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The Economic Downturn, Unilever Took The "Layoffs" To Avoid Winter.

2013/12/19 21:29:00 23

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Economy Unilever Layoffs Procter & Gamble L'OREAL

although Ceng Xiwen href= "http://www.91se91.com/news/index_c.asp" > Unilever < /a > China vice president, in an interview with reporters, she said that it was not convenient for us to comment on Unilever's global policy. But Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, looked at the situation of international economic slowdown. Layoffs only temporarily reduce the pressure of performance by reducing the cost of enterprises, and can not radically improve the profit structure of Unilever. "A"

whether the layoffs will involve China, Ceng Xiwen told reporters: "the Chinese market is still at a stage of development, Unilever is constantly increasing investment.

It is not ruled out that there will be individual staff adjustment, but the total number will definitely increase. "

the industry believes that in the Chinese market, with the rise of local daily chemical enterprises and the increasingly fierce competition in daily chemical products, Unilever must improve product lines, strengthen channel management, reduce overall marketing costs, and adjust output according to market changes to improve market share.

in addition, in the food business, it is also an important strategy to increase the catering plan and promote the business to the profitable brand side.

layoffs reduce costs

since this year, the daily growth rate of Unilever's "a href=" http://www.91se91.com/news/index_f.asp "P & G > /a" has obviously slowed down.

Unilever's third quarter financial report released at the end of October is the worst quarterly performance since the fourth quarter of 2009.

report shows that its turnover in the third quarter was 12 billion 500 million euros, down 6.5% compared with the same period last year. Sales growth in the emerging markets that contributed more than 50% of Unilever's sales increased to 5.9%, up from 12.1% in the same period last year.

Paul, chief executive of Unilever P, said that consumer demand in countries like India, Indonesia and Brazil has been declining due to the macroeconomic environment and the weakening of the currency, leading to the unoptimistic situation of Unilever in the three quarter of.

According to Bolman, the slowdown in emerging markets will continue for several years.

Less than P, Unilever's round of layoffs is aimed at improving efficiency and coping with slowing global economic growth.

Anglo-Dutch Company Unilever plans to cut its sales of personal products by 30% by the end of 2014, and improve its supply chain and efficiency, and try to focus on Dove, dream ice cream and other major brands.

so Unilever has triggered a new round of "a href=" http://pop.sjfzxm.com/popimg/fz/index.aspx "layoffs" < /a >, the company said it is cutting about 2000 jobs, of which the market department will lay off more than 800, with a reduction of 12%.

As for the reasons for the layoffs to the market department, some analysts pointed out that Unilever has come to "fast selling companies have cut other sectors to skin and bones, and can no longer be reduced."

Unilever said that the current round of layoffs will save 500 million euros ($683 million) next year, which greatly reduces the cost of the enterprise.

"global layoffs will reduce the cost burden inside the company. If the market changes little, the cost reduction will directly increase its profit level and temporarily alleviate market pressure."

Zhao Ping told reporters.

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under the influence of the daily chemical industry, the daily chemical giants who choose layoffs to ease the pressure of performance are more than Unilever.

More than a year ago, Procter & Gamble had also thrown out a plan to slash 5000 people in the world, including 1000 marketing staff, and said it would lay off 2% to 4% per year.

In addition, Colgate, Energizer holdings, Johnson and other companies also adjusted the company's results last year and earlier this year, and all involved the marketing department.

Zhao Ping believes that the layoffs of daily chemical giants mean that the time needed for economic recovery is relatively long, and the hope for recovery is relatively slim.

Many large enterprises have relatively high market position and strong competitiveness, but they are unwilling to bear the pressure of performance and choose to lay off workers.

"P" and whether the layoffs will involve China, Ceng Xiwen said in an interview. "The Chinese market is still at a stage of development, Unilever is constantly increasing investment.

Unilever has 400 international brands, but there are only more than 20 in the Chinese market. In the future, there must be a continuous introduction of brand names. There will not be any adjustment for individual personnel, but the total number of people will definitely increase. "

strengthening category R & D and adjustment

in the Chinese market, with the rise of local a href= "http://www.91se91.com/news/index_x.asp" and "daily chemical brand" /a, the era of international monopolization of Chinese market has gradually gone.

according to statistics, in 2012 1-12, the total number of manufacturing enterprises in the above scale daily chemical industry was 1332, and the total assets of daily chemical products manufacturing industry totaled 213 billion 908 million 700 thousand yuan, an increase of 6.98% compared with the same period last year. The sales income reached 348 billion 94 million 200 thousand yuan, an increase of 11.06% over the same period last year, and the total volume of the total profit was 34 billion 127 million 100 thousand yuan, an increase of 17.44% over the same period last year.

in recent years, P & G has been troubled by the decline in performance and profit growth. Its first quarter fiscal year 2014 report shows that net sales for the quarter were $21 billion 210 million, a slight increase of 2% over the same period last year.

in addition, L'OREAL, the world's largest cosmetics group, has a three quarter revenue of 5 billion 480 million euros ($7 billion 500 million), down 0.8% from the same period last year. It has been a rare 1.2% decline in the Asia Pacific market as a result of its growth.

Compared with P, the performance of domestic cosmetic brands seems to be more beautiful.

Among them, Shanghai Jahwa three quarterly report shows that its net profit increased by 45.14%. Meanwhile, Guangzhou's third quarter net profit also increased 15.86%.

According to the data provided by the industry, the local daily chemical enterprises of Li Bai and nice are also joining the 10 billion club of daily chemical.

from the Chinese market, the market share of international giants such as P & G and Unilever in washing products, diapers and toothpaste has been decreasing in recent years.

Data show that as of the first half of this year, the share of local daily chemical brands has reached 45%.

In 2007, the blue moon accounted for only 14% of China's washing market, and this year it has reached a miracle of 63%.

Local skin care brands such as gazelle, Herborist, CHCEDO and so on are constantly starting their own market brand.

Unilever has a total of more than 400 brands in the world, and currently only about 20 in China.

It mainly includes: beauty series such as POND'S, Qingyang, HAZELINE, Lishi, Dove, Vaseline, jenno, family care such as mystery, gold spinning, food such as Lipton, Jiale, four seasons treasure, good Le men, and wall's.

Some of these brands come from the acquisition of local brands, such as Chinese toothpaste, old Cai soy sauce and so on.

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Therefore, in order to fight for market share, Unilever and Procter & Gamble have to take a low price marketing strategy, hoping to break through the tight encirclement of competition and recover the lost market share through P.

Statistics show that the sales volume of P & G shampoo and Unilever detergent has accounted for more than 50% of the total sales volume.

insiders pointed out that in the past two years, the competition of the daily chemical industry has become increasingly fierce. In order to occupy a market place, the major businesses are fighting a price war with a view to gaining market share through price advantage. The result of this action must be to sacrifice profits.

So Unilever wants to grab market share only by relying on low price competition is not a permanent solution.

Huang Zhidong, a senior daily marketing planner, told reporters that the core issue of marketing competition is category competition and the realization of category confrontation, dislocation and correlation. Therefore Unilever has stepped up the development and adjustment of categories.

"strategic adjustment in the short term, layoffs are the first step. The second step is to adjust his market focus to further segment the middle end and high-end areas."

In the long run, Zhao Ping believes that Unilever still needs to adjust its product line, strengthen its channel management, reduce its overall marketing cost, and adjust its output according to the market changes so as to meet the market demand so as to truly achieve the goal of developing the market.

do not give up food business /p >

Below P, for the two roles of Unilever, Unilever, which is both a daily chemical manufacturer and a food manufacturer, in the Chinese market, besides the fierce competition of daily chemical business, its performance in another major business catering planning also showed a downward trend.

2013 semi annual report shows that sales of Unilever family care and personal care business increased by 10.2% and 7.7% respectively, compared with the 1% increase in food sales.

At the beginning of this year, Unilever sold its famous peanut butter brand "four seasons treasure" and its factory for $700 million for the US Hormel Foods Corp in the form of $p.

Since then, in August of this year, the daily chemical giant Unilever sold its Wish-Bone salad dressing business again. The famous packaging food manufacturing commodity, "a href=" http://fz.sjfzxm.com/ "black stone group" /a "(BX), announced that it agreed to buy it at a price of US $580 million.

Less than P, it is worth noting that Procter & Gamble has sold one of the food brands such as fujue coffee, Jeff peanut butter and so on since 2005.

In February 2012, Procter & Gamble sold its last food brand "Peike" at 2 billion 700 million US dollars to Jiale. Since then, Procter & Gamble stripped its food business and concentrated resources on the manufacture and sale of personal care and cleaning products.

Unilever, which has been strategically pursuing Procter and gamble, will also abandon its food business and specialize in personal care and cleaning business, which has led to market speculation.

"throw away some of the burden and temporarily abandon the less profitable areas and brands, which is the same strategy as layoffs, that is, shrinking the front line."

Zhao Ping said, but Procter and gamble and Unilever in the food business profit ratio is different, Unilever 50% of global income from food sales, which shows that Unilever can not abandon the food business.