-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–ZurichDevelopmentofruralSales&Distributionmodel–Issuepaper–Peiking,June,2000-2-SHA-4301-200099-02-16-a-xThisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentPageA.RuralwillbethenextcompetitionfocusinChinadetergentmarket3B.Henkelshoulddevelopeffectivesales&distributionmodeltopenetrateruralmarket??C.Howtodevelopeffectiveruralsales&distributionmodel??C1.Understandingcurrentruralsales&distributionchannelanditschange??C2.DevelopingsuitableruralsellingmodelC3.Establishingefficient&low-costlogisticsystemD.WhatRolandBergercandoforHenkel??E.Selectedreference??-3-SHA-4301-200099-02-16-a-xA.RuralwillbethenextcompetitionfocusinChinadetergentmarket-4-SHA-4301-200099-02-16-a-xAfterfastincreaseinearly1990s,annualgrowthofChinadetergentmarkethassloweddownintheseyearsNationalmarketvolumeoflaundrydetergent[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:ACNielsenretailingaudit1999-2000-6-SHA-4301-200099-02-16-a-xWiththeimprovementofincomelevelandpopularityofdetergent,salesinruralareawillincreasewithgreatspeedPercapitaannualincomeofruralhouseholds(RMB)Percapitaannualincomeofruralhouseholds(RMB)PotentialofdetergentmarketPotentialofdetergentmarket•Inremotewest&northruralareasdetergenthasnotbeenverypopularbecauseitisnewtolocalfarmer•Insomearea,likeShandong,ruralpeopleusedtousedetergentpaste,whichischeaper,tosubstitutedetergentpowder•AndinZhejiang,ruralpeoplealsousedtouselaundrysoapasanalternative•Butwiththepopularityofwashingmachineandincreaseofruralpeople’sannualincome,substituteswillbewashedoutanddetergentpowderwillbemorepopular12211577192620922162221019941995199619971998199912.5%12.5%Pushingdevelopmentofruraldetergentmarket-7-SHA-4301-200099-02-16-a-xMoststronginternationalanddomesticbrandshasfocusedondistributioncoverageincity,whileignoringruralmarketWeighteddistributionindexbybrands(Feb-Mar.2000)21%59%CityTownTIDETIDE10%43%CityTownArielAriel12%35%CityTownDosiaDosia12%45%CityTownOMOOMO18%36%CityTownDiaoPaiDiaoPai24%51%CityTownWhitecatWhitecatSource:ACNielsenretailingaudit1999-2000-8-SHA-4301-200099-02-16-a-xThereforethesebrandshavestrongperformanceincitybutweakinruralMarketshareofmajorbrandsintownsandcities1.9%6.2%CityTown0.7%3.0%CityTown1.7%5.7%CityTown1.8%6.0%CityTown3.7%4.5%CityTown3.5%8.9%CityTownTideTideArielArielDosiaDosiaOMOOMODiaopaiDiaopaiWhitecatWhitecatSource:ACNielsenretailingaudit1999-2000-9-SHA-4301-200099-02-16-a-xRealizingtheimportanceofrural...
