The world of makeup in the make-up market

As early as the end of 2006, major brands such as Maybelline, Avon, and Shiseido launched new products, and domestic brands such as Color Zone and Kazilan developed "high-end" as a "response." In the industry's view, this undoubtedly means that the color cosmetics market contains infinite vitality.

What is even more surprising is that the least performing "safety" is not the leading foreign brand in this field, but the local brand.

Recently, Kazilan, regarded as one of the domestic windmills, has held a large-scale annual investment promotion conference in Guangzhou, promoting its new brand “Lianyu”. According to the news from the meeting, in order to ensure product quality, this new brand, whether it is process, formulation, packaging, or production equipment, was introduced from Japan, and the price is close to international competitors such as L'Oreal and Revlon. "The makeup products should be around 100 yuan, and the price of skin care products is about 150 yuan." A dealer told the reporter, "This is definitely a high-end in the current domestic brands."

It is worth noting that in the past three months, another famous brand in the local makeup industry, the color zone, also announced at the industry seminar held in Shanghai that it will increase the launch of the new brand “Jia Meier”. And promotion intensity. It seems coincidental, like Kazilan, as an upgraded version of the "Color Zone", the positioning of "Jia Meier" is also high-end.

The campaign started in advance For foreign brands accustomed to exclusive high-end market, the actions of the above two local first-line brands are undoubtedly a bit provocative. “It is good to have competition, and we certainly welcome it,” said a foreign brand makeup market manager who asked not to be named. But she also claimed that due to the potential of the mass market, they are also considering enriching the product line of its popular make-up brand and launching a discount (price reduction) campaign to expand the market.

"In fact, this answer is a 'counterattack' against the infiltration of domestic brands into the high-end field. Since you have entered my high-end market, then I have to seize your low-end market." An industry insider analyzed that two The mutual penetration of the people is a matter of time, and as the competition intensifies, the degree will become deeper and deeper.

But this is just one of the “responses” of foreign brands. Careful people may have noticed that foreign brands have also been adjusted for the high-end market with traditional advantages. The most obvious change is the development of new makeup products with composite functions.

For example, in the middle of November this year, Avon launched the “Pink Moisturizing Liquid”, which is a moisturizing liquid foundation; the first-line brand Chanel recently announced a new series of products, including a moisturizing and sun-protecting lipstick; Shiseido is On the website, I recommend the new makeup product, the new enchanting blush, to the makeup novice, claiming that this product has a creamy texture, “not only rejuvenating the face, but also moisturizing the skin”.

"This is the inevitable development trend of the cosmetics industry in the face of competition, and the makeup market is no exception." In this trend, the above-mentioned industry insiders said that because of the lack of proper maintenance ingredients, general cosmetics have always given consumers "although they can modify their looks. But the feeling of 'harming the skin' is compared. This traditional impression is not good for the development of make-up. Therefore, the only way for color cosmetics manufacturers to better expand the market is to actively develop pure natural raw materials and products with maintenance functions.

However, he pointed out that the current functional makeup is still in the development stage, relying on high-tech support, and the use of high technology relies on abundant funds, so from the current situation, it will not become mainstream for the time being. “There are many large enterprises with strong investment, and other small and medium-sized enterprises lack the competitive strength in this respect. Although many companies are trying and exploring, how much is really effective and effective, it is still very Hard to say."

In the next five years, it will be integrated like the home appliance industry. This is a field that looks quite "glamorous": compared with the nearly mature washing and skin care products market, the makeup of the concept curtain was officially opened in 1997. saturation. In this regard, industry experts have given the forecast that its capacity is at least 25 billion yuan.

The development potential of this market seems to be unquestionable, as can be seen from the South China market. According to the relevant information of the Guangzhou Municipal Bureau of Statistics in 2004, more than 800 cosmetics sales companies in the city sold more than 600 million yuan of cosmetics. Last year, it increased by 14%. Among them, makeup sales accounted for 18%, reaching more than 100 million yuan, an increase of 12.5% ​​compared with the previous year.

The rapid development of the makeup market has not only appeared in Guangzhou. According to the relevant person in charge of the Shanghai Beauty Expo, in recent years, makeup has become an indispensable highlight of every exhibition. “In 2006, one-third of manufacturers introduced color cosmetics, and some brands that used to specialize in skin care products joined the cosmetics market this year. Last year, only one-tenth of the manufacturers were making makeup.”

In this "controversy of the earth and the ocean" in the makeup industry, the foreign brand is still the upper hand. The performance of domestic enterprises in quality, management and brand marketing planning and maintenance is uneven, which makes the makeup field in the future will be like the Chinese home appliance market, the trend of major reshuffle and brand integration. If it is fast, it will be reflected in the next five years. This integration is inevitable, and the domestic brands will eventually leave behind some strong brands with obvious strength and outstanding advantages. The number will not be much, but it is enough to compete with foreign brands.

In fact, the makeup is only beautiful on the surface. The real reality is that many enter the brand and think that the makeup market is not mature yet, and the competitive landscape is also unstable. Therefore, the profit margin is far greater than the competitive saturated washing and skin care market, but it is not. The gross profit of make-up looks very big, but because the actual operating costs are getting higher and higher, such as the entrance fee of the hypermarket, the terminal promotion fee, the logistics fee, the raw material price, etc., after the subtraction, its net profit is running low. It can even be said that it is lower than shampoo.

In this context, the “price war” used by domestic brands has caused the industry to worry. "The customary thinking of domestic companies is that since they can't compete with foreign brands in the high-end market, they will use the price advantage to gain the share of the middle and low-end market. As a result, your price is low, then I am lower, no matter which link is full of ' The price war' has fallen into a low-level vicious competition," said a senior expert.

This may be the underlying reason why Kazilan and the color zone have turned to the high end.