From Toothpaste To Lipstick Across The Border Cosmetic Industry, "Spoiler" Is More Than Acclimatized.

Recently, through the letter Bao, twenty-first Century economic report reporter found that from January 1st to May 19th, the business scope of the "cosmetics" of up to 46507 enterprises.

To the outside world, the daily chemical industry, especially the cosmetics products, has low threshold, high profits, high frequency consumption and fast growth, and their sales channels have a higher coincidence rate with most consumer products sales channels. As a supplementary business item, they will be incorporated into the product system, which will help enterprises to get a new profit growth point.

Gao Jianfeng, general manager of Shanghai Boge consulting, pointed out that the profit rate of ordinary cosmetics business is also very high. Under the premise of huge advertising fees, personnel costs and channel costs, it can still reach 30% to 50% level.

In twenty-first Century, the economic report combing reporters found that mango TV, three squirrels, Rui Xing coffee and other "cross-border" into the line, as well as medicine, clothing, food, media, tourism, express and other industries are in the layout of daily chemical products, including the enterprise self built production line, the introduction of cooperative joint name and other major forms. The former tests the capital and technology hard power of enterprises more. Many pharmaceutical enterprises adopt such a mode. The latter is adopted by most food and clothing enterprises.

However, from the current perspective, there are not many cross border successes. In fact, after many years of development, China's cosmetics industry has made great progress in technology, raw materials, production technology and so on, but the brand power is far from enough. In the view of Wang Zhuo, founder partner of Pan capital, the brand power mainly includes multiple factors such as artistic perception, historical and cultural sedimentation, research and development cognition and so on.

Cross-border trend

According to the data released by the National Bureau of Statistics recently, the retail sales of cosmetics in the enterprises above Designated Size in 2019 were 299 billion 200 million yuan, up from the same period last year. 12.6% Higher than the above quota unit retail sales growth Eight point nine 1%, and continue to maintain rapid growth.

According to the statistics of the China National Business Information Center, the retail sales of cosmetics in the major retail enterprises in 2019 increased year by year. 12.7% Compared with the previous year, the growth rate rebounded significantly, and returned to the two digit year-on-year growth rate, higher than that of the major retail enterprises in China. Ten point seven A percentage point.

In 2019, under the pressure of greater growth pressure on the domestic economy, China's cosmetics market can continue to maintain a relatively fast growth, mainly due to the increasing awareness of consumer makeup and the upgrading of cosmetic products, and the emergence of personalized and functional new cosmetic products, which has further stimulated the growth of the cosmetics market.

Gao Jianfeng, managing director of Shanghai Boge consulting, pointed out that the profit rate of ordinary cosmetics business is quite high, and can still reach 30% to 50% level under the premise of huge advertising, personnel costs and channel costs. The luxury margin of cosmetics is generally as high as 80%. According to the daily mail of London, when PRADA launched its perfume business, the liquid composition of a bottle of perfume only accounted for 3% of its production cost, and its retail profit margin was as high as 95%.

Ma Ying lung, known for its hemorrhoids ointment, has been doing a lot of crossover in recent years. It has not only introduced beauty products such as lipsticks, but also skin care products such as hand cream, facial mask and facial cleanser.

Earnings data show that Ma Ying long in 2017, 2018, 2019, hemorrhoids products revenue were respectively Seven point five eight Billion yuan. Eight point one six Billion yuan. Nine point two seven Billion yuan, an increase year on year 18.81% , 7.67% , 13.56% Gross margin is 77.19% , 75.23% , 73.41% Year-on-year growth respectively 0.95% And reduce 1.96% , 1.81% 。

Ma Ying lung 2019 annual report, "the main financial information of important non wholly owned subsidiaries" shows that in 2019, the company was a subsidiary of Hubei Cosmetics Co., Ltd. Nine hundred and ninety-one point four three 000 yuan, an increase of up to 198.85% 。

In 2008, Yunnan Baiyao also bought about 60000000 pharmaceutical companies with a total of three, officially entered the field of daily chemicals, and launched toothpaste, washing, facial mask and other products. And its product, Yunnan Baiyao toothpaste, launched in 2005, has become a star product supporting half of the company's performance. Its market share is about 18.1% It ranks second in the country.

Visible "results" also attract more capital and non daily chemical enterprises "cross-border", mango TV, three squirrels, Taiping birds, Antarctica and other businesses have added business in the original business scope. In twenty-first Century, the economic report reporter learned from Qi Xinbao that from January 1st this year, there are 46507 new cosmetics companies and 11592 individuals.

Many "crossover" is also closely related to the "new national goods" and the transformation of Internet marketing channels.

Zhao Yan, chairman of Huaxi biological products, told the twenty-first Century economic news reporter that the new generation of consumers' cognition of domestic products and their dependence on big brands were small, which provided opportunities for the development of Huaxi biological functional skin care products.

Domestic cosmetic marketing has been labeled with "new national product". This symbol with distinct ideological concept has become one of the most indispensable elements of cosmetic brand marketing and promotion.

According to the Tencent's 2019 insight report on the beauty of domestic products, the national makeup brand has accounted for 56% of the market share; 42% of consumers are more willing to choose the national cosmetics brand, and 90% of consumers say they will buy the beauty of Chinese products again in the future. The acceptance of domestic products has been increasing, and the competitiveness of domestic cosmetics companies has been increasing.

To a certain extent, the online traffic platform has made many new brands of domestic goods. As the most important marketing battlefield influence, a large number of young users have been driven. Among them, the share of Xiaohong book, jitter and B station is the heaviest, and the users of these platforms are mainly after 90 and 00.

In the first half of 2019, the notes on domestic products increased by 116% over the first half of the year, and more than 5 million users discussed and grew grass products. The "quality", "parity" and "collocation" were the three most important keywords mentioned.

? ? The flat and precision of the Internet platform has created a more favorable environment for the rise of the new brands, and has made more and more players entering the market. The crossover family has increased frequently, including the form of cooperative joint venture, for example, the Maxam joint rabbit introduced the toffee flavor lipstick; the old Shanghai little Yang Shengjian joined the new trend. The lobster Lip Glaze and the frying mask were produced.

Not acclimatized

There is also a case of cross-border success. Such as the British pharmaceutical giant GlaxoSmithKline introduced comfort toothpaste, Swiss bio technology pharmaceutical company Roche Group's PANTENE, world famous eye brand, Japan's Mentholatum lip balm, the focus of care brands, Veet's depilatory creams, etc., are now well-known international brands, and bring a lot of profits to the company.

In China, Yunnan Baiyao and Ma Ying Long mentioned above are successful cases.

As early as 2011, Yunnan Baiyao added a big health business. In 2018, the revenue of Yunnan Baiyao health products division was almost flat with that of the pharmaceutical business department. Among them, the oral care series has covered many subdivision areas, and the market share of 2018 has reached. 18.1% In the same product brand ranked second.

But in the industry view, cross-border Yunnan Baiyao also belongs to the spoiler. One industry pointed out that after the cross-border entry of Yunnan Baiyao, the cost was increased, including the entry fee, incentive rules for shopping guide, distributors' incentive and so on. All kinds of channel costs were straighten up and broke the price of Chinese herbal toothpaste, of which the packaging price exceeded the composition price. At the same time, "gingival bleeding to find Yunnan Baiyao toothpaste" has also been questioned. There is a continuous voice pointing out that Yunnan Baiyao has added hemostatic prescription drug tranexamic acid in toothpaste.

In addition, there are many cross-border enterprises to enter the cosmetics industry "acclimatized".

According to Semir clothing 2018 earnings report, including the cosmetics retail, wholesale and other business joint venture Shanghai SSE Cosmetics Co., Ltd., the management is not optimistic. In the earnings report, Semir mentioned that the accumulated loss of sensi cosmetics has exceeded the book value of long-term equity investments. The 2019 annual report shows that the company has gone through the procedures of canceling industry and Commerce in January 18, 2019.

There are also many expectations for the launch of cosmetics through joint funds. Such as the perfume produced by the rabbit and the smell library, the marketing effect is very successful, but the product experience and word-of-mouth encounter "Waterloo". Many users on micro-blog have quite a few words.

An industry veteran analyzed that there were different problems in the cross boundary of non Japanese chemical enterprises. For example, because the resources of the main industry could not be directly grafted, the upstream and downstream businesses of new businesses could not be well grasped, so they were not acclimatized. At the same time, the original management team was unable to grasp and adapt to the characteristics of the new business, and many enterprises were eager for quick success and instant profits, hoping to see profits quickly.

Wang Zhuo told the twenty-first Century economic analysis reporter that in the high-end market of skin care and cosmetics in China, P & G, L'OREAL, Emory and other European, Japanese and Japanese enterprises still occupy a larger market share, and with the rise of various domestic brands, the competition in the cosmetics market is becoming more and more intense. The cosmetic market with simple functions such as moisturizing and remover has been saturated. We need to find new profit growth points in the market of cosmetics and seek differentiated and personalized development.

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