To do "Network Age cosmetics First brand", PBA how far?

Abstract: To do the network ERA cosmetics first brand, PBA how far? PBA is a company located in Xiamen, grew up in the network cosmetics brand, from it, you can glimpse a local cosmetics brand in the era of electric business growth story and the secret of high margin. In Xiamen electric business

To do "Network Age cosmetics First brand", PBA how far?

PBA is a company located in Xiamen, grew up in the network cosmetics brand, from it, you can glimpse a local cosmetics brand in the era of electric business growth story and the secret of high margin.

In Xiamen electric Business circle, someone has told such a joke: one year, the Suguijiang of PBA to do online promotion, spent 900,000, the year's sales is 1 million, the result you guess how, except the cost of goods and personnel wages and other operating costs, Suguijiang also earn 90,000. Of course, this is just a joke, you do not have to consider whether the logic can be set up, it is only to explain the cosmetics electric dealer's gross profit margin is very high.

Indeed, in the current dazzling array of electric dealers, the removal of jewelry and diamond luxury, there are more than cosmetics electric dealer gross profit margin is higher? Perhaps health care products can fight with one, but the health care products are not a good electricity, and cosmetics, such as the Lok Bee Network, poly-American Excellent products (micro-bo), rice son, royal mud square, etc. are in full swing.

PBA is one of the cosmetics electric dealer, the difference is, Lok bee nets, Poly-Mei Excellent products do is the platform, and PBA, Royal Mud Square do brand. Focus on Network marketing for many years to win the president of the Zengrong to Sina Technology, Xiamen Electric Business Circle, the highest gross margin of the electricity quotient on the number of PBA. How high is this gross margin? The answer for PBA founder Suguijiang is: About 80% to 60%, 80% is previous, and now the cost of marketing has risen to 60%.

According to peer data, PBA's gross margin does not appear abrupt. The prospectus of the cosmetics company that is currently on the market for herbal medicine shows that its 2011, 2010 and 2009 Network channel distribution of gross profit margins of 71.84%, 75.63% and 76.41% respectively.

The source of Gaumauli

In a certain case of efficiency, gross margin often means profit space, while net interest rate means the internal control and management ability of the enterprise. The same is done by electric dealers, compared to other categories of electric dealers, cosmetics dealers seem to be a good business.

Choose the right industry can be profitable? Also not necessarily, Sina science and technology found that cosmetics electric dealers also lack of bankruptcy cases. October 2011, Shenzhen Cosmetics business website Rob Fresh NET on the spread due to the collapse of the capital chain, even before the Rice mall was closed due to the capital chain fracture closure announced dissolved.

Suguijiang Analysis, platform-type cosmetics dealers and brand-name cosmetics dealers are still different. Now many platform-type electric dealers are also doing their own brand, so the platform-type electrical products can be divided into two pieces, one is the own brand products, a third party brand products, high gross margin embodied in its own brand products. All the major platforms in the sale of Third-party brand products are the same, can only spell prices, spell price there is no profit. But its own brand has a profit, and the profit of selling a private-label product is several times the profit of third party brand products.

And its own brand can prop up high margin of space, is the cosmetics industry chain upstream mature. Suguijiang Introduction, China's cosmetics production after decades of production process adjustment, with high-quality production process of cosmetics factory has been very much. They are in the International brand cosmetics OEM experience, mastered the first-class cosmetics production technology. The basic function of cosmetics, as long as you put forward, basically the factory can be produced. The production of cosmetics, like the apparel industry, the next batch of orders, the factory can be produced for you and affixed to your brand.

So the entry threshold of this profession has been very low, the upstream of the industrial chain is very transparent. But it does not mean that the industry has no threshold, its higher threshold has shifted to the supply chain management level, product quality control level, in addition, some key raw materials and formulations are in the hands of large international companies.

PBA is this way through OEM, on the internet to build their own brand development. PBA Deputy General manager Wang Kejin to Sina Technology, at present, PBA from the beginning of research and development, product packaging design, raw material procurement, until the latter part of the promotion of sales, warehouse management of the whole chain of key links are doing, and production, filling, logistics links and other outsourcing. "Our raw materials suppliers, factories and many international make-up brands are the same, they are also produced in China, so in terms of quality, PBA can guarantee." ”

The Secret of PBA

Why PBA did not like the same as affordable herbal growth for the line under the sales-oriented cosmetics brand, but grew into sales through the Internet channel of cosmetics brand?

Suguijiang that, the first is forced, the second is to catch up with the development of electrical commodity licensing good times, so that PBA become cosmetics electrical Goods card.

Before the net of 2007 years, Suguijiang team has no electrical business experience, some stumbled under the line undertaking: first from the agent Taiwan beauty equipment products began to invade the upper reaches of the industrial chain, to do their own brand and products; later felt the downstream channel to erode the profit of the strong, and then to do their own channels, to join the form of chain Once in the country to do more than 300, and then want to play high-end, get rid of the low-level form of chain join, do for high-end female group of private beauty Consultant (Privatebeautya dviser), "PBA" trademark that was founded in 2004, entered the highest office in Shanghai, carrying two years, Eventually fail Mai. From Shanghai back to Xiamen, Suguijiang poor "only one batch of PBA cosmetics produced in Shanghai." "At the end of 2006, due to the low cost of online operation, Suguijiang established the official website of PBA, want to imitate the Japanese cosmetics brand DHC model, sell cosmetics directly on the Internet." In more than a year later, through Baidu (micro-blog) and forum promotion, PBA adhere to the official network operation, but the business is dismal, can only maintain the basic operation of the team.

The transition occurred in 2008, the second half of this year, PBA tried to walk Taobao market shop, no longer only focus on the promotion of the official website platform. This is considered to be a critical step for PBA to come to today. "It is not possible to rely on the official website to bring in major sales when PBA does not become a truly popular brand," he said. "PBA Deputy General manager Wu Maolin thinks.

Taobao Bazaar has brought a significant increase in sales to PBA, while also prompting PBA for product type adjustment. PBA previous products followed the line of products to breast enhancement of the body's effectiveness of products, consumer expectations are high, PBA customer service is often consumers "why not yet" issues such as entanglement. Wang Kejin examples, such as a freckle product, curative effect also has, need one months later can be effective, but consumers do not have this patience, is often hope that immediate results, based on health and safety considerations, PBA can not develop this quick but side effects of the product.

Taobao market, the evaluation system quickly reflected the situation, the customer evaluation is very low, prompting the king of product development can really have to face the problem, and in the analysis of industry data, PBA found that the "efficacy of" cosmetics sales are declining. As a result, PBA in the second half of 2008 made an important adjustment to the product line, from the beauty of breast to the basic skin care type.

This important product line adjustment and PBA into the Taobao Market store operation Adjustment is interlocking, no Taobao fair practiced and network platform for consumer experience timely feedback, will not find the old product positioning errors in time. In the year, PBA's sales were about 2 million yuan.

The real leap-forward development for PBA is in 2009 years. To this year March PBA into Taobao Mall logo, PBA products in Taobao and other Third-party electric platform to maintain a best-selling. Sales of about 10 million yuan in 2009. In the future, the data doubled in 2010, about $20 million in 2011 and about 80 million yuan in the year.

PBA also grew rapidly during this period as a well-known Amoy brand. Currently, 70% of the PBA User group, mainly distributed in the age range of 22-28 years old, the average customer price of 100 yuan.

Cai and Lenovo Investment

PBA's high gross margin and fast growth even attracted CAI and June joint investment (formerly Lenovo Investment). January 2011, Cai to invest in PBA, the same year April, only 2 months, June Lian Investment also invested in PBA.

Recently, Suguijiang to Sina technology for the first public disclosure, the two investment total of about 50 million yuan.

With regard to CAI's investment in PBA, it is alleged that Cai's first foray into the business of the company in the public sector, and the very fast-moving style of CAI's investment, is less than 2 months from the initial recognition of an investment.

According to the side, Cai's investment also has a small story: Suguijiang Quanzhou Anxi people, Cai is Quanzhou shishi people, although the villagers, two people did not know before. At the end of the 2010 Xiamen Internet Circle of a small party, two people talk about the day, is considered the first time, but Cai has no Soviet contact. After the party, CAI the phone to ask a friend, the name of the person who sells shoes in the software Park? The friend in chat has seen Cai very interested in PBA, so correct: you are looking for is not selling shoes, is selling cosmetics. Next after and Suguijiang several negotiations, less than 2 months later, Cai quickly reached the investment PBA, Suguijiang happy as if "jackpot".

Because of the first money, PBA funds more healthy, despite a number of VCs and Suguijiang contact, but Suguijiang is not going to accept investment. The choice Cai wins, Suguijiang bluntly is because Cai in the Internet field unique experience to help PBA future development.

Is there a crisis in the PBA that can be courted by the wind? An industry analysis, one is from the international well-known brands online impact, domestic make-up industry foundation is thin, more than a century of brand few, some have been mergers and acquisitions, offline market has been lost, the line is being embezzled; the second is the uncertainty of network environment, The complex factors associated with reality can quickly make a brand of electrical goods, but also quickly destroy one.

Perhaps based on the concerns of single brands, since 2011, PBA for different consumer groups, adhere to the multi-brand walking strategy, has launched the "good and the United States, Yangsang, Dupai, 蓁蓁, the Qing Ke," and other brands.

At present, the 2012 PBA sales to do 100 million is not difficult, but to do "network Age cosmetics First brand", PBA how far?