France perfume company Coty Inc. and domestic brand Ding Jiayi marriage, daily chemical industry in China was recently "heavy news". Last month, Coty Inc. announced in Shanghai high profile, the domestic sales of sunscreen being Ding Jiayi has become a brand owned by Coty. In fact, as early as the end of 2010 the two companies have reached a share purchase agreement, Ding Jiayi sale market of shares valued at about US $ 400 million.
After the merger, Ding Jiayi original shareholders still holds a stake of about 40%. China's cosmetic market has never been to keen competition. Multinational companies are racing, local brand strain survival. More than 10 years in the past, today there are many well-known local brand of choice to marry into "foreign in-laws" as multinational corporations under heavy. Gain and loss of sweetness and bitterness, outlines the development track of Chinese daily chemical industry, has become the epitome of domestics and foreign long-term game.
Outside China why brand love marry? marry into "foreign in-laws" years of local brands and have a good? reporter trying to both from the Ding Jiayi and kid looking for answers in the story. Ding Jiayi "on ice" suspicion Ding Jiayi "marry into" Coty is strong. Since its founding in 1995, Ding Jiayi always was one of the local brand leader, sunscreen sales Crown must not only domestic, under also possess cleansing, skin care, men's foil and other categories of products and surface, 56 offices all over the country, with an annual two-digit growth, creating a turnover of 1 billion yuan.
Coty was born in 1904, is the recognized industry leader in global beauty territories, annual sales of nearly $ 4 billion, has the world's second-biggest cosmetics and personal care products such as adidas brand small mystery of nearly 30 international brands, 90 in the world market of consumers with innovative products. For this merger, both companies are confident about the future. Ding Jiayi brand founder, current Cauty said Zhuang Wenyang, Chief Executive of popular products in China, Ding Jiayi's reputation and brand value in China, coupled with Coty global market experience and resources, will form an effective complement each other. Chief Executive of Coty Inc. beiende·Bizi also believe that with Ding Yi "marriage" would effectively expand China market business, maintain the Coty in global growth in recent years.
He believed that cooperation will benefit both companies, will have a "synergy", he also emphasized that cooperation is of the same family, there is no "we" and "them".
However, after all, cooperation between the two sides has just started, more prudent to look at this merger and acquisition in the industry, stay in Ding Jiayi overhead, there are so-called "snow accumulation" of suspicion. Stories from Coty entered the Chinese market for the first time to start. As early as 1996, Coty cooperation with Yue-Sai cosmetics company, plant investment in Shanghai Pudong. But that by the year 2004, the circumstances are plummeting, I do not know for what reason or consideration, Coty Yue-Sai to rival the l ' Oréal, after which its leading products small mystery and adidas were also entrusted to Japan KOSE and Shanghai jahwa agent. This means, Coty was active from the Chinese market. It can be said that after say goodbye to the Chinese market, domestic chemical industry's turbulent was unexpected by Coty. Since 2004, the skin care industry was growing rapidly in China, according to the China General Chamber of commerce statistics 2009 cosmetics sales of more than US $ 140 billion in China, became the world's third-biggest cosmetics market. Ou Rui information consulting company assessment, by 2012, China will replace the United States as the world's second largest skin care market. Coty main competitors such as l ' Oréal, Procter and riding on the commodity market in China, Dongfeng, earned full pot full. According to media reports, in 2010, l ' Oréal sales exceeding EUR 1 billion for the first time in China, representing a growth of 11.1%. Procter also Hao statement within the next 5 years in the Chinese market of us $ 1 billion Fund. By contrast, Coty Inc. 2010 global market is relatively weak in China only US $ 3.6 billion in net sales.
Coty Inc. Asia Pacific Finance Director Ye Renju said in the interview, to achieve the 2015 sales target of US $ 7 billion, Cauty in the acquisition will be a very important part of China. This comeback, Coty was ambitious, trying to have some in the Chinese market. Zhuang Wenyang said Coty's main task is to sell in China this year adidas cosmetics perfume He Rui mystery into Ding Jiayi sales channels. On the promotion of Ding Jiayi brand, Coty has not produced substantive planning, Coty senior also has made it clear that, Ding Jiayi brand promotion to overseas markets and not into this year's schedule. Therefore, many people in the industry on Ding Jiayi "marry into" Coty expressed concern at the prospect of after. Investment consultants Chang Yizhi, a researcher in the chemical industry in the interview admits, Coty acquired the small home should be primarily valued its massive sales channels in China, as Coty channels are missing in the domestic cosmetics market, this acquisition will borrow Ding Jiayi sales network save path construction costs. But the view was expressed that, from the product structure of Coty, perfume 62% per cent of total products, cosmetics, 23% 11% toiletries, skin care and sun protection products accounted for only 4%, low-end skin care product is a white one.
This will give small home should be provided a certain degree of development, and predict local brands from relying on international enterprise resource to the world of possibilities. Panoramic view of the previous domestic famous brands of cosmetic history of mergers and acquisitions, "ice" are not unfounded. Little nurse has advantage with distribution channels in the country, marrying into the powerful "Giants" of l ' Oréal when fengfengguangguang, but now is the silence. Large treasure after marriage Johnson also has not yielded expected results. Is most sob is net brand in the United States and Canada, last century 90 's once occupied 20% of domestic market share of the United States and Canada NET, trademarks were shelved after the joint venture, sales are plummeting. Therefore, no wonder that many consumers for "local wives married into the ocean in-laws" showed concern, survey carried out in a portal site, 58% users think of Ding Jiayi may "snow accumulation".
