insiders, in large scale brand cut, Procter & Gamble is facing another dilemma: brand new supplement inadequate, rely on the old brand struggling. At present, Procter & Gamble owns 8 annual sales of more than $10 billion brands, including Pampers, Gillette, Tide, Head and Shoulders, PANTENE, Olay, Crest and SK-II. Whisper, safeguard and other brands from the current market capacity, also have strength into billions of clubs. However, in recent years, these brands are faced with varying degrees of brand aging, poor sales and other issues. The acquisition of

in 2005 to spend $57 billion to the price of shaving brand Gillette, but also because of competitors, to implement the price in this year. According to Euromonitor data show that Gillette in the global market share has dropped from 70% to 54%. Olay, which once played an important role in P & G's cosmetics sector, has continued to decline in the largest US market for Procter & Gamble, and sales in the second largest Chinese market have been sluggish. To this end, Procter & Gamble last year in China closed 30% of the Olay counters, and reduce the 20% product range.

Gillette and other beauty brand has begun to decline. Beauty market is one of P & G's important sources of income, accounting for more than 15% of the company's revenue. In addition to upgrading products, cost control, insiders believe that, in accordance with the Procter & Gamble to disclose the information, Procter & Gamble next brand strategy will streamline is no longer selling, but through the sale of part at the end of the life cycle of the brand, to make room to give more value to the acquisition of the subject.

from the beginning of 2015, with the development of the electricity supplier channels, Procter & Gamble began to try to introduce some new China brand in the market, but these brands basically stay online channels for China consumers, cognitive level is still low. As a whole, Procter & Gamble has not hatched new brands in the last six years. "Daily chemical industry observers believe that Zhao Xianghui, pure brand contraction allows Procter & Gamble" thin ", but can not become strong.". If there is no new brand support, P & G is likely to fall into the old brand locked up situation.

traditional marketing failure,

began this year, Procter & Gamble in marketing has made many changes: with up to seven years partner Audience Science contract expires. Audience Science provides global integration of DMP service for Procter & Gamble (data management platform service) and DSP services (precision advertising service), marketing and advertising industry analysis supplier Neustar technology company The Trade Desk successor.

in recent years, Procter & Gamble in advertising strategy has been indecisive, on the one hand the reduction of television advertising as a representative of the traditional media to enhance digital marketing; on the other hand, the digital marketing budget is also reduced. MediaRadar's latest data show P & G's figures for the 1-5 months of 2017