Data shows, this year618During this period, the transaction scale of the beauty and skincare market in comprehensive e-commerce slightly decreased year-on-year2.3%; Live e-commerce has witnessed rapid growth, especially on Douyin618The transaction volume of beauty products during this period exceeded156Yuan, a year-on-year increase69%Specifically, on the comprehensive e-commerce platform, Perlane has maintained a Tmall ranking for two consecutive years618beauty and skin careTop 5, rose to the number4Name, overwhelmingOLAYTraditional leading brands; Vichy remains at the top this year10Name location. 2022In [year], on the Taobao and Tmall platforms alone, eight major domestic brands achieved a scale breakthrough10Yuan, emerging brand ZhibenheHBN(YoY growth exceeds80%) are among them.
In the domestic beauty market, in addition to leading brands holding their ground, emerging domestic brands are gradually developing and growing, participating in competition with first-tier brands at home and abroad. Frost & SullivanFrost & SullivanWu Yunhan, a consumer industry analyst at Frost & Sullivan in Greater China (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Bullet Finance to discuss the development of emerging domestic beauty brands.
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Bullet Finance
Q
In the past two years, in addition to leading domestic beauty brands, many new entrants have also achieved explosive growth. For example, Zhiben.HBNsuch as Grain Rain,2022The annual transaction volume of Tmall beauty products is at10For brands worth over 100 million yuan, apart from KuaDi under Huaxi Biology, there are also Zhiben.HBNThe year-on-year growth rate is expected to be at60%,80%Above. This year618,HBNGu Yu has entered the Douyin skincare categoryTop 20The list includes brands with transaction volumes exceeding those of big names such as Jiao Yun Shi and Kie Yan Shi. How do emerging domestic brands view their rapid rise? What factors have contributed to these brands achieving faster growth rates than leading brands? Does the rise of emerging brands have reference value for the development of the domestic beauty market?
The rise of domestic brands is, on the one hand, due to the market opportunities unleashed by trillion-dollar beauty products in China. On the other hand, through20After years of refining and accumulation in the foundational layer, domestic beauty products have evolved from ensuring product safety to emphasizing efficacy. At the same time, the changing consumption concepts of new-generation consumers have also broadened the imagination space for domestic beauty products.
Growth drivers:
1The intergenerational migration of consumer groups is the underlying logic behind the rise of domestic brands and beauty products. AsZAs the era enters the beauty consumption market, its personalization and confidence in local brands are also driving a reshaping of the beauty industry landscape. Consumers are increasingly pursuing high quality and cost-effective products when facing Chinese brands. This has inspired domestic brands to establish their own sense of quality in product research and development and promotion, continuously enhancing their reputation to win more consumer favor.
2In the mature market of beauty and skincare, there are many existing market participants with high competition. Domestic brands have made certain upgrades and transformations to traditional brands through new consumer group selection, new market positioning, product innovation, new scenarios, and new communication channels. For example, 'Perfect Diary' has made intensive marketing investments on new media channels, accumulating a large number of high-quality user reviews and brand word-of-mouth in terms of creative design, placement management, post- on data feedback, or refined platform operations.
3In mature consumer categories with high market demand and fierce competition, domestic brands choose to avoid competition within broad categories and instead enter into niche segments. At the same time, these niche segments lack strong brands, providing certain development space for emerging brands. Brands wait until the niche segments mature before expanding into other categories to build brand awareness. For example, domestic beauty brands such as Poreless, Vichy, and Huarun Biotech follow the strategy of international big brands with large product lines, gradually driving up sales, average order value, and brand recognition through core products. The most typical examples are Poreless' Ruby series and Vichy's Special Care Cream.
The rise of emerging brands holds certain reference value for the development of domestic beauty and skincare markets:
1Looking at the entire market,zGenerations are becoming the main force in consumption, and brand operation capabilities are particularly important. Among them, the domestic beauty brand "Zhuben," which focuses on the makeup remover market, has caught up with the favorable trend of live e-commerce in terms of omnichannel operation capabilities. It became popular on Li Jiaqi's live streaming channel. They also seized the opportunity of optimizing the e-commerce distribution system and penetrated into100Multiple stores have completed the deployment of their distribution system, and at the same time, brand accounts on other short video platform channels have been established and are being fully rolled out across all channels.
2Another current trend is the rise of the functional skincare market,HFPAs the first skincare brand in China to focus on the concept of original extracts (single high-concentration skincare ingredient essences), it has quickly gained the favor of ingredient enthusiasts. With the continuous growth in consumers' demand for professional efficacy and the catalysis brought about by channel development, we believe that functional skincare is expected to continue to be an important driving force for the overall high growth of domestic cosmetics in the future.
3In recent years, domestic beauty brands have also been expanding their brand footprint through investments, acquisitions, and other means. As domestic beauty brands develop to a certain stage, they are also planning to enter the high-end market and establish a multi-brand development strategy. Brands like 'Perfect Diary', which are familiar to many, are examples of this.2021In 2019, it acquired a skincare brand targeting the high-end marketEve LomThe average unit price is mostly around four or five hundred to a thousand yuan.
Q
2022Since [start year], the beauty market has been overall declining. The market recovery this year has also fallen short of expectations. Online traffic has peaked, and competition in the efficacy skincare sector has become increasingly fierce. In this context, for emerging domestic beauty brands, is there still an opportunity to catch up with first-tier brands? What problems exist? Are there any brands that are more promising?
In recent years, emerging beauty brands have ridden on the wave of traffic dividends and, with the support of various capitals, used new thinking and marketing strategies to re-run major professional sub-sectors across new channels and media, making rapid progress. However, as capital gradually leaves, traffic dividends disappear, competition intensifies, and traffic costs become increasingly high. Emerging brands have not yet built a strong product moat and their brand effect has not yet materialized, posing significant challenges at this time. To become a brand, the top priority for emerging beauty brands is to create a unique, solid, and stable product moat.
Currently, the entire new and emerging domestic beauty industry still lacks in terms of product strength, research and development, and core technologies. Although powerful cosmetic brands can acquire other brands and factories by purchasing them, it is difficult to simply invest money in acquiring core technologies, as the root cause lies in the scarcity of industry R&D talent. New brands aiming to build a moat and develop exclusive core technologies should 'trace back upstream' and innovate with new raw materials and technologies.
Recently, I've been paying attention to the skincare brand "Runbailan" under Huaxi Biotech. This year618"Acceleration" has been achieved. According to data released by brands and major platforms, this year618During this period, we achieved over3.56Yuan billion, an increase compared with the same period last year54% thanks to Huaxi Biology20With years of research and development in hyaluronic acid, "Runbailian" has always endowed the product with unique competitive advantages, achieving trend-setting leadership in the hyaluronic acid market through innovation and differentiation10In the year, we adhered to the market strategy of developing major products, laying the foundation for the emerging market of sublimated essence and bringing more possibilities to future development.
*This interview was published in Bullet Finance Reporter: Hu Fangjie Original title: beauty10Yi Club, two new members have arrived >> .
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