- Well-known direct marketing expert dialogue, the Kowloon side horse management consultant, general manager of hosts
Win Weekly reporter Liu Huan
Win Weekly: What made you think Avon takeover rumors circulating in the city? If the rumors are true, Avon (China) is caused by a loss of Avon will be the acquisition of one of the reasons?
Of hosts: Avon, L'Oreal 19 billion U.S. dollars acquisition of the news media passed over from Europe. Avon acquisition is for the whole group, and did not single out the Chinese market to consider. We stand in the domestic market, indeed in the loss of Avon, Avon (China) high indeed have not been able to find effective ways to address them. But we can not just focus on domestic market only, in Latin America and other overseas markets, Avon is a very good business. The global market, Avon sales growth is the. So, even if the rumors are true, Avon, L'Oreal acquired by reason, not because of their poor management, not performance, but will not be because the Chinese market, dragged down by the Avon, causing the whole group can not be supported because the Avon (China) and its global market share is not too large. Reason must be comprehensive in nature. If Avon is willing to be acquired, then, according to my analysis, it should be standing on top of Avon's global strategy point of view to consider the resulting strategy. Or to win, or capital in order to better carry out the operation. On the current situation, whether for strength, brand or product influence, etc., are better than Avon, L'Oreal, and L'Oreal acquired more success stories. The rumor came out, jumped from the Avon capital market reaction to this can be seen, it was generally that the terms of the acquisition of events was a good Avon.
Win Weekly: If the rumors are true, then you believe that the acquisition of Avon, L'Oreal What is the motive?
Of hosts: the acquisition of L'Oreal has been the usual way. Pyramid structure in the L'Oreal brand, many brands are the come through acquisitions. In China, it acquired Yue-Sai and small nurse. Avon today, if the acquisition is that it develop new markets, expand the brand's habitual. Date of acquisition can be relatively mature giant brands, products and marketing channels. Procter & Gamble, Unilever and other Japanese technology giant currently has direct sales channel,nhl hockey, while L'Oreal is no, or relatively weak, so L'Oreal has been trying to get through the acquisition of relatively sophisticated form of direct sales channels, improve its strategic layout, 2006 years, it had acquired the British brands The Body Shop. Released news that the market was a very important reason, is leveraging the Body Shop L'Oreal to do direct marketing testing ground. At that time, the Body Shop has thousands of stores, the channel with perfect, and has been in direct sales to build their own networks. So now, for L'Oreal, the acquisition of direct selling companies is not a very strange thing.
Win Weekly: So, you think that L'Oreal acquired the likelihood of Avon?
Of hosts: the possibility of acquisition should be said that relatively large. In the current market, the Japanese phenomenon of cross-holdings of the giants is more common, the acquisition is also a very normal thing. L'Oreal holds the current high level of direct marketing attitudes the two can not exclude the direct marketing as a sales channel. Direct sales of cosmetics and skin care products or a channel for this effect has received wide recognition in the market. However, such acquisitions are often related to the negotiations between the giants and the giants. In my opinion, if the acquisition of Avon, the difficulty involved will include the following aspects: First, the price could not agree. But this can be achieved through high-level negotiations and mutual compromise solution. Second, is this large acquisition may be subject to national or EU arbitration to prevent the formation of monopolies. The amount involved from the current point of view, L'Oreal is still not possible existence of a monopoly. There is convergence between the two giants. Personally, I think L'Oreal love Avon, Avon took a fancy to the direct sales channel. So even if the acquisition of Avon L'Oreal, Avon should not change the direct sales force and direct sales model, at most only be optimized. Avon ladies all over the world, the channel is very mature, there is no need to make fundamental changes.
Win Weekly: some market participants fear that if the acquisition of Avon, the brand will not be acquiring the freezer?
Of hosts: L'Oreal acquired a lot of brands, many of these brands was very successful operation. Such as the UK's Body Shop, China Yue-Sai, a small nurse, still are developing very well now, many places you can buy. In my opinion, since the L'Oreal acquisition assumptions can come back to Avon, not only to leveraging each other's channels, but also need to leveraging each other's brand, so there should be no need for deliberately frozen.
Win Weekly: Traditional Japanese Enterprises and direct marketing giant
Of hosts: L'Oreal acquired The Body Shop, the Body Shop is still operating independently. L'Oreal Body Shop fifty percent accounted for only a few shares in the capital market holding. This is similar to a large group acquired a small company, but still retain the original company's establishment, this company can still be acquired to operate independently. But, through the acquisition by L'Oreal, The Body Shop's strength increased. L'Oreal its resources into a better, more mature management and its strategic development to control and so on. Similarly, even if the rumors of the establishment, acquisition success, I think that after the merger, or L'Oreal L'Oreal, Avon or Avon is also, there should not be sold to integrated or conflict. Avon modes in acclimatized, it was Avon their own problems. Can also think of ways to solve.
Of course,vibram 5 fingers, the L'Oreal may design a new system of product distribution channels into the Avon, and Avon channels will therefore be added to the vitality of the new factor, Avon existing direct sales force will therefore gain more influence on the sales of brand products. In my opinion, even after the acquisition, Avon sales of existing products will be synchronized. Then, whether the original Avon products, or L'Oreal products sold through the Avon channel will survival of the fittest, but this is the market making a choice.
Win Weekly: Suppose the establishment and successful M & A rumors, will give daily chemical industry, what kind of impact?
Of hosts: If the rumors are true, the acquisition of successful integration of the two parties and well, that L'Oreal will be more powerful. Avon still a good global brand, a loyal consumer groups have their own, but also has a large direct sales channels. L'Oreal product line itself is very rich, there are many channels for the acquisition of Avon's success is its meaning a channel expansion. Avon it, you can be acquired greater strength support.
Competition from the giant level, if the M & A success, L'Oreal in with Procter & Gamble, Unilever, the same competitive level, the chips will have more. But even so, in the global market and even the Chinese market, L'Oreal will not be a single large,mac makeup, cosmetic giant's overall market structure also will not be rewritten. After all, this a few days of the giants in the global market share is considerable, and the acquisition of capital operation and other giants will only greater, but there is no way the formation of oligopolies. Day of the global market is very competitive,insanity dvd, although the high incidence of foreign capital on the operation of enterprises, the Chinese daily chemical industry will have some impact, but this pressure has actually been there, will not that put the market at once washed out . Cake on a large chemical industry, doing a good day with its own brand, or living space.
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