Online shopping brand to single product breakthrough "chaos" several big retail giants around cosmetic sales situation

In recent times, retail outlets have been promoting the most hilarious scenes not in costumes while in cosmetics. Jingdong Mall held "is makeup, butterfly festival", Poly-Mei Excellent products "4 anniversary of the celebration of the Big promotion", Lok Bee Network and other electric dealers jointly held "Peach Blossom Festival" ... And the real mall rushed into the battlefield, Canton Bai Goods Beijing Road Store held "Spring International Cosmetics Festival", Watson's overall build "38 All-American feast."

It is a rapidly expanding market. According to the "2013 Chinese female Beauty makeup consumption survey White paper" Statistics, China's total consumption of cosmetics from 2003 to 206 900 million yuan, increased to 300 billion yuan in 2013, ten years turned over 10 times times.

The increase in sales, cosmetics channels are also making great changes. Nielsen released a group on cosmetics market share data reported that the proportion of large and medium-sized business Ultra Cosmetics sales will fall from 2010 27% to 2015 16%, department store sales share will fall to 30%. Where's the market share? Nielsen's answer is: Sales of personal care stores will rise to 25% per cent, while the electricity business channel is expected to rise from 13% in 2010 to 25%.

NET buys the brand to break "the chaos" with the single product

"We have been concerned about growth, sales and so on, but the most important thing for L ' Oreal is to occupy enough market share." "L ' Oreal China's former president, Gaipaolo, said the words of multinational cosmetics business.

They were surprised by Nielsen's findings. In May 2009, the multinational cosmetics company brand (excluding the big Po) market share of 57.9%. By May 2012, the market share had fallen to 44.5%. "The decline over the past two years is still magnified. And then, people wonder where the market share has gone? A company from the professional management of Wang Hai (a pseudonym) told the South reporters, Nielsen's statistics omit a large Legion ——— cosmetics online brand, such as the two years very popular snail makeup products, silk mask, etc., are a single product "Burst" breakthrough, in the traditional manufacturers, media business outside the vision of "barbaric growth."

Of course, there are still a lot of young brands that quickly occupy the market with a single channel. For example, "We all know that Watson's own brand product sales accounted for a high, in fact, the current in Watson's skincare products category, the first sales brand is ' beauty ', affordable herbal also sell very well." Watson internal personnel miss to South all reporter said.

These changes make the transnational skincare brand is at a loss. "Before that, both Procter and Gamble, Unilever had to play, to shoot a group of luxury ads on television, and then on the ground marketing." Their biggest advantage is that the purchase of advertising is not cheaper than others, channel is particularly strong, I can 14 days to shop to Wal-Mart, Carrefour, China Resources million home and other channels, 7 days after the purchase of money. Wang said, but what is the situation now? Don't say how big the skincare business is, if the "last mile marketing" of social media is not done well, that's it.

Under the channel dispute, "The ability to suck guest" variable big

Cosmetics brand for the market share behind, is actually the channel of war.

In China, sales of large and medium-sized Ultra will fall from 27% in 2010 to 16% in 2015, and sales of department stores will fall 5% to 30%, according to a group of Nielsen reports on cosmetics market share data obtained from authoritative sources. By contrast, sales of personal care stores will rise to 25% per cent, while the electricity business channel is expected to rise from 13% in 2010 to 25%.

A cosmetics company marketing director Shanhai to South all reporters examples, before, the department store if there are 100 visitors a day, there are twenty or thirty transactions list. Now, the conversion rate is unchanged, but the department store's ability to absorb the weak, the number of visitors to the counter is less, can only rely on increasing the unit price to flush sales. "It's hard and hard to do business like this. ”

In such a background, the network shopping platform frequently make the festival, the crazy promotion naturally causes the traditional dealer's dissatisfaction and the counterattack, regarding the cosmetics net buys all sorts of tricks also to be excavated unceasingly by the person. More than 20% of cosmetics sold on China's internet are fakes, according to a recent report on China's cosmetics safety index.

"There should be more than 20% fakes," he said. such as Lan and other international brands, each year in China, the proportion of various channels of sales is one year ahead of the allocation of good, which means, want to take the channel of the net to buy the company, or bear the risk of high inventory, or bear the risk of breaking goods. Of course, there is also a ' flattering ' approach, is the consumer every single, the domestic B 2C site in the background to the partners under a single, such as Hong Kong strawberry nets, and then shipping and shipping costs are strawberry nets to be responsible. "Zhang was originally the founder of a Shenzhen cosmetics company, he gave the south all reporters complained," last year, the site closed, then there are several cosmetics electric companies in Shenzhen, like us, closed. The reason is simple, China's online shopping market has been a few giants monopoly, the rest of the company is simply a trading platform, no source, no flow, it is just an empty shell. If you want to live, you have to sell fakes, you have to take the sample, the sample to flee the goods. ”

Several big retail giants around cosmetic sales situation

This is a seemingly online, offline retail channel dead to the end of the war, is actually a few retail giants in the struggle for cosmetics Jiangshan. The deal that had been taken into the Lok Bee net had just settled, and Li Ka-shing quickly came out, "in any case, Watson will certainly be listed in two places in the same year, and Hong Kong is one of them." "Then, Tencent and the joint Jingdong Mall announced" Both sides of the marriage "message, micro-letter shopping is ready to be sent.

In essence, "online and offline marketing model is not different, the entity shop to do is to buy a sample sent, online shopping shop is to buy 200 to send 50, in fact, the same discount strength." "A major makeup of the large electrical goods licensing director of the South have said that, in his view, the net shopping platform to attract cosmetics consumers concentrated in the 24-36-Year-old, brand loyalty is low, and the physical market attracted the cosmetics consumers are mainly 36 years old, brand loyalty is higher.

"It is more and more important for retailers to get a better understanding of the target shoppers, especially those who often patronize and have higher costs, and tailor the appropriate communication strategies to their needs, and to develop the right product mix (commodity structure) in a competitive moment. Nelson Kubern, vice president of China, said.

Reporter Xiaoxin

Data

Reports from a C. Nielsen show that in China, sales of large and medium-sized business cosmetics will decline from 2 7% in 2010 to 16 in 2015, and sales in department stores will fall 5% to 3 0. Correspondingly, sales of personal care stores will increase to 2 5, while the electricity business channel is expected to rise from 1 0 to 1 3 in 2 0 2 5 years.