Author/Yining
Skin problems are becoming more and more common in China. Baidu platform shows that since 20 1 1, the index of searching for "sensitive muscles" has gradually increased, and there is an obvious stage search peak in the high incidence season of dry allergies from February to May every year.
Ordinary skin care products that used to only replenish water have also become chicken ribs. On the contrary, functional skin care products that focus on specific skin types and strong functional chemicals stand out as a new way out. 2020 was originally a "gray" year under the epidemic, but it also unexpectedly gave birth to the emergence of domestic skin care brands such as Winona, Yuze and HFP.
The wind started at the end of qingping, and the rise of functional skin care track is no accident. Then, under the brand advantage of overseas skin care products,
Why can domestic brands fight their way out? How far can this road go?
Under the pressure of overseas brands, domestic functional skin care brands have been attacking the city.
It can be said that for a long time, the cosmetics market in China was firmly monopolized by overseas brands such as Europe and America. According to the data of Prospective Industry Research Institute, among the top 20 brands of department stores in 20 15, only herborist in shanghai jahwa is a domestic brand, ranking eighth. Other 19 brands are foreign brands such as Europe, America, Japan and South Korea.
Although this phenomenon has improved in recent years, in 20 19, China skin care products market ranked in the top ten, with overseas brands still occupying six seats and domestic skin care brands only occupying four seats. So, in the face of such a powerful enemy, what should we do to usher in our own spring?
"mantis finance" believes that the answer is dislocation competition strategy. For a long time, overseas brands have basically been a big single product strategy, occupying the minds of Chinese people with their long-term marketing and word of mouth, but not everyone can afford it, which also gives domestic skin care products an opportunity.
The main cost performance can avoid confrontation with overseas brands, but what really makes domestic skin care products take off is functional skin care. For overseas brands, this track accident is a blue ocean to be tapped.
The concept of functional skin care products can be traced back to 1998 when Vichy, the main professional sensitive skin care brand of overseas brand L 'Oreal, entered the China market. However, due to the differences of skin problems between overseas people and China people, it is difficult for overseas brands to completely target the skin problems of China people, which gives domestic skin care products a leading opportunity.
A survey of skin condition in China shows that 72% of people in China are in sub-health state, and more than 35% of them are women with sensitive muscles. With the increase of the proportion of people with skin problems, the market scale of functional skin care track has increased greatly after 15. According to Euromonitor data, in 20 19, the global market capacity of dermatological skin care products exceeded 1400 million US dollars, the market capacity of dermatological skin care products in China reached1360 million RMB, and the compound growth rate of China market from 20 14 to 20 19 was 23.2%.
Domestic skin care products saw the huge business opportunities behind this track and seized the opportunity. According to Euromonitor's statistics, Winona, a domestic skin care brand that focuses on sensitive muscles, surpassed Avene to become the first skin care product market in China with a market share of 20.5%(+3.5 pct) in 20 19.
On the other hand, the big brands in Europe and America are clearly differentiated. Generally speaking, imported brands account for 72.7% of the market share, which is 16.6pct lower than 89.3% in 20 14. Among them, the share of Yayang and Vichy declined greatly, while that of Fulifang Si, la roche-posay and Bedmar remained relatively stable.
However, unlike the long-term competition pattern of overseas brands in the domestic high-end skin care market, in recent years, local functional skin care brands (especially those focusing on sensitive muscle repair) have achieved a counterattack in the market share of this sub-category to some extent by virtue of their similar and differentiated growth paths with European and American brands. Then, unlike the Matthew effect in other industries, it is difficult for new brands to get ahead. Why do domestic brands still have a chance to get ahead when overseas brands occupy greater well-known advantages?
Overseas skin care is king, why does 2020 become the year of the rise of domestic brands?
Which brands do you think of when it comes to instant noodles? Master Kong and Jin He are one. Where are the drinks? Coca Cola and Sprite. In many industries, once a brand has gained popularity, it is difficult for a new brand to gain a foothold. This is because there is little difference in product experience, and customers prefer brands they have heard of when choosing.
However, this does not seem to be the case in the skin care industry. As a daily skin care product, the research and development threshold is low, the decision-making time is short, the consumption frequency is high, and its audience is also large, and it can be used by men, women and children, and the experience results are not much different. In addition, because everyone's skin is divided into many levels and highly targeted, the market space is very large.
Even if skin care brands are often mentioned now, we will immediately think of overseas famous brands such as Blue Ocean Mystery, but it is worth noting that their prices are relatively high, mainly occupying the high-end market. For example, the price of Xiurike is several thousand yuan, and the price of Japanese snow muscle essence is not lower than that of 270 yuan. On the other hand, the domestic brand Winona "Shu Min Special Cream" 50g costs 268 yuan, while la roche-posay "SOS" Anxin Cream 40g costs 285 yuan, and the overall price range is close.
Although Winona, HFP, Yuze and other cutting-edge skin care brands became a hit in 2020, in fact, these three brands were first established for more than six years. The reason why they became a hit in this special year of 2020 is inseparable from the epidemic.
After entering the "new normal" of the epidemic, masks have become an indispensable item in life. Skin damage caused by wearing masks for a long time, more than 60% of consumers have experienced skin sensitivity and barrier damage caused by wearing masks. Skin health and skin barrier repair are more valued by consumers, and online skin care consumption is growing faster.
Not only that, the Z generation, which pursues personality growth under the background of rapid economic development, has a higher degree of goodwill towards domestic products. Topher's White Paper on Consumption in China in 2020 shows that 42% of consumers prefer to choose domestic cosmetics brands, and 60% of consumers indicate that they have the intention to buy domestic products again after experiencing them for the first time.
If a huge audience is the nutrient for the growth of domestic brands, then mature e-commerce channels are the soil for domestic brands to take root. Skin care products with high standardization, short service life, small size, moderate price and high repurchase rate are very suitable for sale through e-commerce channels.
In the past, if a new brand wants to achieve higher popularity, it must not be promoted only by burning money, posters and advertisements. , and opened countless offline stores in several cities to accumulate 6.5438+0 million fans. But in the Internet age, it may only take six months for a new brand to become a store with millions of fans.
In the era of e-commerce in which JD.COM, Taobao and Pinduoduo are divided into three parts, the threshold and cost for the birth of a new brand are lower than those in the traditional offline period. Through the e-commerce platform, many accurate target consumers can be reached directly and quickly, which saves a lot of store building and advertising expenses, makes it easier to reach consumers, and makes the trial and error cost of new products lower.
E-commerce has become the largest channel in the skin care industry. In the long-standing channel access, domestic skin care products have achieved the reach of consumers and the take-off of their own brands through a series of channel dividends such as e-commerce channels, little red book Tik Tok and other content channels. According to Euromonitor's statistics, the proportion of e-commerce channel sales of cosmetics rose rapidly from 65,438+06.0% in 2065,438+09 to 30.3% in 2065,438+09, among which the proportion of e-commerce of skin care products reached 30% in 2065,438+09, making it the largest channel.
How can domestic brands go further on the track of functional skin care?
Although domestic skin care brands are on the rise, overseas brands still occupy the minds of most consumers. According to the survey data of iResearch, compared with domestic brands, China beauty and skin care consumers are more willing to buy international brands in the last year. This is because foreign beauty and skin care companies have accumulated over time, and consumers have a strong reputation and high trust.
If you want to go further on the track of functional skin care, then domestic skin care products should not get carried away because of their small victory, but should do two more things.
"mantis finance" believes that the first is to establish exclusive technology and form its own moat. Domestic skin care brands have been criticized for their technology. Generally speaking, foreign mature skin care products usually cooperate with world-renowned laboratories, and have the ability to buy out the latest skin care ingredients, so that a certain skin group can achieve better results after using them, such as skii to Youma.
But this should not be the weakness of domestic skin care brands. Take Winona for example. Now its brand enjoys a certain popularity among people with sensitive muscles. How to further expand this popularity? Technology and effect are the last word. Even though there is still a gap between the domestic cosmetics industry and overseas brands in terms of talent and technology, this does not mean that domestic skin care brands cannot find another way, such as mergers and acquisitions. On March 2, it was reported that Yixian E-commerce, a leading company in the domestic beauty market, acquired the international high-end skin care brand Eve Lom.
For domestic skin care products, technology is not enough to buy. By acquiring some overseas skin care brands, domestic skin care brands can also obtain more and more cutting-edge technologies. Applying this technology to your own products will further enhance its product effect.
In addition to technical exclusivity, the skin care industry itself has subtle differences in effect and experience, so it is often the cognitive ability of various brands. For example, the famous overseas skin care brands Blue Ocean Mystery and skii Fairy Water are deeply rooted in the hearts of the people in marketing and word-of-mouth attacks, so that users are willing to pay for them.
Compared with overseas brands, the cognition of domestic brands is only worse in time and marketing. Many times, even domestic brands will use the recognition of overseas brands to carry out marketing under the banner of "flat replacement", which can effectively open brand awareness in a short time, but it is also a double-edged sword and is likely to be countered.
With the information explosion in the Internet age, it is getting easier and harder for a domestic product to become famous. In addition to small red books, live e-commerce, celebrity endorsements and other means, how to make a product reach a perfect diary is a problem worth pondering for domestic skin care products.
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