During the 616 Kuaishou E-commerce Shopping Festival, three beauty brands, Delai Xi, Kochen , and Spring Call, came out on top and became the fastest-selling fast brands. However, when I asked my friends in Beijing, Shanghai and Guangzhou if they knew about them, Most of the answers were “never heard of it”.
616 is actually the TOP3 fast brand in terms of sales that won the favorites during the shopping festival. Source: Kuaishou E-commerce
However, the total GMV of 3 brands during the 616 period was nearly 200 million yuan, and the results of added nearly 1 million new fans, which is another proof of Dai Laixi, Kouchen and Spring Call are real hot brands. During the entire Kuaishou e-commerce 616 real shopping festival, the cumulative order volume of Kuai brand reached 12 million.
Why is this happening? Dailaixi's brand strategy may initially explain this phenomenon.
"Some big brands may disdain to pay attention to the consumer groups in rural small towns, but the economy is always developing, everyone's consumption level will always rise, and everyone has the pursuit of a better life, so our positioning is to start from the basics and work from the bottom up. Go up." said Yin Haibo, General Manager of Dai Laixi.
Relying on the fast brand in the industrial belt, it has taken a completely different path from the traditional brand from the beginning.
How was the Kuai brand born? Today, we take three beauty fast brands as examples to talk about the similarities and differences between fast brands.
The birth of a beauty brand Kuai brand
What is Kuai brand? Kuaishou E-commerce is defined as a group of new merchants that have grown up in the Kuaishou e-commerce ecosystem and value fan service. They adhere to the business philosophy of "real people, real goods, and real prices" and provide fans with cost-effective products in the live broadcast room. and service merchants.
Song Zhen, head of the Kuaishou e-commerce Kuai brand, refined the characteristics of the Kuai brand as follows: live broadcast room pays equal attention to both mind and goods, high experience-to-price ratio, strong private domain, and strong repurchase .
Taking beauty as an example, the growth path of fast brands can be summarized in three points:
1. Focusing on "small town youth"
"from rural Shandong, leaving hometown to start a business for 18 years", this is the founder of Spring Call, "77 Yingjie" Kuaishou introduction.
A grassroots counterattack and an inspirational heroine are one of the characteristics of the founder of the Beauty Express brand. The founder of Kouchen, " Xu Nannan ", went out to work at the age of 17 and started a business in Guangzhou for 10 years; the founder of Delaixi started as an apprentice and has been in the beauty industry for nearly 20 years.
Perhaps this is because the founder is more empathetic and understands the market needs represented by "small town youth". Many users of the Beauty Express brand are working girls in factories and housewives in third- and fourth-tier cities.
"Why do I say I understand them so well? Because I understand myself and my heart that wants to be beautiful." "Xu Nannan" said.
This is the first feature of the Beauty Express brand, which focuses on the market represented by "small town youth". The "2022 Kuaishou Beauty Consumption Trends" released by the Beauty Industry Research Institute also shows that about 70% of Kuaishou's beauty users are located in third-tier and below cities.
Just as "77 Yingjie" has positioned its brand to "serve ordinary people", from the very beginning, Kuai Brand has taken a path that is different from traditional brands.
2. Relying on the source factory
to determine the target users, the next step is to solve product problems.
is different from the low-priced white brands imagined by the outside world. The fast brand was born out of differentiated cost-effective products and sourced products in the industrial belt, and has considerable supply chain capabilities.
Before establishing Spring Call, "77 Yingjie" specialized in manufacturing products for offline beauty salons and accumulated a certain degree of industry strength. Currently, its two independent skin care products factories have been included in the Guangdong Province Quality Enterprise Directory. In addition, It also invested in 6 factories.
"We used to supply beauty salons. For more than ten years, we have served some very picky customers, and the quality requirements of our products are very high." "77 Yingjie" added.
This is the second characteristic of the Beauty Express brand, which relies on its products to speak for itself. Compared with traditional brands, brands such as Spring Call are more willing to emphasize the thought they put into their products.
"Everyone in the industry knows that the materials used in my products are relatively ruthless. What I want to do is to benchmark against any raw material supplier in the world, and achieve the same quality as at one-tenth the price of ." "Xu Nannan" said that in order to ensure product quality, Kouchen established its own R&D team and factory.
3. Make good use of live streaming and fan economy
Now that you have a product, how do you sell it?
First share personal stories to attract fans on the same channel, and then live broadcast to promote products and open up brand sales. This is the basic path for fast beauty brands such as Delaixi, Cochen, and Spring Call. In 2019, "Xu Nannan" relied on the short drama "The Queen's Strategy" to become popular on Kuaishou, and received the first wave of traffic, starting Kuochen's journey to become a Kuaishou brand.
On the one hand, unlike traditional brands that need to go through a complex dealer network to reach end users, live streaming allows beauty express brands to shorten the retail circulation link, reduce merchant CPS commissions, and achieve a high experience-to-price ratio.
Song Zhen said, "In recent years, we have talked about the 'short-circuit economy', that is, shortening links to reduce circulation costs, thereby obtaining stronger product and price competitiveness." Kuai Brand is through its own brand, integrating people and goods way, shortening the path between DMSBBC (D (design) - M (production) - S (supplier) - B (big shopping mall) - B (small store) - C (consumer)) .
On the other hand, unlike traditional brands that spend hundreds or tens of millions to hire 4A advertising companies to design various high-concept advertising videos and then put them on TV, shopping malls and other channels, the Beauty Express brand is better at live broadcasting and is more familiar to users. the language and manner to engage in direct dialogue with them.
Live broadcast is a concrete dialogue method that allows users to switch from passively receiving brand information to actively participating in brand creation. This makes it easier for beauty express brands to trigger users' emotional resonance , thereby improving transaction efficiency.
"Live streaming has shortened the distance between people. You will feel that you have gained not only customers, but also fans who recognize you and treat you as family and friends." "77yingjie" said.
From "small town youth" to mass users, a large number of sourced goods have captured the consumer needs that traditional brands have not met through live broadcast. This is the birth path of the beauty express brand.
In this process, Kuaishou's role is more like a "gatekeeper" and "investor", selecting and supporting Kuaishou brands that are truly high-quality and can truly meet the needs of Kuaishou veterans.
Xiao Gu, head of Kuaishou e-commerce business, said that Kuaishou e-commerce will support more than 500 Kuai brand benchmarks with more than 23 billion traffic in 2022.
Three basic premises of fast beauty brands
Why can these fast beauty brands take a completely different path from traditional brands?
First, there is still strong unsatisfied consumer demand in the sinking market
Looking back at China’s beauty market, first- and second-tier cities have long been occupied by overseas beauty brands. In recent years, domestic beauty brands have just started, but China’s huge The population and varying levels of regional economic development indicate that there are still a large number of users with unmet consumer needs.
Zhang Yipeng, head of brand operations of Kuaishou e-commerce KA, once shared feedback from a big traditional beauty brand. The overlap between the purchasing users it obtained from Kuaishou and the purchasing users obtained from traditional shelf e-commerce is only 4%.
"Tencent's 2019 Small Town New Youth Research Report" also shows that compared with young people living in big cities, young people in small towns have more disposable income.
"Now the consumption power of the sinking market is not bad. Can existing brands meet all the needs of more than 1 billion people? Obviously not.This laid an economic foundation for the emergence of fast brands. "Xiaogu analysis.
In addition, the particularity of sinking users gives beauty brands the same competitive opportunities as traditional brands.
Beauty brands usually have to undergo an upgrade from functionality to culture, but for the past For users represented by Kuaishou Laotie, pragmatism is king, which is highly consistent with the Kuai brand that currently focuses on source factories. also allows the beauty brand Kuaishou, which has insufficient marketing background but focuses on products, to convince users. opportunity.
As "Sister 77" said: "Domestic brands do not mean that their quality is inferior to international brands, it just means that they cannot compete with the other party's promotional methods. ”
This is why Kuaishou e-commerce has to put forward the value proposition of “real people, real goods, real prices”.
Secondly, Chinese factories already have considerable production and manufacturing capabilities
Chinese manufacturing is world-renowned, and many international brands choose to make their products in China OEM, after years of accumulation, Chinese factories already have production and manufacturing capabilities that are not inferior to those of foreign countries.
Domestic beauty brands are also capable of producing products with quality that is not inferior to that of international brands. In fact, is made in Tokyo, , or Xiaomi carefully selects. , the "big industrial belt" of Kuaishou e-commerce, are all the products of China's manufacturing industry upgrading and excess production capacity.
It is understood that Delaixi has reached a strategic cooperation with the international first-line cosmetics OEM Cosmax, and has established a strategic partnership with International Cosmetics. First-tier brands share raw material procurement, advanced technology, and production lines.
“Although they are produced in the same factory, the formulas of some of our products are better than those of international brands, and the pricing is also very affordable. " Yin Haibo said.
This has led to two results:
First, the beauty brand has the opportunity to achieve what "Xu Nannan" calls "noble quality and affordable price", and share a part of the market from traditional brands.
Second, If the Beauty Express brand can achieve a price that is slightly higher or even the same as that of traditional white brands, it will be able to harvest a huge incremental market just like when Xiaomi killed off copycat mobile phones.
From the "source" in 2018. From "good things" to the "big push for industrial belts" in 2021, and then to this year's "big push for fast brands", what beauty fast brands are doing is to help more ordinary people upgrade their consumption with the help of more mature and professional Chinese manufacturing capabilities. .
Thirdly, Kuaishou Live Broadcast provides a unique new channel for the beauty brand
If there is only demand and there is a product, it can only be called a product, not a brand. The core of the beauty brand lies in: Through live broadcast, Kuaishou has established a community based on mutual trust, which has shortened the distance between people, and Kuaishou brand has also completed the construction of users’ minds through live broadcast.
In Kuaishou, anchors can share their own experiences. Stories and imparting one’s own experience; fans can learn makeup and find confidence.
“What I care about is not sales, but repurchase rate, fan stickiness, and what it really brings to fans. "Xu Nannan" emphasized.
aims at the most mass-based people in China, and uses the industrial upgrading of Made in China to catch up with the new channels of live broadcast e-commerce, giving beauty fast brands the opportunity to find new opportunities in a new track.
Beauty Where will the Kuaishou brand go?
New Shijing e-commerce is the new positioning of Kuaishou e-commerce. The so-called New Shijing includes rich, diverse, authentic and down-to-earth connotations, and describes Kuaishou’s unique pyrotechnics and community atmosphere.
The competition of brands is also the competition of the consumer culture behind it. How many people it can inspire determines how much business imagination space the brand has. The new market of is the reshaping of Kuaishou e-commerce culture. It leads to a direction: there are not only high walls here. The elegance of the literati in it also has the atmosphere of human fireworks like "Along the River During the Qingming Festival".
The big brand is aimed at traditional brands, while the big fast brand wants to embrace a broader and more real market life.
To some extent, Kuai brand is more like a product of China’s economic development and industrial upgrading.
In the past few years, under the wave of urbanization, many brands focused on the "300 million new middle class" and paid little attention to the sinking market; but now under the development trend of common prosperity, beauty fast brands may be able to seize Live new opportunities.
has truly become a brand that serves the public, which is probably the future path for fast beauty brands.
