A Chinese article about the rise in importance and recent success of online sales for Olay. Mentions the Magnemasks product.
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An increase of 30%, Olay to counterattack yet?
Original 2018-01-29 Differentperspective →blue eyes
Change is the time of young children.
Wen / Sister
"Falling endlessly," Olay, finally in the new year whether there is any trend.
According to the latest earnings announcement released January 23, Procter & Gamble's second quarter of fiscal 2018 fiscal year revenue up 3% to 110.1 billion yuan. Although Procter & Gamble net income per share is still down 68%, but its brand Olay performance is remarkable, "Olay sales in China increased by 30%, and e-commerce sales rose 80%."
More interesting is that the magnolia oil show substantial growth node, just happened on the occasion of the first anniversary of the brand restructuring.
As of the end of October 2016, P & G made it clear in its first quarterly fiscal year 2017 report that Olay will be reorganized in the United States and China because of its unsatisfactory performance. After entering 2017, you can see that Olay has carried out a series of actions, including streamlining the counter and accelerating the transformation into an anti-aging skin care brand.
After the earnings announcement, Procter & Gamble CFO Jon Moeller at the conference call also credited the growth of Olay to refurbishment counters, the launch of a new beauty consultancy project, the upgrade of new formula and packaging, and the introduction of new advertising campaigns and other measures. This shows that the reform of Olay seems quite fruitful.
So, does this mean that in terms of the Chinese market, Olay to start the counter-attack?
"The reform of Olay started as early as a few years ago and the current growth is in fact a positive feedback from the market." It is not by surprise that a chief executive of Procter & Gamble Company in central China for this growth. However, from his answer can also be side-by-side explanation, Olay this growth is actually in recent years, the comprehensive reform of its brand cashing. In addition, with the growth of Olay in the Chinese market as a whole as well as its e-commerce business, it seems that the effect of online innovation and the pulling effect seem more obvious.
Earlier, the data from China Internet Network Information Center showed that the proportion of Chinese consumers shopping online was 10% in 2010, and the figure for 2015 has increased to 41%. Correspondingly, the share of e-commerce in the Procter & Gamble related category increased from 6% in 2010 to 19%. Procter & Gamble had estimated that this share will reach 32% by 2020. It is noteworthy that, as early as 2014, China has become P & G's largest market in the world of e-commerce. That means that for P & G's brands, including Olay, online is undoubtedly a key enabler for sales growth.
The fact is true. At the beginning of last year, when Ke Xinghua, the vice chairman of Greater China Region, interviewed by the media, he publicly emphasized the strategic significance of digitalization for Procter & Gamble and tried to get through the omni-channel gameplay and brand marketing of O2O2O and integrate online and offline to realize consumers' Seamless Shopping Experience. "
In December 2016, when Olay imported eye-care products for the Chinese market, it started to increase its online advertising and produced a number of phenomenal levels of "Hypnotism for H5" on social platforms. Among them, by Song Qian, Ma Tianyu involved in the film "EYE Emotional Britain" has caused widespread concern.
At the same time, Olay also quite willing to invest in online advertising. According to iResearch released "February 2017 makeup skin care brand online advertising data" shows that in February 2017 Olay put the cost of 13.19 million yuan, for the seventh consecutive month in the list of the first place. In addition, in August last year, Olay also chose to launch its first new magnetic import mask on line. It is reported that this mask on the first day of sales will break 3000 cans, on sale for two days out of stock.
Obviously, a series of actions on the line of Magnolia oil today seem to echo not only P & G's emphasis on digitization, but also the source of 30% of its brand name and 80% of its electricity supplier growth.
However, the above two seemingly gratifying growth numbers do not seem to represent the warming of Olay in offline markets.
"Olay in 2017 did not grow in our store, but also showed a downward trend." One of the top 100 chain frankly stated that last year, Olay continued its natural sales model in its store last year, showing no optimism.
He said that while Olay has been reduced to 50% off the product discount in the past two years, due to the chaotic sales channels and the difficulty in price control, many stores sell their products at low discounts. In addition, its brand of customer base is older, younger Cenozoic customers, which led to the performance of Olay last year in the store did not show any improvement.
Corresponding to this situation, Procter & Gamble has never relaxed the exploration of Olay in the CS channel. According to public reports, as early as 2015, P & G executives will visit the Luoyang color cosmetics chain benchmark in Henan, trying to seek effective cooperation in the Olay channel in the cooperation model. The person in charge of P & G Huazhong District also revealed that a few years ago, Olay invited stars such as Guo Biting to go to the top 100 stores to interact with consumers. In addition, Procter & Gamble also set up a dedicated CS channel team, trying to work with the channel deep plowing the brand.
However, at the present stage, all the above measures seem difficult to satisfy the channel. "Attitude, planning to do, but to achieve substantive changes for some time." The above 100 chain executives in charge, indirectly reflects the efforts of Olay in recent years under the effect of little success.
In line with the attitude of the head of the top 100 chains, the head of a department store in Cangzhou also said that due to the new products on the lower frequency, consumer demand is not high, and relative to other foreign brands discounts higher, Olay last year In June the mall in charge of her withdrawal. He further revealed that the performance of Olay in the entire Cangzhou area are not very good, at present, Cangzhou Olay counter has been depleted.
Of course, this situation in Cangzhou City may have been related to the strategy of "closing 30% of China's counter" previously announced by Olay. But the one fact that has to be confronted is that even if a series of reform measures were implemented, it seems unlikely that Olay could reverse the reversal of its offline channels.
However, Olay may be fortunate Fortunately, GfK market consulting on the 51 cities across the country department stores and shopping centers channel monitoring data show that the first skincare effectiveness, anti-aging has become the areas of greatest concern to consumers, and The most obvious share of the increase in the first half of 2017, nearly 6 into the product anti-aging effect. Olay, which focuses on anti-aging, seems to welcome its spring from the product level.
At the same time, the market performance of Olay also reveals a business ethic, "what appears to us is an endlessly interwoven picture of all kinds of connections and interactions, none of which are immobile and immutable, But everything is moving, changing, producing and disappearing. "
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