Shuffle, wash and healthier

Inflation, oversupply, price hikes, and reshuffles are hot topics in China's consumer goods marketing in 2008, and are completely different from the past. Tissue paper is a branch of fast-moving consumer goods. With the advent of inflation, the competition in the industry has become more intense, and the industry's environment has become more complicated. When Premier Wen Jiabao answered questions at the beginning of the year, he said that "2008 may be a difficult year for China's economy!" The uneasy year of the rat is also doomed to the lack of calm in the tissue industry. In order to win the initiative and take the initiative in this difficult year, we must grasp the marketing trend of the tissue industry.

First, shuffling, washing and healthier

Due to the late competition of branding competition, high transportation costs and low barriers to entry, the household paper industry has led to many regional brands in the industry (strictly speaking, many local circulation brands can only be called product plus trademarks). The price war has almost become a competitive means of the industry. Due to the mixed brands, the industry's brand value is low and the premium is low. Most of the leading brands in the industry rely on papermaking, not on brand marketing. They rely on cost leadership rather than differentiation to participate in competition. The low level of market competition has hindered the development of the industry. Therefore, industry reshuffle is imperative.

In addition, the world's top 500 Kimberly-Clark is still not convinced in China. The world's largest tissue brand company George Pacific has not yet arrived in China, and P&G has only sprinted on diapers. Therefore, from the perspective of international brand competition, China's household paper industry competition is still in its infancy, and shuffling is coming at any time.

With China's accession to the WTO for more than five years, it has gradually distanced from the world's brands. With the advent of the 30th anniversary of China's reform and opening up, with the unstoppable inflation, with the country's forced shutdown of a large number of heavily polluting paper mills, life use The reshuffle of the paper industry came quietly in 2008.

For brands that have a branded route and a core competitive advantage, 2008 will be an opportunity. Hengan's brands will be more and more convenient, because its differentiated and graded route has already left its competitors behind; APP's brands will also have good performance, because the cost leadership of its forestry-pulp-paper integration is not the other. Only paper-making enterprises can compare (the cost of papermaking alone is difficult to become the core competitiveness of tissue paper companies).

For brands that only understand price wars and lack core competitive advantages, 2008 will be a nightmare. Since the cost of recycled paper is much higher than that of the original wood pulp paper, the competitive advantage of the recycled paper brand will no longer exist, which is not to be overwhelmed by the vast number of manufacturers.

When the famous economist Lang Xianping talked about China's economic trend in 2008, he believed that the fundamental reason for China's current inflation was the extreme deterioration of the business environment, which led to the collapse of a large number of manufacturing enterprises, which led to the shortage of goods. Therefore, the safety of the supply chain will be the primary concern of companies in the life of the paper shuffling year.

In 2008, in this difficult year, perhaps as long as you can pass the past, you will laugh later. So how do you avoid being swept out of the house?

1) Keep your food for the winter. Rats are characterized by good food, so the Year of the Rat must set aside sufficient liquidity to equip more raw materials and finished goods inventories than ever before. We must understand that today's shortage of raw materials is the root of the past few years. The deterioration of the business environment is the result of years of accumulation, so it is impossible to make fundamental changes in a short period of time. It will continue to increase as the price of raw materials rises. Then in this extreme market environment, whether it is the tension of liquidity or the sudden jam of raw materials, it may become the latter straw that crushes the elephant.

2) Properly expand production scale and reserve sufficient production capacity. The phenomenon of short supply in the market under inflation may exceed our imagination in many cases. Even industry leaders such as the company are facing the shortage of supply and shortage. So when the competitors are out of stock, if your supply is ok, the price of the terminal may be what you said in some schedules.

3) Ensure that the procurement supply is safe and sufficient, and the procurement department must go out. The shortage of raw materials has become a reality. The purchasing department of the enterprise may have waited for suppliers to come to the door, but today we must change our thinking, take the initiative to establish a strong strategic partnership, and open up more procurement channels. The procurement security of enterprises under inflation is more important than ever. The lack of initiative and anticipation of procurement work will trap the enterprise in dire straits.

4) Throttling and strengthening the control of each link. In the very period of rising prices of raw materials and rising wages, enterprises must pay attention to the analysis and research of all aspects of cost and expenses, and reduce those inefficient expenditures. If you think that all aspects of your business are OK, cost control is in place, maybe you will make a mistake of self-deception! After all, the market environment has undergone earth-shaking changes, the market is changing, and our conceptual thinking must change, otherwise it is metaphysics. Cost and cost control is like a water-absorbing sponge. Water is always there. The key is how you control it.

5) Marketing innovation. In the past, you had to make a lot of purchases in the terminal. Is it necessary now? In the past, you had to buy a lot of price wars in Shangchao. Should you adjust now? Everyone is raising the price nakedly. Have you ever thought about changing the way to raise prices? Competitors are constantly deteriorating their relationship with the terminal channels. Have you ever thought of taking the opportunity to come to the fore? When the whole industry is trapped in the inflation vortex, can you detach yourself and lead the brand development through product innovation? In the period of inflation, it takes more energy to study the market and innovate ideas. Your little innovation, you are different from the opponent's approach, and may make you stand out during the shuffling period.

6) Do a good job in the crisis plan and stabilize the mentality of the personnel. The whole process of inflation will be a crisis. One enterprise must incorporate this period into the crisis management period and try to do a good job in all aspects of the crisis plan. At the same time, due to the drastic changes in the market environment, it will inevitably lead to fluctuations in the mentality of employees. Therefore, it is necessary to strengthen communication with employees at all levels to ensure the stability and enthusiasm of employees. Don't wash your out of the game after the opponent, but wash yourself out.

Inflation has contributed to the reshuffle of the household paper industry, and the healthy development of the industry also needs to be shuffled. Opportunities always favor those who are prepared. In 2008, for companies that are good at crisis management, washing is healthier!

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