Market Entry into North America for a Domestic Daily Chemical Company
Go Global
Project Background and Purpose
Client Profile:
China's leading daily chemical company, with 6 major product lines such as home cleaning, personal care, etc., with a domestic market share of more than 30% and annual sales of more than 5 billion yuan. Due to increasing homogenization competition in China, it is in urgent need to develop the second growth curve.
Core Claims:
Rapidly enter the mainstream retail channels in North America.
Build brand awareness and avoid the label of "low-cost OEM".
Optimize the product portfolio by accurately matching the needs of North American consumers.
Project Implementation Methodology
Execution Challenges
1. High channel barriers
The average entry cycle for new brands in mainstream channels such as Walmart takes 9-12 months.
Admission fee for large-scale supermarkets and KA channels exceeds $500,000 per product.
Local brands occupy more than 80% of the shelf resources.
2. Significant differences in consumption
North American Consumers Prefer Concentrated, Eco-Certified Products.
Chinese supermarkets' unit price is only 60% of that of local supermarkets.
3. Compliance Costs Surge
EPA certification cycle time up to 6-8 months.
California's Proposition 65 Increases Costs of Packaging Retrofits.
Customized solutions:
Precise market entry
Focus on Southwest Chinese neighborhoods (California/Texas) to build model markets.
Adopting the dual-track system of "local supermarkets+ Chinese supermarkets" for distribution.
Phased implementation
Phase I (3 months): Access to 38 Chinese supermarkets through local distributors.
Phase 2 (6 months): Target base category access completed, first 12 stores on shelves.
Phase 3: Optimize SKU mix based on sales data.
Project results
Established 82 points of sale covering the east and west coasts in 12 months. The average monthly sales rate grew from 58% to 72% in the first month, an increase of 14%; the product unit price grew from $9.5 to an average of $11.2, an increase of 18%. The company not only saves hundreds of thousands of dollars in channel costs, but also increases the brand's premium ability through precise customer targeting.
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Ask a question
Want to know how we can help your business grow? Contact us!
Loya International Marketing Research Co., Ltd.
Tel:+86 (0)20-38361007
David|13533653828|David@dgchina.com
Location: Guangzhou, China
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