"National Toothpaste" fall altar: for 15 years the first sales had continued to suffer for 12 years now

"Good teeth, double needle"。  Two needles in the end can give you a good teeth, consumers own judgment。But two needles own "teeth", she has been eating less than the huge Chinese market of toothpaste。  The well-known national brand of toothpaste, since mid-2006, net profit excluding non-recurring gains and losses have been at a loss for 12 consecutive years。  To this end, April 27, the Shanghai Stock Exchange to two needles sent a letter of inquiry: Why 12 consecutive years of net losses of non-deduction, how the company's profitability in the end?  Both sides of the needle just a microcosm of the development of the local toothpaste。Earlier, many well-known domestic toothpaste, such as black girl, Holy peak, blue sky six Bristol, have been reduced to the second and third tier brands。  Non-profit buckle 12 consecutive years of losses as a veteran cosmetic companies, two needles started from herbal toothpaste, in 2001, two needle toothpaste annual sales exceeded 400 million, and sales for 15 consecutive years ranked first, in January 2004, both sides needle listed on the Shanghai Stock exchange, becoming the first listed company in the industry。  However, two needles from the market's performance since the year began to decline in the third year on the market, non-profit began to buckle at a loss。In recent years, two needles massive expansion of the current business involves daily chemical, paper, pharmaceuticals, fine chemicals and real estate sector five, but still failed to improve performance。  Since 2006,?In mid-2017, two needles had 12 consecutive years of net profit for the deduction of non-negative。Over the years, two needles has been relying on non-operating income to maintain。  ▲ Source: letter of inquiry based on the Shanghai Stock Exchange 2017 performance report two needles, its operating income was 14.7.2 billion yuan, down 5 year.74%; attributable to shareholders of listed companies net profit -1.4.4 billion yuan, the deduction of non-profit -1.5.4 billion yuan。  1 compared to a net loss last year.$ 4.4 billion in 2016, two needles a net profit of 26.9 million yuan。But not because it toothpaste sold well, but by the sale of assets。That year, two needles CITIC Securities to sell shares to benefit 1.5.7 billion yuan; received CITIC Shenzhen Venture Capital Co., Ltd. a joint dividend 15.97 million yuan; sold Changfeng Road No. 2 ground dilapidated buildings and land reform, access to 12.39 million yuan。  Daily chemical industry marketing planning experts Huang Zhidong, told the Daily News reporter, two needles from peak to trough, one of its confusing "diversification" development strategy, resulting in overall performance continues to decline even losses, in particular, the "toothpaste" Lord industry lost; second, two needles biggest problem is that the mechanism of action or limited coaching change。A reform of state-owned enterprises no two needles, to break the trap of diversified development, to achieve two needles comeback is impossible。  Huang Zhidong further analysis, CITIC Securities to sell assets, or, selling a subsidiary worth mentioning, always sold out。If companies can not "blood", perhaps eventually eliminated by the market。  This is, from both sides of the needle earnings in mid-2017 can also be seen。Last year, two needles will be no sale of shares of CITIC Securities, net cash flow from investing activities has become a negative。  ▲ Source: two needles in mid-2017 earnings costs are too high, too low gross on the company's continued profitability, the Shanghai Stock Exchange requires two needles in the inquiry letter listed the major changes in the last three years of hair products, the main products and the corresponding raw materials price movements, changes affecting product and raw material prices the main factor of three fee levels and influencing factors, and compared with the same industry company data。  The Daily Economic News reporters Cha Xun and Liang Mianzhen the annual report found that raw materials, one of the main raw material sorbitol two needles for household and hotel reduced the price of toothpaste 1.13%, while prices rose sharply silica 8.47%。In addition, the annual disclosure, two needles shop counter fee increase of 41 over the previous year.64%, mainly due to the counter terminal remuneration cosmetic sector increased; and advertising costs lower than last year 37.47%。  In January, two needles will be released Pre-losing announcement, said in an intense day of competition in the industry, the company's household products such as toothpaste market share is low, higher cost of sales rate, coupled with rising raw material prices led to rising production costs, and therefore the main camp business is still losing money; in addition, the company's pulp, tissue products gross margin is still low, and the smaller scale, also dragged down the performance of listed companies。  Annual mid-2017, two needles Japanese products gross profit margin was 22.76%, while in recent years, the gross margin on both sides of the needle cosmetic products are hovering between 21% to 22%。  Huang Zhidong, told reporters that at present, the toothpaste market gross margin increased polarization state。The low-end and high-end toothpaste toothpaste profit profits, the market retail price of low-end toothpaste 5?7 yuan / 100 grams, while the high-end toothpaste market retail price of 30-50 yuan / 100 grams, compared with Colgate's gross profit margin of nearly 60%。  In fact, two needles has launched high-end toothpaste。2013, two needles 59 high-profile announcement to price.9 yuan / support new two needles Chinese Xiaotong series toothpaste return to the main industry, and actively invite stars as the spokesperson, CCTV advertising, increase sales channels, but the market does not endorse。  Channels and frustration on both sides to promote the status of two needles now, but the decline is a microcosm of toothpaste made in China。Downhill with the same needle on both sides, as well as black girl, Chinese, pseudo-ginseng, blue sky six Bristol, Dr. teeth, these brands are either reduced to second-tier brands, had sold themselves or others。  For example, Tianqi toothpaste had made around 2004 annual sales of more than 4 million, annual sales income of 10 billion outstanding performance, but because of the strategic decision-making errors, deviation from daily chemical industry, decentralized energy management and capital investment, resulting in financial increased costs, funding constraints。2014, "Tianqi" own brand of toothpaste was forced to stop production。May 2016, Tianqi toothpaste to restart production。  According to AC Nielsen, China Oral Care Products Industry Association 2016 statistics, the first toothpaste market share of ten were black (20.6%), Yunnanbaiyao (17.8%), Crest (11.1%), Colgate (9.8%), spirit cold acid (5.8%), China (5.6%), Shu-off (4-.8%), NICE (3.2%), Sensodyne (2.6%) and six Bristol (1.4%)。  In TOP10, foreign brands accounted for 49.70%, 33% of local brands, accounting for 17 other.7%。Foreign brands accounted for half。  And Huang Zhidong think, when foreign brands to enter China, hit heavily by advertising, increase market awareness, and quickly occupied the market。And foreign brands with respect to domestic brands, product image more innovative, gradually captured the hearts of consumers。  According to Nielsen media network linked to provide data show that toothpaste brand in the year 2015 put the total television advertising media of more than 13 billion yuan, cosmetics and toothpaste product belongs / personal hygiene products category is the highest total advertising in 2015 three one industry。  Huang Zhidong believe, by contrast, there are two needles brand serious aging, advertising fatigue and other problems。Meanwhile, domestic sales of toothpaste mainly from the super-channels。And for a long time, super-channels have been the monopoly of foreign strategy, because during the approach and the high cost of fees, many domestic brands in the super-channel control is not enough, Yunnan Baiyao success is the success of super supermarkets。  Yunnan Baiyao toothpaste is by virtue of the rise of the concept of traditional Chinese medicine。But in terms of building channels, Yunnan Baiyao sales channels have been covering many types of pharmacies, supermarkets, convenience stores, Wanning and other personal care shops, etc.。  Two needles in mid-2017 annual report disclosure, reporting period, operating income for the direct channel 3.1.7 billion yuan, down 39 year.8%, operating income was 11 distribution channels.1.3 billion yuan, an increase of 33.25%, operating income for the electricity business platform 1519.920,000 yuan, an increase of 308.85%。Over the same period, two needles household toothpaste, toothpaste travel sales are down 7 respectively.06 percent, 14.66%。