First, the registered trademark of the Japanese Kao brand in China is Shanghai Kao Company. Therefore, although they are all brands owned by Japanese Kao, there is a market infringement problem.

Second, the prices in the Chinese market are chaotic, mostly through smuggling channels. Such unstable prices create corresponding space for fakes. It has a great negative impact on the Japanese Kao brand. Irregular imports (smuggling) will not receive good after-sales service at all, and the brand cannot be properly managed in the Chinese market. If fakes are mixed with them, it will also have a very negative impact on the Japanese Kao brand.

Third, a large number of diapers are illegally exported to China, causing instability in Japan's supply. Japan's production volume is determined based on the country's population and brand market share. Such large-scale illegal exports to China have left Japan with no goods available, resulting in a sharp decline in market share, which has affected Japan's Kao's overall strategy.

In the Chinese market, the extremely low-priced Kao diapers are 100% fake, because even if the lowest price obtained in Japan is converted into RMB without any tariffs (smuggling), it is basically impossible. Do it.