Tuesday, November 1, 1994

P and G Rejoice in Prell

Proctor & Gamble's "Prell" shampoo is arguably one of the most talked about entries of western consumer products into China. There were at least three ingredients in its formula of success. P&G found a local partner to manufacture the product inside China and change the brand name to "Rejoice," a real word instead of "Prell," a made-up word that might confuse customers with limited English vocabulary. Most importantly, the company introduced the product in single-use, foil packs instead of just packaging them in large containers. Chinese women can afford the "luxury" of washing their hair with the P&G shampoo every so often but a bottle or tube would have been too expensive. Of course they will become loyal customers for larger containers when their income rises. In the meantime, it seems every stall and street vendor carry the little packets of shampoo and P&G is making a nice profit while watching the business grow.

Lesson: Adjust your product according to the local standard of living.