Unilever's Strategies in China
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Case Details:
Case Code : BSTR131
Case Length : 13 Pages
Period : 1986 - 2004
Organization : Unilever (Shanghai) Co. Ltd.
Pub Date : 2004
Teaching Note :Not Available
Countries : China
Industry : FMCG
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Background Note
Unilever first entered China by setting up the China Soap Company at Shanghai in 1923. In 1925, Unilever launched its popular brand, Sunlight. This laid the foundation of a successful relationship between the European FMCG major and the Chinese population that was to continue even at the turn of the century.
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China Soap Company produced and marketed two popular brands, Sunlight and Lux Soap in China and was recognized as one of the largest soap makers in the Far East. In 1986, Unilever reestablished itself in the country, setting up its first joint venture, Shanghai Lever.
Shanghai Lever was a joint venture with the Shanghai Soap Factory and the Shanghai Daily Chemical Industrial Development Corporation. The company made and marketed a wide range of toilet and laundry soaps, glycerine, chemical grease and related products. In 1989, Shanghai Van den Bergh3
was established which was a joint venture between Unilever and Shanghai Sugar,
Cigarette and Wine Corporation.
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The company produced Masterline bakery fats.
1990 witnessed the establishment of Shanghai Ponds, a joint venture between Unilever and Shanghai No. 2 Daily Chemical Factory and the Shanghai Daily Chemical Industrial Development Corporation.
Shanghai Ponds was formed to develop and market skin care products for Chinese
women.
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It marketed brands like Ponds, Vaseline Intensive Care and Pears. Unilever (Shanghai) Co. Ltd. was formed in 1993 with investments from Unilever Plc., Shanghai Daily Chemical Industrial Development Corporation and the Shanghai Detergent Factory. The company manufactured and marketed detergent products. In the same year, Guangdong Lipton Foods, a joint venture with Guangdong Tea Import and Export Corporation, was established. Guangdong Lipton Foods made and marketed Lipton tea and Ming Han Ching tea bags. 1994 saw the emergence of Walls China, a JV with Sumstar Company. Walls China was initially established at Beijing, but later expanded to open a new factory at Taichang in 1996 and a large cold store at Guangzhou in the same year... |
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