Share the cosmetic industry from the perspectives of market prospects, industry development stages, product trends and growth strategies.
1. Market prospect - good in the second and fourth quarters
The cosmetics market still has a huge space for development. Although the growth rate of the industry has slowed down, its development space is still broad in the long run. Benchmark Japan and South Korea will spend $103 and $165 per capita on cosmetics in 2020, while China will spend $45 per capita on cosmetics, significantly lower than Japan and South Korea. In combination with the awakening of beauty awareness in the sinking market and the formation of beauty consumption habits, as well as the industrial development law that the continuous upgrading of consumer demand drives the increase of volume and price, China's beauty market still has a large penetration space. However, with the increase of the base number and the reduction of the traffic dividend, the industry will inevitably enter a stage of low growth. As far as the industry growth in 2022 is concerned, in the first quarter, with the continued epidemic in many parts of the country, the beauty consumption entered a weak period, and the growth was weak with the high base last year. However, with the improvement of the epidemic situation, the restoration of consumer confidence, the advent of the promotion period for businesses in the second and fourth quarters, and the release of consumer power, the industry is expected to gradually improve.
2. Industry development stage - product polishing is an iron rice bowl
The industry has entered the stage from channel to product. In the past, the growth of beauty brands was highly dependent on offline channels, and the traffic dividend brought by switching with online and offline channels. However, with the growing maturity of consumers and the increasing market competition, the flow cost continues to rise. Enterprises need to return to the essence and focus on product polishing. China's beauty industry will also gradually enter the product driven stage.
3. Product trend - the key is to increase in-depth research and development
Under the general trend of intensified competition in the domestic beauty market and refined and upgraded demand, the in-depth R&D innovation of brand overweight has been put on the agenda. From the past "big brand flat", category dividend and product design innovation, we will further tap into consumer demand and promote innovation and product differentiation at the basic level such as formula innovation, raw material innovation and process innovation. From the perspective of product layout, local beauty enterprises continue to attack high-end brands. For a long time, the high-end market has been the main battlefield of international brands, and the layout of local brands is limited. However, this year will be an important turning point for domestic beauty enterprises to enter the high-end market and supplement the vacancy of the brand matrix. In 2021, after finishing the round B financing of 400 million yuan, the founder of Meishang Co., Ltd., the parent company of Colorkey Kolaki, said that he would further layout the high-end beauty market, and planned to promote its brand share to the top three in the market in 2022. Bettany also repeatedly talked about the high-end market last year, and plans to launch high-end anti-aging brands this year, with a price of about 1000 yuan. Shanghai Jiahua also launched the skin care brand "Baicaoji Taiji" at the end of last year, betting on the high-end beauty market this year. In addition, Marubeni, Pelaia, Lin Qingxuan and Huaxi Bio all released new products and focused on high-end tracks to compete with European and American brands. The scale, volume and market education of domestic beauty brands in high-end markets are also expected to accelerate the growth of the industry.
4. Growth strategy
Strengthen product differentiation awareness
Under the background of the rise of domestic products and the homogenization of products, marketing differentiation has become the key to brand breakthrough - avoiding the traditional selling points that enter the aesthetic fatigue period, deepening the demand of Generation Z, through the tracking and application of hot spots, the emphasis on R&D ability and star composition, tailoring more detailed purchase scenarios, reshaping consumers' minds, and competing with international brands in a dislocation.
Focus on the promotion of brand strength
Social media marketing has gradually entered the Red Sea market, and the flow cost has been rising. ROI<1 has become the norm for more brands. Therefore, brand marketing means are facing transformation. While embracing new marketing methods, it is also necessary to focus on the balance of transformation rate to product promotion based on the purpose of achieving brand differentiated consumer cognition, and cultivate full link operation capability to obtain long-term comprehensive effects brought by brand strength improvement.
Rebuild channel value
On the basis of focusing on brand strength, beauty enterprises need to re-examine the channel value. Online traffic continues to differentiate, and in the wave of emerging offline beauty collection stores, medical beauty channels and other new forces, mobilize marketing resources to deepen various purchase scenarios, spread and amplify the existing brand power in public channels, and build up enterprise reputation and brand power in private channels, establish user stickiness, and finally achieve sales growth.
Multi brand and multi category layout
In 2022, multi brand and multi category development will still be the core topic of beauty enterprises. In the past two years, the listing process of beauty groups has been accelerated, investment institutions have supported new and cutting-edge brands, providing capital for their own incubation and mergers and acquisitions, and beauty enterprises have accelerated the pace of multi brand and multi category. With the improvement of the product and brand matrix, the synergy effect of enterprises in product development, channel bargaining and marketing resources will also be obvious, thus opening up the imagination space for medium and long-term development.
Sound development under stricter industry supervision
The overall supervision of the cosmetics industry has become stricter, and the threshold has been constantly raised in terms of product safety and compliance of marketing publicity. This not only increases the capital cost of product testing and the new time cost of products, but also helps to clear up the chaos in the industry to a certain extent, so as to obtain a more friendly development environment for enterprises and help the healthy growth of brands.
Sailing out to open new growth
The shipping of Chinese cosmetics is speeding up. Huaxizi, Perfect Diary, Zhiyouquan, Mao Geping, etc. either rely on the platform and channel resources to achieve brand output, or acquire local brands to achieve overseas market layout. With the rapid development of global e-commerce industry, domestic brands with mature online operation experience and product strength are expected to make breakthroughs in overseas markets.