National toothpaste fell to the altar: it has been selling for the first time in 15 years and is now losing 12 years.

category:Global
 National toothpaste fell to the altar: it has been selling for the first time in 15 years and is now losing 12 years.


Whether or not the nitidine can give you a good tooth, consumers have their own judgement. But nitidines own teeth have not chewed up the huge toothpaste market in China. The household toothpaste brand, known as the household name, has been losing money for 12 consecutive years since its net profit from non recurring gains and losses since 2006. To this end, in April 27th, the Shanghai stock exchange sent an enquiry letter to nitidine: Why did it lose net profit for 12 consecutive years, and what is the profitability of the company? Nitidine is only a microcosm of the development of local toothpaste. Earlier, many famous domestic toothpaste, such as black sister, holy peak, blue sky and so on, have been reduced to two or three brands. Non net profit loss for 12 consecutive years As an old brand daily chemical enterprise, two needles started from Chinese herbal toothpaste. In 2001, the annual production and sales of two faced needle toothpaste were 400 million, and the number of sales ranked first in 15 years. In January 2004, the two faced pins were listed on the Shanghai stock exchange, the first listed company in the industry. Visual China However, the performance of Zanthoxylum nitidum began to decline since the listing year, and the net profit began to lose at the third year after listing. In recent years, the two needles have expanded greatly. The current business involves five plates of daily chemical, paper, medicine, fine chemical and real estate. However, the performance has not been improved. Since 2006 ~2017, nitidine has been deducted from net profit for 12 consecutive years. Over the years, Zanthoxylum nitidum has been relying on non operating earnings to maintain. Letter of picture: inquiry letter from the Shanghai Stock Exchange According to the 2017 performance report of two needles, its operating income was 1 billion 472 million yuan, a year-on-year decline of 5.74%; the net profit attributable to the shareholders of the listed company was -1.44 billion yuan, and the non net profit was -1.54 billion yuan. Compared to last years net loss of 144 million yuan, in 2016, the net profit of nitidine was 26 million 900 thousand yuan. But this is not because it sells well, but rather depends on the sale of assets. In that year, two sided needles sold CITIC Securities stock to gain 157 million yuan, and received 15 million 970 thousand yuan from Shenzhen CITIC Joint Venture Capital Co., Ltd., and 12 million 390 thousand yuan for sale of land and ground buildings on Changfeng Road 2. Huang Zhidong, an expert on marketing planning of the daily chemical industry, told Daily Economic reporters that the two needles were from the peak to the bottom of the valley. One was the chaotic pluralistic development strategy, which led to the continued decline and even loss of the overall performance, especially the loss of the toothpaste main industry; the biggest problem of second, second facial needles lies in the mechanism. Used or limited. It is impossible for us to break through the trap of pluralistic development and realize the two sided needles to turn over the market. Huang Zhidong further analyzed that selling securities of CITIC Securities and selling off the flag companies would always be sold out. If enterprises fail to hematopoiesis, they may eventually be eliminated by the market. This point can be seen from nitidine 2017 earnings report. Last year, Zanthoxylum nitidum did not sell CITIC Securities, and the net cash flow generated by investment activities also turned negative. Two sided needles in 2017 The cost is too high and the gross interest rate is too low. With regard to the companys continuous profitability, the letter of exchange asked for two needles to show the changes in the gross interest rate of the main products of the last three years, the trend of the main products and the corresponding raw material prices, the changes in the main factors affecting the price of products and raw materials, the level of three fees and the influencing factors, and the data in the same industry with the companys data. Contrast. The daily economic news reporter found that the price of sorbitol, one of the main ingredients for household and hotel toothpaste, was 1.13% lower in raw materials, while the price of silica rose by 8.47%. In addition, the annual report revealed that the price of the two-sided net shop was up 41.64% over the previous year, mainly due to the increase in the salary of the terminal counter of the Japanese plate, while the advertising fee dropped by 37.47% over the previous year. In 2017, the gross profit rate of nitidine daily chemical products was 22.76%, and in recent years, the gross profit margin of nitidine daily chemical products was hovering between 21%-22%. Huang Zhidong told reporters that at present, the toothpaste gross profit margin on the market is polarized. Low end toothpaste and high-end toothpaste profiteering, low end toothpaste market retail price of 5~7 yuan /100 grams, and high-end toothpaste market retail price of 30-50 yuan /100 grams, compared with Colgates gross margin of close to 60%. In fact, the two needles have also introduced high end toothpaste. In 2013, a high profile of two needles was announced to return to the main industry with a brand new two - sided Chinese medicine toothpaste with 59.9 yuan / branch, and actively invited stars to be the spokesperson for the image. Channel and promotion are both setbacks The present situation of Zanthoxylum nitidum is only a microcosm of the decline of domestic toothpaste. In the same way as two needles, there are black girls, China, Tianqi, blue sky six must, dentist, etc., these brands either become second line brands, or have already sold out to others. For example, Tianqi toothpaste has obtained over 4 billion annual sales and annual sales revenue of 1 billion yuan per year before and after 2004, but because of the mistake of strategic decision, it deviates from the daily chemical industry, disperses the investment and management energy, which leads to the increase of financial cost and the shortage of funds. In 2014, Tianqi had its own brand of toothpaste and was forced to stop production. In May 2016, Tianqi toothpaste began to be restarted. According to the 2016 statistics of AC Nielsen and China oral cleaning products industry association, the top ten toothpaste market share were black (20.6%), Yunnan Baiyao (17.8%), Crest (11.1%), Colgate (9.8%), cold acid Ling (5.8%), China (5.6%), Saky (4.8%), and Neles (3.2%), and comfort. (2.6%) and six must be treated (1.4%). Photo source: a perturbed net In TOP10, foreign brands accounted for 49.70%, local brands accounted for 33%, and the rest accounted for 17.7%. Foreign brands account for half of the world. And Huang Zhidong believes that when foreign brands enter China, they can increase their market awareness and occupy the market quickly through heavy advertising. Moreover, the foreign brand is more innovative than the local brand, and gradually captured the hearts of consumers. According to the Nelson net to provide the data to the media, the total amount of the toothpaste brand in TV media is over 13 billion yuan in 2015. The cosmetics / personal hygiene products belonging to the toothpaste products are one of the three industries with the highest advertising total in 2015. Huang Zhidong believes that in contrast, nitidine has serious problems such as serious aging of the brand, lack of advertising input and so on. At the same time, sales of toothpaste mainly come from Shang Chao channel. For a long time, the business super channel has been monopolized by foreign capital, because the cost of entering and the period is high. Many domestic brands are not able to control the super channel in business. The success of Yunnan Baiyao is the success of the supermarket. Yunnan Baiyao toothpaste is also rising with the concept of Chinese medicine. But in terms of channel construction, the sales channels of Baiyao in Yunnan have covered many kinds of personal care shops, such as drugstores, supermarkets, convenience stores, and Wanning. The annual report in 2017 revealed that the sales revenue of the direct selling channel of the company was 317 million yuan during the reporting period, 39.8% of the year-on-year decline, the sales revenue of the distribution channel was 1 billion 113 million yuan, 33.25% of the year-on-year increase, and the business platform operating income was 15 million 199 thousand and 200 yuan, and the increase of 308.85% compared to the same period. Over the same period, sales of domestic toothpaste and toothpaste were reduced by 7.06% and 14.66% respectively. Source: Daily Economic News Editor: Su Hong _NBJ9980 Huang Zhidong believes that in contrast, nitidine has serious problems such as serious aging of the brand, lack of advertising input and so on. At the same time, sales of toothpaste mainly come from Shang Chao channel. For a long time, the business super channel has been monopolized by foreign capital, because the cost of entering and the period is high. Many domestic brands are not able to control the super channel in business. The success of Yunnan Baiyao is the success of the supermarket. Yunnan Baiyao toothpaste is also rising with the concept of Chinese medicine. But in terms of channel construction, the sales channels of Baiyao in Yunnan have covered many kinds of personal care shops, such as drugstores, supermarkets, convenience stores, and Wanning. The annual report in 2017 revealed that the sales revenue of the direct selling channel of the company was 317 million yuan during the reporting period, 39.8% of the year-on-year decline, the sales revenue of the distribution channel was 1 billion 113 million yuan, 33.25% of the year-on-year increase, and the business platform operating income was 15 million 199 thousand and 200 yuan, and the increase of 308.85% compared to the same period. Over the same period, sales of domestic toothpaste and toothpaste were reduced by 7.06% and 14.66% respectively.