Low-end vibrancy in local makeup

[China Washing Cosmetics Net Report] According to the latest data, in 2010, China's makeup sales reached 80 billion yuan, and it is expected to exceed 100 billion yuan in 2011. Watson's set of data changes also confirmed the changes in the Chinese makeup market. Watson's 2010 makeup sales have risen from the initial 5% to more than 25%. In foreign countries, the makeup market generally accounts for 30% of the entire cosmetics market, while China only accounts for less than 10%. It can be expected that the golden age of the domestic makeup market is coming soon.

However, in the face of L'Oreal, Estee Lauder, Shiseido and other international makeup giants have rushed to the Chinese market, domestic local makeup brands will have to face a more white market, it can be said that opportunities and challenges coexist. Opportunities tend to favor those who are prepared, so what are you going to prepare? There is no doubt that it is the challenge of finding local makeup and preparing for the challenges of foreign makeup giants.

In front of the cosmetics counter, it is difficult for us to find domestic brands in a wide range of high-end color cosmetics with a wide range of brands. The development of domestic brands in the high-end market is not ideal.

In fact, this is also a matter of reason. Foreign make-up has a history of more than 100 years of development, and China's mainland has emerged from the concept of "color makeup" in 1997 to the present, China has not yet formed a real makeup market. Therefore, local high-end cosmetics and foreign famous brands still have a certain distance, then where is the road – the low-end and middle-end cosmetics market, there are three reasons: First, the domestic cosmetics market has not been fully developed, the future capacity is huge; second, most foreign investment The makeup brand mainly occupies and develops high-end products, and is currently less involved in the low-end and mass-market consumer market. Third, the number of consumer groups in the low-end market is huge; these three favorable factors have invisibly brought good development to local makeup brands. opportunity. In this regard, the "China Washing Cosmetics Weekly" reporter has every reason to believe that local make-up has a vibrant spring in the low-end market.

Reason one: There are precedents for success

In the era of colorful makeup, many local make-ups went to the "high places", only for the rich profits brought by high-end makeup, trying to make the aristocratic makeup, this is good, the aristocrats can't do it, even the masses' consumption is also separated. The sales volume is not going up, and the rich profit can be described as the Arabian Nights. The funds and technology paid for the corresponding return, it is really a loss of the wife and the soldiers. However, some brands do not blindly follow the trend to the high-end, but turn to the terminal low-cost makeup, and received a good effect. For example, when China's domestic makeup is stifling in the middle and high-end makeup, Yameizi is on the way to launch a low-priced Elanyi makeup. Among the many make-up brands, the girly make-up, cost-effective and distinctive personality. In order to stand out from the crowd, it has firmly occupied the position of the first brand of low-cost terminal makeup. In this regard, the relatively successful mid- and low-end makeup brands include Xiafei and Yabang.

Not only is the domestic makeup market taking the low-end route, the international cosmetics giant L'Oreal flag is also involved. Although its beauty brand, Maybelline, has pure foreign blood, but it also takes the civilian route. Individual items are even less than 10 yuan. The price drop is based on L'Oreal's deep understanding of the Chinese market. It explains why Maybelline has become one of the most well-known and best-selling make-up brands in the Chinese mass cosmetics market.

Reason 2: After 80, 90, gradually rise to the top, the wave of makeup ageing is coming

Since the reform and opening up more than 30 years ago, many industries in China have been in line with international standards and have affected the consumption habits of many people. With the expansion of international exchanges and the entry of a large number of foreign-funded enterprises, the ordinary Chinese working class has gradually changed the habit of facing the sky and began to pay attention to their own image. The frequency of using makeup is constantly increasing. The head of an internationally renowned cosmetics company in China said, “China, more than a decade ago, it’s hard to tell which girl is beautiful because everyone looks like a girl. Now, girls know how to dress themselves and highlight themselves. The advantages of the survey. The survey data analysis shows that the most frequently used people are 25-34 years old, urban clerk (white-collar workers) with monthly income of more than 3,000 yuan, civil servants and actors and models. It is worth noting that the group of college students under the age of 24, although there is no fixed income, the frequency of use of makeup has increased by more than 30% compared with previous years.

Another phenomenon is more likely to highlight the trend of cosmetics becoming younger. We can see that in the various places where young people gather, it is quite common for students to get old age or make up or smear. There are various indications that in the domestic cosmetics market, a wave of makeup ageing from the West is taking shape.

Therefore, it is not difficult to find that no matter whether it is a low-income white-collar group or a group of students with no fixed income, high-end makeup products are hopeless for them, and makeup is a fast-moving consumer goods, and the younger generation is more fashionable. The speed of renewal is naturally faster, and the cost of consumption is naturally rising. Therefore, the middle and low-end makeup is more suitable for such a large group. This is a good opportunity for the development of the mass-market enterprises, and it is a firm market prospect to strengthen the local low-end route.

Reason three: high cost performance is king

I believe that many consumers are hard to say good about cost-effective products, and cost-effective products are more in line with the needs of the public. Why is a small Japan able to create a number of strong brands such as automobiles and electronics, and maintain great advantages and competitiveness in the corresponding fields? Because their ideas are consistent with high cost performance, their products are cheap and practical. The BYD myth was created based on the needs of the public and saw the huge potential of the domestic low-end automotive market. This is in line with the concept of cost-effectiveness.

Throughout China's make-up market, domestic make-up brands are more “Chongyang”, giving products a noble, high-end label, product prices are rising all the way, but the sales situation is not optimistic. Why is this? First, the high-end market of domestic makeup has been firmly occupied by foreign brands, and there is a tendency to accelerate and the competition is more intense. BOBBIBROWN, the professional makeup brand of the Shilan Group, and the MAC charm can also accelerate the distribution in the South China market in 2010, expanding the layout of its makeup to the southern cities of China. According to relevant sources, BOBBIBROWN sales have nearly tripled in just one year, and MAC has achieved a fairly good sales ranking in the first-line stores. Shiseido Group also increased its deployment of the Chinese makeup market through Shiseido's sleek makeup. Second, the first- and second-level commercial supermarkets are basically high-end foreign cosmetics in the singing of a single show, even if the difficulty goes forward, most of them are supporting roles, it is difficult to shine. There are also high-end products that are difficult to perform in the third- and fourth-level high-end outlets. After all, these outlets have limited ability to accept large stage.

As we all know, foreign high-end makeup is rarely involved in the low-end mass consumer market, but in the second- and third-tier cities and urban and rural areas, the population has a large population, the consumption level is relatively low, and the high-cost and cost-effective makeup with high quality and low price has a broad market space. Brands such as Yameizi were positioned as popular fashion makeup brands at the beginning of their creation. They did not follow the consistent aristocratic and court routes, but they took a different approach and approached the consumers. As the consumer population continues to grow, the brand’s popularity will follow. Raised, thus laying a good market foundation. Therefore, choosing a cost-effective makeup line will allow companies to see vibrant landscapes.

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