Every reporter:Zhang Xiaoyin Every editor:Wenduo

The domestic cosmetics retail industry is gradually recovering.

Data from the National Bureau of Statistics show that from January to July this year, the total retail sales of consumer goods across the country fell by 9.9%year-on-year, but the retail value of cosmetics products gradually recovered, with a cumulative year-on-year increase of 1%. In the previous quarter, the retail value of domestic cosmetics products fell by more than 13%.

getUrls?link=26823157d231f5da56d762653316d2dc - Under the epidemic, the beauty industry has entered the"Warring States Period":live broadcasts frequently break prices. Where is the brand outlet?

From a sharp decline to a gradual recovery, many beauty brands are struggling to adapt to the special consumption environment:leading international brands have increased their promotion efforts on e-commerce platforms, and live broadcast rooms have become major brands A”heavy force” for marketing.

However, for the new small beauty brand, the low-price strategy is obviously somewhat unsustainable. From the current hot live broadcast industry, there are”sales myths” and”tragic rollovers”. Behind the rapid increase in sales, there are also concerns about high return rates. How can beauty brands play the card of live broadcast?

Promotion during the epidemic:International brands increase horsepower

Under the epidemic, one of the measures of many beauty brands to boost sales is to exchange price for volume , Even for international brands whose pricing has always been stable,”promotions” have become a must now.

Jian Weiqing, the president of the Taomei Makeup Merchants Association, described the beauty industry this year as”Warring States Period”.”The market competition is too fierce. We did an analysis during the ‘618’ period and found that the mainstream This year’s brand promotion efforts can be said to be”unprecedented”, especially for cross-border big brands. This year’s shipment prices have plunged, and many brands have fallen by 20%to 30%compared to previous years.”

Related research reports of Zhongtai Securities pointed out that during the”618″ period this year, discounts on platforms and brands have increased. As for platforms, discounts and duration of Tmall’s”6.1 campaign” have been expanded and extended respectively. In terms of brands, the pre-sale prices of major single products of”618″ for international brands with stable prices are close to last year’s”Double Eleven”. According to the research report data, from the data of the”6.1 Activity”, that night, Tmall beauty sales broke 100 million yuan in 1 minute and 500 million yuan in 22 minutes. One hour after the opening, L’Oréal, The sales of Estee Lauder, Lancome, and OLAY exceeded 100 million yuan. Two hours later, the sales of 61 beauty brands including Estee Lauder, SKII and HR exceeded the entire day last year.

Under the epidemic, the online transaction volume of international brands has increased significantly. In this regard, Tuxian, the person in charge of Taobao’s global shopping brand and supply chain, has the same feeling:“Under the epidemic, the growth rate of global shopping is very fast, reaching 30%to 40%. The fastest growth rate is the bonded model, while the direct mail The model is showing a downward trend. Because of the restrictions on exit this year, our buyers cannot go overseas. Therefore, our overseas direct mail business has dropped by about 13%year-on-year.”

The picture first further stated:”From the perspective of the entire overseas shopping market, the growth rate of the overseas online shopping population is very fast this year. We predict that the number of people paying attention to overseas shopping products will reach 235 million this year. In the entire Taoist ecosystem, there are close to three out of 800 million monthly active users. One in four users focus on products of overseas brands.”

Tuxian also mentioned that due to the impact of the epidemic, the Taobao Haitao beauty market has undergone three changes:First, segmentation brings Consumer grading, head, eye and other local care has become a habitual demand after the epidemic. The sales of nasal patch, eyelash growth liquid, facial mask, hair dye, and eye essence have increased significantly; the second is the younger age of beauty users, after 00 Generation Z is the fastest-growing group in beauty consumption, with a per capita spending of 1,713 yuan/year, far exceeding the traditional quality of the post-80s generation; third, product ingredients exceed brand awareness and other factors, becoming the first choice for consumers to consider new products. More than%of Haitao users pay attention to the main functional ingredients of the product when purchasing cosmetics.

Big-name live broadcasts break prices:small brands are hit by dimensionality reduction

As leading anchors such as Li Jiaqi have created a sales”myth”, many Company executives also walked into the live broadcast room to bring the goods. Under the superimposed epidemic situation, physical sales were frustrated, and “live broadcast” became the key word for online sales of major brands, especially in the beauty industry, which originally relied on online sales for sales.

getUrls?link=ae41da7f7d41071bbf2f1c6bbc9435aa - Under the epidemic, the beauty industry has entered the"Warring States Period":live broadcasts frequently break prices. Where is the brand outlet?

Image source:Visual China

In the past half year, many cosmetics brands have tried to find new sources of growth through channels. However, under the hot live broadcast, brand live broadcasts have repeatedly The frequent price breaks of car rollovers and big-name cosmetics also give companies thinking:How long can the price war in the live broadcast room last? How do new and small brands get a piece of the pie from the mouths of big brands?

In the eyes of the celebrity anchor and the founder of the Meimo Emoll brand Zhang Mofan, many of them currently enter the live broadcast The brands in China all hope to obtain short-term sales increase through live broadcast, but ignore the high return rate behind the promotion.”In fact, we focus on the long-tail effect and product return rate in the live broadcast. I think these can represent your brand. The ultimate goal of the live broadcast should be to allow consumers to buy because of the brand, not because of a discount today. But in the process of doing live broadcasts, I found that many brands are extremely anxious. They ignore consumer perceptions, brand tonality, etc., and only remember conversions and promotions. Therefore, we will see many brands roll over during live broadcasts, because they Without laying the foundation of the brand itself, we immediately started to promote sales, relying on the impulse consumption of consumers to temporarily increase sales, and finally the return rate was very high.”

In fact, although the low-price strategy of live broadcast is one aspect It is possible to break through the sales bottleneck through the”selling” of celebrity anchors, but on the other hand, many brands are also beginning to worry that the low-price promotions used in the live broadcast room will affect their own brand image.

Jian Weiqing, President of the Taomei Makeup Merchants Association, analyzed:“Since this year, due to the changes in the brand ecology and the international consumer market, there have been a lot of brands breaking prices in the industry. This actually affects small and medium brands and brands. Retailers have a particularly significant impact, because small and medium-sized brands rely more on the channels of small and medium-sized retailers to incubate. However, as small and medium-sized retailers, they do not have the traffic of big brands. The traffic of big brands is on mainstream platforms, super anchors and Absolutely in the hands of the leading agency operating company. So if big brands go to reduce dimensionality to grab market share, small and medium brands will be very stressed.”

Where is the way out for new and small brands ?

As big brands cut prices, where is the outlet for new and small beauty brands?

getUrls?link=68e763a7f4365c582ecef2282bbe2f57 - Under the epidemic, the beauty industry has entered the"Warring States Period":live broadcasts frequently break prices. Where is the brand outlet?

Image source:Photograph.com

Jian Weiqing believes that it is not a wise move for the new beauty brand to fight for prices.”I personally feel that we must stick to the price strategy. This is the lifeline of a brand. New and small brands must pay attention to it. If some big brands do price diving, it is just a short-term strategy. The price of big brands will dive in the short term. Clean the brand and change sets. New outfits can still be landed, but if new small brands follow along to do price diving, the C-end will label the brands with low prices, so it is difficult to look back.” Jian Weiqing said.

In the view of Huang Yong, the founding partner of Baojiehui Innovation Consumption Fund, if a domestic beauty brand wants to be a unicorn, it needs to target the subdivision track.”From past experience, in the field of personal care and beauty, it is easy to produce great companies on the subdivision track, such as Durex, Weiting, etc. Although the category is not large, if the brand becomes the champion on the subdivision track, the market is very Big. From the current personal care and beauty industry, I think the product combination of high-priced equipment and consumables, such as beauty equipment and essence, is the easiest to go abroad.” Huang Yong said.

In addition, Huang Yong said in an interview with the”Daily Economic News” reporter that although beauty brands were affected in retail during the epidemic, from the perspective of the capital market, investment in beauty brands The heat remains unabated.”In the past, we saw the appearance of domestic beauty brands such as Perfect Diary and Huaxizi. In fact, this is just the beginning. From the overall trend, China’s beauty industry has been developing rapidly. The research and development and production of domestic beauty brands With improved capabilities, good products can now be made. We predict that in the future we will have cutting-edge domestic brands in various subdivisions. At the same time, we believe that China’s Procter & Gamble and Union will appear in the next ten or twenty years. Hua, L’Oreal.” Huang Yong said.

Cui Jing, the vice chairman of COSMAX Group, expressed his optimism about domestic cosmetics. He told the reporter of”Daily Business News” that as a beauty OEM company, COSMAX has launched 500 The minimum order quantity for a minimum order.”According to our experience, in fact, local beauty companies in China tend to do better in terms of localization than international big names. We hope that by reducing the minimum order quantity, we can provide support to local beauty companies and reduce their trial and error. Cost.” Cui Jing said.

Daily Economic News