No longer do "big-name replacement", how to counterattack domestic beauty?

Domestic beauty brands are trying to tear off the label of "big brand replacement" and upgrade their brands through the use of various brand marketing strategies.

Let’s talk about domestic beauty first:

Do you have any national cosmetics brands in use?

Have you ever been attracted by the packaging and design of national cosmetics products?

With the same efficacy as overseas products but lower price, would you choose the national cosmetics brand?

In the first half of 2019, the "Beauty User Insight Report" published in today’s headlines mentioned that the domestic beauty market is expected to reach 490.6 billion yuan in 2019. In recent years, domestic beauty has kept increasing in the 100 billion market.

According to the data of "Domestic Beauty Report" released by Tencent, in the field of skin care products and cosmetics from 2013 to 2017, the market share of foreign brands has been negative for four consecutive years, while the market share of domestic brands has exceeded 56%, surpassing foreign brands. It can be calculated that the current market share of domestic beauty cosmetics is close to 300 billion.

In this year’s double 11, the beauty and personal care field has become the fastest growing category with 115.3%. On the list of beauty brands in double 11, there are 4 domestic brands, including traditional brands Nature Hall and Baique Ling, as well as cutting-edge brands Perfect Diary and Winona, all of which indicate that domestic beauty brands are making a counter-attack with a soaring momentum.

After years of precipitation, the national cosmetics brand has formed a clear camp. Baique Ling, Nature Hall, Polaiya, herborist, etc.Volkswagen traditional brand; Perfect Diary, HFP, Winona, Tangduo, etc.Xinrui brand; There are JUNPING of Fang Junping, Aimo of Zhang Mofan, CROXX of Dong Zichu, etc.Online celebrity created its own brand..

Except Baique Ling, an 88-year-old brand, other traditional national makeup brands were basically established around 2000. The parent companies of each brand basically implemented group multi-brand operation. At the beginning, they mainly focused on skin care product lines, and developed products with natural ingredients such as plants, herbs, glacier water and deep sea. In recent years, with the upsurge of makeup consumption, traditional national makeup has also begun to launch a series of makeup and makeup products.

From the production mode, the traditional national cosmetics enterprises belong to the head players, and at present they basically adopt OBM mode (original brand manufacturer).Self-built factories, integrating research, development, production and sales services, are all independently completed by brand enterprises.

Of course, there are also many national cosmetics brands that use OEM and ODM production models to save costs and be more efficient.

OEM (original equipment manufacturer) is commonly known as "OEM" and "OEM". The brand only participates in product design and research and development, and the OEM directly produces according to the brand requirements, and the products are sold with brand trademarks.

ODM (original design manufacturer) brand entrusts the manufacturer to provide all services from research and development, design to production and post-maintenance, and the brand is only responsible for the production mode of sales.

Under the OEM and ODM models, a number of domestic beauty OEM giants were born, such as Northbell with a market value of 1 billion, and Bawei shares with thousands of OEM cosmetics brands.

From OEM/ODM, which used to mainly serve overseas beauty cosmetics, to the development of OBM mode now, the domestic production mode is more mature, which has created a good product research and development foundation for the rise of national cosmetics brands.

According to the statistics of China Industrial Information Network, in 2018, several major companies, such as Paiqueling, Galand, Shangmei and shanghai jahwa, basically all occupied 2%-2.5% of the domestic beauty market.

Compared with Shiseido’s 13.1% in the Japanese market and Amore’s 18.8% in the Korean market (interestingly, LG, which is familiar with electrical appliances, ranks first in Korea, and LG Home Care’s share in Korea is as high as 20%), only Baique Ling and Galand Group have annual revenues of over 10 billion. At present, there are no monopoly large enterprises in domestic beauty cosmetics, and there are still great growth opportunities for national cosmetics brands.

Data statistics come from China Chain Store & Franchise Association.

Most of the cutting-edge brands were born in the cusp period of content e-commerce.

Brand enterprises such as Perfect Diary, Flower Xizi and Orange Blossom were established only after 2016. HFP was established in 2014, and its parent company Guangzhou Eggshell Network built a HomeFacial platform for beauticians in the first year of its establishment, focusing on O2O services in the field of on-site beauty. The product HF stopped only one year after it was launched. Since 2015, HFP has become a skin care brand that has been put into operation throughout the eggshell network.

The starting product line of cutting-edge national cosmetics is not the same as traditional beauty cosmetics, and most brands mainly use makeup as an introduction at the beginning.Perfect Diary, Flower Xizi, Orange Blossom and Mary Daijia basically focus on make-up products, while HFP and Touzhen focus on skin care products that emphasize ingredients.

Founder background, capital reserve, product advantages and marketing environment have become important factors for the rapid rise of cutting-edge national cosmetics.

Lu Bo, the founder of HFP, was born in the market research department of Procter & Gamble Department, which is known as the "Whampoa Military Academy" in the marketing field. Huang Jinfeng, the founder of Perfect Diary, once worked as COO of Royal Mud Workshop-they all realized the gorgeous turn from corporate marketer to entrepreneur.

The legend is that Cui Xiaohong, the founder of Mary Daijia, turned to start a business after 11 years as a blue-collar worker. Starting from a mascara, it has completed the beauty empire of the current 1 billion market, and no financing information has been disclosed at present. Since 2010, large-scale brand art exhibitions have been held continuously every year. In 2017, she entered Sephora, the world’s top cosmetics retail chain under LVMH. Cui Xiaohong’s forward-looking strategic vision led Mary Daijia to sing all the way.

Mary Daijia 2019 "Theatre Tour 2: Boundless Banquet" Art Exhibition

In 2016, Cui Xiaohong hoped to pay more attention to product innovation. Mary Daijia appointed Chen Haijun as CEO. Chen Haijun was the former general manager of L ‘Oré al China, who helped Maybelline’s shipment in China market reach nearly 1.8 billion in 2010 from about 300 million. The founder of forward-looking vision partners with experienced managers, and the new brand Mary Daijia is moving towards the goal of an international makeup brand.

In terms of capital reserves, such as Perfect Diary, Winona, HFP, Orange Blossom, etc., basically completed the A-B round of financing, but HFP, Winona and Mao Geping did not conduct new financing after 2015 and 2016. After completing the latest round of financing in September 2019, Perfect Diary was valued at $1 billion.

Capitalization operation and sales cash flow help the rapid rise of new beauty brands.

The data comes from public information collation.

On November 8th, Tmall Beauty founded the "2019 Domestic Beauty Festival" and "This is the Founder" program, and 11 founders of domestic beauty won various founder awards.

Interestingly, in this program, the spokespersons speak for their own brands, and through the form of PK in and out of the station, consumers vote for their favorite spokespersons. Among them, there are Fang JUNPING, the founder of Junping, Zhenjie, the founder of Touzhen, and Xiao Hongge, the founder of Han Xizhen.

The power of "fan economy" has become a great thrust for the rise of online celebrity’s own brand.

This is a powerful testimony to Fang Junping, Zhang Mofan, Dong Zichu and other "founders of online celebrity".

Fang Jun Pinghe and Zhang Mofan both belong to the "Weibo Department" national makeup brand early adopters. Both of them accumulated a certain amount of original fans by creating professional content in their fields in the early days. Later, both of them became an instant hit through explosive videos, and the number of fans made a geometric breakthrough, turning Weibo into a grass belt owner position, thus realizing a closed loop of "flow-brand-realization".

Zhang Mofan’s store sales reached a peak of 120 million in 2016 after the release of the video "Have you been lovelorn?".

In addition to creating his own brand, Fang JUNPING is also laying out Junping’s ecology. He founded Xiaofu Technology, which focuses on "AI Skin Measurement+Big Data". Intelligent skin measurement provides consumers with multi-dimensional reports and cooperates with brands and Tmall’s new retail. Through skin measurement, online and offline member information and accumulated data in smart stores are opened to form an effective database. It is reported that Xiaofu Technology has reached in-depth cooperation with Galand Group, Yueshi Fengyin, Mary Kay, Polaiya, Winona and other brands and beauty institutions.

In 1996, Dong Zichu, a boy, was the founder of National Makeup of bilibili Department. With its unique video style of "poison tongue" and "enchanting", it has attracted countless powders, becoming the "top beauty man in bilibili" with 1.56 million fans. bilibili, who has a high activity, is known as "one powder tops ten powders". One year after its launch, its cosmetics brand CROXX has achieved annual sales of over 100 million yuan.

A list of videos released by Dong Zichu in bilibili

Online celebrity’s own brand has strong carrying capacity and rapid development, but it will also face the problem of growth bottleneck. In the early stage, fans were relied on to realize the realization of traffic. Later, how to make fans’ personal recognition of online celebrity turn to brand recognition, and at the same time, realize the circle and form a lasting influence in the market. There is still much room for exploration and improvement in product building and brand building.

After the above-mentioned understanding and discussion of the domestic beauty camp, let’s analyze how the national makeup brand rose and achieved counterattack.

There are basically common reasons for the counterattack of national cosmetics brands:Take the products with high value and low price as the guide, guide the brand, and then gradually cultivate the brand awareness of consumers.

1) Make-up first

Makeup is a relatively low entry barrier in the beauty industry, followed by makeup and skin care products. At present, the hot brands of national cosmetics, such as Perfect Diary, Hua Xizi, Mary Daijia, Mao Geping, etc., all take make-up as a category to open the market.

At the same time, make-up can bring the most intuitive change to "face value" and has more advantages in consumption choice.

2) High value design and packaging

The national makeup brands with great popularity basically have their own unique explosions, such as Hua Xizi’s "National Style Micro-carved Lipstick", the perfect diary’s "Animal Eye Shadow Disc", and Dong Zichu’s CROXX, which are highly exquisite in packaging and design, and the exclusive customized leather express box. The inspiration elements such as "National Style", "Medieval" and "Tarot Card" are wildly used in different product designs, showing great personality.

These national makeup products are very beautiful in design and highly recognizable. They grow grass with "high value" and even become the "memory symbol" of the brand. When the name of the explosive product is mentioned, consumers naturally think of the brand.

Huaxizi’s "Carved Lipstick" &CROXX Silver Etched Orphan Powder

3) People-friendly price

The overall price of national cosmetics brands is lower for overseas brands. The word "flat replacement" is often mentioned in the live broadcast of beauty cosmetics, which means that the ingredients and effects are basically the same as those of big-name products, but the price is much cheaper than that of big-name products. In KOL grass planting, national cosmetics brands often promote some main models as so-and-so big brands, which is more attractive to consumers.

Generation Z is defined as the "post-95" population, which is clearly pointed out in the White Paper on Generation Z Consumption Power released according to QQ advertisements.The three major consumption motivations of Generation Z are: socializing, setting people up, and pleasing yourself.

They believe that consumption can find the expression of identity and maintain social relations; By exploring and trying different styles of products, we can find a way of life that suits us and establish our own personal design. Consuming your favorite items can bring you direct happiness.

KANTAR&QQ Advertising "White Paper on Consumption Power of Generation Z"

According to the survey in the 2019 Insight Report of Domestic Beauty released by Tencent, when young consumers choose beauty products, the country of brand ownership is not an important consideration, but more depends on product function, word-of-mouth evaluation, price and effect. At the same time, 42% of consumers are biased towards domestic brands, and nearly 90% of consumers said they would buy domestic beauty products again in the future.

Tencent Advertising &KANTAR "Insight Report on Domestic Beauty 2019"

Generation Z’s new consumption concept has given Chinese cosmetics brands more opportunities to break the rules. High face value, interesting personality, and "easy to use but not expensive" highly satisfy the happiness of Z generation in talking to the society, personalized design and pleasing their own consumption.

Compared with some international brands, they rely on outsourcing operations and have a long decision-making chain, and they are slow to respond to the traffic platform. The marketing response of cutting-edge national cosmetics brands is more flexible, and they basically take the lead in different traffic bonus periods.

The iteration of national cosmetics brands is closely related to the changes of domestic traffic platforms.

Wu Zhigang, general manager of OBI.CHINA, mentioned in a lecture that "every traffic change brings an iteration of brand creation, and the emerging content traffic is the decisive force to achieve new brands".

WIS’s traffic bonus comes from Weibo, HFP’s core traffic comes from WeChat WeChat official account, Perfect Diary comes from Xiaohongshu, Dong Zichu comes from bilibili, and Hua Xizi comes from Taobao Live. These cutting-edge national makeup brands have gained dividends in different traffic tracks.

Did these brands achieve rapid growth just by pressing the right traffic channel?

Further exploration shows that they have actually made strategic choices.

When cosmetic products are spread, users tend to see more intuitive use contrast effects. Little Red Book with pictures and videos as the cover is a better platform for planting grass for Perfect Diary. Perfect Diary adopts pyramid-like delivery strategy on Little Red Book, which is driven by a small amount of KOL in the head, mainly spreading through the waist and primary KOL.

For skin care products, consumers are more concerned about the efficacy and use effect of ingredients, and WeChat official account articles that can carry more words and pictures are a better communication form of HFP. The KOL type selected by HFP covers many fields, such as mind, information, fashion, and planting grass, and stimulates purchase by communicating with users from different dimensions. At the same time, the launch is not limited to single products or explosive products, and the product structure is mainly a combination of "regular products+seasonal products+new products".

And this year’s hot flower Xizi chose to bind Li Jiaqi. It is reported that in the first three months, Li Jiaqi was given a rebate of up to 100%, and the bonus of top-level live broadcast traffic was obtained through deeper cooperation. Subsequently, Hua Xizi officially declared Li Jiaqi as the chief recommendation officer of the brand, and Li Jiaqi appeared in the brand-new carved lipstick propaganda film jointly launched by Bazaar magazine.

The above cases are basically the choice strategy of the national cosmetics brand in the initial stage of traffic channels. According to the product characteristics, we choose key channels for deep cultivation, strategic delivery and point blasting.

Nowadays, the traffic is more dispersed, and Chinese cosmetics brands have begun to make various attempts in different channels. Perfect diaries and HFP can be seen everywhere in Tik Tok, Zhihu and bilibili, which are being discussed in the industry recently. The Tik Tok Fashion Grandma Group, which had been very popular before, recently helped Perfect Diary achieve 1 million deliveries in one hour.

These can be seen in the extensive layout of national cosmetics brands that have already begun to be launched, in order to maximize the flow dividend.

According to the survey data released by Kantar2019, a world-renowned research and consulting company, China is one of the countries keen on using stars in advertisements, ranking second only to Japan and South Korea, and the proportion of using star advertisements is still rising.

I sorted out the spokespersons signed by the national cosmetics brands in the past two years. Many brands have more than one spokesperson, including brand spokespersons, category spokespersons and even single product spokespersons.

The way of multi-spokespersons shows that the brand is eager to realize multi-dimensional circle business value through more spokespersons and drive transformation.

Source official blog information of various brands

The power of new stars to bring goods should not be underestimated.

In the "Fashion Trend Report for Autumn and Winter of 2019" released by Taobao, YiBo became the Top1 of the list of male stars born after 1995, and together with Sean Xiao, she was formed into "Bo Jun Yi Xiao" cp. In 2019, they won four brand endorsements and numerous brand promotion respectively. This year, in double 11, HFP launched a limited stock solution gift box with the same model in YiBo, with the surrounding picture books and postcards from YiBo, and sold 30,000 sets only 14 minutes after the pre-sale opened on October 21st.

Working with stars to develop customized gift boxes and giving gifts around stars to stimulate fans’ consumption impulses has also become the marketing gameplay of many brands at present.

Let’s look at the case of the perfect diary, which can be called the classic of rice circle marketing.

In August, 2018, Perfect Diary announced the signing of THEO, the first spokesperson, and then launched the promotion activity of "call THEO to unlock the progress bar". Within 2 weeks, every time you place an order for a small black pipe, you can unlock different tasks to help the idol make a multi-angle appearance. Finally, 300,000 lipsticks bought by fans put THEO’s advertisement on the big screen of Shanghai Bund Aurora.

The success of the above brands can also give us some inspiration: celebrity endorsement is not only a TVC, a signed poster, but also a simple audience identity for fans.

Brand can fully tap fans’ emotional concerns about idols, create more opportunities and sense of honor for fans to call idols, make fans become participants and helpers in brand marketing, stimulate fans to realize cash, and realize new growth of brand business.

In March of this year, the data of "Cross-border Collection x BrandUnion Beauty Industry Brand Joint Cross-border Research" (hereinafter referred to as "Cross-border Collection") released by CBN Business Data Center and Tmall showed that the cross-border marketing consumption ranking of the beauty industry was second only to the clothing and luggage industry, and the number of cross-border brands increased year by year, and the number and amount of consumers accelerated.

"Cross-border Collection" shows that more than 70% of consumers of beauty cross-border cooperation are brand new customers, and they have become the main consumers of joint cross-border after 90 s and 95 s.

As mentioned above, the three major consumption motives of Generation Z are socialization, personal design, self-satisfaction,Cross-border can create new products or consumption scenes, accurately reach young people to drive consumption, and cross-border has become a weapon for brand innovation.

Combined with the statistics of Cross-border Collection, it is concluded that brand cooperation, IP joint name and art design are the main cross-border types of beauty industry at present.

Combined with the marketing of national cosmetics brands and the viewpoint of Cross-border Collection, I have compiled the following three cross-border cases of national cosmetics brands and shared them together:

It is interesting to find that the Cross-border Collection also mentions the above three types of cross-border: "The joint cross-border cooperation between brands and brands is deeply loved by consumers after 90′ s; The joint cross-border way of brand × art design is outstanding among consumers in post-1995, third-and fourth-tier cities; Brand ×IP is more eye-catching in male consumer groups. "

This also gives some inspiration to the brand’s cross-border efforts: we can try to cross the border from IP and art design to cover the Z generation and the sinking market consumer groups with great consumption potential.

At the same time, the male beauty market can not be ignored. Male national makeup brands can try to cross the border with IP or brands dominated by male fans to further deepen the brand’s influence among male consumers.

The second part of the article mentions that most national makeup brands enter the market first with make-up, and "make-up-makeup-skin care" is basically the road to product layout development in the process of becoming a head brand.

According to the data of research institute NPD, the proportion of skin care demand in the US market is on the rise in 2019, while the proportion of makeup demand is declining. In the first quarter, American cosmetics sales fell by 4% year-on-year, while skin care products increased by 4%, and the giant Estee Lauder was also affected.

There is also Kylie Cosmetics, a make-up brand founded by Kylie Jenner of Kardashian family in Jin Xiaomei. After several years of success, it helped Jin Xiaomei make the Forbes list with a price of $900 million. This year, its sales dropped by 14%, and it is facing a retail crisis.

From the overseas market situation, it can be predicted that next year, more national makeup brands that started with cosmetics will be involved in the field of base makeup and skin care with a larger market share, and expand their product lines to resist the risk of declining demand for cosmetics. For example, the perfect diary has also begun to get involved in skin care, and launched skin care products such as essence and mask; Mao Geping’s skin care series, which is famous for its make-up, has also been selling well on the Internet.

On the whole, the price of national cosmetics products is basically more close to the people than overseas best-selling beauty products. When the brand has a certain number of loyal fans, it needs to innovate and expand high-end users with stronger spending power. At this time, the brand needs to create a series of high-end products to meet the needs of high-end consumers and enhance the brand image, thus enhancing the brand’s market share.

As early as 2017, Mary Daijia established ——COLOR STUDIO, a high-end product line sold only in Sephora, and began to expand the global market with high-end products; Mao Geping’s "Oriental Spirit" and "Luxury Caviar" series also belong to its high-end product line.

It can be predicted that more national cosmetics brands will set up high-end product lines next year, gradually get rid of the label of "big brand replacement" and seize their own place in the high-end market. The competition with overseas beauty cosmetics will also be more intense.

According to CBNData’s "Report on Makeup Consumption Trends in Third-tier and Below Cities", "In cheap make-up, domestic make-up shines brilliantly. From April 2018 to March 2019, the consumer penetration rate was nearly 90%, and the sales share exceeded 60%, making it the mainstream of cheap make-up."

Source CBNData Joint Cost-effective Short Selling "Cosmetic Consumption Trend Report of Third-tier and Below Cities"

The dividends in the first-and second-tier markets are gradually saturated, and the brand competition is fierce. The sinking market has become a new position full of potential for fair-price national cosmetics.

With the popularity of Internet information, Tik Tok and Aauto Quicker have become the daily entertainment methods of consumers in the sinking market. KOL grass planting, beauty promotion, beauty tutorial, love gift giving and other contents on the platform have continuously cultivated consumers’ awareness of makeup consumption and stimulated their consumption impulse.

"Report" shows: "During Tanabata this year, among the consumers who bought domestic makeup gift boxes in a cost-effective way, men in the sinking market contributed 90% of the sales."

It can be seen that gift-giving has also become the consumption development trend of national cosmetics brands in the sinking market.

According to the data of the National Bureau of Statistics and Guotai Junan Securities Research Report, more than 70% of the people in the country are in the sinking market. In other words, there are about 390 million residents in first-and second-tier cities, and there are as many as 1 billion residents in cities below the third line and rural townships.

The beauty consumers among 1 billion people are a huge market with great potential for national cosmetics brands. Next, the sinking market will bring explosive new growth of national cosmetics brands.

After several generations of traffic platform changes in the beauty industry, the traffic dividend is scattered and gradually weakened, and the cost of acquiring users becomes higher. Now it is difficult to give birth to a phenomenal new brand on a certain platform.

This also drives the national cosmetics brand to enter a more professional and refined operation stage, deeply study and observe the operation rules and trends of different platforms, gain insight into users’ consumption psychology and demand, strengthen products, content and communication, and drive the brand to grow.

Every year in the "Tmall Selection Festival" in double 11 and 618, the highlights of the products are displayed by the second generation of Tmall, and the products are selected by an internal committee composed of bargain hunters and bargain hunters. According to the factors such as product value, design innovation and market selling point, the products shortlisted for the explosion list are selected. This year, a fashion judging panel composed of fashion KOL from various platforms in Tik Tok and Weibo was specially set up, and the selection criteria were more stringent. The basic products selected through competition are high-quality products that have insight into consumer needs and are deeply customized under big data.

In addition to Tmall, another huge pool of traffic, Tik Tok, also drives the creation of brand quality content. Gina, the planning director of Giant Engine South China Marketing Center, said at the salon under the DC planning line of Giant Engine: "Tik Tok platform’s native TopView and screen opening have the best content priority, creating an exclusive content environment for the brand. Good content and good stories, through various transformations of the platform, realize the transformation and landing, and directly use the story to realize the delivery. "

If you want to continue to reap dividends on the traffic platform, then the national cosmetics brand will continue to improve in supply chain, consumer insight, product innovation and content creativity.

After the analysis and summary of the counter-attack of domestic beauty products, it is found that the field of beauty products has already sprung up, and it will enter the stage of fierce competition in the Red Sea next year.

Looking at the current consumption environment, the "real estate economy" is going down, and the growth rate of household appliances and automobiles with strong correlation continues to decline, while the beauty industry is still making great strides. The shelving of the big consumption plan gives consumers a "small budget" and a strong desire for low-priced goods. This phenomenon is what we often call "lipstick economy"; It also shows that under the current market environment, the field of fast consumption is still on the rising track, and it is easier to stimulate transactions.

Finally, I have a bright prospect for the national cosmetics brand.

It’s too early to evaluate who can really win the competition, so we’ll wait and see. I hope that domestic beauty products can rise in an all-round way and emerge as world-class brands.

Author: Ke Ke, WeChat official account: A Ke Ke (ID: AKE-0317)

This article was originally published by @ Keke. Everyone is a product manager. Reprinting is prohibited without permission.

The picture comes from the perfect diary official website.