Drug And Cosmetic Market Continues To Heat Up The “two Grass” Compete For One Brand – Recently, reporters learned from sources Office: King will take the “Cottage” entered the herbal cosmetics market, aimed against the first brand in the field.

Present the first brand of Chinese herbal medicine cosmetics “HERBORIST” too ambitious, Jahwa recently heard news that the proposed capital increase to 170 million yuan Herborist, mainly for brand building, channel building.

The same time, Pien Tze Huang, Tong Ren, King Hall repair and other pharmaceutical companies also have to increase its Chinese herbal cosmetics series of inputs. Industry pointed out that the rapid growth of Chinese herbal cosmetics market is attracting major enterprises of the next 2 to 3 years, the market competition more fierce, do not rule out the Procter & Gamble, L’Oreal, and foreign predators also to “rob the city treetop.”

Herbal cosmetics warming up Recently, Information Times reporter was informed from a source, King will soon officially launch herbal cosmetics brand “the Cottage”, the product of the relevant sampling has been completed and the counter image Advertisement Chip design has reached the final stage of “herbal culture” as the theme of large-scale tour events are also close in the pipeline.

On “The Cottage” channel issues, the sources, the current King has several large department stores in Guangzhou, cosmetic stores and supermarkets to negotiate. However, the King (International) Group, headquartered in Guangzhou, said the inconvenience this response.

Proper preparations in full swing Overlord “the Cottage” listed, the herbal skin care brand “HERBORIST” also stepped up the pace. Jahwa on November 25 announcement that, Jahwa to be changed use of funds raised will be 170.16 million yuan fund-raising capital increase, a wholly owned subsidiary of Shanghai HERBORIST, mainly for Herborist brand building, consumer communication , channel construction, acquisition of overseas market development and fixed assets. This means that for many funds need to channel development and brand awareness of skin care products for Herborist have greater competitiveness.

Make herbal cosmetics market has been warming, but also tried to enter the cosmetics market Pharmaceutical companies . According to incomplete statistics, China has more than 170 pharmaceutical companies involved in the cosmetics market, but most of them are main concepts of Chinese herbal medicine. Pien Tze Huang company’s third quarter report, cosmetics business will become important future profit growth, adding that to build China’s first drug store.

In the second half of 2004 entered the cosmetics market, Tong Ren Tang, 2008, cosmetics Sell The amount of more than 20 million yuan.

“The Cottage” and “HERBORIST” dispute
In Overlord Group ” Traditional Chinese medicine Date of “strategic layout, the” Overlord “goal is the first Chinese herbal anti-brand shampoo off;” The Wind “The goal is to market the first Chinese herbal dandruff brand; and” The Cottage “is directed at Chinese herbal skin care areas of brand. and Overlord to this end “Day of Chinese R & D, manufacturing base,” and a number of patented technologies such as Chinese herbal medicine project, no doubt gave a strong backing of the Thatched Cottage.

Brand in Jahwa layout, Herborist position is equally important. 2001 Herborist only 12 stores nationwide, the annual retail sales of only 3 million to 400 million; to 2004 Herborist in more than 60 stores nationwide with annual sales of 30 million also have ~ 40 million yuan. Finally, in 2005, Herborist a balanced budget for the first time. The next few years, an average annual growth rate of 70%. Herborist now more than 600 stores across the country, in France there are Sephora stores more than 70 distributors, 2008, total retail sales Herborist 600 million yuan.

Industry pointed out that the King, “the Cottage” This generous access to herbal cosmetics market, the market will inevitably change the existing competitive landscape. The next few years, the leading herbal cosmetics market seats will be “The Cottage” and “HERBORIST” between the competition.

Fast moving consumer goods industry, said senior researcher Li Guijun, although the total amount Herborist business can not and L’Oreal, Estee Lauder and other high-end brands than local brands, it steadily lost in the context of maintaining high growth, In the low-end local brands can do in the premise, so that the breakthrough in the field of high-end, and successfully prevented the ranks of Chinese herbal cosmetics to the low-end slip; the same time, it is also the first realization of the local community in several countries overseas sales brand. “It can be said Herborist is the market leader in herbal cosmetics.”

For King, Li Guijun remains a wait and see attitude, “King has a strong after listing financial strength, try to make cosmetics are understandable. As for the future development trend of the Thatched Cottage, now can not judge, look at this Cottage have enough patience, and how to achieve differentiation. “

Senior Marketing Experts concluded that the prices were that “in the current market herbal cosmetics, disk from the market perspective, the best performance Herborist is undoubtedly the biggest opponents of this thatched cottage. Overlord in the launch of ‘Swift’ did not take long once again launched a new brand, to face the problem of high costs, as the thatched cottage in the future performance of the market remains to be seen. “

Industry is optimistic about the Cottage Ma “in Chinese traditional medicine in recent years, King has done a lot of work, from product development, raw materials to production, the Cottage has a base. Second, the cosmetics industry, competitive operating costs and brand high and, as recently listed in Hong Kong is King has quite a strong capital base. ”

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