You are here: Skip Navigation Links Home > International News > Unilever divides China into "several markets" - News

Unilever divides China into "several markets"

8 Jun, 2010

Unilever, the FMCG giant, is treating China like "several markets" in an effort to meet the diverse needs of consumers throughout the country.

The company first entered China 87 years ago, when it was known as Lever Brothers, and Lux soap resumed its role as one of the firm's best-selling brands after it returned to the market in 1986.

Lipton tea is among its other leading offerings in the world's most populous nation, where food lines such as Wall's ice cream are also gaining ground.

Despite the enormous potential available in China, Zeng Xiwen, vice president of Unilever's domestic operations, said adopting a nuanced approach is essential to making an impact.

"The market situation in China is more complicated ... than any other country. As China is such a large country, people have different shopping habits in different areas," Zeng suggested.

More specifically, the Chinese retail sector is distinctive both when compared with Europe and when measured against other emerging economies on a similar trajectory, such as India.

"In India, our products are mainly sold in small shops and in Europe [they are sold] in supermarkets," said Zeng.

"But in China, in some areas the main selling method is by supermarkets, other places [it is by] ordinary shops and in some areas [it is] a mix of both."

This complexity is also observable in the preferences of shoppers, a trend that applies particularly strongly to food but also extends to other categories where Unilever has a presence.

"In the past, we considered the Chinese market as one single market. Now, we divide it into several markets," said Zeng.

"We make deep studies of each market and analyse the different spending habits of different consumers. And we're constantly developing new products to meet changing tastes, lifestyles and expectations."

In an effort to achieve this latter goal, Unilever established a research and development centre in Shanghai in 2000 in order to make targeted additions to its portfolio.

These have included a new "slimming tea", a shampoo based on traditional Chinese ingredients which is said to prevent hair loss, and another haircare range using black sesame seeds.

Elsewhere, Unilever has also sought to enhance its local expertise by recruiting 90% of its senior managers from the Chinese workforce, rather than deploying executives from overseas.

Its other strategies have involved shifting its Chinese manufacturing hub in the country away from Shanghai to Anhui, which offers lower labour costs as well as helping it bring economic growth to an under-developed part of China.

Bookmark and Share

Source:
More News

Coca-Cola seeks digital "holy grail"

27 Aug, 2010
Coca-Cola, the soft drinks giant, is seeking to leverage social media, mobile and database marketing in a bid to achieve the "holy grail" of digital communications.

In response to the shifting habits of consumers, the beverage maker has [...]

Procter & Gamble boosts investment in China

21 Aug, 2010
Procter & Gamble, the FMCG giant, has outlined plans to invest $1bn (€781m; £643m) in China over the next five years, with innovation set to be one key focus of this spending.

The owner of Tide and Pampers unveiled a dedicated R&D centre [...]

General Motors plans to boost adspend

10 Aug, 2010
General Motors, the automotive giant, is planning to heighten its advertising spend in recognition of the fact that communications "is part of what made this company great."

The carmaker, which is continuing to reestablish its status aft [...]

Unilever gains from advertising and innovation

7 Aug, 2010
Unilever, the FMCG giant, is focusing on advertising and innovation to build brand equity with consumers, reducing its reliance on low prices as a result.

The maker of Ben & Jerry's, Surf and Vaseline boosted its investment in advertisin [...]

Nestlé is "role model" for Islamic branding

28 Jul, 2010
Nestlé is the leading multinational company when it comes to developing marketing strategies for Muslim consumers, according to Miles Young, worldwide ceo of Ogilvy & Mather.

Speaking to Warc at the Oxford Global Islamic Branding and Ma [...]

Adidas scores awareness in China

29 Jun, 2010
Adidas, Coca-Cola, Visa and Sony are the most recognised World Cup sponsors among Chinese fans, despite China's own absence from the championship, says a survey by TNS Research International.

The findings, gathered between June 16 and 2 [...]

Major brand owners prepare for the recovery

18 Jun, 2010
Brand owners such as General Electric, Cisco and Microsoft are all adapting their global strategies in a bid to strengthen their positions during the economic recovery.

General Electric, the conglomerate, is one firm that has endeavoured [...]

Adidas aims to exploit brand "heritage"

10 Jun, 2010
Adidas, the sportswear giant, is planning to leverage innovation and its brand "heritage" to strengthen its bond with athletes and drive revenue growth.

The German company currently produces an estimated 200 million pairs of shoes and 40 [...]

Apple's mobile ad service attracts big brands

9 Jun, 2010
Many major brand owners have already signed up to Apple's new mobile advertising platform, which is tipped to drive up interest in this emerging channel.

Apple first unveiled its iAd service in April, and its ceo, Steve Jobs, outlined fu [...]

Procter & Gamble targets "disruptive innovation"

2 Jun, 2010
Procter & Gamble, the consumer goods giant, is looking to "disruptive innovation" as a means of driving growth both during and after the downturn.

According to Melanie Healey, P&G's group president for North America, the recession has no [...]

Polls

Do you think copywriters need to improve the content in print ads?