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Market analysis: Clean & Clear in China

Clean & Clear, a brand of Proctor Gamble was established in 1992, was one of the world’s first brands to concentrate on satisfying the skin care needs of young females. It has ample knowledge of what young females need, and provides quality skin care products for them. By 2004, it expanded its operations to 41 countries in the world in America, Europe, Asia and Australia.

Clean & Clear made its entrance into China in 1997. It introduced the concept of ‘cleaning, recuperation, and moisturizing’, which helped direct many young females to correctly handle their skin care needs. Its products now include facial cleansers and acme eliminators. Every product that is new to the market will make a hot topic that is discussed by young girls.

Recently, P&G announced that it is going to eliminate any potentially poisonous substances from its adult products in addition to its baby products. It products include a series of personal care products, including baby shampoos and acne scar creams. In August 15th, 2012, P&G claimed that it aims to totally exclude the toxic substances like formaldehyde, which is responsible for many diseases in people’s respiratory systems and skins. With this commitment, P&G became the first big company in this industry to make such a comprehensive promise. In its newest plan, it declared that all products from Neutrogena, Aveeno and Clean & Clear were going to be cleared of all potentially harmful ingredients.

This plan is a big challenge for such a large consumer goods company. Consumers are usually used to a certain types of products. Once the ingredients and materials are adjusted, the brand is in danger of losing its old customers if they do not like the newly changed products. Thus, P&G must invest a great amount of money to research and development. It must find substances that are perfect substitutes to those that it plans to discard to avoid customer loss.

This activity also received much attention from other brands. Estee Lauder, Avon and L’Oreal Paris are all under pressure from social groups to follow the steps of P&G. Although the cost of such adjustment is big, it is still welcomed, since health issues are always important.

In addition to paying attention to quality, Clean & Clear also pays much concern to the development of its retailing channels. Despite its own online official website, it has been cooperating with famous online retailers like Taobao, Tmall, Dangdang, and 360buy to increase its customer base and make it easy for Chinese consumers to buy its products.

Daxue Consultant China


Credit Photo: Nipic