2019 is definitely a year of domestic beauty.
At one time, Japanese brands represented by Shiseido and SK-II, Korean brands represented by Snow Show and whoo, and European and American brands represented by Lancome and Estee Lauder were attacked on three sides, and domestic brands were suppressed to have no sense of existence and could only be "poor" who were rubbed on the ground.
In 2019, domestic beauty was unprecedentedly hot: domestic beauty brands occupied half of the market, the brand growth rate exceeded 1000%, and brands were favored by capital. The public and the media described it as "counterattack".
However, is the domestic beauty brand really a comprehensive counterattack?
In the era of low prices, it is not easy to say goodbye.
In 2019, Tencent released the "Domestic Beauty Report", and the relevant person in charge said that "in the new market environment, national cosmetics have bid farewell to the era of low prices", and the media have also echoed it. Is it true?/You don’t say. We speak with data.
First of all, let’s look at the unit price:Take THE COLORIST and WOW COLOUR, which are positioned as the national fashion beauty collection stores, for example, the current customer price of the two brands is between 100 and 300 yuan; Sephora, which has gathered many international brands, surpassed 400 yuan in the unit price as early as 2010. The comparison between domestic beauty cosmetics and international brands is a bit tragic.
Then, let’s look at market share:According to the first financial data, in 2019, in the domestic beauty market in China, the mass brands accounted for over 50%, while the sum of high-end and mid-end brands with high premium did not exceed 50%. At the same time, the Japanese local brand market is evenly distributed with high, medium and mass brands, accounting for 30.15%, 29.94% and 39.91% respectively.
At the same time, there is no "talker" who can shoulder foreign brands and lead the industry in the domestic beauty and skin care market:Such as Baiqueling, shanghai jahwa, Shanghai Shangmei and other large enterprises, the domestic market share is only 2%~2.5%. In contrast, Senior Hall has won more than 13% market share in the Japanese market, while Amore has won a high share of 18.8% in the Korean market.
The unit price of customers is not high, the products are concentrated in the mass market with small profits, and there is no "talker" brand that can lead the industry … In short, it is not easy for domestic beauty cosmetics to say "goodbye" to the era of low prices.
You work hard, but others are "winning"
"Foreign goods go down, domestic products go up" is a trend, but does it mean that domestic beauty and skin care brands can compete with foreign rivals?
Although the products sell well, there are some embarrassment when it comes to high loyalty and high brand premium.Baidu’s search for "big-name replacement" keywords has over 29 million search results.In order to open up the market, some brands simply take the initiative to be small and low, and directly mark "big brand replacement" in their own propaganda content. In the impression of a large number of users, the consciousness of "domestic beauty = parity" is still deeply rooted.
Do I work hard for so long, but I can only be a big spare tire?
Domestic brands that don’t want to "turn positive" are not good brands, but they also have troubles trying to make their own domestic beauty. Simply put:We spend more money and do more marketing actions, but we can only watch foreign big brands "lie down and win".
According to the person in charge of the new domestic beauty brand in the industry, he spoke to the media: "Usually, the rebate given by overseas brands to KOL is about 20 points, and domestic brands can reach 50 points. It is not surprising that online celebrity brands can give 100 points in order to quickly open up sales. Some even give 120 points, which is completely losing money."
We have to face up to it: all roads lead to Rome, but the other side was born in Rome. Before we arrived in Rome, we were still at a disadvantage in this competition.
In the future, how to go?
At present, the movement of new domestic products is in the ascendant. Generation Z, which is composed of post-90s and post-90s, has become the main force of beauty consumption. The beauty supply chain is becoming more and more mature, and the marketing methods are constantly innovating … These are all good for domestic beauty and skin care brands.
Under these favorable conditions, what should we do to bid farewell to the era of low prices and get rid of the "flat replacement" spare tire hat? From the development of domestic high-end skin care brand Lin Qingxuan, we can learn some useful experiences.
◆ Speak with strength and improve yourself in all directions.
In the domestic beauty industry, there are old brands rejuvenating, new brands exerting their strength, and online celebrity brands rising, but the product strength is the key to gain user recognition.
From raw material planting and extraction, scientific research and production to sales and service, Lin Qingxuan has established an industry-leading whole industry chain model. Its self-developed main active ingredient "Qingxuancui" has the same significance to Lin Qingxuan as pitera； of SK-II; The supercritical extraction technology adopted is also comparable to the international famous brands. With its hard strength in product composition and technology, the brand has won 35 beauty and skin care awards at home and abroad, and has become the only "annual focus enterprise award" in WWD China.
◆ Break into the high end and bid farewell to the "price butcher"
With the confidence of high-end quality, shaping high-end brands and grasping high-consumption people is the only way for domestic beauty and skin care brands to rise.
Teacher Wu mentioned in the article Farewell to the Price Butcher that "the 30% line of life and death has always been the only way for China brands to compete with international brands". At present, this line of life and death is failing. Domestic beauty and skin care brands are not absolutely competitive in the field of high-end products. Whoever can seize the high-consumption crowd and realize the brand premium may become a new generation leader.
Through brand differentiation positioning, innovative digital marketing reform and other multi-dimensional brand strategy upgrades, Lin Qingxuan successfully transformed from a small fresh brand into a mid-to high-end skin care brand. In double 11 in 2019, the unit price of online customers reached 624 yuan, a year-on-year increase of 27%, and the unit price of offline customers reached more than 1,000 yuan, which did not lose any international first-line brands.
Teacher Wu believes that "new domestic products = (quality+core technology) × circle consumption" will be the new formula made in China at present.Only by reading and practicing it can domestic beauty and skin care brands bid farewell to the "price butcher" and conquer more consumers.
Exploring new retail: reconstructing people’s goods yard and building new consumption scenes.
At present, the domestic beauty and skin care brands are mainly online, but the offline channel has always been the killing place for beauty and skin care brands. Digital transformation, embracing new retail and reconstructing people’s goods yard have become a new battlefield for domestic beauty.
To the left, it is the accelerated offline layout of the national tide beauty collection stores such as THE COLORIST and WOW COLOUR; To the right, it is a direct store that insists on deepening the brand for a long time like Lin Qingxuan. Sun Laichun, founder of Lin Qingxuan, described it as:"Whether a cat can walk in a straight line depends on a mouse. Why do enterprises have to go digital? Because customers have been digitized. "
The rise of sales volume is only the starting point. It is the new pursuit of domestic beauty brands to build China brand and realize high brand premium and brand cultural identity.
In the new decade, we are happy to see more "Lin Qingxuan" break through the fierce competition and achieve the real light of domestic products.
"No more" big-name replacement ",how to counterattack domestic beauty? 》
"Is domestic beauty really rising? 》