Shuangyi Reformed: “King of Condoms” Versus Foreign Brands
Source: Nanfang Metropolis Daily (Shenzhen)
With the state-owned assets reforms in Guangzhou speeding up, Shuangyi Latex Factory., a subsidiary of Vanlead under Guangzhou State-owned Assets Supervision and Administration Commission, was incorporated into Guangzhou Shuangyi Latex Co., Ltd. and released its condom brand “Double One”. It planned to deploy its offline channel and promote its market strategy featuring an integrated online sales system so as to put an end to the monopoly of foreign condom brands at the KA shopping malls in first-tier cities.
As a condom producer with a history of 60 years existing in the national family planning system and known as the “King of Condoms”, Shuangyi Latex Factory initiated its commercial market deployment on November 11, 2014. As planned, it would be incorporated into a company in 2015 and finally get listed on the stock exchange.
The Incorporation Aimed to Invigorate the Enterprise
“The existing system of Shuangyi Latex Factory is no longer in alignment with the development trend as an enterprise, and this incorporation aims to invigorate the enterprise. Our plan is to incorporate it into a limited company in 2015, and, at the same time, start management shareholdings and attract external strategic investments or investors. As for business operations, we’ll consider introducing foreign brands and technology. The final plan is to have Shuangyi IPOed,” said Ma Zhibin, chairman of Shuangyi Latex in an interview given to our reporter.
In November 2014, Shuangyi Latex officially released its Internet condom brand MIO for the Double 11 shopping craze. The current launch of the condom brand “Double One” shows its intention to build an integrated online sales system.
To Break the Monopoly of Foreign Brands
Though the production and sales of condoms in China account for one quarter of the global production and sales, no brand is strong enough to compete decently with world-famous brands. According to third-party survey data in 2013, the Chinese condom market was worth up to RMB10 billion; nonetheless, the condoms on the shelves were mostly foreign brands. By the market survey data in 2010, 75% of the condom consumer market in China went to foreign brands, while home brands took up less than 25%.
As revealed by analyses, purchase channels are diversifying; consumers will have access to more convenient service from pharmacies, community supermarkets, convenience stores, shopping malls, the Internet platform, and mobile phone platform.
As we just learned, Shuangyi has launched its “Shuangyi” brand, with an annual sales target of 0.2 billion units; the brand is expected to take up a 10% share of the commercial condom market in 2020.