What Is The Selling Point Of Chinese Cosmetics? Nine Entrepreneurs Behind The Local Brand

"Falling in love with big eyes and falling in love with Carslan."

In the late Millennium advertisement, which swept the Chinese mainland, Jolin, who was still a bit of a green Taiwan singer, told you how to make up.

Stefanie Sun and Elva Hsiao, who are also Chinese music stars, sing "Up2U" (AVON's make-up brand for the Chinese local market).

In the 2000 years, the cosmetics brand may only be able to get more money than anyone else to invite celebrities to speak. But nowadays, through the social media such as Xiao Hong book, UGC content has come to a much higher end.

"I think at this stage, this is more of a gesture of" anti trend "," Wu Zhigang, founder of the cosmetic industry creative service and incubator OIB.CHINA, "believes that this generation is not just a national product.

It can be called "the light of domestic products" because it embodies the characteristics of many new generation of consumers.

This is actually to promote the core of Z generation consumers, plus the electricity supplier and supply chain, which provides a good brand innovation possibility.

Born in the 1970s, the local cosmetics in Dahua chemical industry gradually formed in 1980s.

Beginning in the millennium, the first wave of local cosmetics brands such as Lancer, deep blue and Carslan rose with their special distribution channels.

Mary de Jia, the two wave of local make-up brand, began to grope for dissemination and content by grasping word of mouth products.

Beginning in 2010s, the players entering the board became richer. Not only did the Shanghai family jelly, the hundred antelope, the upper beauty, the blue and so on, the group enterprises did more and more fine from skin care to make-up. In the early years, Zhang Dayi, such as the rise of the electricity supplier, and other "Amoy brands" Reds also began to study how to make use of the beauty make-up, and rely on the Internet native brand such as the social electronic commerce flow, such as the perfect diary to achieve the sales breakthrough. The mass market oriented household life brand, such as the famous brand product or Alibaba's Taobao heart, also came to grab the cup of the beauty market.

According to the Hongkong food and Drug Administration (CFDA) data cited in the 2018 report of the TDC, as of the end of June 2018, there were about 3880 registered cosmetics companies in China with legitimate production qualifications.

Most of the local cosmetics brands are concentrated in the middle and low end, and foreign or Sino foreign joint venture brands still occupy half of China's beauty market.

But in recent years, the rising trend of make-up category is obvious, and online growth is faster than entity.

According to the star chart data provided by the electronic business research institute, the sales of Tmall's "double eleven" all electric business channels ranked the highest in 2018. The sales of beauty makeup and personal care products increased by 117%, ranking third in the sales of all kinds of products, and the cosmetics category increased by 21.5%.

"The percentage of consumers who buy skin care cosmetics most often online will continue to grow from 7% in 2016 to 16% in 2017," explains Nelson, vice president of China's vice president of BoF.

The cake and the local and foreign brands are also growing rapidly.

However, the value chain status of Chinese and foreign brands in cosmetic industry is still very different.

Make-up products are not only produced but also have a threshold (for example, lipstick and primer, polychromatic number development and quality control), and there is another special feature -- a bit like fashion: not to rely on high repetition rate, but also to see whether it is stepping on the trend and attracting attention.

But because of the creativity, the trend and the formulation of product efficiency, it is still firmly in the hands of foreign companies.

Wu Zhigang believes that "the values and aesthetic standards in the whole beauty field are created by foreign capital (brand)."

The name of the founder of the soul is always shining behind many famous foreign brands. Whether it is makeup artist and photographer Frank Toskan and Frank Angelo (M. A C), which runs chain hairdressing salon, it is known as "YSL bright colored pen", which has made a reputation in the industry. Then the cosmetics expert Terry de Gunzburg (Terry) is still popular with fashion lovers.

Like the fashion industry, brand strong personal characteristics and continuous output style expression are at the top of the value industry chain.

At the stage of development, China's local cosmetics brands, in addition to a few star make-up artists, have made personal aura "cash" for products and brands. Most cosmetics companies started with the strong technical strength accumulated by many years of OEM experience, factory facilities, sales channels, terminal stores and traditional marketing to highlight the tight encirclement instead of the original vivid personality expression and brand building.

"Local skin care and cosmetics have played a major role in educating consumers, making more people use and benefiting local brands," Ni continued. "But research shows that when making shoppers' decision to make up make-up, brand is the first attribute to be considered. Most people prefer foreign brands, and their preference for local brands is relatively low."

Chinese manufacturing strength and experience in the processing and manufacturing industry for many years have reached the top. Naturally, they are unwilling to remain at the bottom of the industrial value chain.

"The first generation of brands is to grasp channels and channels. The second generation has strong technical advantages in manufacturing specific products, and the third generation brands rely on traffic. The content side operation has advantages and effectively communicates with consumers.

In general, it is an evolution to migrate from the consumer end to the user side.

Wu Zhigang explained.

"Chinese people still know better what Chinese people want," he said.

For example, attracting users and marketing in the Chinese market is inseparable from China's unique internet environment.

Whether online or offline, the brand is not only playing around the mainland, but more and more brands are chatting after 95 and 00 after the consumer behavior, which creates the incubator mode of the company's Seed Beauty, which is behind the Kylie Cosmetics and KWW Beauty of the global network.

According to Nelson's Ni Yi, the common marketing methods of local cosmetics brands include social marketing, namely star recommendation and topic marketing on social media platforms; cross-border marketing, such as IP cooperation, brand crossover, etc., as well as online and offline stores combined with technology, entertainment and other elements.

"The last era might have been used.

In this era, it is good for consumers to become more beautiful.

In the next era, I think maybe 10 years later, China may also make a cosmetic brand that makes people proud all over the world. "

Wu Zhigang said, "every era will have the product of every era.

In this era, you can promote people to use make-up, appreciate beauty and understand beauty, which is the core of this era.

Here, BoF lists 9 local make-up brands and the companies behind the "light of the national goods".

carslan

Year of establishment: 2001

Tang Xilong, founder and President, is the earliest local color make-up entrepreneur who uses star advertising marketing offensive. From Cecilia Cheung and Jolin to Elva Hsiao, the impact on the industry is not profound.

At the same time, in the view of the industry, the success of the local cosmetics brand, the first place in the distribution network and the market share of CS channel, is achieved through a wide range of distribution channels.

Despite the problem of product iteration and image obsolescence, Carslan has been sitting on the top of the local make-up from 2011 to 2015.

Marie Dalgar

Year of establishment: 2006

As the first local color make-up brand in China, Mary de Jia started with mascara in the early years.

Cui Xiaohong, founder and art director, left the blue collar technical post of a lighting factory in Foshan, and co founded with the older brother of the makeup product factory. From a star Mascara product, the brand was built into the 2015 to 2017 Tmall's most expensive domestic make-up, with the existence of "lipstick machine", flash shop and unaccompanied retail entities, and so on to connect the second tier cities to the Millennium beauty consumers.

In 2018, the parent company Chuang yuan Group launched the Mary de Jia sister brand Yes! IC, minimalist packaging design, aesthetic style and advocacy value close to 95 of the young consumers, with more make-up without boundaries.

Mao Ge Ping

Year of establishment: 2000

The film and television representative works of the first generation of Chinese star make-up artists include the 1995 version of the TV drama "Wu Zetian", which has made a film and TV story for actor Liu Xiaoqing.

The Wenzhou businessman's namesake brand MGPIN (now renamed Maogeping) includes high-end positioning + direct camp, public positioning + distribution of two make-up lines, image design and make-up training school is also an important component of business.

With the high gross margin of the star cosmetics business, which sells for 690 yuan, such as star high gloss powder and so on, Mao Gang Ping cosmetics Limited by Share Ltd tried to sprint "IPO" in 2017, but failed.

Perfect diary

Year of establishment: 2016

The brand in 2018 Tmall "double eleven" Shopping Festival into the "billion club", the business performance is impressive.

Based on the electricity supplier channel and traffic thinking, Huang Jinfeng, a MBA graduate of Harvard Business School who served as the first generation of "naughty brand", was founded in 2015 by Guangzhou Yixian Agel Ecommerce Ltd. The team that led the marketing team achieved 200 million sales in the two years of brand creation, and became the second place in Tmall cosmetics sales.

According to the needs of fans, the perfect diary of product innovation is always cut out. Recently, the first line shop in Guangzhou has been opened, and the new categories such as water mask and fragrance have been tested.

Rui Ke (REC)

Year of establishment: 2014

In terms of the fashionable attributes of make-up products, hatching from the REC brand of the national chain cosmetics giant Guerlain beauty group, the handover to EPO Group, the local fashion giant with MO & Co. and Edition10, seems to be logical (and the chairman of Guerlain beauty group, Cai Ruqing is also the founder of the EPO group, Mr. MO).

REC brand is currently operated by Shanghai Li Ke Cosmetics Co., Ltd., the first independent store opened in Shanghai in 2017. When interviewed by industry media cosmetics newspaper, Cai Ruqing said at the time, "to prove that Guerlain beauties can not only retail, but also make brands."

Hedone

Year of establishment: 2016

The first company behind the Hedone, known as the nail label, is the first make-up series 1986 in Shanghai in 2018. It is inspired by the 86 edition of the TV series "journey to the west".

Qu Xinzhe, a brand founder, graduated from King's College in London and worked in L'OREAL, London.

The team took the first small red book UGC, word of mouth publicity and opinion leadership marketing, to brand building, visual image and content output. It is worth mentioning that the team also made visual content for famous brands such as YSL and By Terry.

In 2017, surging capital and Sequoia Capital China fund invested 3 million in Shanghai Industrial Co., Ltd. to launch Pre-A financing.

Dark blue make-up

Year of establishment: 1999

The dark blue make-up of Shanghai Shenzhen color cosmetics Co., Ltd. is a make-up brand for professional makeup artists, combined with artistic inspiration and high-end price.

Jin Yongzhe, the founder and make-up artist, first grew up through portrait photography, wedding photo studio and other channels, and was well known for the wedding makeup industry, media and film industry.

In 2002, the first department store was set up. After that, the development of the Department also focused on department stores and shopping malls.

Since 2013, the CS channel represented by Tang Tri Color has been deeply developed.

Lancer's makeup

Year of establishment: 2006

Concerning the source of the development of China's cosmetics industry, Guangdong Chaoshan area is afraid of winding up.

However, in the "Chaoshan" cosmetics company, which is famous for washing products, Zhou Zhaoyang, the founder of Lancer brand, created the first Chinese lipstick called "Ya Bang".

Zhou Zhaoyang, founded in 1992 by Shantou Wan Bang Group, started by serving the international brand OEM/ODM business (foundry / original factory design) and is one of China's largest cosmetics production and processing bases in the world.

After entering 2010s, Mr. Zhou, who spent 27 years in the cosmetics industry, gradually entrusted the group to his children Zhou Yunjin and Zhou Yingchun.

At the end of 2012, Lancer launched the "light makeup" series into department stores, and recently focused on the cooperation between Watsons and e-commerce.

Lina Choo

Year of establishment: 2018

Zhou Yi, a makeup artist and creative director who has studied Chinese fine brushwork for 15 years, hopes to build a brand by himself, so that Chinese consumers can "look up at the Chinese moon", so he sells many years of work in Beijing.

As the first start-up capital of the new brand.

Lina Choo is more special, the brand chose the North American color cosmetics business electric sea platform Beautyish, currently sells 6 lipstick series including the price of 26 dollars, with implicit "Chinese" design style.