Unilever is eyeing China's small and medium-sized cities and rural areas to expand its business, reported China Daily Thursday.

"We are striving to push our products forward in these areas, because they are designed for the mass market instead of just large cities," said Alan Brown, manager of Unilever China at the 50th anniversary of Zhonghua toothpaste. "We have made great efforts in exploring new products, exploiting new sales channels, and in advertising campaigns."

The infiltrating of rural areas will rely on co-operation with the company's sales agents all over China, as they are in touch with the target market, Joanna Wang, market director of Unilever explained.

More and more enterprises have joined the household chemicals market in large cities making competition increasingly severe, while there is still vast potential in the west regions and rural areas, where there is a large population base.

In order to lower costs, Unilever moved its manufacturing centre to Hefei, East China's Anhui Province, earlier this year, which enjoys convenient transportation, qualified resource supply and abundant cheap labour.

"Now we have one research centre in Shanghai, one manufacturing centre in Hefei, and we are now seeking a better production area of raw materials in Anhui," said Zeng Xiwen, external relations director of Unilever China.

Production in Hefei is expected to meet the demand of both the Chinese market and other Asian and Pacific markets as well.

An earlier survey shows that foreign brands account for a large market share of household chemicals, including shampoos, toothpaste, cosmetics, washing powders and soaps, far exceeding China's local brands.

Chinese national enterprises in this sector are facing great challenges from foreign companies and joint ventures, Chen Shineng, chairman of the National Light Industry Council, told China Daily.

Such competition began when the market of household chemicals was opened up to foreign enterprises in the 1980s in the early stages of China's reforms and opening up.

Source: China Daily