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Inflation of prices in Japanese cosmetics of small and medium-sized cosmetic enterprises causes consumers to start to hold back supplies. As long as we pay attention to the enterprises with inflation of prices, all blame the reasons for rising raw material costs of industry and overweight pressure of enterprise. But there are also inside people thinks this reason of cosmetic enterprise is untenable, because raw material price in some kinds of cosmetic products is different. Some only accounts for less than 40%, by contrast, cosmetic enterprise marketing costs occupied nearly 60% of cost, which is also increasing year by year. Therefore, inflation of prices in cosmetic enterprise price actually let consumers assume their increasingly high marketing expenses. For this inflation of prices in cosmetic enterprise, P&G and a number of other cosmetic enterprises explain that the raw material prices are rising. In fact, different kinds of cosmetic products eventually have different proportion of the raw material costs, such as washing powder may account for 60% to 70%, and toothpaste, shampoo account for 30% ~ 40%. The great part of the product price is used in the enterprise marketing and advertising. The daily marketing expenses of the advertisement of the product and promoters account for 50% ~ 60%. The advertising expenses are growing every year, which gives enterprise big pressures. For example, in the case of no big changes of CCTV channel resources, 2010 advertised bid inviting breakthrough 109 billion yuan, and bid inviting cost in 2011 prime-time amount for 126 million yuan. AC Nielsen survey shows advertising by 2010 of Chinese top three separately are P&G, L’Oreal and Unilever. The latest data of the American market research center Kantar Media, also shows P&G is at the eighth year supreme advertiser. In 2010, the company's advertising spending is 31 million dollars, 17.7% growth more than 2009. The Chinese market has low consumer brand loyalty, so cosmetic enterprise will need to increase advertising spending to maintain high exposure rate. And for multinational company, it brings the much smaller risk brought by inflation of prices than reducing exposure rate. Besides, the costs can be transferred to consumers. Hello, I’d like to give you a useful website to here you level up: dofus kamas. It gives you the best service, and hope to help you!
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Inflation, Prices, Cosmetics,
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