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    Dividend Competition Of New Domestic Products: From Competing For The Post-95 Market To Going Out To Sea

    2021/4/20 11:19:00 0

    Domestic ProductsDividendCompetitionMarket

    In the wave of demographic dividend, Chinese brands are ushering in an unprecedented opportunity for development.

    "I remember clearly that in 2017, we had just finished the second round of the perfect diary. We held a road show. Huang Jinfeng introduced the perfect diary to 100 top VC partners in China. Only five people added his wechat, but they didn't vote in the end. " Recently, at the tmall gold makeup Festival forum, Dai Yusen, partner of Zhenge fund, reviewed the investment market a few years ago. At that time, it was very rare to invest in consumer goods.

    Nowadays, the new consumption track is not the same. "On the makeup tables of the post-95's, 40% are domestic products." Xiao Lan, head of the new brand of tmall beauty, told reporters of the 21st century economic report that these young people grew up in an era of strong national strength. Compared with the Post-70s and 80s' generation, they have a more equal view of overseas brands and care more about appearance and cost performance.

    At the same time, a number of domestic brands began to focus on overseas markets. According to data from lazada platform, perfect diary successfully won the first place of double 11 beauty sales last year. In addition, flamingo, zeesea, carting, colorkey and other domestic cosmetics are also popular in the Southeast Asian market on cross-border e-commerce websites.

    Is the golden age of domestic brands coming? In Dai Yusen's opinion, China has a perfect supply chain and is returning to China. As long as entrepreneurs want to make good products, it is possible. At the same time, Chinese goods are no longer synonymous with low quality and low price, but have their own unique cultural imprint. In addition, marketing channels and environment have become more effective. "Although we will worry, is this market too hot? But it is undeniable that the influx of capital will give entrepreneurs more bullets, so that they have better innovation. "

    Ideas of "hot money"

    According to the official data released by tmall, in 2020, 7600 brands in the FMCG industry will open tmall stores, 195 new brands will win the first place in the subdivision category, and 64 new brands will have annual sales of more than 100 million yuan.

    Shandong Huaxi biological is the world's largest supplier of hyaluronic acid. The group's new brand runbaiyan, through co creation with tmall, has avoided crowded tracks such as hyaluronic acid and laid out the sensitive muscle repair market. The company's new products became popular immediately after the first launch, with a 24-hour sales volume of 23.52 million yuan, a new record of domestic products.

    In addition, electric toothbrushes such as Roman, usmile and tooth punch sushi are also overtaking in their respective fields. In particular, new domestic brands such as perfect diary and huaxizi are eating into the market of overseas beauty brands such as Feishi shop, Yidi house and Yueshi Fengyin through various new channels on the Internet.

    In November 2020, Yixian e-commerce, the parent company of perfect diary, was listed on the New York Stock Exchange of the United States. In March this year, the parent company of Winona was listed on the Shenzhen Stock Exchange. By the end of April 19, the market value of Yixian e-commerce reached 6.158 billion US dollars (about 40.07 billion yuan), and the market value of betaine reached 87.893 billion yuan.

    However, for new brands, it is still in the process of accumulation and breakthrough. "The birth of a cosmetic is complicated in the front end, from the development of monomer raw materials to the development of composite materials, and then to a verification in the early stage. After the end of the small-scale test, the pilot test is to capture all the data. In the process of mass production, there may be a lot of situations. " As the supplier of the perfect diary, Tian Yong, chairman of Shanghai zhenchen, said in an interview with 21st century economic reporter that from the perspective of supply chain, the biggest challenge for the cosmetics industry now is innovation.

    The consumption data accumulated by Internet platform has become an important basis for innovation. So many brands, how to kill new brands? Alex, the product director of Yixian e-commerce, told the 21st century economic reporter that data driven is the first step in formulating product strategy. "We can interact directly with users and refine what they are thinking and what they might like in the future. In 2019, we have done nearly 30 million person times of research, but the traditional mode is difficult to reach consumers directly. "

    In addition, in his view, it is necessary to create an open system in R & D and production, so as to maintain continuous innovation and effectively improve product benefits.

    "For us, we are not catching up with big international brands. Because we don't make products according to them. More to say, I see different demands and changes in the market. We want to be able to satisfy these consumers. " Alex further explained.

    Go to sea to dig for gold

    In just five years, the new brand has stepped out of a new growth curve of "e-commerce starts, goes offline and sails out to sea". If you look carefully at the founders of these new brands, you will find that most of them are born in the 1980s and 1990s. They have grown up symbiotically with the Internet, are familiar with internet marketing, and will communicate with them in the language that young people like.

    Cbndata report shows that the amount of investment and financing disclosed by the beauty industry in 2020 is 4.812 billion yuan, which is 324% higher than that of 1.135 billion yuan in 2019. During the "tmall overseas" platform for overseas users during the "double 11" period in 2020, the turnover of domestic cosmetics increased by more than 10 times, ranking first among all export categories.

    At present, at least 25 domestic beauty brands have begun to expand overseas. Southeast Asia, Japan and Taiwan have become the hot areas of the first stop for Chinese brands to go abroad, among which lipstick, eye shadow and blush have become the best-selling categories. Compared with traditional overseas brands, the breakthrough of domestic brands is differentiation.

    "Many people ask, why is your unit price so high? Actually, I was forced out. Because, we are faced with a group of consumers who are used to using the first-line brands. They are the most picky consumers in China. They have seen the best things in China. If we want to win on this track, we can only work on the products. Under normal circumstances, research and development is to set the market price and push back the cost of the product. We will set the price after finishing regardless of the cost. " Bi ran, general manager of kuadi brand, told reporters of 21st century economic report that at present, its products have been exported to overseas markets such as the United States, Canada and Singapore.

    On the other hand, going out to sea is a reliable way to realize quickly after the establishment of a brand. According to the latest financial report of Yixian e-commerce, the annual revenue of Yixian e-commerce in 2020 is 5.32 billion yuan, with a year-on-year growth rate of 73%. Among them, the revenue of Q4 is 1.96 billion yuan, with a year-on-year growth rate of 72%. However, in 2020, Yixian e-commerce lost 2.688 billion yuan.

    No doubt, after the circle, the brand still needs to find a better profit point. "Making money is the lowest cost means of communication. It's not accidental, it needs a lot of accumulation. A brand should be able to generate new hot money continuously, because the life cycle of the popular model will be shorter and shorter, and it is unlikely that a popular model will be sold for ten or twenty years like some traditional brands. " Dai Yusen believes that since it is a brand, it is necessary to be able to charge a premium and get the active attention of consumers.

    To a certain extent, the management of a brand is not only to sell a product, but also to sell a mental state and expectations for a better life. There is still a long way to go for new domestic products. How to make full use of our products and marketing advantages overseas? How to meet the needs of different groups according to local conditions? A group of entrepreneurs are still on their way.

    ?

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