Photo: CFP
Nearly 10 years working in Shiseido Wang Qi (a pseudonym), recent personnel changes, specifically, her job was to lower the basic salary will also be reduced. And she had the same experience of Shiseido's staff has more than 100 people, some of them chose to leave. For a Japan company, such adjustments are very rare.
Wang is going through, the organizational structure of the firm earlier this year was adjusted. After entering China 34, Shiseido began massive infrastructure adjustments--which are also very rare.
Major adjustments behind, is the headquarters of the company have lost patience with the poor performance of the market in China. Shiseido reported 2014 Shiseido's sales in China up to 114.8 billion yen (about 6.061 billion yuan), up 2.9% from 2013. Although sales still rose slightly, but compared to l ' 7.7%, amore Pacific 44% and Shanghai jahwa 19.8% growth, the results are really bad. And cosmetics companies, China was still being defined as emerging markets, compared to European and American markets, should have a higher growth rate.
To rebuild the Chinese market, Shiseido began top down organizational structure, personnel turnover is the first step. January 2015, Shiseido Taiwan firm Managing Director, China area manager Gao Yemao reassignment in March, Japan headquarters, "China business" business and marketing functions move to Shiseido (China) investment company limited; in April, the company has appointed German Ralph Ahrbeck for Shiseido, Chief Representative in China.
Executives in place, store sales focus growth into their first year of work, and for adjustment of the sales staff was put on the agenda.
In August this year, Wang was notified by the company and revoked her brand's regional Executive Manager position, new position equal to her former subordinate positions.
Including the popular cosmetics sector affected by the adjustment of its Za Ke's, the United States, pedicle and CS channels (cosmetic stores) UARA, Yee lisier brand and the artist haze. Department of high-end cosmetics, including SHISEIDO, IPSA, CLE de Peau (de Peau Beaut Cl é é) and other brands not listed the sales adjustment.
The past, Shiseido sales broken down by brands, each brand has its own sales director and team, each brand has its own regional and channel of distribution. Wang's brand in the Chinese market as a whole is divided geographically into six regions, 16 offices, heads of offices similar to Operations Manager, the Executive Manager responsible for all channels of the brand in the region. Further to the clothing line CR7 Cristiano Ronaldo
Now Shiseido sales by region, channel of distribution, the national market is divided into North, South, East and West of the four regions, each region sets Regional Director, unified leadership in the region, all business models across all brands, all channels, and manage business development agents in the district.
In each region, based on the percentage of business, geographic distribution and development potential, and is divided into different areas. Set up in each region a regional sales manager, centralized management of all brands, channels and business models in the area of operation and service of all agents.
Business team within the region will be divided according to two business models: a Shiseido cosmetic store business model pioneered in China, the other is a counter model. When journalists accept interface, Gao Yemao said, these two models would better meet the needs of various channels so as to promote the development of business.
Such Division to eliminate a number of brands merging of duplicate posts, involving more than 100 people, they were transferred or demoted a pay cut, was also being laid off. Wang is one of demotion with pay cut.
This will directly affect the Terminal sales, and increase 20% the number of people this year to focus most on the Terminal sales. After all, in China, Shiseido's brands not everyone has enough sales to support all channel sales personnel.
Wang Qi could understand "brand to the Mall fought for position will have more advantages", because sometimes in the same channel, Shiseido brand will appear with its fighting quality competition of the counter. But what she doesn't understand is, the newly appointed Director of sales to head of regional sales, many of them recruited from the outside, most of which are from companies such as l ' Oréal, and "even the new job title is reference to the l ' Oréal".
Gao Yemao denied the airborne was deliberate, and personnel adjustment will not bring change to the sales requirements, counter sales-oriented, like l ' Oréal, promotional activities, and the arrival of the huge market of the company's employees, will bring about some changes.
Sometimes, the change will also bring some trouble. For example, Wang said, late August early September, new sales manager was copying at l ' Oréal, marketing experience, Za has launched a "Add 19 to mask" activities, but died early as most shops do not have conditions to rush to hit 80 percent active.
Za brand with the cooperative model for the distribution of the Mall, shopping mall directly to the brand to buy goods, carried out by the management and sale of goods, the "product code" (that is, a bar code correspond to one item). Therefore, the "Add 19 to mask" activities that require the store set up a code to receive this 19, in the distribution line is difficult to work. But l ' Oréal to outlet mall as a way to counter a code to the final revenue settlement, such promotions without additional barcode support.
In fact, not only is the market in China, in the past few years, Shiseido's operations as a whole are caught in a quagmire of anemic growth. Lack of enthusiasm for marketing of the company, and large organization and Japan complicated hierarchy of the company reporting the company's decision-making and slower, slowing sales forced it to take reform measures.
In 2014, the Shiseido hired external managers 60 Masahiko Uotani, which is considered the biggest adventure in the current reform, you know, since 1872, the helm of the company has always been from internal training and Japan enterprises, it is also a tradition. Subsequently, Europe and form style was brought into this Japan company, a growing number of external managers to join. In the past year, Schwarzkopf before international Vice President of marketing for subsidiary Osiao, the former Estee Lauder regional VP Asia Pacific General Manager, Flavio Cotti before United States President and Senior Vice President of North America have joined the company.
At that time, Masahiko Uotani firm's main problem is that "no to changing market, consumer value and respond fast enough to the purchase." Subsequently, he reorganized the corporate structure, redesign of products from research and development to commercial processes, increased marketing costs and the permissions granted to each operating area for more. Meanwhile, he also stressed the importance of business and travel retail market.
Than 10% of l ' Oréal over sales marketing spending, Shiseido does too little bang for marketing especially advertising. According to Gao Yemao introduction, marketing costs about 8% per cent of total sales before, and this proportion will greatly increase, this figure may be higher than usual this year from 30% to 50%.
And l ' Oréal put big advertising marketing and meeting the needs of segments play different, Shiseido has been the high coverage of the channel close to the market and consumers, but with more and more competitors to follow up, coupled with slowing retail itself, in addition to increased investment in new channels such as e-commerce, Shiseido, more needs to be done for these brands to find their location.
In terms of product development, l ' Oréal tend to proceed from consumers, for a particular market segment to launch new brands or products, Shiseido is more based on a specific channel to develop new brands.
UARA store channel, the brand for two or three cities in China, and Shiseido launched the brand in order to occupy the low end products in the market.
Due to lack of advertising support, the recommended brands rely on dealers ' counter sales, compared to product performance, dealers are more concerned about this type of product pricing, rebates and sales materials support.
Now, with Chinese brands store channel increased inputs, UARA products space is now being squeezed, more cruel is that if you give a good sales policies, the dealer may choose to abandon the UARA sales directly.
Past consumer research also need to be replaced with a new refreshed brand for consumer categories. Gao Yemao Office combed the company's brand in China, survey of nearly 5,300 Chinese consumers. Different according to age, income, education and other classification methods, Shiseido to consumers from the "emotional" classification. Finally, divided into 12 categories of customers, similar to the chic, elegant, and willing to, product composition and other such descriptions, and sales in the Chinese market itself more than 20 kinds of products to fill in the blanks, in all aspects of development, marketing, sales and better closer to the consumer.
For example, SHISEIDO, Gao Yemao hope this emotional selling brand falls on "from Japan, modern, high technology" in order to attract young people pursuing fashion and products. According to the emotional needs, SHISEIDO needs to upgrade the existing position to attract younger consumers.
Fill in the process, Gao Yemao said he also found some market. For example, categories like beauty care and cosmetics market is developing rapidly in China, Shiseido also has the brand, but not to China, such as NARS.
For a veteran cosmetic companies, this is a little bit too "belated awareness". Makeup is an important source of impetus to the development of China's cosmetics market, 2014, China's cosmetic market research and development Outlook report data show that cosmetic markets in recent years to achieve a growth rate of nearly 50%. Shiseido's rivals have targeted this market potential for development, not only of l ' Oréal, Estee Lauder, amore Pacific traditional cosmetics company increased marketing spending, even UNIQLO, muji, and Tom Ford this kind of "lay" on China's cosmetic market you want to share.
NARS firm acquired in 2000 is the professional make-up brand, although not to enter the Chinese mainland market, but already has a good reputation, many Chinese consumers through Taobao, overseas purchase, travel to Japan to buy this particular brand of product. But in the face of such a consumer demand, Gao Yemao only gave "we are already assessing the feasibility of NARS was introduced into China, probably in a year or two later," expectations.
Shiseido seems to prefer the first plays on the existing products in the Chinese market. Gao Yemao said, in order to adapt to market changes and changes in consumer demand, the local production in China, products for the China market, will shorten the development cycle. Previously, Shiseido China's new product development cycle at more than one year. Now, with the use of research and Development Center in Shanghai, as well as more local research and development personnel to join, in addition to special types such as whiten, sunscreen products, other product development time is expected to be controlled within a year.
According to Masahiko Uotani 2020 business objectives released at the end of last year, Shiseido plans to income and operating profit before 2020 respectively exceeded 1 trillion yen (about 52.8 billion yuan) and 100 billion yen (about 5.28 billion yuan), China's target of 200 billion yen (about 10.56 billion yuan), the compound average growth rate of 9%. Gao Yemao, his primary goal is to drive sales growth in the first year, all of the reforms is to this objective.
But these adjustment measures can really help him achieve goals, has yet to be observed.
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