KrASIA’s Morning Briefing is a closed-door presentation that delves into a different industry every 1st and 3rd Tuesday of the month. Register here for the upcoming episode on FMCG, 20 April, 9 – 9.30am (GMT +8).
Is FMCG dominated by P&G and Unilever?
One might think that goods such as hand sanitiser or laundry detergent aren’t as noteworthy or exciting as the next big tech company. Yet on the context of China’s booming middle-class population (from 3.1% of the country’s population in 2020, to 50.8% in 2018), improved living standards begets consumers paying for higher quality, branded products. This also extends to the daily goods such as household care products.
Given the large population, the household care space in China is a competitive one. With the industry valued at USD 16.9 billion in 2019, and domestic and foreign competitors alike, the question is — what does it take to capture the attention of Chinese consumers? As the preferred laundry detergent brand for 11 years running (surpassing Unilever and P&G), perhaps we should look to Blue Moon.
Blue Moon — shooting for the stars
Rising with the wave of domestic brands that have gone public in recent years, Blue Moon stands as China’s number 1 detergent brand and is also one of the earliest domestic competitors. In December 2020, the company debuted on the Hong Kong Stock Exchange after raising USD 1.27 billion.
How did the company manage to beat out the likes of Unilever and P&G? What gave Hillhouse Capital confidence to invest in Blue Moon? And can the brand rely on its laundry products for future growth?
We discuss these questions in episode 5 of Morning Briefing. Join us on April 20, 9 – 9.30am (GMT +8)!