Chinese Consumer Products Contest Shows Local Winners

Some local consumer product brands have gained significant market share in China, challenging the position of multinational companies such as Unilever NV and Procter & Gamble Co., according to research firm ACNielsen.

ACNielsen said a 2002 study of more than 120 fast-moving consumer good categories showed some local products, such as shampoo and laundry detergent, have claimed spots among the top brands. It attributed the gains to local companies’ better distribution networks, effective in-store displays and promotions and a deeper knowledge of consumers’ needs.

“We can see that local manufacturers are maturing at a fast speed as a marketing strategist,” said Glen Murphy, managing director of ACNielsen China.

For example, the survey showed that local shampoo brands Slek and La Fang snagged the No. 3 and No. 5 positions, respectively, by market share last year. P&G’s Rejoice and Head & Shoulders are in the top two spots, while Pantene, also made by P&G, was No. 4.

In the laundry detergent segment, Diao Pai and Bai Li were No. 1 and No. 3, respectively, in terms of market share. They have been among the top five brands for three years in a row. Unilever’s OMO detergent is ranked No. 4 in China.

Mr. Murphy said that going forward the key will be “whether local brands can develop a long-term strategy to sustain the market share in the long run, or whether foreign brands can localize their marketing strategies to continue to command the market leadership position.”