Royal Mud Square CEO: 50 percent sales do not make money

["A lot of traditional businesses do ' double 11 ' generally for three purposes, ' to inventory, increase sales, improve profits ', but in our view, the shopping atmosphere has led to new choices for consumers, but also reduced the cost of trial, which is a good opportunity for us to develop new consumers. ”]

As time progresses towards November, the annual online shopping spree is coming. However, the major cosmetics brands have begun to scratch their sleeves.

including L ' Oreal, Lauder, Lange, Olay and other foreign brands and Bai Cao Set, pill the United States, hundred finches, royal mud square, such as local make-up brand in the "Double 11" before the day Cat "beauty makeup big pre-sale field", has laid out the ring.

One of the snow muscle essence, the United States, dream makeup and many brands are 50 percent, or even lower discount prices began to accept reservations, has the original price of 780 yuan of a skincare brand set to 380 yuan sales, pre-sale began less than 10 days after the draw nearly 4,000 orders. At the same time, there are many brands to borrow discounted prices to allow consumers to experience new products.

"The first financial daily" reporter learned that in the last year, "Double 11" to promote the performance of singing the premise, many enterprises in this year to do enough preparation, but also set a higher expectations.

Push consumers to "taste"

The aim of this year is to sell over billion. "Participated in several" double 11 "big promotion of the Royal Mud Square founder and CEO Dai to the" First financial daily "reporter said. He introduced that last year, "Double 11" Royal Mud Square sales reached 40 million ~5000 million, of which about 36.169 million are implemented in the Cat platform.

Talking about with the previous participation in the "Double 11" big promotion of the difference, Dai said that a few years ago as the annual event, now because of the various marketing activities are also more, the company's preparations for such a big promotion, Division of labor, the process has been very clear, the Royal Mud Square has a special "double 11" project team, And as early as July began to discuss whether this year's "Double 11" and what to do.

From the flow, the Royal Mud Square 2013 "Double 11" This day is usually seven or eight times times, and because the day shopping atmosphere led to a higher conversion rate, sales are usually online sales of dozens of times times. However, because each year "double 11" is "50 percent" sales, accounting down does not make money, Dai reporters that last year, "Double 11" after the hesitation is still to continue this year.

"A lot of traditional businesses do ' double 11 ' generally for three purposes, ' to inventory, increase sales, improve profits ', but in our view, the shopping atmosphere has led to new choices for consumers, but also reduced the cost of trial, which is a good opportunity for us to develop new consumers. "Dai said.

The data support the Dai-Feng's judgment that last year's "Double 11" online sales, Yu Nai Fang new customers occupy 50% of the total, because of this, in the "Double 11" before the Royal Mud Square on some of the core products to further upgrade, including in the materials, capacity, packaging upgrades, and the price remains unchanged.

However, he also noted that some brands are using the premium to 50 percent sales, may be similar to the usual promotional prices, and some even higher than the usual promotional prices, so consumers questioned. "Our brand is through the network Word-of-mouth sales origin, so we know more than the traditional brands online consumers, if the use of false discounts, may not only sales not ideal, but also consumer complaints." Dai stressed, "So even if we don't make money, we're 50 percent sales." ”

The way of large data is also in the "Double 11" the big promotion has shown in enhances the consumer experience the important role. Dai told reporters, the Royal Mud Square will be based on the past few years of Ping analysis and calculation of early packaging preparation to shorten the delivery time, for example, one of the most popular single product sales 100,000, then "Double 11" in fact, before 70,000 have been packaged in advance, coupled with a number of product combinations in advance projection, Overall, "double 11" of each of the 100 orders, 40 have actually been packaged in advance, as long as the day by order classification can, so greatly improve the delivery speed, but also enhance the consumer experience and satisfaction.

Expected to double the "carnival"

According to incomplete statistics, 2013 "Double 11", Cat Platform Cosmetics category of sales of more than 520 million, compared to 2012 310 million rose 67%. Taobao monitoring tool data cube disclosed data, last year, the cat "double 11" cosmetics sales ranked first "Amoy brand", "Pan" the amount of oil sold for 48.84 million yuan, an increase of nearly 100%. And sales of the top ten including the olive oil, the United States that is, Royal Mud square, L ' oreal, Niu, hundred finches, Olay, membrane Law family, Lauder, affordable herbal medicine.

"At present, the group's 4 brands, 2 brand Lange and dream makeup are in the days of cats, Poly-Mei excellent products, Beijing-east, such as online electric Shangping on the platform to operate." "Gao Xiangin, general manager of the South Korean cosmetics company, China, told the first financial daily reporter," for the Chinese market ' double 11 ' Such a hot topic on the line channel, the group is also very concerned about the last year Lange in the ' Double 11 ' performance is good, "this year the group is actively cooperating with online customers to prepare a plan for" double 11 " Activities.

According to the consultation data, 2013 China cosmetics retail market size of 333.86 billion yuan, 2014 is expected to exceed 400 billion to 404.41 billion yuan. In the next five years, the growth rate will continue to be above 20% and is expected to reach a market size of more than $700 billion in 2017.

L ' oreal China's chief market officer Asmitadubey also told reporters that its brands are actively preparing the "double 11" big promotion. L ' oreal China, with more than 20 different levels of brands, has set up different electric platforms for different types of brands, and the E-commerce turnover of L ' oreal has increased by more than one times since 2010. Taobao monitoring tool data cube data show that last year, "Double 11" big promotion, L ' oreal sales reached 32.16 million.

In fact, since Taobao in 2009, "Singles Day" on the day to open the "double 11" in the full 50 percent discount, its annual "Double 11" sales performance is staggering: 2009 100 million Yuan, 2010 936 million Yuan, 2011 5.2 billion yuan, to 2013 19.1 billion yuan Alipay total turnover record, has made Taobao has become an electronic commerce field difficult to shake the platform overlord.

Does not necessarily impact the physical store

However, "double 11" big promotion will be again to cosmetics brand entity shop constitutes a shock, especially for dealers, agents, the days are tough? In fact, prior to the "double 11" period, some traditional channel brand in Taobao and other online platform to launch crazy promotions, 50 percent or even the lowest 30 percent of the promotional efforts to arouse the strong rebound and resistance of the retailers under the line, some brands online offer discounts, or even higher than the actual purchase discount offline retail stores.

Amoy brand of the Royal Mud Square since 2013 has also begun to open a substantial shop online. Dai told reporters, now Royal Mud Square in Changsha and Shandong and other place has more than 10 direct shop. Although online and offline product line has 90% of the same, but double a big promotion day "entity shop no online discount, at most is some of the activities to buy gifts." "He said that the impact on the physical store is not too big, after all, the user groups are different, while the sales methods are different, offline entity stores have more experience services.

In contrast, offline physical stores can not achieve such a discount, Dai said, the Internet is the most important way to reduce transaction costs, some costs can be diluted by a large scale, and the physical shop costs and the cost of labor and rent can not be changed. For the brand through the offline distributor agent, "Double 11" Such a big promotion may lead to some channel conflict, the need for enterprise coordination of interest distribution, he said, but because the current royal Mud Square is a direct shop, so there is no such problem.

Jack Ma, the founder of Alibaba Group, has said: "The ' Double 11 ' carnival is a signal of China's economic transformation, the new business model of the traditional business model of the war, but also the traditional retail business and the new retail business form a direct confrontation." ”

Although the current brand and channel has always been the game has not changed, but the future brands may not be able to distinguish between line online, because each will become a full channel brand. "Retailers need to integrate multiple platforms, and those that are customer-oriented and provide seamless experience-mobile, social, and retailers themselves and third-party apps-need to be seamless," Xu Youhong, head of retail business in Essen, Greater China, told reporters. ”