"double 11" Perspective

China Business Daily (Reporter Ma Jia)This year’s "double 11", beauty rivers and lakes "killing" extremely fierce. According to the list data of pre-sale and final payment volume, L ‘Oré al, Estee Lauder and Lancome, the big brands in Europe and America, take the lead; Domestic products such as Polaiya, Winona, Quadi, Nature Hall, etc. rank among the list and become "dark horses"; The Korean makeup brand "disappeared" across the board and was squeezed out of the list.

Some insiders told China Business Daily that at present, European and American brands and domestic brands are "positive", and "double 11" may make domestic and foreign brands fall into the anxiety of "price war".

Domestic beauty cosmetics and the "positive rigidity" of big brands in Europe and America

In this beauty promotion war, domestic brands compete head-on with big brands in Europe and America.

After the first wave of pre-sale data of "double 11" was released this year, domestic beauty products showed the momentum of becoming a "dark horse", and more and more domestic beauty brands made the list. According to the pre-sale data released by Tmall on October 31, Hua Xizi, Caitang, Blankme and Mao Geping are among the top 20 cosmetics sales; In the beauty and skin care category, Polaiya, Winona, Quadi and Nature Hall are all on the list.

The relevant person in charge of Winona told reporters that this year’s situation exceeded expectations, and a number of large single products sold explosively. The sales of special care essence just newly listed in September also rushed to 600,000 pieces during the pre-sale period.

Although the performance of domestic beauty products is more "competitive" this year, judging from the pre-sale and final transaction, the top brands in Europe and America are still the top brands. On the Tmall platform, in addition to the above-mentioned eight domestic brands, the top 20 brands in the sales list of cosmetics, beauty and skin care are European and American brands, and L ‘Oreal, Estee Lauder and Lancome lead the major beauty categories; On platforms such as JD.COM and Tik Tok, L ‘Oreal, Shiseido and Estee Lauder continue to lead.

The relevant person in charge of Estee Lauder’s sales business said that all brands under the group were fully prepared for the "double 11", which increased the stocking volume and gave greater preferential treatment. Judging from the sales results, the performances of all brands are bright.

It is worth noting that this year, domestic brands and big brands in Europe and America have made great concessions in price. Major international beauty brands not only launched preferential activities such as "buy one get one free" and "give away samples", but many brands even lowered the prices of original products. According to consumer statistics, during the "double 11" this year, the discounts of domestic brands are mostly below 30%, while the discounts of international brands are about 40% to 60%.

Kong Sihan, a beauty marketing practitioner, told reporters that this year’s "double 11", domestic beauty brands began to go to the high-end market, such as efficacy skin care products and high-end essence, which all had higher sales. In the live broadcast room of the head anchor, the discount of big-name beauty products in Europe and America is great, and the price of domestic beauty products is lower, which forms a competitive situation between them. This also shows that domestic beauty brands are qualified to compete with international brands in terms of product efficacy and brand influence, which has never happened before in the domestic market.

Korean makeup status may be replaced by domestic makeup.

Why did Korean makeup disappear from the sales list? "This year’s’ double 11′ is more like a reshuffle of beauty brands at home and abroad." The relevant person in charge of the marketing business of a listed cosmetics company in China admitted that European and American brands have a dominant position in the high-end skin care market, and domestic beauty brands are trying to overtake in sub-sectors such as efficacy skin care track. From the perspective of sales performance, domestic beauty brands may be able to find a position in the high-end skin care market; In the past, the advantage of Korean makeup was in makeup products, and many domestic new brands have done quite well in makeup products, which has had a great impact on Korean makeup brands that focus on parity.

It is noteworthy that in this year’s "double 11", domestic beauty brands that started from online cosmetics products seized new opportunities and gave greater promotion discounts.

The relevant person in charge of Yixian E-commerce told reporters that this year’s "double 11", brands such as Perfect Diary, Wanzi Xinxuan, Little Odin, Pico Bear, DR.WU Darfu, Galenic French Colanli and EVE LOM all participated in the promotion. "In order to meet the needs of more consumers for beauty, the company has increased discounts and enriched its product matrix. For example, the perfect diary has a new series of wild leopard gold and brown cosmetics, and Odin Jr. and Betty Boop jointly launched a limited joint series of’ ‘90′ s spice girl makeup’. In the whole cycle of "double 11", in addition to cooperating with external anchors, the company’s own stores also added "the president came to the self-broadcast room" and "the star talent entered the self-broadcast room", and the frequency and duration of live broadcast increased, realizing 12-24 hours of high-frequency live broadcast interaction. "

"Domestic beauty brands have a lot of innovations in affordable makeup, from packaging, color to product promotion strategies, which have dazzled domestic consumers." Kong Sihan said that the young consumers who loved Korean makeup before turned their attention to domestic cosmetics, and Korean makeup will be transformed into mid-to high-end products in China market. For example, Amore Pacific has continuously launched high-end products such as Snow Show Anti-aging Series, IOPE Essence and Yueshi Fengyin Black Tea Essence.

Online competition will continue.

It is noteworthy that after "double 11", domestic and foreign beauty brands may rely more on online sales channels.

The relevant person in charge of Beiersdorf told reporters: "In addition to the promotion in major channels in the past, the company’s marketing department has also stepped up its efforts to promote social media frequently used by consumers such as Xiaohongshu and Tik Tok. Short video’ planting grass’, information flow and accurate crowd delivery are all constantly creating momentum for store activities. In terms of live broadcast, we have launched different product mechanisms in the live broadcast rooms of different platforms to attract more consumers. "

The person in charge of Huaxi Bio said that this year’s "double 11" Tmall beauty venue, two brands of the company entered the live broadcast room in Li Jiaqi, and at the same time, the traffic of their own live broadcast rooms was comparable to that of the head anchor. The cost of putting the brand into the live broadcast room can be controlled, which will not have much impact on the overall expense rate of the company. With the promotion of brand power, consumers’ active purchase behaviors such as name-calling purchase and window search have also made a stable contribution to the performance.

"Fighting for the head anchor and price reduction promotion are two things that beauty brands must do in double 11." The relevant person in charge of the marketing business of a domestic listed cosmetics company admitted to the reporter that at the promotion nodes such as "double 11" and "June 18th", most beauty brands invested more than one million yuan in marketing expenses. With the rising cost of online channels, the pressure on domestic beauty brands may be even greater.

"The price reduction space of domestic beauty brands is smaller. If beauty brands attract consumers with low prices as a gimmick as soon as they arrive in double 11, then after several similar promotions, domestic beauty brands will have to face the situation that there is no room for price reduction. The competition in the’ price war’ may not even be guaranteed, and it is impossible to continue to grow for a long time. " Kong Sihan said.