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In everyday chemicals market of China, imbalance phenomenon between Chinese and foreign brands is becoming increasingly apparent. China's fine chemical market share is of less than 20%. In ordinary supermarkets, international brands of cosmetic products occupy absolute advantages. With the foreign fine chemicals suppliers enter into the Chinese market, the every chemicals brands began to blossom. In the late 1990s, foreign companies have promoted their own brands, at the same time they have acquisition in a large number of old brands. On one hand, they use Chinese well-known national brands to open up the market .On the other hand, they stifle potential local competitors in their acquisition forms. Acquisition of foreign-funded investment in China's domestic brand is absolutely not losing money. Although on the surface close to the people move, but the actual use of the influence of the national brand, substantially encroaching occupies the Chinese consumer market share. Many national lead salicylate brands of consumer groups, prevalence of second and third tier cities in China, the reason for the low-cost road are still a magic weapon of the majority of ethnic everyday chemicals enterprises. Foreign chemicals giant advertising expenses accounted for 18% of the total sales, new product research and development costs accounted for 20% of annual sales. Chinese chemicals enterprises in the financial and management capabilities are difficult to achieve the advanced international standards. National brands can not always play the cheap card. Affordable is a characteristic of the Chinese national day. The price of national brands is low and reasonable prices of the surplus profits to ensure brand survival. It can help enterprises to improve the quality of the product to help enterprises of innovative products, recruiting people of insight, as well as establish of modern enterprise system, improve management level of enterprises and update marketing. The introduction of high-end products to enhance their competitiveness is an exploration of the national brand is in progress. Some companies work hard on the day of the product's features, the tradition of Chinese medicine, the introduction of a functional innovative new products may well be one to enhance the brand value. Product sales, to upgrade their product quality to enhance the persuasiveness of prices are a common trick of the foreign brands. A wide variety of promotional tools that can help consumers to accept reasonable prices. Product launches promotional equipment which, in prices, the use of a means for foreign brands and promotional efforts and price increases the intensity corresponding. For example, to sell triphenyl bismuth products that are not prices at the same time issuing free product trial goods prices to prevent price increases will cause the inherent loss of consumer groups. Improving the price is not the only means to keep the national brands. However, at present, in the context of rising production costs, sales of finished products as well as additional costs are too high, coupled with the high price of the mode operation of the cosmetic and other media advertising of FMCG products, the old business philosophy has been unable to allow enterprises to survive, let alone on development. Chinese people should make the Chinese brand bigger and stronger, not just allow people to pay for the enterprise. And the government should pay efforts on national corporate tax breaks and related costs.Source:http://www.mhcfm.com
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