P&G plans new strategy to attract younger consumers
United States-based consumer goods corporation Procter & Gamble, which has enjoyed three decades of success in China, is refreshing its development strategy to cater to the nation's increasingly demanding younger generation of consumers.
P&G was among the first batch of multinational companies that entered into China. The company established its first joint venture in Guangzhou in 1988, and has now established a total of nine manufacturing plants and one research and development center in the country, with its products used by countless Chinese families.
Next generation
Along with the rapid growth of China's economy, the needs and preferences of Chinese consumers have undergone tremendous changes, and people who were born in the 2000s have become a major force in consumer trends.
He Yabin, vice-president of Marketing and Media at P&G Greater China, said the younger generation of consumers prefer personalized and diversified products. He used "pretty looks" and "charming intrinsic value" to describe product appeal among those young consumers.
The company is using a variety of strategies to entice younger consumers: attractive product design and packaging, the use of futuristic technology and fashionable language, to name a few.
"Based on big data research, strong products and marketing innovation strengths, we are starting to build new brands, which are young, personalized and can resonate with consumers," He said.
A newly introduced Crest dental device, for example, caters to consumers who pursue "fashionable, cool technology" in daily life. The advanced product uses the same cold light whitening technology from an American professional dentistry institution to quickly remove tooth stains and whiten teeth. Instead of running to the dental institution, people can enjoy dental beauty without leaving home, a prospect that has gained the attention of many young consumers.
Another innovation from P&G is the "Digital Shelf", which can capture the attention of consumers as they walk by. The Digital Shelf presents personalized multimedia content to consumers, even allowing them to better understand their own skin condition. At the same time, the intelligent shelf can provide consumers with an intimate, one-to-one virtual beauty advisory service.
Supply chain innovation
Leveraging internet technology, P&G has explored an innovative business strategy that combines online business with traditional offline sales by teaming up with domestic e-commerce leading platforms such as Alibaba, JD and Tencent.
Last year, P&G launched a Guangzhou-based digital innovation center, which focuses on digital marketing, big data, artificial intelligence, intelligent supply chains and technology incubation.
The company is also speeding up the pace of innovation in its supply chain. Their advanced supply chain system and solutions, including data and intelligent supply, can respond to consumers more accurately and efficiently.
"In addition to reshaping the relationship between retailers and suppliers, the supply chain system also promotes consumers' experience in an all-round way," said Jeffery Chen, the president of Product Supply at P&G Greater China.
The secret behind P&G's business success over its entire 180-year history has been its ability "to grasp the changing trends of different times and (its) keen insight into the individual needs of emerging consumers," He Yabin said. "The new development strategy's deep insight into young consumers, the product upgrading and the reshaping of the digital supply chain will allow P&G to further grow with Chinese consumers, and lead the industry's innovation."
