How can domestic beauty products that are no longer "arrogant" get out of the comfort zone?

Recently, the domestic make-up brand Ermu Grape published a post in Xiaohongshu, saying that the boss asked it to operate "just find a few big names" and attached screenshots of private letters to major luxury brands such as GUCCI, LV and FENDI. From the picture, various luxury brands did not reply, and the post published by Ermu Grape said, "Busy all morning, talk about the next 0 cooperation".

Judging from the follow-up posts released by Ermu Grape, Ermu Grape did not announce the joint plan, but instead saw the ridicule of others on this matter from the pictures exposed.

Some media believe that whether the joint invitation is really rejected by luxury brands or the new marketing method of Ermu Grape to win traffic, it shows an embarrassment of domestic makeup.

domestic goodsBeauty cosmetics highlight no longer.

As early as 2018, domestic make-up was playing the game of "Who is the real makeup of the Forbidden City", and then a series of highlights were opened. In 2019, more and more domestic cosmetics such as eye shadow, mascara and blush were sought after. Perfect Diary and Hua Xizi successively topped the list of Tmall 618 or double 11 cosmetics as "dark horses", ranking at the TOP10 for three consecutive years.

However, with the increasingly fierce competition of domestic cosmetics, brands that once led domestic cosmetics seem to be slowing down and slipping from a high position step by step.

According to the "618" sales data of the whole network in 2023 from the star map data, in the category of perfume cosmetics, the top five brands in JD.COM list have been dominated by international brands, and only Hua Xizi, a domestic cosmetics brand, is still on the list. Compared with the data of 618 and Double Eleven in the previous two years, domestic brands such as Perfect Diary and Kelaqi have dropped off the list.

Besides, in the beauty and skin care list, the top five brands in JD.COM are also taken over by international brands such as L ‘Oré al, Lancome, Estee Lauder, Olay, Shiseido, etc., while in the top five domestic brands on Tmall list, only Polaiya is shortlisted, ranking fourth. Huaxi Bio, known as one of the "three giants" of skin care, has no two skin care brands on the list.

From the overall data point of view, according to the star map data, beauty and skin care is still the largest category on the integrated e-commerce platform, with sales of 30 billion yuan during the "618" period, but the overall growth rate has slowed down; Perfume make-up maintained a growth rate, with a total sales of 10.6 billion yuan. In addition, the GMV of "618" Tmall plus JD.COM beauty category reached 40.6 billion yuan, down 1.0% year-on-year.

According to the data quoted by the media, judging from the performance of various brands, according to Jiuqian’s data, at present, foreign brands are still the main brands in Tmall TOP10, and only 2 or 3 domestic brands in skin care and makeup categories have entered the list respectively.

Obviously, compared with foreign brands, the performance of domestic beauty in this year’s 618 is not so bright. In fact, the pace of domestic beauty is indeed slowing down. According to the previous statistics of a glance at the business, in the second quarter, there were more than 80 financing incidents in the new consumption field as a whole, and only 6 financing incidents occurred in the beauty industry. In the first quarter, there were 130 financing incidents in the new consumption sector as a whole, and 36 financing incidents occurred in the beauty industry. Compared with the first quarter, the data in the second quarter dropped a lot.

According to the incomplete statistics of Beauty Headlines, there were 14 investment/financing incidents in the beauty industry in May, amounting to nearly 800 million yuan. It is worth noting that of the 14 investment/financing incidents, 13 were for overseas beauty cosmetics.

Chao Chenglin, director of the Industrial Space Research Institute of business experts, believes that there are three reasons why domestic cosmetics brands are cold: First, due to the weak overall consumer market, the overall consumption performance at this stage is not ideal, and consumers’ willingness to consume is also declining, leading to a certain correction in the consumption performance of many industries. Cosmetics industry is a non-life necessity, and the decline in performance is no exception.

Secondly, as far as domestic cosmetics are concerned, there is a general problem of over-marketing. After the consumer experience in the past few years, their domestic cosmetics have no special advantage in product strength, and it is inevitable to gradually cool down.

He further pointed out that the early entry strategy of domestic cosmetics focused on the replacement strategy of foreign big brands and pursued cost performance. At this stage, more and more well-known big brands began to eat away the market share of the original domestic cosmetics by using different sales strategies, brand combinations and other means, coupled with changes in consumer demand, brand image and product quality, the competitive disadvantage of domestic cosmetics brands was immediately highlighted in the face of the dimensionality reduction blow of international big brands.

Light research and developmentOver-reliance on onlineHow to break the brand?

Once upon a time, high-intensity marketing was once the "standard" of domestic beauty products, but as the ultimate marketing investment can no longer get the same return, brands may need to find a new way out.

According to the information quoted by beijing business today, Hua Xizi’s previous marketing investment of nearly 20 million yuan per month was criticized by the industry for emphasizing marketing and neglecting research and development; The parent company of Perfect Diary is questioned because of its high marketing expenses. It is understood that in 2020, the sales and marketing expenses of Yixian e-commerce reached 3.41 billion yuan, a year-on-year increase of 172%, and the proportion of total revenue climbed to 65%. By 2021, this figure rose to 68%. Polaiya was criticized for spending more than 5 billion yuan on marketing and promotion in three years. The data shows that from 2020 to 2022, the sales expenses of Polaiya were 1.497 billion yuan, 1.992 billion yuan and 2.786 billion yuan respectively, and the sales expense ratio reached 39.9%, 42.98% and 43.63% respectively.

Wu Daiqi, CEO of Shenzhen Siqisheng Company, once pointed out that from the past experience, higher marketing investment will indeed bring certain performance growth to enterprises, but with the continuous development of the market, consumer demand is also changing, and brand power, product innovation and quality have become important conditions for consumers to choose products. This requires the strategic direction, brand management, operational ability and other comprehensive strength of the enterprise.

Zhong Xiaoming, president of Guangdong Cosmetics Quality Management Association, once pointed out that although it has entered the forefront of the world in quantity, the current innovation ability of China’s cosmetics industry does not match the huge market. Especially in the "original knowledge innovation" ability is still relatively weak. "

How to break the game? From the current point of view, many domestic brands have chosen to cooperate with major universities to explore more possibilities of products. Domestic cosmetics companies, including Yixian E-commerce, Hua Xizi, Polaiya and Huaxi Bio, have been seeking cooperation with universities in recent years.

It is worth noting that domestic brands have developed rapidly with the help of online channels such as Little Red Book, Tik Tok and e-commerce, but relying on a certain channel or an anchor will bring certain obstacles to brands. For example, taking Yuze as an example, after losing Li Jiaqi and Viya in succession, the sales of Yuze brand plummeted, which directly affected the performance of shanghai jahwa. In 2022, the company’s overall online channel achieved a total revenue of 2.787 billion yuan, a decrease of 13.21% compared with the same period of last year; The company’s overall offline channels achieved a total revenue of 4.313 billion yuan, a decrease of 2.59% compared with the same period last year.

When the e-commerce channel dividend disappeared, brands began to reconsider the layout offline. For example, Hua Xizi opened a 1000-square-meter offline store on the lakeside of Hangzhou. According to the incomplete statistics of the market, in the second half of 2022, at least 18 Chinese and foreign beauty brands increased their offline channel layout, not limited to opening global flagship stores, retail boutiques, brand offline stores and so on.

Chao Chenglin also pointed out that the reason why domestic cosmetics brands began to relocate offline may be to find more sales channels and improve brand exposure. Offline channels have certain advantages, which can directly reach consumers, provide more diversified shopping experiences and product displays, and attract more consumers’ attention and purchase. In addition, offline channels can also help brands to establish closer contact with consumers, provide better after-sales service and consumer feedback mechanism, and help to shape brand image and improve products. By rearranging offline, domestic cosmetics brands can better interact with consumers and improve brand awareness and market share.

At the time of slowing down, domestic beauty cosmetics may also be trying to get out of the comfort zone. Chao Chenglin believes that the road of domestic cosmetics is still very long. In the future, we need to pay more attention to product research and development and brand promotion to improve market share and consumer recognition.