Oral-B focuses on China’s rising middle class
A quick, but important reminder there are many aspects to our Rise & Fall of the Middle Class investing theme, many of which we in more developed regions of the world tend to take for granted. The basics, like health and dental care, are as big a driver for companies like P&G or Colgate-Palmolive as a new iPhone in China can be for Apple. Think about it – we in the US (hopefully) brush our teeth at least 14 times per week if not more. The real incremental demand is where people are going from brushing just a handful of times per week to more than double that.
American oral hygiene brand Oral-B, a sub-brand of P&G, said it is bullish on the growth potential of the electric toothbrush market in China, as a rising middle class and an increased awareness of oral care are set to drive the sales of various high-quality products.
The company recently launched a new intelligent electric toothbrush. The product set is priced at 2,099 yuan ($302), which buyers can tailor their names, constellations and catch lines on the toothbrush. One thousand sets were sold within three hours after it launched on Alibaba Group Holding’s Tmall.com, one of China’s largest e-commerce shopping websites.
The emerging middle-class consumers are increasingly paying attention to the quality of life, and they are more willing to spend money on those health-related products,” she said.”
We sell most of our products through e-commerce websites. This year, we keep a double-digit sales increase year-on-year, and I expect a similar growth rate in the next few years, as the market penetration rate of electric toothbrush in China is still very low.”
Overall, two percent of Chinese residents use electric toothbrushes, and the proportion is 10 percent among those families with higher incomes. In the United States and Europe, the penetration rate is around 35 to 40 percent, according to the company.
Source: Oral-B focuses sales on China’s rising middle class – Business – Chinadaily.com.cn
