The electricity business channel divides the local day to borrow the capital to attack

Recently, the local daily and foreign investment in the news, ice fire double days. On the one hand, the local cosmetics brand after Korea has been the Sequoia Capital exclusive a round of billions of injections. On the other hand, Procter and Gamble cut its brand.

After South Korea revealed its plan to strategic layout of micro-business, so that the industry believes that the day is not the whole industry decline, but the original channel decline. has been "entrepreneurs behind the entrepreneurial" well-known Sequoia Capital to see more micro-business channels, then, what is the future of micro-business channels?

The electric business also has the traditional emerging point

has been a unique vision in the wind cast the Red Sequoia Capital, up to now in the country has invested nearly 150 have a distinct technology and innovative business model, with high growth and high return potential companies, no lack of industry leaders, such as Sina, Ali, Beijing-east and so on.

According to Sequoia Capital revealed that the favor after South Korea and South Korea in recent years, sales channels, marketing ideas and so not unrelated.

Han Hou from the franchise shop, has entered more than 10,000 franchise stores, in the country has more than 100 franchise stores dealers, at the same time, after South Korea stationed in the domestic more than 1850 Watson, more than 500 k a channel (large business supermarket stores). More importantly, South Korea is now committed to the network, or micro-trust channels such as the main channel of sales.

"Channel strategy is a very important point for us because we are concerned about a change in the social consumer Community's dependence on the channel." "This is a big reason for the South Korean plan to layout a large amount of micro-business, but also the founding and implementing partner of Sequoia Capital China Fund," Shen.

In its view, the birth of a person should be the future female consumption inside the most new power, and these people's consumption channels are moving to the line.

According to the Japanese industry, the so-called micro-quotient is a kind of electric quotient, but different from the traditional electric business.

In fact, the micro-business in the beginning is a direct marketing model of mobile or networked, but there are many brands too much to elevate the value of its products, its value and price is asymmetric, or not in a reasonable interval. In Korea, the cost of the product is probably 20% of the retail price, the mature brand is probably this interval, the domestic words, this proportion is too low, below 5% or 8%, in this case, enlarge the middle of the profit space, and then use a few layers of agents to share the benefits.

Because the micro-business saves a lot of marketing links, the sharing of benefits is really tempting, which is the reason for the rapid rise of the micro-business in the two years.

And after the South Korea to make efforts to build the micro-business channels, will be based on the maturity of the brand's cost-input model, the goal is to make the electricity quotient of more than 30% in the next year, and after the South Korea to enter the local brand of the top 5. According to the 10 longevity Group director, Vice President Sho Rong revealed that after the current electricity quotient of the group's total

"We are running a micro-business for less than two months, and from the first and second months, it will have a big chance of surpassing the traditional electricity quotient," he said. Because now in the first month my income ratio is already close to the traditional electricity quotient. Sho Rong said.

Han is not the first to taste crabs

In the interview, the South reporters noted that, in fact, Korea is not the only one in the overall layout of micro-business brand.

Another major domestic Amoy brand Han Yu announced in September this year to enter the micro-business channel, the brand through the micro-agent model to the national investment, has formed a micro-trust friends circle as the core social media agents team.

In addition, a number of brands Suzy, Qiao Imperial Concubine has also been in the test water micro-business.

Of course, the official announced that the majority of test water micro-business or low-end brands, high-end big-name currently involved in a few.

At present, the problem of how to standardize the products in the micro-business circle is also the problem that must be solved for the development of this way.

As we all know, cosmetics in the micro-commercial channels still have a lot of uneven quality and brand recognition is not high products, some cosmetics enterprises in several years can be a continuous exchange of several brands, almost all of the use of agents to earn short-term benefits immediately after the change of flag, start the next round of money process, its quality from needless to say.

Can new channels help local brands?

As we all know, the competition of cosmetics market is to a great extent the competition of brand and channel.

From 2003 206 900 million, to 2012 of nearly 200 billion yuan, the total sales of cosmetics in China increased by nearly 10 times times in 10 years. In the 2013, the overall consumption level of cosmetics in China has surpassed Japan, becoming the second largest consumer of cosmetics in the world after the United States. But the local cosmetics brand in brand and channel distance from foreign brands still have a gap.

This from the brand and channel finally reflected the market share ratio that can be seen. Data show that 2013, foreign brands accounted for the Chinese cosmetics market share between 50%~70%, Unilever, Procter and Gamble, L ' Oreal, Johnson and other multinational groups in the domestic market occupies an absolute advantage.

Of course, this situation has been quietly changing.

Analysis means that, in the past five years, the domestic market share of skin care products in foreign countries fell to about 45%. And the emergence of micro-business channels, may be the local daily to recapture the public skin care market share to provide new opportunities.

[Noun explanation]

Micro-quotient generally refers to the "personal" units, the use of the EB3 0 era of the derivative of the carrier channel, the traditional way of combining with the internet, there is no regional restrictions, and mobile sales channels to achieve a new breakthrough in small individual behavior. In layman's parlance, the micro-merchant is the small merchant that sells goods on the mobile end.