Skin Moisturizing

Copyright 2002 ACNielsen

Skin MoisturizingSkin Moisturizing

Updated to Jan/Feb2003


2

AgendaAgenda Skin Moist. Body Market Overview How XX Milk Help Brand Sales & Share Gain BB&Kids Cream, XX Cream Launch Evaluation Explore Skin Moist. Sachet Opportunity


3

Skin Moisturizer Sales Trend, NationalSkin Moisturizer Sales Trend, NationalMarket Growth Accelerated; Value Also Outgrew Market Growth Accelerated; Value Also Outgrew

VolumeVolume

0

2,000

4,000

6,000

8,000

10,000

12,000

JF01

MA01

MJ01

JA01

SO01

ND01

JF02

MA02

MJ02

JA02

SO02

ND02

JF03

0

200

400

600

800

1,000

1,200

1,400

1,600

Volume Sales(000Ton) Value Sales (000Rmb)

Total Skin Moisturizer

6% 9%4 Months Growth vs YA

2% 3%

Volume Value

MAT Growth vs YA


4

Product Segment Sales & Growth, Nat.Product Segment Sales & Growth, Nat.Growth of All Segments Accelerated; Facial Obtained Growth of All Segments Accelerated; Facial Obtained

Positive Value Growth While Body DeflatedPositive Value Growth While Body Deflated

1,7411,885 2,085

13,626 14,094

1,452

4Months to JF02 4Months to JF03

Eye Hand Body Facial

230 247

2,245 2,423

10096119 149


Eye Hand Body Facial

Volume Sales(Ton) Value Sales(Mil.Rmb)

6% 9%

3% 8%

11% 7%

20% 26%

4 Months Growth vs YA2%

0%

6%

14%

3%

2%

5%

17%

•Number in green is of the annual growth MAT JF03 vs MAT JF02


5

XX XX BodyBody Volume Sales Trend by Variant Volume Sales Trend by VariantMilk Did Help XX to Gain Sales In Passing Winter SeaMilk Did Help XX to Gain Sales In Passing Winter Sea

son vs YAson vs YA

0

50

100

150

200

250

JF 01 MA 01 MJ 01 JA 01 SO 01 ND 01 JF 02 MA 02 MJ 02 JA 02 SO 02 ND 02 JF 03

OIL UV OTHERS

REG LOTION UC LOTION MILK LOTION

Volume Sales-Ton, (National)


6

BodyBody Top 10 Brands Volume Share & Chg Top 10 Brands Volume Share & ChgSlower Growth Rate Cost Us Slightly Lost Share in Slower Growth Rate Cost Us Slightly Lost Share in

Passing Winter PeriodPassing Winter PeriodNational, Body Base

XX 20.0 19.7 -0.3 20.7 19.2 19.7 20.3 1.1

NIVEA 4.3 5.1 0.8 3.9 4.8 5.4 4.8 0

VASELINE 6 4.6 -1.4 6.4 5.6 4.9 4.3 -1.3

SOFTSENSE 1.8 2 0.2 2.2 1.4 2.2 1.8 0.4

National, Body Base 4M toJF02

4M to JF03 Chg ND 01 JF 02 ND 02 JF 03 Chg

•Mininurse White+UV contributed growth this season.

LONG LI QI 15.5 10.1 -5.4 13.4 17.7 9.9 10.3 -7.4

YU MEI JING 2.5 6.9 4.4 2.4 2.6 8.2 5.4 2.8

AN AN 5.6 3.5 -2.1 5.3 5.9 3.1 3.9 -2

SMISS 3.5 2.4 -1.1 3.2 3.8 2 2.8 -1

BAI QUE LING 1.8 2.2 0.4 1.5 2 2.5 1.9 -0.1

MININURSE 1 2.3 1.3 1.2 0.8 2.5 1.9 1.1

O.BRAND 37.7 40.9 3.2 39.5 35.9 39.9 42.2 6.3


7

BodyBody Top 10 Brands Value Share & Chg Top 10 Brands Value Share & Chg Slower Growth Rate Cost Us Slightly Lost Share in Slower Growth Rate Cost Us Slightly Lost Share in

Passing Winter PeriodPassing Winter PeriodNational, Body Base 4M to

JF024M to JF03 Chg ND 01 JF 02 ND 02 JF 03 Chg

XX 24.6 23.9 -0.7 24.6 24.6 22.7 25.5 0.9

NIVEA 7.8 9.1 1.3 6.8 8.9 9.4 8.8 -0.1

VASELINE 9.7 7 -2.7 9.6 9.8 7.2 6.7 -3.1

SOFTSENSE 1.9 2.3 0.4 2.2 1.5 2.4 2.2 0.7

LONG LI QI 8.5 5.4 -3.1 7.1 10 5.1 5.7 -4.3

SAKULA 2.9 4 1.1 3.3 2.5 4.5 3.4 0.9

AN AN 6.4 3.7 -2.7 5.7 7.1 3.3 4.3 -2.8

MININURSE 3.1 3.6 0.4 3.7 2.6 3.7 3.3 1

YU MEI JING 1.3 3.3 2 1.2 1.3 3.8 2.8 1.5

CATHY 1.1 1.6 0.5 1.5 0.6 2.2 1 0.4

O.BRAND 31.4 34.6 3.2 32.9 29.9 34.5 34.5 4.6

•Sakula promotion product help share gain.


8

BodyBody Sales Growth By Platform Sales Growth By Platform Deflation in Body Mainly Traced to Basic Body Lotion; Deflation in Body Mainly Traced to Basic Body Lotion;

Overall Lotion Still Captured Positive Growth while Overall Lotion Still Captured Positive Growth while Cream DeclinedCream Declined

Volume Share(Body Base)

TTL BODY 100 11

CREAM 35.2 -4

LOTION 51.3 26

Basic 43.5 25

Pure White 0.5 -56

Pure UV 4.2 54

UV+White 3.1 80

OIL 13.5 4

4M to JF03Growth vs YA

•Number in red is of XX product growth respectively.

(National)

100 7

35.9 -4

55.0 17

40.3 14

0.4 -59

8.8 21

5.5 66

8.8 3

Value Share(Body Base)

4M to JF03Growth vs YA


9

Body Basic LotionBody Basic Lotion Key Competitors Gro Key Competitors Growth, Nationalwth, National

But Our Growth Rate Still Behind Nivea/Softsense anBut Our Growth Rate Still Behind Nivea/Softsense and Total Segmentd Total Segment

24.5

9.2

11.6

32.5

18.9

-15.3

TTL BodyLotion Basic

KeyCompetitorsCombined

JB

NIVEA

SOFTSENSE

VASELINE

Volume Base

13.5

4.1

7.2

25.4

22.2

-20.8

TTL BodyLotion Basic

KeyCompetitorsCombined

JB

NIVEA

SOFTSENSE

VASELINE

Value Base

4Months to JF03 vs YA


10

Body Lotion Basic,Body Lotion Basic, Key Brand Volume Share Key Brand Volume ShareOur Share Lost Mainly Traced to Basic Lotion WhereOur Share Lost Mainly Traced to Basic Lotion Where YYuMeiJing and Small Brands Gained Share NoticeablyuMeiJing and Small Brands Gained Share NoticeablyNational, Body Lotion Basic Base

4M toJF02


XX 39.5 35.4 -4.1 39.7 39.3 33.3 37.9 -1.4

VASELINE 11.3 7.7 -3.6 11.9 10.7 8.3 7 -3.7NIVEA 5.9 6.2 0.3 5.5 6.3 6.6 5.8 -0.5

SOFTSENSE 4.6 4.4 -0.2 5.4 3.7 4.6 4.1 0.4

YU MEI JING 6.1 15.6 9.5 5.6 6.7 17.9 12.8 6.1

BAI QUE LING 4.3 4.7 0.4 3.5 5.2 5.2 4.2 -1

XILI 2.1 1.9 -0.2 1.9 2.4 1.5 2.3 -0.1

HAI ER MIAN 3.1 1.9 -1.2 3.7 2.4 1.9 2 -0.4GONG DENG 3.4 1.9 -1.5 4.5 2.1 2.1 1.5 -0.6

XIAN ZI 2.6 1.5 -1.1 2.3 3 1 2.1 -0.9

O.BRAND 17.1 18.8 1.7 16 18.2 17.6 20.3 2.1

•YU MEI JING priced about 60rmb/kg.


11

Body Lotion Basic,Body Lotion Basic, Key Brand Value Share Key Brand Value ShareXX Regained Some Share in JF03,XX Regained Some Share in JF03,

Compared with JF02Compared with JF02

YU MEI JING 3.1 8 4.9 2.8 3.3 9.2 6.7 3.4

BAI QUE LING 1.5 1.7 0.2 1.2 1.8 1.9 1.5 -0.3

PEARS 0.9 1 0.1 0.7 1.1 0.9 1.1 0

FA 1.7 0.9 -0.8 2.2 1.1 1.1 0.7 -0.4

TOBABY 1.3 0.8 -0.5 1.4 1.2 0.7 0.9 -0.3

XILI 0.8 0.8 0 0.8 0.8 0.6 1 0.2

O.BRAND 11.8 14.5 2.7 11.3 12.5 14.1 14.6 2.1

XX 48.5 45.8 -2.7 48.7 48.3 43.3 48.8 0.5

VASELINE 16.9 11.8 -5.1 17.3 16.5 12.7 10.8 -5.7

NIVEA 8.6 9.5 0.9 8 9.4 10 9 -0.4

SOFTSENSE 4.9 5.2 0.3 5.6 4 5.5 4.9 0.9

National, Body Lotion Basic Base4M toJF02



12

Y.M.J. Y.M.J. Body Lotion BasicBody Lotion Basic SKU Share SKU Share220ml Largely Contributed to Its Share; Distribution 220ml Largely Contributed to Its Share; Distribution

Slightly IncreasedSlightly Increased

4.9 4.97.5

5.93.7 4.2 5.2

8.211.3

4.2

8.8

14.2

9.91 1.2

1.20.8

0.9 1.31.5

3.4

3.6

4.2

4.2

3.8

2.9

0

2

4

6

8

10

12

14

16

18

20


220ml(浴后乳液） 108ml（鲜奶乳液） 110ml

Body Lotion Basic Base

108ml 6 7 8 9 7 8 8 7 11 11 12 11 9220ml 7 8 8 10 7 8 7 8 9 10 10 9 8

Weighted Distribution

(Rmb10.6/p)

(Rmb10.3/p)


13

Y.M.J. Y.M.J. Body Lotion BasicBody Lotion Basic Share & Share & Distribution By MarketDistribution By Market

Yu Mei Jing Mainly Focus In Hebei / Shangxi / ShangdonYu Mei Jing Mainly Focus In Hebei / Shangxi / Shangdongg

4M to JF02 4M to JF03 JF 02 JF 03

National YMJ 6.1 15.6108ml 1.4 3.4 8 9220ml 4.7 12.2 7 8

N2 YMJ 26.3 62.8108ml 6 13.6 12 16220ml 19.7 49.2 9 12

N A City YMJ 33.2 62.2108ml 6.9 12.3 23 30220ml 25.5 49.9 26 30

Volume Share Weighted Distribution


14

Body Basic LotionBody Basic Lotion, Sales Mix & Growth By City, Sales Mix & Growth By CityQuick Development of Body Basic Lotion Traced to Quick Development of Body Basic Lotion Traced to

Key & A CitiesKey & A Cities

196

192 293

283

380

206

4M to JF02 4M to JF03

Town BCD Cities A Citeis 4 Cities

22634 29216

3652145142

32203331

25317 22051


Town BCD Cities A Citeis 4 Cities

Volume Sales(Ton) Value Sales(000Rmb)

24% 13%

34% 24%

52% 29%

-5% -13%

•Number in green is of the annual growth MAT JF03 vs MAT JF02


15

Body Basic LotionBody Basic Lotion, Key Brands Share by City, Key Brands Share by CityWe Lost Share to Bai Que Ling & Small Brands in KeWe Lost Share to Bai Que Ling & Small Brands in Ke

y Cities and Yu Mei Jing in A Citiesy Cities and Yu Mei Jing in A Cities

YU MEI JING 15.6 9.5 4.9 -0.7 39.1 25 4 3.2

BAI QUE LING 4.7 0.4 7.7 2.8 1.8 -3.1 3.6 0.2

HAI ER MIAN 1.9 -1.2 0.5 -2.8 2 0.2 5 1.3XILI 1.9 -0.2 0.7 -0.1 0.3 0 6 0.8GONG DENG 1.9 -1.5 0 0 0.3 -0.3 1.3 -2XIAN ZI 1.5 -1.1 0.1 -0.1 0.3 -0.4 5.1 -0.6O.BRAND 18.8 1.7 19.4 10.9 14.1 -8.6 24.7 1.7

4Months to JF03 chg YA JF02 chg YA JF02 chg YA JF02 chg YAXX 35.4 -4.1 31.3 -3.4 33.9 -10.3 46.9 1.5

VASELINE 7.7 -3.6 14.5 -4.2 3.3 -2.6 2.1 -6.7NIVEA 6.2 0.3 11.2 -0.5 4.3 -0.3 0.7 0.2

SOFTSENSE 4.4 -0.2 9.7 -1.9 0.6 0.4 0.6 0.4

A City BCD City4 CityNationalVolume Base Body Lotion Basic Base


16

Body Basic Lotion, Key Brands Share by CityBody Basic Lotion, Key Brands Share by CityOur Share Gains in BCD Cities Helped Us to Narrow Overall Our Share Gains in BCD Cities Helped Us to Narrow Overall

Share LostShare Lost

Value Base Body Lotion Basic Base

YU MEI JING 8 5 2.1 -0.2 21.5 14.1 3.2 2.6

BAI QUE LING 1.7 0.2 2.5 0.9 0.7 -1 1.4 0.2

PEARS 1 0.1 0.1 -0.1 1.9 -0.3 1.2 0.4

FA 0.9 -0.7 1.3 0.3 0.3 -0.2 1.1 -2.8

TOBABY 0.8 -0.5 0.3 -0.4 1.1 -1.2 1.5 0.6

XILI 0.8 0 0.3 0 0.3 0.1 2.2 0.3

O.BRAND 14.5 2.4 12.5 6.7 11.7 -1.7 20.1 3.8

XX 45.8 -2.7 35.1 -1.7 48.1 -7.1 63.8 5.4

VASELINE 11.8 -5.1 20.1 -4.1 5.6 -4 3.6 -11.4

NIVEA 9.5 0.9 15.2 -0.5 7.9 0.6 1 0.3

SOFTSENSE 5.2 0.4 10.5 -0.9 0.9 0.7 0.9 0.6

4Months to JF03 chg YA JF02 chg YA JF02 chg YA JF02 chg YAA City BCD City4 CityNational


17

SummarySummary Total Skin Moisturizer experienced faster

growth rate in this winter with positive price inflation - 6% in volume and 9% in value

Accelerated growth rate had been captured in all segments, esp. In Facial and Hand, which both experienced higher value growth than volume growth

Body also captured positive volume growth (11%), but its value growth was much lagged behind (7%) in recent winter


18

Summary - BodySummary - Body With Body, Lotion still obtained outstanding gr

owth with growth rate of 26% in volume and 17% in value; but cream declined which led to a slower growth rate in total body

The price deflation in Body Lotion mainly traced to basic Body Lotion, where local brands, like Bai Que Ling and Yu Mei Jing, developed fast

Overall, XX did captured positive growth in recent winter period and Milk largely contributed to our growth


19

Summary - BodySummary - Body But we still slightly lost share in Body market i

n recent winter due to slower growth than the market, especially in the Basic Body Lotion segment

In Basic Body Lotion segment, we lost share to Bai Que Ling and small brands in Key cities and Yu Mei Jing in A cities; But our distribution expansion led to our share gains in BCD cities, which narrowing our overall share lost


20

Summary - BodySummary - Body Overall speaking, XX is still the absolute leader

in the Basic Body Lotion segment in value terms; but development of low-end brands, like BQL and YMJ, in Key & A cities, suggesting emergence of new market needs


XX Milk Sales XX Milk Sales Development In Development In

4&A Cities4&A Cities


22

Milk Sales Contribution To XX By CityMilk Sales Contribution To XX By CityMilk Helped XX to Increase Sales In A City; but Not Milk Helped XX to Increase Sales In A City; but Not

In SH/BJIn SH/BJVolume(TON)

Value(000rmb)

0

20

40

60

80

100

120

JF02 JF03 JF02 JF03 JF02 JF03 JF02 JF03 JF02 JF034 Months to

0

4,000

8,000

12,000

16,000

JF02 JF03 JF02 JF03 JF02 JF03 JF02 JF03 JF02 JF034 Months to

UC Lotion

Reg.Lotion

Milk LotionGZ SH BJ CD A CITY


23

Milk Share Contribution To XX Basic LotionMilk Share Contribution To XX Basic LotionStagnant in Sales in SH & BJ and Lagged Behind Stagnant in Sales in SH & BJ and Lagged Behind

Growth in A Cities Caused Us Losing ShareGrowth in A Cities Caused Us Losing ShareVolume Share

Value Share

0

10

20

30

40

50

60

JF02 JF03 JF02 JF03 JF02 JF03 JF02 JF03 JF02 JF03

UC Lotion

Reg.Lotion

Milk Lotion

Share Base, Body Lotion Basic

GZ SH BJ CD A CITY

0

10

20

30

40

50

60

70


4 Months to

4 Months to


24

SH-H/S, XX Lotion Variant SKU ShareSH-H/S, XX Lotion Variant SKU ShareMilk 200ml Gained Share Rapidly While Reg/UC 20Milk 200ml Gained Share Rapidly While Reg/UC 20

0ml Declined0ml Declined

Value Share(Body Lotion Basic Base)

4M to JF02

4M toJF03

Chg YA ND01 JF02 ND02 JF03 Chg YA

XX Basic Lotion 32.5 28 -4.5 30.8 34.7 24.7 31.9 -2.8MILK 200ml 5.7 5.7 3 8.9 8.9

REG LOTION 10.1 6.7 -3.4 10.3 9.9 7.4 5.8 -4.1100ml 3.3 2.5 -0.8 3.1 3.4 2.6 2.4 -1200ml 6.8 2.9 -3.9 7.1 6.5 3 2.8 -3.7300ml 1.2 1.2 1.8 0.6 0.6UC LOTION 22.4 15.6 -6.8 20.5 24.8 14.2 17.2 -7.6100ml 5.8 6.3 0.5 6.2 5.4 6.3 6.3 0.9200ml 16.6 9.3 -7.3 14.3 19.5 7.9 11 -8.5


25

SH-H/S, XX Lotion SKU Dist. & SPPDSH-H/S, XX Lotion SKU Dist. & SPPD Milk-200ml Gained Distribution With Good In-store Milk-200ml Gained Distribution With Good In-store

Performance; UC 200ml Maintained Overall Performance; UC 200ml Maintained Overall Distribution but Declined in SPPDDistribution but Declined in SPPD

ND01 JF02 ND02 JF03 JF02 JF03

MILK 200ml 60 70 13.6

REG LOTION 87 87 86 76

100ml 74 72 84 75 3.4

200ml 87 85 61 54 5.6

300ml 27 22 3.1

UC LOTION 88 86 89 86

100ml 65 63 80 75 8.9

200ml 87 85 87 86 13.6

Weighted Distribution S.P.P.D(000RMB)

10.44.3

6.9

26.3

7.8

20.8

8.2

21.4

(11)

(11)

•Number in brackets are of weighted O.O.S distribution.


26

SH-H/S, Body Key Brand Share & PriceSH-H/S, Body Key Brand Share & PriceLow Price Product Gained Share; Nivea Gained Share Low Price Product Gained Share; Nivea Gained Share

SlightlySlightly

Rmb/Kg

4Months to JF 02 JF 03 Chg JF 02 JF 03 Chg JF 02 JF 03

4 Key Brand 96.9 90.3 -6.7 91.5 79.9 -11.7XX 32.5 28 -4.5 34 26.8 -7.2 126 130VASELINE 31 27.7 -3.4 26 21.7 -4.3 157 158SOFTSENSE 18.2 18.7 0.5 19.1 18.1 -1.1 125 128NIVEA 15.2 15.9 0.7 12.4 13.3 0.9 161 148

BAI QUE LING 1.8 3.4 1.6 6.2 11.6 5.4 39 36

O.BRAND 0.5 5.6 5.1 0.4 7.7 7.3 173 91

Value Share Volume Share

In O.brands, key brand are of 露华浓雅佳美润肤露 450ml priced RMB37/pck(82rmb/kg), and


(200ML)


27

SH-H/S, Key Brands SKU Value ShareSH-H/S, Key Brands SKU Value ShareNivea Fresh & Intensive Milk Both Contributed to Nivea Fresh & Intensive Milk Both Contributed to

Its Share GainsIts Share Gains

3.7

8.1

14.5

10.6


SOFTSENSE 200ml

SOFTSENSE 110ml

5.24

4.8

4.95.5

11.11


ENRICHED MILK 125ml FIRMING 200ml

FRESH 125ml FRESH 200ml

INTENSIVE MILK 125ml INTENSIVE MILK 200ml


9.8 8.4

2118.4

-137

11151923273135


Vaseline 200ml

Vaseline 100ml

Softsense Nivea Vaseline


28

Key Brands SKU Comparison, SH-H/SKey Brands SKU Comparison, SH-H/SSS-110ml/Nivea Fresh-200ml Dist. & SPPD GainedSS-110ml/Nivea Fresh-200ml Dist. & SPPD Gained

JF 02 JF 03 JF 02 JF 03 JF 02 JF 03MILK 200ml 70 13.6 26.3XX REGULAR 100ml 72 75 4.3 3.4 14.6 14.2XX REGULAR 200ml 85 54 6.9 5.6 21.5 22.1XX REGULAR 300ml 22 3.1 31.4XX UC 100ml 63 75 7.8 8.9 16.3 16.5XX UC 200ml 85 86 20.8 13.6 24.1 23.4

SOFTSENSE 110ml 52 73 5.9 13.3 15.7 16.1SOFTSENSE 200ml 83 75 12.6 12.2 23.9 23.3

FIRMING 200ml 64 62 7.9 7.2 47.9 33.6FRESH 125ml 34 44 3.4 2.7 22.9 22.1FRESH 200ml 52 62 2.4 7.2 30.2 27.3INTENSIVE MILK 125ml 55 42 2.9 2.1 18.5 22INTENSIVE MILK 200ml 52 61 11.2 10.4 23.8 27.4

Vaseline 100ml 63 64 19.7 12.9 18.8 19.1Vaseline 200ml 51 62 28.1 26.4 29.1 29.6

WeightedDistribution

S.P.P.D(000RMB) RMB/Pck


29

BJ-H/S, XX Lotion Variant SKU ShareBJ-H/S, XX Lotion Variant SKU Share


4M to JF02

4M toJF03


XX 37.1 30.1 -7 39.6 34.6 29.1 31.4 -3.2

MILK 200ml 5.1 5.1 2.6 8.1 8.1

REG LOTION 12.3 10.1 -2.2 13.3 11.3 11.3 8.7 -2.6100ml 4.9 4.1 -0.8 5.2 4.6 4.3 3.8 -0.8200ml 6.9 5.3 -1.6 7.6 6.1 6.2 4.2 -1.9300ml 0.2 0.7 0.5 0.2 0.3 0.7 0.6 0.3UC LOTION 24.8 14.9 -9.9 26.3 23.3 15.2 14.6 -8.7100ml 9.1 5.4 -3.7 10.5 7.7 4.3 6.8 -0.9200ml 15.7 9.5 -6.2 15.7 15.6 10.9 7.8 -7.8


30

BJ-H/S, XX Lotion SKU Dist. & SPPDBJ-H/S, XX Lotion SKU Dist. & SPPD Milk-200ml Gained Distribution With Good In-store Milk-200ml Gained Distribution With Good In-store

Performance; UC 200ml Maintained Overall Performance; UC 200ml Maintained Overall Distribution but Declined in SPPDDistribution but Declined in SPPD



MILK 200ml 36 55 6.2

REG LOTION 84 93 86 84 5.1 4.3100ml 67 76 82 78 2.5 2.1

200ml 70 66 72 66 3.9 2.7300ml 13 13 22 13 0.9 1.9

UC LOTION 83 82 81 78 11.8 7.8100ml 82 80 76 75 4 3.8

200ml 71 67 73 67 9.7 4.9


31

BJ-H/S, Body Key Brand Share & PriceBJ-H/S, Body Key Brand Share & PriceXX Lose Most Share to Other Low Price ProductsXX Lose Most Share to Other Low Price Products

Rmb/Kg

4Months to JF 02 JF 03 Chg JF 02 JF 03 Chg JF 02 JF 03

Value Share Volume ShareBody Lotion Basic Base

XX 37.1 30.1 -7 30.8 23.3 -7.5 141 139

NIVEA 21.2 19.3 -2 13.2 11.8 -1.4 188 175

VASELINE 14.7 14.8 0.1 9.3 9.1 -0.2 185 175

YU MEI JING 9.1 9.4 0.3 20.2 19.7 -0.6 53 52

FA 4.2 4.6 0.3 3.9 4.9 0.9 125 101

SOFTSENSE 1.1 1.6 0.4 1 1.4 0.4 135 123

O.BRAND 12.6 20.2 7.6 21.6 29.8 8.2 118 106

•In O.brands, key brand are of 露华浓雅佳美 drove sale in BJ


32

BJ-H/S, Key Brands SKU Value ShareBJ-H/S, Key Brands SKU Value Share

1.91.1

2.3

0.5

2.9


FA 400ml-PUMP

FA 250ml

FA 100ml

1.1

10.4

6.2

5

8.5

2

2.9

1.21.3

1.3


ENRICHED 200ml ENRICHED 125ml

FIRMING LOTION 200ml FRESH 125ml

FRESH 200ml INTENSIVE MILK 125ml

INTENSIVE MILK 200ml


7.9 6.8

6.9 8


Vaseline 200mlVaseline 100ml

FA Nivea Vaseline


33

Key Brands SKU Comparison, BJ-H/SKey Brands SKU Comparison, BJ-H/S

JF 02 JF 03 JF 02 JF 03 JF 02 JF 03

WeightedDistribution

S.P.P.D(000RMB) RMB/Pck

MILK 200ml 55 6.2 29.1REGULAR 100ml 76 78 2.5 2.1 15.3 15.5REGULAR 200ml 66 66 3.9 2.7 23.1 22.4REGULAR 300ml 13 13 0.9 1.9 34.7 31.9ULTRA CARE 100ml 80 75 4 3.8 17.9 17.1ULTRA CARE 200ml 67 67 9.7 4.9 26.8 26.1

FA 100ml 47 26 1.8 1.5 15.1 10.9FA 250ml 33 1 1.4 18 27.2 26.8FA 400ml-PUMP 19 5.7 38.2

FIRMING LOTION 200ml 33 44 14.9 6.5 53.1 50.6FRESH 125ml 4 12 1.4 1.7 24.4 24.4FRESH 200ml 32 37 2.2 3 32.1 28.8INTENSIVE MILK 125ml 21 30 2.8 1.7 20.2 25INTENSIVE MILK 200ml 33 45 6 6.7 26 29.2

VASELINE 100ml 54 44 7.1 6.1 21.4 21.2VASELINE 200ml 37 32 8.6 6.7 32.3 29.8

Nivea

(95Rmb/kg)


34

A-H/S, XX Lotion Variant SKU ShareA-H/S, XX Lotion Variant SKU Share


4M to JF02

4M toJF03


XX 60.1 49.8 -10.3 61.6 58.1 48.6 51.9 -6.2MILK 200ml 5 5 3.1 8 8REG LOTION 27.8 18.1 -9.7 26.2 29.7 18.2 18 -11.750ml 1.6 0.6 -1 1.7 1.4 0.5 0.7 -0.7100ml 11.2 7.5 -3.7 11.6 10.8 7.4 7.6 -3.2200ml 14.7 9 -5.7 12.5 17.5 9.3 8.6 -8.9300ml 0 1.1 1.1 0 0 1.1 1.2 1.2ULTRA CARE 32.3 26.7 -5.6 35.4 28.4 27.3 25.9 -2.5100ml 22 16.5 -5.5 27.8 14.8 15.9 17.3 2.5200ml 10.3 10.3 7.6 13.6 11.4 8.60 -5.0


35

A-H/S, XX Lotion SKU Distribution&SPPDA-H/S, XX Lotion SKU Distribution&SPPDKey SKU Distribution Maintain; Milk-200ml Better In-Key SKU Distribution Maintain; Milk-200ml Better In-

Store Performance Than XX Other SKUsStore Performance Than XX Other SKUs



MILK 200ml 19 22 35.9

REG LOTION 54 45 61 57 49.9 31.1

50ml 22 15 9 6 6.9 11

100ml 51 44 52 52 18.5 14.4

200ml 40 33 36 37 40 22.7

300ml 8 7

ULTRA CARE 45 37 57 59 58.1 43.2

100ml 44 36 55 54 31.1 31.5

200ml 31 26 31 29 39.6 29.2


36

A-H/S, Body Key Brand Share & PriceA-H/S, Body Key Brand Share & PriceOther Than N A, Nivea Gained Share While XX DeclineOther Than N A, Nivea Gained Share While XX Decline


Value Share

55.3 48.164.6 56.3 56.1 54.9 46.5 43.7

53.640.9

21.5 1941 15.9

28.77.4 47.72.9

6.8 9.77.2

7.9


JB YU MEI JING NIVEA VASELINE PEARS O.BRANDS

4 Months to

A CITY S A E A N A W A

•In W A, firming lotion contributed most of share gain.


37

Nivea Body Lotion SKU Share & Distribution & Nivea Body Lotion SKU Share & Distribution & Price In A-H/SPrice In A-H/S

Distribution Push More On 200ml and Gained ShareDistribution Push More On 200ml and Gained ShareBody Lotion Basic Base

Value Share

1.31.3

1.52.4

0.40.2

0.90.20.3 0.2

0

3

6


INTENSIVEMILK 200ml

INTENSIVEMILK 125mlFRESH 200ml

FRESH 125ml

FIRMINGLOTION 200ml

ENRICHED125mlENRICHED200ml


Rmb/Pck

JF 02 JF 03

JF 02 JF 03

INTENSIVE MILK 200ml 9 10

26 31

INTENSIVE MILK 125ml 3 2

21 25

FRESH 200ml 5 12

34 30

FRESH 125ml 5 4

27 24

FIRMING LOTION 200ml 5 11

50 48

INTENSIVE MILK 200mlINTENSIVE MILK 125mlFRESH 200mlFRESH 125mlFIRMING LOTION 200ml


38

XX Milk Distribution In 4&A CitiesXX Milk Distribution In 4&A CitiesMilk Have Rooms to Improved Distribution In Milk Have Rooms to Improved Distribution In

A CityA CityWeighted Distribution

0102030405060708090

100

GZ-H/S SH-H/S BJ-H/S CD-H/S/D

A-H/S S A E A N A W A

Milk 200ml UC Lotion 200ml REG Lotion 200ml


39

SummarySummary Launch of Milk did help us to gain sales in A

cities but not much in SH and BJ Milk 200ml expanded distribution fast and

obtained strong in-store off-take At the same time, in-store off-take of 200ml of

our regular and UC declined, without distribution lost yet

Overall, in A cities, we still have rooms to improve distribution of Milk


XX Cream XX Cream Development TrackingDevelopment Tracking


41

BB&Kids Cream Sales & Growth, Nat.BB&Kids Cream Sales & Growth, Nat.4&A Cities Still Captured Positive Value Sales Growth4&A Cities Still Captured Positive Value Sales Growth

410

865 826

941 836

162164

383


4 City A City BCD City Town

Volume Sales(Ton) Value Sales(Mil.Rmb)

-5% +3%

53

8584

76 69

231941


4 City A City BCD City Town

Size Growth vs YA

-11 -10

-5 0

7 27

-1 21


42

BB&Kids Cream Key Brand Share, Nat.BB&Kids Cream Key Brand Share, Nat.XX Cream Successfully Gained Share NationallyXX Cream Successfully Gained Share Nationally

4M toJF02

4M toJF03 Chg YA ND 01 JF 02 ND 02 JF 03 Chg YA

YU MEI JING 22 20.7 -1.3 20.5 23.6 20.8 20.6 -3HAI ER MIAN 15.7 13.9 -1.8 17.6 13.6 13.8 14.1 0.5XX 6.8 12.7 5.9 6.2 7.4 12.7 12.6 5.2CHUN JUAN 11 8 -3 10.7 11.4 8 8.1 -3.3AN AN 6.3 4 -2.3 5.8 6.9 4 4 -2.9SAKULA 3.4 3.4 0 3.4 3.3 3.8 3 -0.3LONG LI QI 0.6 2.7 2.1 0.2 1 2.8 2.7 1.7BAOBEI 2 1.2 -0.8 1.8 2.3 1.2 1.1 -1.2XIAO DING DANG 0.2 1 0.8 0.2 0.2 0.9 1.1 0.9BALLET 0.8 0.5 -0.3 0.8 0.7 0.5 0.5 -0.2

Value Share(BB&Kids Cream Base)


43

BB&Kids Cream Key Brand Share by CityBB&Kids Cream Key Brand Share by CityXX Gained Share Significantly In 4&A and Catching XX Gained Share Significantly In 4&A and Catching

Up with H.E.M In BCD As WellUp with H.E.M In BCD As Well

4 City A City BCD City Town4Months to JF 03 Chg YA JF 03 Chg YA JF 03 Chg YA JF 03 Chg YA

YU MEI JING 10.5 -3.9 28.6 -10.4 19.9 3.9 19.1 -2.2

HAI ER MIAN 17.7 -7.1 10.6 -0.6 16.7 0.1 11.9 -3

XX 35.9 19.4 20 7.1 10.3 3.1 2.1 1.5

CHUN JUAN 10.9 -7.1 0.7 -0.5 4.9 -3.1 16.6 -1.4

AN AN 0.4 -0.6 1.6 -1.5 5.4 -3.6 5.4 -1.1

SAKULA 3.8 -1.7 4 -0.6 3.4 0.8 2.9 -0.1

LONG LI QI 1.5 1 3.5 2.8 3.2 2.7 2 1.3

BAOBEI 1.6 -0.6 1.1 -0.8 0.8 -0.6 1.4 -1.4

XIAO DING DANG 0.7 0.7 0.6 0.5 1.3 1.1 1.1 0.9

BALLET 0.2 -0.1 1.1 -1.5 0.6 0.2 0.1 -0.2



44

XX SKU Value Share Trend, NationalXX SKU Value Share Trend, NationalIC Largely Helped Share GainsIC Largely Helped Share Gains

2.5 3.30.3

1.72.3

1.3 2.7 3.2 3.7 3.22.9

3.83.5

3 3.5 2.8

4.6

3.24.4

4.2 3.8

5.14

4.8

4.6 3.4

0.70

2

4

6

8

10

12

14


IC 25g IC 60g Reg.60g UC 25g UC 60g



45

XX Weighted Distribution by SKU, Nat.XX Weighted Distribution by SKU, Nat.

3128 28 29 30

39 39

6

19

4

15 16

21

0

5

10

15

20

25

30

35

40

45

JF 02 MA 02 MJ 02 JA 02 SO 02 ND 02 JF 03

JB Cream IC 25g IC 60g UC 25g UC 60g



46

BB&Kids Cream Key SKU Ranking, JF03BB&Kids Cream Key SKU Ranking, JF03Took The Advantage Of IC25g to Further Wide XX Took The Advantage Of IC25g to Further Wide XX

Penetration Both In Depth and WidthPenetration Both In Depth and Width

ValueShare

VALS.P.P.D

WTDWeighted

DistributionNumeric

Distribution Rmb/Pck

HAI ER MIAN 40g 10.6 81 52 13 6.4

XX UC 60g 7.9 77 41 7 21.4

XX IC 25g 6.8 85 32 7 10.5

XX IC 60g 6.1 73 33 4 21.8

XX UC 25g 6 63 38 10 10.6

YU MEI JING 40g 3.8 59 26 8 5.5

HAI ER MIAN 25g 3.7 58 25 14 2.9

National City-H/S(BB&Kids Cream Base)

•XX Cream total distribution scored 53% in weighted and 14% in numeric which is even with H.E.M 40g in city H/S channel.


47

BB&Kids Cream Key Brand Share by ChannelBB&Kids Cream Key Brand Share by ChannelXX Weak In Traditional StoreXX Weak In Traditional Store

51.7 58.8

13.811.2

34.5 30


H/S/D G/K Misc.Stores

Value Base

4Months to JF 02 JF 03 JF 02 JF 03 JF 02 JF 03

YU MEI JING 22 20.7 20.1 16.9 23.9 26.1

HAI ER MIAN 15.7 13.9 19.1 16.1 12.1 10.8

XX 6.8 12.7 11.7 20.1 1.5 2

CHUN JUAN 11 8 3.9 2 18.7 16.6

AN AN 6.3 4 3.8 2.1 9 6.8

Traditional StoreH/S/DeptNationalValue Share(BB&Kids Cream Base)


48

Y.M.J & Chunjuan & H.E.M Share by PackY.M.J & Chunjuan & H.E.M Share by Package In Channelage In Channel

02

468

10

121416

1820

JF02

JF03

JF02

JF03

JF02

JF03

BAG BOTTLE TUBE

0

5

10

15

20

25

JF02

JF03

JF02

JF03

JF02

JF03

BAG BOTTLE

Chunjuan Y M J

0

5

10

15

20

25

JF02

JF03

JF02

JF03

JF02

JF03

BAG BOTTLE

H.E.MValue Share(BB&Kids Cream Base)

79% 57%25%

Bag contribution in traditional store by brand


49

SummarySummary XX Cream sales increasing fast, IC 25g launch

accelerated growth in this peak season. XX gained share significantly in 4&A and catch

ing up with H.E.M in BCD as well IC 25g consumer off-take well performed overa

ll XX cream distribution is competitive in modern

trade will weak in traditional store Y.M.J/Chunjuan/H.E.M high share in traditional

trade, bag products contributed their share in this trade


Explore Sachet Explore Sachet Sales OpportunitySales Opportunity


51

Bag Sales Importance to Skin MoisturizingBag Sales Importance to Skin MoisturizingBag Better Accepted In West/Town & In Traditional Bag Better Accepted In West/Town & In Traditional

TradeTrade

68.679.2

15.3

16.1 16.54.2

Volume Base Value Base

BOTTLE BAG Others

(National-MAT JF03)

(-10%)(-11%)

•Number in brackets is bag’s annual growth rate.

ValueShare

VolumeShare Rmb/Kg

National 4.8 17.5 49

Modern Trade 2.8 11.3 54

Traditional Trade 8.6 24.9 47

South 3.6 13.6 54

East 3.8 15.8 47

North 4.2 14.5 48

West 9.1 29.7 51

4 Cities 1.8 7.5 56

A Cities 4.3 16.7 55

BCD Cities 3.5 13.2 50

Town 12.3 29.3 45


52

Bag Sales Mix By Market, NationalBag Sales Mix By Market, National

37 33.8

63 66.2


Modern Trade Traditional Trade

6.6 6.3

29

30.6 31.7

33.8 31.4

30.6


South East North West

5.5 4.918.7

34.8 34.4

41 43.8

16.9


4 City A City

BCD City Town

(National-MAT JF03)


53

Skin Moisturizer Bag Packsize ImportanceSkin Moisturizer Bag Packsize Importance

(National-MAT JF03) , Bag Moisture Base

Rmb/Kg

25GM 51.9

30GM 54.7

20GM 77.9

50GM 24.8

135GM 58.4

45GM 20.2

40GM 40.5

10GM

Value Share

43.5

38.6

5.9

5.4

2.6

0.9

0.8

0.5

Volume Share

41.5

35

3.7

10.8

2.2

2.3

0.9

1.1 22.8


54

Bag Key 10 Brands Share, NationalBag Key 10 Brands Share, NationalBag Dominated by Local Brands with Very-low Bag Dominated by Local Brands with Very-low

PricePrice Value Share Volume Share Rmb/Kg

YU MEI JING 22.9 19.7 57.4

LONG LI QI 14.5 10.5 68.3

MAXAM 10.6 7.8 67.7

HAI ER MIAN 6.3 6.5 47.8

AN AN 5.8 5.7 50.2

CHUN JUAN 5.4 5.3 50.3

KE MENG 5.4 6.4 41.9

44776 3 3.3 46.1

AO QI 3 2 75.7

BAOBEI 1.9 2.2 42.5

O.BRAND 21.2 30.6



55

Bag Key Brands Value Share by MarketBag Key Brands Value Share by MarketMany Local Brands Are RegionalizedMany Local Brands Are Regionalized

National South East North West 4 City A CityBCD CityTown

YU MEI JING 22.9 57.7 18 24.7 18.6 25.7 32 21.6 19.4

LONG LI QI 14.5 8.1 17.5 13.5 14.2 15.1 16 17.7 11.1

MAXAM 10.6 5.1 12.1 12.1 9.1 9.9 9.5 11.9 10.2

HAI ER MIAN 6.3 3.9 7.3 8.5 3.8 3.5 3.9 8.1 6.1

AN AN 5.8 1.6 1.9 8 8 2.2 7.4 6.5 4.9

CHUN JUAN 5.4 0.1 0 16 22.2 0 2 8.5

KE MENG 5.4 8.2 12.6 0.9 2.7 3.6 4.2 5.1 6.5

44776 3 0.7 2.7 6 0.8 2.1 4.1 2.8

AO QI 3 1.6 1.3 5.6 2.4 1.3 1.9 3.9 3

BAOBEI 1.9 6.3 0.5 0.9 3.1 3.8 2.4 1.4 1.8



56

Y.M.J Bag Sales Contribution By MarketY.M.J Bag Sales Contribution By Market

50% 45% 31%58% 76%

30%78%

Na

tion

al

4 C

ity

A C

ity

BC

D C

ity

To

wn

Mo

de

rnT

rad

e

Tra

diti

on

al

Tra

de

Bottle Bag Others

Value Importance-MAT JF03

•25G bag priced Rmb1.4/pck leading it distribution and share


57

L.L.Q Bag Sales Contribution By MarketL.L.Q Bag Sales Contribution By Market

19% 11% 14% 18% 34% 14% 37%

Nat

iona

l

4 C

ity

A C

ity

BC

D C

ity

Tow

n

Mod

ern

Tra

de

Tra

ditio

nal T

rade

Bottle Bag Others


National H/S/DMisc.

StoresLONG LI QI 50 60 32BOTTLE 90ml 32 41 17BAG 30g 26 33 13BOTTLE 80g 24 32 5BAG 20g 19 21 19BOTTLE 200ml 17 26



58

Maxam Bag Sales Contribution By MarketMaxam Bag Sales Contribution By Market

13% 3% 6%17%

38%7%

42%

Nat

iona

l

4 C

ity

A C

ity

BC

D C

ity

Tow

n

Mod

ern

Tra

de

Tra

ditio

nal T

rade

Bottle Bag Others


National H/S/DMisc.

StoresMaxam 63 77 36BOTTLE 80GM 42 56 17BOTTLE 40GM 28 37 11BAG 30GM 23 27 20



59

H.E.M Bag Sales Contribution By H.E.M Bag Sales Contribution By MarketMarket

27%

6%15%

30%44%

14%

53%

Na

tion

al

4 C

ity

A C

ity

BC

D C

ity

To

wn

Mo

de

rn T

rad

e

Tra

diti

on

al T

rad

e

Bottle Bag


National H/S/DMisc.Stores


Hai Er Mian 57 68 40BOTTLE 40GM 38 52 10BAG 25GM 28 28 30BOTTLE 25GM 26 31 19BOTTLE 100ML 13 19 0


60

SummarySummary Bag market size is declining yearly Bag better accepted in West/Town and in

traditional trade, and dominated with locals with much low price

Bag products has the distribution advantage as penetrated into traditional trade


61

Documents

Skin Moisturizing