Chuan Johnson & Johnson has agreed to Dabao on the acquisition plan
The news of Johnson & Johnson’s acquisition of Da Bao, a famous Chinese daily chemical company, is rumbling in the industry. According to reports, direct sales giant Avon and Shanghai Jahwa are also interested in acquiring Dabao.
As of Friday, neither Johnson & Johnson nor Dabao had given a clear answer to the matter. Johnson & Johnson Public Relations Manager stated that the department did not receive relevant information. Last week, Wang Huaiyu, Secretary of the Party Committee of Dabao, told the media that Dabao was waiting for the approval of the government and other inconveniences were revealed. Tai Po, a manager, revealed that Dabao is currently talking to a foreign company, but he is not clear about the details. According to industry sources, as early as Shuanghui was acquired by Goldman Sachs Group, Johnson & Johnson submitted an application for the acquisition of Dabao to related departments. At present, the two parties have reached an agreement on the acquisition plan and only wait for formal approval documents from the higher authorities.
Speed ​​of development trapped
After Beijing Sanlu Factory was renamed as Beijing Dabao Cosmetics Co., Ltd., Dabao experienced a period of rapid development from the early 1990s to the present. From 1990 to 2004, Dabao had paid more than 1.1 billion yuan to the country. Since its development, Dabao's main direction has always been the low-end cosmetics market. In the second and third line markets, Dabao has an indispensable influence. However, relevant data show that since 2003, Dabao’s sales performance has consistently hovered around 70-8 billion yuan, and the pace of development has slowed down significantly. In 2005, Dabao sales reached 780 million yuan, ranking the top in the domestic skin care products companies. However, in the entire Chinese cosmetics market share of 70 billion yuan, Dabao only accounted for 1.
Low-end strategy becomes a bottleneck
According to industry insiders who are familiar with Dabao, the positioning of Dabao's low-end market once achieved its glory in the Chinese cosmetics market. However, the profit margin of about 2% of low-end products is limited, which is undoubtedly an important bottleneck for the development of Dabao. It is reported that the profits of foreign cosmetics companies can be as high as 20-30. In addition, Dabao’s top-quality products are always SOD honey, and its sales account for more than 80 of Dabao’s 80+ product sales, while other advantageous products are few, and Dabao’s efforts to get involved in the midrange cosmetics and make-up fields have not been recognized by the market. .
The impact of international giants
As a local company that specializes in the low-end cosmetics market, Dabao once had a considerable advantage in the secondary and tertiary markets. However, in recent years, the international cosmetics giant has begun to force the domestic low-end market, such as L'Oréal to purchase a small nurse, which undoubtedly brought great pressure and impact on Dabao. Some industry insiders believe that the joint foreign giants will use their brands, funds, and technology to become the development trend and necessary path for domestic cosmetics companies.
In addition, in addition to Dabao, the “Yu-Mei-Net†with the lower-end cosmetics market may also become a Johnson & Johnson’s M&A target.
News link
Baidu “Dabao Cosmetics†found a total of about 156,000 related pages. Beijing Dabao Cosmetics Co., Ltd. was established in 1999 and formerly known as Beijing Sanlu Factory. "Dai Bao" series of cosmetics since its inception in 1985, has gradually formed skin care, shampoo, beauty modification, perfume, special purpose, a total of five major categories of more than 100 varieties, "Tai Po see every day" TV advertising language is even more resounding from the north to the south.
As of Friday, neither Johnson & Johnson nor Dabao had given a clear answer to the matter. Johnson & Johnson Public Relations Manager stated that the department did not receive relevant information. Last week, Wang Huaiyu, Secretary of the Party Committee of Dabao, told the media that Dabao was waiting for the approval of the government and other inconveniences were revealed. Tai Po, a manager, revealed that Dabao is currently talking to a foreign company, but he is not clear about the details. According to industry sources, as early as Shuanghui was acquired by Goldman Sachs Group, Johnson & Johnson submitted an application for the acquisition of Dabao to related departments. At present, the two parties have reached an agreement on the acquisition plan and only wait for formal approval documents from the higher authorities.
Speed ​​of development trapped
After Beijing Sanlu Factory was renamed as Beijing Dabao Cosmetics Co., Ltd., Dabao experienced a period of rapid development from the early 1990s to the present. From 1990 to 2004, Dabao had paid more than 1.1 billion yuan to the country. Since its development, Dabao's main direction has always been the low-end cosmetics market. In the second and third line markets, Dabao has an indispensable influence. However, relevant data show that since 2003, Dabao’s sales performance has consistently hovered around 70-8 billion yuan, and the pace of development has slowed down significantly. In 2005, Dabao sales reached 780 million yuan, ranking the top in the domestic skin care products companies. However, in the entire Chinese cosmetics market share of 70 billion yuan, Dabao only accounted for 1.
Low-end strategy becomes a bottleneck
According to industry insiders who are familiar with Dabao, the positioning of Dabao's low-end market once achieved its glory in the Chinese cosmetics market. However, the profit margin of about 2% of low-end products is limited, which is undoubtedly an important bottleneck for the development of Dabao. It is reported that the profits of foreign cosmetics companies can be as high as 20-30. In addition, Dabao’s top-quality products are always SOD honey, and its sales account for more than 80 of Dabao’s 80+ product sales, while other advantageous products are few, and Dabao’s efforts to get involved in the midrange cosmetics and make-up fields have not been recognized by the market. .
The impact of international giants
As a local company that specializes in the low-end cosmetics market, Dabao once had a considerable advantage in the secondary and tertiary markets. However, in recent years, the international cosmetics giant has begun to force the domestic low-end market, such as L'Oréal to purchase a small nurse, which undoubtedly brought great pressure and impact on Dabao. Some industry insiders believe that the joint foreign giants will use their brands, funds, and technology to become the development trend and necessary path for domestic cosmetics companies.
In addition, in addition to Dabao, the “Yu-Mei-Net†with the lower-end cosmetics market may also become a Johnson & Johnson’s M&A target.
News link
Baidu “Dabao Cosmetics†found a total of about 156,000 related pages. Beijing Dabao Cosmetics Co., Ltd. was established in 1999 and formerly known as Beijing Sanlu Factory. "Dai Bao" series of cosmetics since its inception in 1985, has gradually formed skin care, shampoo, beauty modification, perfume, special purpose, a total of five major categories of more than 100 varieties, "Tai Po see every day" TV advertising language is even more resounding from the north to the south.
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