Surely that's not a recent epiphany Smac for you or OBJ Management? Don't we already call that 'mechanised scrubbing' something like giving it a 'boost' or 'magnetic boost'.........hey hang on, why don't we Trademark 'Magnetic Booster'? Or how about 'Magnetic Micropulse technology' or 'Magnetic Power infuser'? That's right, no need, we already did that a few years ago. OBJ have known for many, many years that our MicroArray Technology/Static MicroArrays/Field in Motion (FIM) MicroArrays already work much better with a powered boost and we can probably thank over 10 years of currently zero known progress from GSK for that little paradigm shift from the manual toothbrush results. If we go back to the last dedicated Surface Hygiene announcement from over a year ago, you will already notice a couple of 'imagined' prototypes that already appear to have the potential to be 'mechanised scrubbers'. Throw in another generalised estimated sector worth of almost 5 billion dollars that is expected to polarise/hypnotise Shareholders once again into an oblivious extended wait period for something that should be much quicker to market. So what is the Real problem here? Why aren't potential collaborating partners already on the shelves with their new paradigm shifting Surface Hygiene cleaning products for consumers and the healthcare sector that is rife with Staph infections/viruses/flu's etc where nursing homes regularly go into lock-down? Where is the passion to enact change in a sector that desperately needs it? Or is there too much money to be made by those currently in control by maintaining the status quo and continuing the mop-up with making money from treating symptoms?:
OBJ really need to get someone new on Board with some passion for our Technology Platforms that has the ability to influence those that are the responsible corporate decision makers.
And I can't see Magnemasks lasting too much longer in it's current static form either. At some point in the near future it would make sense to bring out a 'mechanised' 'Magnetic Booster' version of the Magnemasks range that incorporates 'Magnetic Micropulse technology' or 'Magnetic Power infuser'. Although Olay is not currently a premium brand akin to SKII, Olay is in the process of transitioning to Premiumization via 'Irresistibly Superior Products' and this is already becoming evident imo with Magnemasks and Olay Regenerist Cellscience about to be launched:
Enter two words that we should be hearing alot more about over the coming years...Premiumization and Personalisation.
'However, things changed in 2015: the “rapid premiumisation of the market” created problems for P&G. In 2016 P&G’s first half year sales have continued to decline in two-quarters. P&G CEO David Taylor said “We looked at China too much like a developing market as opposed to the most discerning market in the world.” The fact is that Chinese citizens are now moving beyond being able to only afford the basics of life, and their discretionary spending is taking off. The first lesson: P&G failed to recognise the growth of the middle class and underestimated the sophistication of consumers in China and their increasing willingness to pay top dollar for quality household goods. The shift in preference was driven in part by contamination issues in China, particularly in the food and beverage chain. It’s also driven by the increasing disposable income in average Chinese family and fast rising of mobile Internet that connects millions of modern Chinese with the world. Chinese middle-class are technology savvy and demand the best for their personal life experience and their family members. Faced with more demanding consumers asking for fresh, healthy products, companies are reformulating recipes, cutting sugar, salt and fat. Another recent example of the consumer behaviour and rapid premiumisation is that KFC just sold off its China business to Alibaba Group.
The good news is, in Jan 2017, P&G boosted full-year sales forecast on China recovery. P&G admitted that it had underestimated demand for higher-end nappies and was losing share to Japanese rivals just as the economy there began to slow. Now that it has premium products in place and is making an ecommerce push, the sales decline is reversing. The second lesson: P&G missed the shift in the channels where Chinese consumers are shopping more and more online. In China, P&G served all channels, it used to have a strong focus on the middle of the market in terms of hyper and superstores. P&G realised the importance of e-commerce, and have begun to build more coverage in both specialty stores and e-commerce. More than a channel, digital channels also help P&G to get insights of current Chinese consumers. In reviewing search patterns for P&G’s Olay skin-care products through baidu.com, for example, analysts determined that many users were framing their queries in ways that suggested a strong connection between concerns about skin care and aging. P&G used those insights to devise an advertising campaign built on the idea that Olay products could help older women “hold on to age 25,” a message that resonated strongly with Chinese consumers. P&G CFO Jon Moeller said. “Our e-commerce business is growing at about 20 percent. … The market shares in e-commerce are not yet to the level of offline, but it’s progressing very well”. https://www.linkedin.com/pulse/lessons-from-sales-decline-procter-gamble-china-market-eric-zhou-周武/
OBJ Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
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