-1-SHA-4301-200099-02-16-a-xRolandBerger&Partners–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–LisbonLondon–Madrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–ZurichLogisticoptimizationtosupportruralpenetration–Issuepaper–Peiking,June,2000-2-SHA-4301-200099-02-16-a-xThisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentPageA.Logisticsoptimizationiscriticalforruralmarketpenetration3B.Adjustinglogisticsystemtosatisfypresentruralsales&distributionnetworkanditsdevelopment??C.Reducinglogisticcosttogaincompetitiveadvantage??D.WhatRolandBergercandoforHenkel??E.Selectedreference??-3-SHA-4301-200099-02-16-a-xA.Logisticsoptimizationiscriticalforruralmarketpenetration-4-SHA-4301-200099-02-16-a-xAfterrapidincreaseinearly1990s,annualgrowthofChinadetergentmarkethassloweddownintheseyearsNationalmarketsizeoflaundrydetergent[inMio.tons]199319941995199619972000**EstimationSource:ChineselightIndustryYearbook,RolandBerger&Partners’analysis1.92.22.82.62.72.9~3.0+8.2%p.a.+8.2%p.a.2~3%p.a.2~3%p.a.-5-SHA-4301-200099-02-16-a-xWhileruraldetergentmarketstillhasgreatpotentialtoexploitAbout70%oftotalpopulationlocatesinruralareaAbout70%oftotalpopulationlocatesinruralareaWhilepercapitaconsumptionofdetergentinruralislowWhilepercapitaconsumptionofdetergentinruralislow69.6%30.4%RuralCity1.673.89cityruralSource:ACNielsenretailingaudit1999-2000PotentialinruralareaishighPotentialinruralareaishigh•Inremotewest&northruralareasdetergenthasnotbeenverypopularbecauseitisnewtolocalpeople•Insomearea,likeShandong,ruralpeopleusedtousedetergentpaste,whichischeaper,tosubstitutedetergentpowder•AndinZhejiang,ruralpeoplealsousedtouselaundrysoapasanalternative•Butwiththepopularityofwashingmachineandincreaseofruralpeople’sannualincome,substituteswillbewashedoutanddetergentpowderwillbemorepopular-6-SHA-4301-200099-02-16-a-xAlso,opportunityinruralisbiggerthanthatincityMarketshareoftopfivebrandsincity&townMarketshareoftopfivebrandsincity&townAnalysisAnalysis•Incity,highendmarkethasbeendominatedbyTIDE,andmiddleendbyWhitecatandLibai,andlowendbyQiqiang.Thecompetitionstructurehasbeenformedandleaveslessopportunityforchallenger•Inrural,onlyQiqiangisthestrongestbrand,butotherstrongbrands,likeLibaiandWhitecat,havenotestablishedastrongmarketbases.Soitiseasierforanaggressivebrandtogainmarketshareforthereisexpandingmarketandopportunities12.6%18.4%57.6%64.7%8.9%6.5%3.7%8.5%3.5%6.2%3.2%6.2%CityTownOthersJiameiTIDELibaiWhitecatQiqiangOthersJiameiDiaoPaiLibaiWhitecatQiqiangSource:ACNielsenretailingaudit1999-2000-7-SHA-4301-200099-02-16-a-xInordertoboostruralsales,companyneedapowerfullogisticsystemtodeepenruraldistributionQiqiang’slogisticsystemQiqiang’slogisticsystemQiqiang’sperformanceincity&town(Feb-Mar.2000)Qiqiang’sperformanceincity&town(Feb-Mar.2000)12.6%18.4%43%50%CitymarketshareTownmarketshareCityweightedTowndistributionindexSevenproductionsitsinChinaDirectdeliverySurroundingsalesbranchesincountyWholesalersandretailersRuralconsumerDirectdeliveryExampleSource:ACNielsenretailin...
