Industry insiders said that with the rise of local emerging brands and the increase in foreign brands, the domestic beauty market is fierce. For nodes such as "Double 11", merchants need to vigorously enhance their competitiveness by giving preferential offers. Whether the result is losing money or generating revenue and profit, the brand is the final winner.
Dada promotion brand
On October 24, the pre-sale of the 2022 "Double 11" promotion officially began, and various skin care brands have launched the largest discount activities in the past year to attract consumers.
Beijing Business Daily reporters learned that Perchoy flagship store launched activities such as "add bonus for full amount" and "more than buy one and get one free"; Winona launched the "50% off once a year" event. Marumei Co., Ltd. has launched discount activities such as 99 yuan off, 109 yuan off, and 109 yuan off, and 1-enjoy 3. Fuqing has launched the "Presale discount, 120 yuan off immediately after paying deposit" activity; brands such as Natural Hall and Hanshu are not only discount activities, but also bundled with Li Jiaqi and started the "Double 11" war through live broadcast.
In addition to domestic beauty brands, there are also many foreign brands in this national promotion. Lancome flagship store launched "must buy, buy one and get one free"; Estee Lauder flagship store listed "buy one and get one free"; L'Oreal official flagship store also launched "buy one and get one free"; in addition, the full amount of formal wear gifts launched by SK-II, Shiseido 's "buy one and get one free" and "gift super formal wear"; Lanzhi and Xuehua Show's recharge discounts, buying formal wear and get formal wear and other activities also made many netizens feel moved to buy.
Jiang Han, a senior researcher at Pangu Think Tank, said that the "Double 11" brand promotion is of great importance to online brands, and online brands need such brand promotions to support their performance.
Wu Daiqi, CEO of Shenzhen Siqisheng Company, said that vigorous activities are a necessity for competition for enterprises. During such a time period, enterprises need to develop new customers through marketing activities, or attract original customers to stock up through marketing activities, weakening their possibility of purchasing other corporate products.
It is worth mentioning that compared with skin care brands, emerging cosmetic brands have relatively weak participation. Huaxizi flagship store has launched activities such as giving away formal wear for full amount, buying 1 enjoy 3, and buying 1 enjoy 7 for some products; Perfect Diary has launched activities such as full discount, buying more and giving away.
Hua Xizi's relevant person in charge told Beijing Business Daily reporter: "This "Double 11" is compared with some promotional activities. After all, it is a global carnival event, and users should also have a sense of gain. But in fact, compared with other brands, Hua Xizi's promotional efforts are not very strong."
Industry insiders said that skin care is a necessity for some consumers, and brands are more suitable to attract consumers to stock up through strong discounts in such big promotions. Compared with skin care products, cosmetics are less demanding, and the stocking situation will be relatively weak.
Performance demand
All brands spare no effort to launch discount activities, and it is not ruled out that their performance is under pressure and such a big promotion is needed to boost sales.
Beijing Business Daily reporter sorted out the financial reports of various brands and found that Estee Lauder, Shiseido and Amorepacific performed poorly in the Chinese market.
financial report data shows that Estee Lauder's total net sales for the 2022 fiscal year were US$17.74 billion, an increase of 9% over the previous fiscal year; net profit was US$2.39 billion, a decrease of 16.73% over the same period last year. Among them, sales in China fell in the fourth quarter, offsetting the high growth of other brands. Shiseido's sales and core operating profit both declined in the first half of 2022. Among them, sales decreased by 0.4% year-on-year to 493.4 billion yen, 7.4% lower than last year; core operating profit decreased by 23.9% year-on-year to 17.5 billion yen.Sales in China in the first half of the year were 115.739 billion yen, down 28.408 billion yen from the same period last year, a year-on-year decrease of 19.7%. AmorePacific's revenue in the first half of 2022 fell 13.1% year-on-year to 2110.8 billion won, and its net profit fell 57.9% year-on-year to 82.9 billion won. Among overseas businesses, the overall revenue of the Asian market in the second quarter fell by 39% year-on-year, and the revenue of the Chinese market in the second quarter fell by 50%.
is different from foreign brands, and the development of local beauty brands is relatively optimistic. Perchoa's revenue and net profit in the first half of 2022 increased by 36.93% and 31.33% respectively; Betelni's revenue and net profit in the first half of 2022 increased by 45.19% and 49.06% respectively.
Jiang Han said that international big brands are constantly increasing their efforts to participate in big promotion activities, which is actually closely related to the rise of the national trend. It is precisely because of the rapid promotion of the national trend that the entire market has begun to show a relatively special feature. Under such fierce competition, international big brands have realized the crisis.
The Chinese market is still one of the important markets for various brands. It is understood that for Shiseido, the Chinese market has surpassed the Japanese local market and became its largest market. A relevant person in charge of AmorePacific said that the Chinese market has always been one of the group's most important overseas markets. L'Oreal has also repeatedly expressed the importance of the Chinese market.
Wu Daiqi said that many emerging domestic brands have developed through online channels. The "Double 11" promotion often occupies the forefront of the sales list. The development of international brands in the Chinese market will be hindered. More importantly, if they do not compete for young new consumers, it is easy to lead to weak brand growth, so they are forced to join the strong competition and seize the market. Whether
can generate revenue
. Regardless of whether the "Double 11" promotion can make money, just look at the efforts of local brands and the addition of foreign brands shows the attractiveness of this promotion to the brand.
Amorepacific's relevant person in charge told Beijing Business Daily reporter: "The birth of 'Double 11' has truly opened up the strong potential of China's e-commerce market, and also allowed brands to see that accelerating the digital transformation of is one of the cornerstones for achieving excellent market performance and maintaining market competitiveness. For Amorepacific, from R&D to production to sales promotion, digitalization has been rooted in the group's working model, empowering the group to grasp market trends, communicate and interact more closely with consumers, and carry out data-oriented marketing promotion."
"For brands, whether big discounts can increase revenue, has been clear in the past years of activities. In such a big promotion, it is obviously more important for brands to attract consumers and gain consumers through product portfolios and discount activities." Jiang Han analyzed.
Beijing Business Daily reporters compared and found that although major brands have launched more than one buy one and one get one, the so-called "get one" is just to get the quantity of formal wear by giving away a large number of samples. At the same time, the 50% discount launched by some merchants is limited to sets or large-scale stocked products.
In the view of industry insiders, merchants have made certain concessions for big promotions like "Double 11", but small profits and quick turnovers will not lose money. However, as for whether the "Double 11" promotion can help brands increase revenue, it depends on how the company's marketing activities and pricing are designed. For beauty products, their gross profit margin is usually high, and it is still possible to maintain reasonable profits of the company.
Relevant person in charge of L'Oreal said that in 2021, during the "Double 11" shopping festival of Tmall , L'Oreal broke the record and occupied more market share. It is understood that during the 2021 "Double 11" period, Paris L'Oreal and Lancome occupied the first and third positions in the beauty market respectively.
Beijing Business Daily reporter Zhang Junhua
