Source: China Business Daily

Atlas

Under the impact of the COVID-19 epidemic, how did the cosmetics brand break? At the recent China Cosmetics Conference, the founders of domestic head brands such as Polaiya, Marumi, and Nuxi Mystery discussed with many industry leaders the way to break through the current domestic brands.

The beauty industry is very hurt

On August 18th, the China Cosmetics Conference was held, which was hosted by Media View Network of the cosmetics industry. "Compared with all the industries of Tmall, the beauty industry is the industry most affected by the epidemic, the most obvious of which is that the growth rate of new domestic brands has been suppressed." Ji Yun, general manager of Tmall Beauty Care of Alibaba Group, said at the scene: "But it is precisely the new domestic brand that won the first place in Tmall Beauty Sales."

in the cosmetics industry chain, the brand side occupies a dominant position. According to the data of Prospective Industry Research Institute, a think tank focusing on industrial research and planning, the gross profit margin of cosmetics brands is generally 6%-7%, and the net profit rate is 5%-1%, which is the most profitable link in the whole industrial chain.

At present, high-end cosmetics brands and even high-end cosmetics brands are almost monopolized by European and American international brands. European and American international brands are also constantly expanding new brands in the China market. However, most local cosmetics brands in China compete in the low-end market with the advantage of "high cost performance". In addition to fierce competition, domestic brands were also hit by the epidemic in the first half of this year, and their performance suffered a trough.

domestic products start the brand breakthrough war

It is precisely because of realizing the power of brands that domestic beauty giants have embarked on their own new brand building and investment. Polaiya, the first domestic beauty brand, made great efforts in brand building and cooperated with Tmall to build the first domestic new brand incubation base this year, with remarkable results.

Fang Yuyou, co-founder and CEO of Polaiya Co., Ltd. said at the meeting: "In March this year, we built a cosmetic brand of makeup artists-Caitang. At present, Caitang's high-gloss products have become the first in the market. In addition, we still have four or five new brands incubating, and it is expected that they will appear in the market from the second half of this year to next year. "

more than one domestic brand has made efforts to build a new brand. Sun Huaiqing, Chairman and CEO of Marubi Co., Ltd. also said that Marubi Co., Ltd. is building an innovation engine and has built a 24,-square-meter Marubi Innovation Center in Songjiang, Shanghai, where the cutting-edge brands hatched by Marubi Innovation Center in the future will be born. In addition, Marubi also established an industrial fund this year, focusing on investing in potential new brands in the cosmetics industry.

"I always think that there are two kinds of China brands that can win the world market in the future. One kind is cheap goods with high cost performance, and it depends on high cost performance to win. The second category is the brand that has truly achieved world-class R&D breakthrough technology. " Sun Huaiqing said.

What is the magic of new brands

On the one hand, international brands such as L 'Oré al and Shiseido occupy the China market by virtue of their existing brand influence; On the other hand, overseas stars such as Rihanna and Miranda Kerr quickly win the market among domestic consumers with their own niche brands.

under the fierce competition, the earning power of new domestic brands should not be underestimated. Fang Yuyou said at the scene that the monthly sales volume of Caitang's products can now reach 13-15 million pieces, and the subsequent monthly sales volume is expected to reach 2 million pieces.

why do cutting-edge brands have strong earning power? Jiyun said that the construction of cutting-edge brands is not aimed at the simple operation of traffic, but has an effect on consumers from all aspects of new product listing, crowd positioning to content marketing, and quickly occupies the market.

How to incubate new brands

Compared with traditional brands, new brands have completely different development paths. In the cosmetics market, the emergence and sales of cutting-edge brands are inseparable from online channels. Traditional brands need to go through a long growth cycle from birth to cultivation, while new brands can quickly occupy the consumer market through e-commerce platform resources and relying on a wide online distribution matrix.

At the same time, many founders of domestic brands mentioned that young consumers know more about beauty information through social media. This means that the era of large-scale media advertising has passed, and enterprises can get closer to young consumers by grasping online celebrity and e-commerce platforms.