How can Chinese cosmetic companies win consumers in 2019?

How can Chinese cosmetic companies win consumers in 2019?

  The curtain has just come down on the cosmetics market in 2018, and what opens 2019 is a new landscape for China's cosmetics market in the new retail environment.

Three keywords of 2018 Double Eleven Day Cat beauty

Before we get to that topic, let's look at what's happening in the cosmetics market. Each year, the Tmall Double Eleven sales list rankings can be seen as a vote of consumer will. So what is behind the consumer vote that has occurred on Tmall Double Eleven over the past three years, and what does it represent?

We can see that in 2016, the top ten brands in the Tmall Beauty Double Eleven sales ranking were Bacchus, L'Oreal, SK-II, Ichiban, Natural Hall, Estee Lauder, Hanshou, Baicaoji, OLAY, and Lancome. In my opinion, the ranking in 2016, especially fits the basic view of the market that the majority of us in the industry have now: we are quite strong in domestic products, and local brands and representative brands like Hanshang and Yiyezi made the list.

By 2017, the top ten became Bacchus, Natural Hall, Lancome, Estee Lauder, SK-II, OLAY, L'Oreal, Ichiban, Yue Shi Feng Yin and Shiseido, thus showing that the environment had begun to change quietly in 2017.

Entering 2018, we find that the environment has completely changed, the top ten of the list has become Lancome, OLAY, L'Oreal, Estee Lauder, SK-II, Bacchus, Natural Tong, HomeFacialPro, Winona, and Yue Shi Feng Yin. 2018's list is a particularly big shock for me, who has been concerned about the performance of Double 11 year after year.

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For a long time, the brands at the top of the Tmall beauty double eleven sales list, are national goods occupy a leading position, Bacitracin once for three consecutive years first, before Bacitracin, Aves also did several years first, to this year (2018) but gave way to international brands, and the top ten Chinese goods brands have declined in ranking.

I don't think it's a coincidence that the ranking of this list would have appeared earlier in 2018, except that objectively speaking, in 2017, many national products were operated by brush, which was not so easy to see, and in 2018, many national products have given up resistance and know that they can't go up by brush, so there is suddenly such a big change.

In fact, this list is representing an important vote of our generation of consumers, what does it mean behind this vote? I think that the list from the 2018 Tmall Double Eleven, you can see three key words.

The first keyword is called salty turnaround.

Before 2016, OLAY had declined for five consecutive years, down about 10% each year, and started to pick up in 2016, turned red in 2017, and turned around in 2018 with a salty fish. In this year's (2018) Double Eleven sales results, OLAY occupies the second place in Tmall beauty sales and the first place in sales across the network. If you say you're under pressure to grow, I don't think anyone is under more pressure to grow than OLAY. For a super brand like OLAY with a volume close to 4 billion, I think its success can be described as an elephant dancing. the secret of OLAY's development in these three years is worth all our local brands to learn.

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The second keyword, called noble not expensive.

Lanc?me, originally a leading brand at the tip of the pyramid, came to Tmall this year (2018) and leapt to become the first Tmall beauty double 11 sales, far exceeding L'Oreal Group's expectations.

L'Oréal has just finished a meeting with Tmall for the 2019 Double Eleven, which is expected to break 1 billion in sales in 2019. From January 1, 2019, L'Oreal has already started to prepare for the global stocking of the Double Eleven, because as we all know, without nearly 1 year to prepare, it is almost impossible to prepare 1 billion yuan of goods in 1 day of the Double Eleven.

Lancome's success has an important reason, it has a particularly successful explosive product, called the big pink water. This big pink water successfully seized the market of the same type of products in our national field, and leapt to become the first choice of young consumers' entry-level make-up. Through such a single product, Lanc?me has successfully grounded its unattainable international image and made more young people go to buy it.

The third keyword is "new and emerging".

We believe that 2018 is the year of the collective debut of new brands, and it is a C-position debut. new brands such as HomeFacialPro, Perfect Diary and WIS are rising rapidly, and not only these brands, but we have witnessed the rise of many brands in the past six months when we did the new brand venture competition for Tmall, and this is far from the end.

Over the past year, old brands have turned over, international brands have sunk, and a number of up-and-coming brands are on the rise, all pointing to the same thing: things are changing, and the core customer base of the entire Chinese cosmetics market, and the basis of all business judgments, are undergoing important changes that determine our judgments and important perceptions of the future.

What does this change mean? The rise of the millennial generation, the super species of the cosmetics market.

The millennial generation here is divided into two groups. The first is Generation Y, aged 25-34, who account for 34% of the cosmetics market, with an annual growth rate of 24% and an average annual cosmetic spending of $1,257; the second is Generation Z, aged 15-24, who account for 29% of the overall cosmetics market, with an annual growth rate of 24% and an average annual cosmetic spending of $1,400.

The above data shows a particularly interesting phenomenon: the lower the age group, the higher the consumption amount, the higher the growth rate and the higher the unit price, and they constitute the most active factor in the whole market.

Today's millennials have become the protagonists who really influence the development of the market. If there is still someone who is still complaining about being defeated by a certain brand, then I would like to tell him that the real reason for his failure must be because he did not reach the millennials.