Semir Crossover Beauty Products For Higher Returns

In order to have wider development fields, many clothing brands are developing a trend of cross-border cosmetics business. Recently, Zhejiang Semir clothing announced that the company is revising its articles of association and adding cosmetics sales business in its business scope.

According to the announcement, Semir said that in the framework of the company's development strategy, in order to better meet the needs of consumers, with the change of lifestyle and the demand for brand skin care and cosmetic products, it will provide consumers with a more comprehensive solution.

For the field of brand clothing transboundary beauty, it is believed that this is because the competition in the garment industry has become increasingly intense in recent years, and cross border beauty make-up is another way to improve performance.

In fact, the brand clothing that goes to the beauty field is not only Semir. The fast fashion brand ONLY, which is familiar to domestic consumers, has launched its own brand make-up products, but there are only a few limited series. As a result of the many beauty make-up and fashion celebrities in the early days, "too high profile", the way of ONLY hunger marketing has aroused the resentment of consumers.

Of course, there are many successful cases. Forever21, a fast fashion brand from the United States, did not choose to make skin care products or cosmetics. Instead, it was a peripheral tool for cosmetics, which was welcomed by consumers.

Semir's clothing has improved in recent years, and the brand strategy has been launched around three key words: "children's clothing", "multi brand" and "internationalization". In October 2018, the company acquired Kidiliz, a French children's wear, and became the second largest children's wear company in the world. According to the earnings report, Semir apparel made a net profit of 1 billion 693 million yuan in 2018, a net profit of 1 billion 138 million yuan in the same period last year, and a net profit of 347 million yuan in the first quarter of 2019, an increase of 11.06% over the same period last year.

The move to increase cosmetics sales has revealed that Semir hopes to diversify its beauty business by diversifying its business and continue to consolidate its performance.

The rapid growth and development prospects of cosmetics industry, the channel advantages of offline stores, and the high degree of fit between the beauty makeup and the clothing crowd are the main reasons for the cross-border cosmetics business of Semir and other garment enterprises.

The industry pointed out that the brand cross-border beauty is more abundant category, enhance competitiveness, not to mention the cosmetics business profit margins are quite high. It is revealed that after deducting huge advertising costs, channels and personnel costs, cosmetics can still achieve 30% to 50% profit margins.

In addition, for apparel brands that already have channel advantages, entering the field of beauty makeup can rely on this channel to greatly save costs and gain higher returns.

However, the cosmetics industry itself is fiercely competitive, and the outsiders who lack the experience of cosmetic brand operation are hard to occupy a place. In addition to strong foreign brands with strong strength and foundation, the rising domestic brands are also strong competitors.