Image source @ vision china
Wen | Whale Research Brand Laboratory, Author | Huang Xiaojun
This article is a bit long, and I mainly want to finish talking about China’s beauty brands at once. The core idea comes from a report of Huaxing Capital a long time ago, which is roughly summarized at the beginning of the article:
From the past, beauty is essentially a marketing-driven and channel-driven industry, and research and development is not the most important driving factor.
Therefore, we see that every marketing change and channel change may bring a wave of overtaking opportunities in corners.
However, in the 21st century, the consumption trend of extreme cost performance has accelerated to become a reality, and product research and development will become the brand competitiveness in the next stage for the first time.
All right, let’s start from the beginning.
The reason is that some time ago, Mao Geping, a famous domestic makeup artist, was a guest in the live broadcast room in Li Jiaqi. She just changed her eyebrows for the anchor and turned into Liu Yifei at once, which was quite shocking.
For a time,# Mao Geping, one household, one leveling, realizing Liu Yifei freedom #, quickly became popular on various platforms.
In fact, as early as the end of March 2020, on a live broadcast in Li Jiaqi, 40,000 pieces of dermabrasion artifacts were sold. As a straight man, looking at the MGPIN logo on the box can be described as a face of embarrassment.
What is this thing? Even many young ladies can’t explain it clearly. Most of their answers are: familiar and unfamiliar.
It is actually the beauty brand of the same name in Mao Geping.According to media reports, MGPIN is the only top international makeup brand in China.
Compared with Chanel, Dior and other international brands, it ranks 11th in the TOP15 in the world.
More data show that the gross profit of MGPIN has exceeded 85% in recent years, much higher than that of L ‘Oreal (71%) and Shiseido (74%~75%).
In this battle, the perfect diary meets MGPIN, much like Ling Huchong meets the wind and clear air at Siguo Cliff.
However, this legendary beauty industry in China has only 2 million fans in the flagship store, which is less than 1/10 of the perfect diary.
Brand mystery, data conflict, what about MGPIN?
Mao Geping studied in the Shaoxing Opera Class of Zhejiang Art School in 1977, and went to Zhejiang Shaoxing Opera Troupe after graduation.
But later, it seems that the professional position is somewhat biased. There are few well-known Yue Opera performances in Mao Geping, but they have served as makeup artists for many tracks.
At that time, Mao Weitao, the head of Zhejiang Xiaobaihua, often asked Mao Geping to make up.
It was the 1990 edition of Yang Naiwu and Chinese Cabbage that made insiders realize Mao Geping. Tao Huimin, the star of the play, was a protege of Yang Xiaoqing, the director of the Yue Opera Troupe at that time.
Mao Geping was recommended by the latter as a makeup artist in Tao Huimin.
By 1995, Wang Wenjuan, the representative inheritor of Yue Opera, will make a TV series "Meng Lijun".
Mao Geping, who helped Tao Huimin become the hottest actress in China, has certainly become her first choice as a makeup artist.
At that time, Wang Wenjuan was 70 years old, and just like Mao Geping’s magic, she turned into a big girl.
In this drama, the douban score is 9.0 so far.
At the same time, the 1995 version of Wu Zetian was ready to start shooting. The protagonist Liu Xiaoqing was 40 years old at that time, but she had to play the whole process of Wu Zetian’s growth from 15 to 80.
This test of makeup is equivalent to the classic line of Queen Ulanala Yixiu in empresses in the palace."Men and women can’t do it!" .
After asking around the world, Liu Xiaoqing found Mao Geping.
In this TV series, Mao Geping has devoted his life to Liu Xiaoqing.Even made a guest appearance as a little eunuch.
Looking back 25 years later, it should be the most beautiful role that Liu Xiaoqing played in his life.
After many years, it is said that Liu Xiaoqing wanted to relive the glory of Wu Zetian more than once, but never achieved it.
According to legend in unofficial history, Mao Geping did not intend to do this business at that time. After all, he is busy with a big list, 100 episodes of Kyoto Chronicle.
Liu Xiaoqing is full of momentum. She said to Mao Geping, as long as you make up Wu Zetian’s makeup, you can be famous all over the world, and even get rich.
Sister didn’t brag.
The 1995 edition of Wu Zetian is like an advertisement for Mao Geping to walk.
Since then, the little eunuch in the play has become a hot makeup artist and the most trusted magician of the actress in China film and television dramas.
After the 1995 edition of "Wu Zetian" swept the country, Mao Geping almost became Liu Xiaoqing’s royal makeup artist.
Until 2016, Liu Xiaoqing starred in the historical drama version of "Wu Zetian", and Mao Geping accompanied her all over the world.
If there was a delay, it was probably in 2008.
At that time, Mao Geping was appointed as the chief makeup artist at the Beijing Olympic Games, during which he also made makeup for Jacques Rogge, president of the International Olympic Committee.
But this is no longer Mao Geping’s main business.
In an interview with Jiangsu Satellite TV, Mao Geping said that he left Beijing at the end of 1995 and hasn’t been to that land for the next eight years.
"If I don’t take any drama, I want others to forget me."
Disappear, but for a more gorgeous appearance.
In fact, as early as 1998, Mao Geping was vaguely shuttling in people’s field of vision.
At that time, he published his makeup experience into a book and toured more than 60 cities across the country to give lectures.
Everywhere I went, many people asked Mao Geping if he could accept his disciples. When so many people asked him that Mao Geping couldn’t remember, he came up with the idea of opening a school.
In 2000, Mao Geping established the Image Design Art School in Hangzhou, and successively opened branches in Beijing, Shanghai, Shenzhen, Chongqing, Chengdu, Zhengzhou, Wuhan, Qingdao and other cities.
According to media reports, education classes in Mao Geping are expensive:
The cheapest manicure class is 2500 yuan, and the most expensive film and television special effects makeup class needs 52800 yuan.
However, such a price did not scare off students who came to study, and only the teacher class trained more than 500 excellent lecturers.
Mao Geping Niu Niu is in the makeup technology.
"Fashion New Watch" had previously written that,After seeing Angelababy and the makeup artist in Liu Shishi, I still want to send my head to Mao Geping.
Just last year, Mao Geping changed the makeup of blogger @ Late at Night, turning the round face into a melon face and hiding the tears and decrees.
The corresponding video quickly boarded the hot search in Weibo, and was broadcasted by bilibili and Tik Tok, with the viewing volume reaching 1.3 billion times.
In 2000, Mao Geping also did another important thing, that is, registered the MGPIN brand and began to sell cosmetics.
Now that I think about it, the logic is simple.
When their students leave the society after graduation, these professionals will surely praise the cosmetics of the master’s family in the future procurement and promotion.
Those female consumers who have heard about Amway from Tony, a teacher in the beauty industry, will probably look for generations to buy one, even if MGPIN is only available in Iceland.
The data speaks for itself.
MGPIN updated its prospectus once in 2018, and the data shows that:
In the first half of 2014-2017, the sales proportion of training channels reached 9.32%, 8.42%, 7.56% and 8.96%.
Why is the data so old? Tiger sniffing article gives an explanation:
Theoretically, the prospectus is valid for six months, that is, "the issuer shall use the prospectus within the validity period to complete the issuance from the date of the last signing before the public offering."
In this regard, Tiger Sniff contacted the Secretary-General’s Office of Mao Geping, saying: "All along, the company has updated the prospectus according to the standards of the CSRC, and the latest financial report data of the prospectus also covers 2020, but I don’t know why the CSRC official website has not publicly disclosed it."
Tiger Sniff also called the CSRC for public consultation, but the staff all said that it was not within the scope of acceptance. “
Mistake, it’s not good for students to bring goods.
In fact, the main sales channel of MGPIN is the offline counter.Cosmetics sell Level, which can maintain high-end brand tonality well offline.
Like Chanel, Dior and other luxury goods, MGPIN is mainly stationed in the flagship shopping malls of large chain department stores, all of which are local landmarks and CBD centers, and adopt the mode of direct department store counters.
According to "Tianxia Online Merchants", at present, MGPIN has more than 250 counters all over the country, covering all the cities from the third and fourth tier to the north, Guangzhou, Shenzhen and Hangzhou, and all of them are direct channels without exception.
Take the Mao Geping counter of Yintai Department Store Wenzhou World Trade Store as an example. In the first year, the annual sales of a single counter exceeded 10 million, and the repurchase rate exceeded 50%.
I have a friend who is a cabinet sister here. She proudly told me that our counter is the first in MGPIN in China.
It’s hard to say whether it’s because of the strength of the product. But makeup teaching is more tempting for young ladies.
In the MGPIN counter, as long as the purchase reaches a certain amount, the makeup service will be given away. The counter requires the counter sisters to "teach" the makeup of the guests and will teach the customers.
For most cosmetics, it’s not that the product won’t work, but that consumers won’t buy it back.
When MGPIN teaches consumers to sell products, they naturally feel that other people’s products are awesome.
Admire your own divine logic.
In the words of the cabinet sisters, "when the products are sold, our service has just begun."
And what service brings is stickiness.The membership stickiness of MGPIN can kill all Internet brands almost instantly:
If you spend 8800 yuan, you can become a member of Supreme Fashion, and its repurchase rate is 68.38%.
The lowest consumption standard is the beauty members in 300 yuan, and their repurchase rate has reached 33.76%.
Such stickiness basically eliminates the need for Mao Geping to advertise in Xiaohongshu. Publicity expenses, which account for less than 10% of revenue each year, can achieve 300 million revenue and 85% gross profit.
L ‘Oré al’s gross profit is only 71%, and Shiseido, a high point, is 75%.
As early as December 2016, Mao Geping submitted a prospectus to the China Securities Regulatory Commission, intending to be listed on the main board of Shanghai Stock Exchange. However, after updating the prospectus in 2017, its IPO process stagnated until the end of October 2021, which lasted for five years.
Today, Mao Geping’s prospectus is still in the 2017 edition, and it has not been approved for listing since the meeting, and it has not disclosed the company’s financial information in recent years.
Why is it so difficult to go public in Mao Geping? There are problems at the enterprise level, as well as problems at the industry and track level.
Let’s start with Mao Geping himself.
Mao Geping’s signature product is actually a kind of thing called high gloss cream.
Its function is to make people’s face more three-dimensional, and it can fill tears and decrees. It is said that in order to verify the makeup degree of the base makeup, Mao Geping once wore a down jacket and ran and sweated in the room in summer.
After more than 100 formula tests by the master, MGPIN made a high-gloss cream.
Although it was in 2000, this high gloss cream was also sold in 690 yuan. However, compared with a small kidney shaking a black bottle and a kidney, it is still extremely cost-effective.
Therefore, high gloss cream has become the brand’s "sales crown" for more than 20 years.
Mao Geping is the biggest asset of MGPIN product research and development.
Mao Geping is a master’s endorsement in determining the direction of new product research and development, competing product analysis, formula research and development, function testing and sample trial.
After that, MGPIN will entrust the processing factory to manufacture, and 58% of the raw materials will be purchased by the company and then delivered to the processing factory.
But how high is the real R&D capability?
There are only 15 R&D personnel among the 1,321 employees of MGPIN. In the first half of 2014-2017, R&D expenses accounted for the highest proportion of revenue.
For a long time, the investment in R&D is low, so that Mao Geping has not formed its own unique formula and core technology.
In terms of patents, there are only three design patents in Mao Geping, namely, cosmetic box (high gloss powder paste), cosmetic box (four-color eye shadow) and mascara shell.
Of course, this is a common problem in the beauty industry.
According to the research report of Huaxing Capital, the research and development expenses of cosmetics groups are usually very low, and the real technological innovation may only appear in the world in 3-4 years.
At present, the core selling of cosmetics is "hope", and marketing is the core competence.
And from the beginning of Liu Xiaoqing’s makeup, the marketing of this brand began.
Next, I want to be serious and talk about the problems of the industry.
In 2006, the world’s first grafted mascara was born in the beauty industry.
This artifact, which can draw big-eyed tassels without false eyelashes, achieved an amazing performance of selling one every 15 seconds in that year.
Grafted mascara is a domestic make-up brand.MariedalgarThe first product launched.
Next, Mary Daijia pioneered the first 360-degree rotating brush head mascara, the first micro-vibration electric mascara, the first baking series eye shadow blush, and the first DIY eye shadow customized by makeup …
It can be described as explosive products.
In 2010, the largest mascara production base in Asia was also completed under the preparation of Mary Daijia.
This year, Hunan Satellite TV’s fashion entertainment program "I am a great beauty" was launched, and the first broadcast ratings became the first in the country at the same time. And the eye series products used in this program are from Mary Daijia.
This has ushered in five years of rapid development for Mary Daijia and the entire beauty industry in China.
According to the 2016 China Cosmetics Investment and Financing Report released by Pinguan.com and Chessboard Capital, 79% of the cosmetics industry invested and financed in 2006-2016, and 46% in 2014 -2016.
In 2010, cosmetic brandsFangcaojiSuddenly the fire broke out. At that time, it was the first cosmetics brand to invest 1 million advertisements in Taobao. In half a year, its turnover exceeded 20 million, making it the first cosmetics category in Taobao.
Four years later, Fangcaoji faded out of people’s sight, and one was calledWISOur brand has been screened in Weibo. Through Weibo’s monetization tools such as Fantong, WIS accumulated 3.5 million fans a year, and its annual sales exceeded 200 million.
By 2016, the retail transaction scale of beauty cosmetics in China has reached 336.061 billion, and the total consumption in the domestic market has surpassed that of Japan, making it the second largest cosmetic consumer in the world.
The best category is make-up. The market share of local makeup brands surpassed foreign brands for the first time in 2016, contributing 52% of the market sales.
You know, at that time, there was data that 62% of urban women put on makeup almost every day, which promoted the makeup market to achieve a compound growth rate of 10.20%.
This year, Mary Daijia once again stood out from the popularity of Fangcaoji and WIS, and became the first in the 2016 Tmall Double Eleven cosmetics category sales list.
In the same period, another one was calledPerfect DiaryOur brand was also born in Guangzhou.
By 2018, the tender and perfect diary will participate in Tmall Double Eleven activities for the first time. Unexpectedly, this brand took only 1 hour and 28 minutes to become the first makeup brand of Tmall Beauty with a turnover of over 100 million.
A new dark horse appears in the field of makeup.
In that year’s makeup category list, Mary Daijia paid a discount rate of 63.2% and grabbed a market share of 2.3%, ranking ninth. The perfect diary only used a discount rate of 37.9%, in exchange for a market share of 3.3%, ranking fourth.
In 2019, Tmall Double Eleven, Perfect Diary became Tmall’s first make-up brand with sales exceeding 100 million, ranking first on the list. Mary Daijia, once the first domestic makeup, missed the top ten on the list.
Iron list, running water brand.
What makes us proud is that no matter how popular the brand is, domestic beauty brands finally have a place in the list.
According to the statistics of 22 mainstream platforms from the star map data, Perfect Diary still ranks first among the top five brands in the online beauty industry in 2020, and Hua Xizi, a domestic brand that emerged in the same period, is also on the list.
Of course, Mary Daijia, who left the list, did not lose her performance.
As a domestic make-up head brand, Mary Daijia’s previous live broadcast set a record of selling more than 30,000 pieces and sales exceeding 5 million yuan.
However, these performances can’t escape the "curse" of the entire beauty industry, and there are explosive products without brands.
Throughout the growth history of Mary Daijia, from grafted mascara to mushroom makeup, the trajectory of explosive products is particularly obvious. Compared with the perfect diary, it has become an explosion-proof manufacturing machine. At the hottest time, the sales volume of six popular items broke 100,000.
When Tiger Sniff Pro interviewed Wu Zhigang, general manager of OIB.China, he talked about the phenomenon of the explosion of perfect diaries. The latter said,"This is not the victory of the brand, but the carnival of explosive products."
Compared with L ‘Oré al, Estee Lauder and Shiseido, the brand presence of China Beauty Cosmetics is really weak.
This is actually a product of the times.
China’s post-90s generation has an unprecedented acceptance of new things, but is particularly sensitive to price and quality-such user characteristics have boosted the brand-free movement with the highest cost performance.
As early as twenty or thirty years ago, Uniqlo was born in Japan.
In the Fourth Consumer Era, San Pu Exhibition indicated that Uniqlo catered to the Japanese "new generation of human beings", who were shown around Ginza by service in childhood and began to play in Shibuya in high school.
But at the bottom, it is still the economic foundation that determines the superstructure.
The development of Uniqlo is inseparable from the Plaza Agreement. After the signing of this agreement, the exchange rate of the Japanese yen soared, and Japanese goods no longer had a price advantage in overseas markets.
Young people no longer dare to touch expensive and luxurious clothes, but have a demand for "fashionable and durable, but not expensive".
Obviously, China is experiencing such an economic cycle.
As the main consumer group, the post-90 s generation is faced with mortgage and car loan, and will return to the old mortgage as soon as they graduate.
Nielsen’s survey of young people aged 18-29 shows that 86.6% of the people in the survey belong to "indebted people", with a per capita debt of 120,000.
The global market is following such economic laws, and Swatch is the triumph of cost performance in Europe; WalMart is the victory of cost performance in America; Decathlon is a cost-effective anti-market behavior in the luxury market in France.
What these brands have in common is that they are squeezing the brand premium. They are king through products, even without brand management, in fact, in the end, a familiar brand will be born.
Today, the China market repeats itself.
Mary Daijia and the perfect diaries are one of the typical representatives.
Cui Xiaohong, the founder of Mary Daijia, once said that the company wants to catch the group of people who are "young, fashionable, confident and not blindly obedient".
She introduced, "Young people living in the present receive information from different countries, have an international perspective, and have their own tastes and opinions. Name cards are not so important, they just want to find something that suits them. "
This group of people must conform to the brand’s value proposition in order to resonate in the subsequent connection.
To connect with this group of young consumers, products are of course the most direct medium.
Since the grafting mascara won the favor of the market, Mary Daijia has expanded from a single product to a series of brand products, such as facial makeup, lip makeup, eye products and so on.
In this process, how to make series products become explosive products is the top priority of brand operation.
First, focus on the user scenario.
Take "Little Mushroom", a makeup item with monthly sales exceeding 100 million, as an example. Before polishing this product, Mary Daijia conceived many scenarios:
Users get up in the morning in a hurry to go out, and there is not enough time. The makeup in a hurry leads to uneven distribution of foundation on the nose; When making up, the table, mirror and hands are all covered with liquid foundation.
Therefore, the three-dimensional puff of small mushrooms has a strong ability to absorb foundation, streamlined radian design, and no dead angle fits the contour of the skin; Stamped design allows users to "bang" a few times, so they can simply and conveniently apply makeup.
When our team interviewed Cui Xiaohong, she once said that she would read the user comments of Tmall flagship store before going to bed every day to understand the real needs of consumers.
Second, content connects users.
With products that can express pleasure, enterprises have to interact with consumers through them and resonate with them.
Mary Daijia once appeared in KFC’s "Pink Cool" theme store, providing free make-up modeling for consumers. Later, I met the "Berry" good lipstick gift box for exclusive limited sale at Mary Daijia Tmall Store.
On the day of the cross-border box sale, it broke through 10,000 sets in 28 minutes and 20,000 sets the next day.
Such activities are not isolated cases.
In 2015, two "pop-up shop" events were held to coincide with the themes of "London Fashion Week" and "Christmas". Simulate the real backstage of the show for consumers, let them experience makeup with supermodels, and learn about color art and fashion trends.
In 2016, Mary Daijia appeared in Storm Electronic Syllabus, and successively laid out "pop-up shop" in Beijing, Shanghai, Shenzhen and Chengdu. Makeup artists create modern makeup for consumers through the combination of powder, yellow and blue brushes and lip color embellishment.
In 2017, it became the only brand of deep cooperation of storm syllables.
….. until now, no longer listed.
Chen Haijun, general manager of Mary Daijia, summed it up at that time:
"In fact, the logic of doing this is not complicated. Where are the consumers, we will go. Through observation, we found that in addition to traditional channels and online channels, KFC, Fashion Week and Art Festival can all connect with consumers. "
Those consumers who know Mary Daijia through eyebrow products have also deepened their impression of the brand’s youthfulness and individuality in this connection again and again, and passed on every exciting moment through social media.
Third, the channel layout.
The N-fold spreading power of the Internet is similar to effervescent tablets, which are slowly dissolved and diffused in water until they are integrated with water. The same is true for brands, which are not deliberately spread, but are actively spread by users.
In fact, the connection is the channel, and every event not only connects with consumers, but also attracts the attention of the channel side.
In June 2017, Mary Daijia settled in SEPHORA, the world’s top cosmetics retailer.
Sephora is a French cosmetics retailer, mainly through CS counters. After joining LVMH, a global luxury brand company, in 1997, Sephora quickly set up more than 1,600 stores in nearly 30 countries.
Sephora is also known as the "global cosmetics retail authority" because more than 95% of the stores are internationally renowned brands.
Mary Daijia is the only domestic brand in Sephora. In Sephora’s channel system, Mary Daijia became the sixth cosmetics brand in sales after only half a year.
If Mary Daijia’s short-term outbreak depends on Sephora, then the perfect diary is to bet on the social e-commerce of Xiaohongshu.
Since its launch in 2013, Xiaohongshu has accumulated over 200 million post-90s and post-90s users. This group of people are happy to browse and share UGC content such as evaluation, raiders and tutorials, and slowly bury their desire for consumption in the process.
Many beauty brands are happy to "plant grass" on this platform. The old-fashioned Chinese-made Baique Ling has 34,000 fans in Xiaohongshu, and the fans of international big-name L ‘Oré al and Charm MAC are around 280,000.
But none of this seems to be worth mentioning in front of the perfect diary, which has 2 million fans and more than 340 thousand notes on the whole platform.
The perfect diary was launched in Tmall in July 2017, and the sales volume in the following months did not improve much. The turning point was February 2018.
This month, it is the start time of Perfect Diary’s key operation of Little Red Book.
Until 2019, in the 28th minute of double 11’s unveiling, the sales of Perfect Diary surpassed that of all-day in double 11 in 2018, becoming the first cosmetics brand of Tmall with sales exceeding 100 million, and the all-day performance became the first domestic brand to top the makeup list of Tmall double 11.
Of course, in addition to Little Red Book, the operations of platforms such as WeChat, Weibo, Tik Tok and bilibili are also being copied by Perfect Diary.
After these data, we heard Wu Zhigang’s comment: "This is not the victory of the brand, but the carnival of explosive products."
Forward-looking Industry Research Institute’s Analysis Report on Market Demand Forecast and Investment Strategic Planning of China Cosmetics Industry dismantled the separation of China’s beauty market;
China beauty cosmetics high-end market, mainly occupied by top international brands, such as Guerlain, Christian Dior, Chanel, Estee Lauder and so on.
China beauty cosmetics mid-range marketForeign brands also have strong market competitiveness and occupy a large market share. Such brands mainly include Olay, L ‘Oré al Paris and Shiseido.
China beauty cosmetics Dazhong marketOnly in this way can we see the local brands, such as Appropriate Herbal Medicine, Nature Hall and Ding Jiayi, but they are still squeezed by foreign brands such as Nivea and Ponzi.
Whether we are talking about Mary Daijia or the perfect diary, there is not much absolute market share in the 400 billion beauty market.
To truly achieve brands like L ‘Oreal and Estee Lauder, China’s beauty industry needs more capital participation. You know, 24 of Estee Lauder’s 30 brands come from mergers and acquisitions.
This is a long road. According to our research and analysis, there are at least three hills that these beauty brands must climb:
First, the channel layout.
From the online little red book, Weibo, Taobao live broadcast of the perfect diary, began to go down. According to statistics from third-party organizations, the number of offline stores of Perfect Diary was 183 by the end of November last year.
Mary Daijia is also developing into online channels.
As early as 2017, the unmanned color vending machine created by Mary Daijia and Tmall appeared in Yintai City, West Lake, Hangzhou, and sold nearly 1,600 lipsticks in three days.
In the effective time, one lipstick is sold on average in one minute, and the lipstick sold by one machine in one day is equivalent to the sales of Marie Daijia online counter in one week.
Through O2O and LBS, Perfect Diary and Mary Daijia are all integrating into omni-channel, realizing the continuous operation of digital consumption.
Second, supply chain configuration.
Perfect Diary once completed a new round of financing of $100 million, and when the valuation reached $2 billion, it indicated that the main purpose of this round of financing was to build a supply chain.
In March of that year, Yixian E-commerce announced a cooperative investment plan with Cosme Meishi, the world’s largest cosmetics OEM company, and invested nearly 700 million yuan to build a free cosmetics R&D and production base.
The base will become the largest cosmetics production base in Asia.
Mary Daijia, the largest mascara production base in Asia, was built as early as 2010.
Regarding the construction of the supply chain, Cui Xiaohong once said in a speech, "I have to meet many suppliers for five days, seven days a week, and often mix together to talk about innovation and products."
But in fact, Mary Daijia is backed by a powerful beauty supply chain-Chuangyuan Group BEUKAY Group.
Most brands in the world, such as L ‘Oré al Paris and maybelline new york, 70% are customers of Chuangyuan Group. It helps all brands to innovate, and builds a platform that can support innovation and supply and realize product thinking and value with the experience of the past 10 years.
Third, product research and development.
Back to the research report of Huaxing Capital, beauty is essentially a marketing-driven and channel-driven industry, and research and development is not the most important driving factor. -and every marketing change and channel change may bring a new wave of overtaking opportunities in corners.
However, from the perspective of accelerating the realization of the ultimate cost-effective consumption concept, product research and development will increasingly become the brand competitiveness in the next stage.
However, from the data point of view, the research and development expenses of major beauty groups are usually very low, and the real technological innovation may only appear in the world in 3-4 years.
Most of the innovations we usually see are the upgrading of product formula, the improvement of packaging form and the updating of concept shaping.
This is the difficulty in the rise of China’s beauty brand, and it is also an opportunity to stand out from the whole industry.
