P&G Eyes Greater Market Share in China
Proctor and Gamble (P&G), the world's largest consumer goods supplier, is looking for a larger share of
China's huge, booming market.
P&G's strategy is to expand its presence in
China, with a market of more than 1 billion consumers, by acquiring or merging with domestic companies.
That strategy is considered by many international firms as an efficient way in the post-WTO (World Trade Organization) era to enhance investments and increase their shares of promising markets.
The strategy allows firms to make their acquisitions, and then gradually iron out any legal issues that arise.
While P&G is interested in expanding its share of
China's market, company officials are not approaching potential partners with offers, says P&G
China Vice-President James Wei.
Merging with domestic firms could become a major initiative for P&G in the future, Wei said, but declined to offer details.
Experts suggest P&G could begin expanding operations in South
China where it already has a foothold.
Wei said P&G - unlike Anglo-Dutch competitor Unilever - does not plan to file documents for a public offering on
China's less-developed stock market.
Analysts suggest Unilever, a major consumer goods producer from Europe, is close to an initial public offering (
IPO) in
China.
Unilever sought months ago regulatory approval for an
IPO on
China's A-share market, reserved for domestic investors. "I think we could have many alternatives to better serve our customers and win their confidence," said Wei.
Unilever, meanwhile, plans to use a public offering as an ad and public relations campaign to win over Chinese consumers.
China has more than 50 million investors with money in the country's 11-year-old capital markets. That is a large customer base that savvy business executives cannot ignore. "Consumers are our boss, and we will try every means to give them quality services," said Wei.
Developing research and development (R&D) facilities in
China to back up its sales is a major priority for P&G, Wei said.
P&G established in 1998 with Tsinghua University, one of
China's most-respected universities, a research facility.
P&G debuted in
China in 1987, and has since invested about US$300 million. The company has 4,500 employees in
China, and plans to increase its workforce substantially by 2020.
P&G has a dozen wholly owned companies or joint ventures in Guangzhou, Beijing, Shanghai, Suzhou, Chengdu and Tianjin.
China is P&G's second largest market, behind the United States, and several of the firm's brands have become top sellers.
P&G officials expect the company to earn by 2020 US$35 billion in
China's market. That would be equivalent to what the company earned in 1998 from all its operations.
P&G is based in Guangzhou, in South
China's Guangdong Province. Unilever is based in Shanghai,
China's largest city.
P&G executives have called on
China to crack down on the rampant production of counterfeit items, especially in remote areas.
That, the executives said, could cause P&G to suffer heavy financial losses. "Those counterfeit products not only do harm to our company, but also threaten customers' health," said Wei.
P&G vowed to work closely with the Chinese Government to end counterfeiting and clean up the market.
(08/20/2002)
PS.
In der Materie kenn ich mich ein wenig aus und denke das es kein vergleichbares Unternehmen in
China geben wird was sich Global und mit der Produktvielfalt so aufstellen kann. Aber es ist sicherlich für uns interessant welche Unternehmen und Produkte in die Unternehmensstrategie von P&G in Zukunft passen könnten.
mfG
Interessante Werte, speziell aus China
don't touch it!!
Und was ist die chinesische Procter & Gamble?
Linear-Darstellung
