上海后花园 上海419

Image source @ vision china

Text | Consumer sector, written by Nicole, reported by Consumer Sector |

In 2022, the market scale of China beauty industry is expected to exceed 500 billion yuan.

Backed by the 500 billion beauty market, the beauty collection stores that focus on offline channels are also heating up.

By creating a "paradise" shopping scene, the new beauty collection shop has gradually become a new consumption and social place for young people. The traditional beauty collection store is not to be outdone, trying to seize the market and regain the initiative through scale advantage.

Can the "shield" of the traditional beauty collection store resist the "spear" of the new beauty collection store?

Beauty collection store, which is an offline retail format that integrates multi-category and multi-brand cosmetic products in one store. Here, consumers can buy all kinds of products such as make-up, skin care products, personal care, perfume, beauty tools, etc., avoiding repeated shopping troubles.

At the same time, the beauty collection store also provides a convenient and efficient one-stop beauty trial experience, which complements the shortcomings of online channels.

If it was two or three years ago, when talking about beauty shops, many people’s first reaction would be foreign-funded enterprises such as Watsons, Sephora and Wanning.

In the era of beauty collection store 1.0, traditional beauty collection stores stand out from the rest, occupying the vast majority of domestic market share.

Take Watsons as an example, as a well-known retail chain of health care and beauty products, it has more than 4,100 stores in more than 490 cities in mainland China, with 63 million operating members.

From basic skin care to make-up items, from daily care to snacks and soft drinks, Watsons, which has a complete range, once emptied the wallets of female consumers.

In recent years, the life of Watsons has not been easy. In 2015, its performance in China began to stagnate, and its revenue was negative for the first time in 2016.

Under the epidemic last year, Watsons suffered even worse.

The financial statements for the first half of 2020 show that global sales amounted to 73.627 billion Hong Kong dollars (about 66.007 billion yuan), down 11% year-on-year. Among them, China’s sales amounted to HK$ 8.805 billion (about RMB 7.892 billion), down 30% year-on-year.

The life of Wanning, another traditional beauty collection store, is just as difficult.

In order to save costs, Wanning closed most stores in Beijing, Wuhan and other cities. Its employees even said that except for Guangdong Province, the mainland market will probably be withdrawn.

Affected by the epidemic, SEPHORA, which has always been regarded as the benchmark of beauty collection stores, can’t escape the decline in performance. According to the latest data of LVMH Group, in the first quarter of last year, Sephora’s boutique retail department fell 25% to 2.626 billion euros (about RMB 20.105 billion).

Compared with the traditional beauty collection stores or the weak operation or sudden exit, new beauty collection stores have sprung up like mushrooms after rain, and are racing around the country and expanding wildly.

Since 2017, large-scale makeup collection stores such as HARMAY Plum, THE COLORIST Colorist and WOW COLOUR have appeared one after another, which sounded the horn of the counterattack of new beauty collection stores:

For example, WOW COLOUR, with about 300 stores currently in operation, has settled in 300+ famous brands and 6000+SKU；;

THE COLORIST, with more than 300 direct stores, owns 150+ global makeup brands and 6000+SKU；;

H.E.A.T likes to burn, and public comments show that there are 13 stores, with more than 300 brands and over 4,000 explosive products;

Judging from the data published by various beauty collection stores, the new beauty collection stores are unstoppable.

This also means that the beauty collection store is entering the 2.0 era.

• What is the reason why the new beauty collection shop is rushing out of the circle?

Last year, new beauty collection stores such as Huamei rushed out of the circle for the following reasons:

First, rent adjustment under the epidemic situation.

Under the epidemic situation, most offline stores of brands have closed. For example, Watsons closed more than 200 stores in February last year.

In order to make up for the loss, shopping centers with high vacancy rate after the epidemic can only adjust the rent, hoping to reduce the rent level and attract brands to settle in.

It is definitely a major positive for the new beauty collection stores that focus on offline channels and want to expand.

Although the rental cost has been reduced to a certain extent, it can be regarded as a drop in the bucket compared with the operating cost of large beauty collection stores.

For example, HARMAY Huamei’s store in Sanlitun, Beijing covers an area of 600 square meters, and the monthly cost is about 1.4 million, and it is even higher due to geographical location and other reasons.

It can be seen that the beauty collection store is in the stage of burning money.

It is the golden period of its development in the short term, but the return will not be immediate.

Second, capital assistance.

The new beauty collection stores in the stage of burning money are indispensable for the expansion of capital.

Looking at the list of investment institutions, the heads of Jingwei China, Gaoying Capital and IDG Capital are all staking the land.

For example, KK Group, the parent company of color palette division, completed financing of about 1.8 billion yuan during July 2019-2021, with investors such as eWTP Science and Technology Innovation Fund, Jingwei China and Wuyue Capital.

Huamei, at present, A and A+ rounds of financing have been completed, and the investors include Gaochun Capital and Black Ant Capital.

WOW COLOUR, which just completed the financing of 500 million yuan half a year ago, was invested by Gaoying Capital and IDG Capital.

The reason why these capitals take a fancy to this offline business is inseparable from two "new".

Third, the rise of new consumers and new domestic beauty brands.

There is no doubt that Generation Z is the main consumer at present.

This group of young consumers have a strong sense of national self-confidence, which leads them to favor domestic beauty brands.

It also makes both the traditional national cosmetics represented by herborist and Baique Ling, and the cutting-edge domestic brands represented by Perfect Diary and Huaxizi attract unprecedented attention from the capital market and consumer market.

According to Tmall data, in 2019, Tmall gave birth to 16 cosmetic brands with annual turnover exceeding 1 billion, among which the annual turnover of five new domestic brands including Perfect Diary, WIS and Touzhen exceeded 500 million.

The new beauty collection store is the hotbed of domestic brands, which gives the domestic brands the greatest support in the brand entry.

Taking WOW COLOUR as an example, it is positioned as a national fashion beauty collection store, with domestic brands accounting for 70% in the store. The settled brands include more than 100 domestic beauty brands in online celebrity, such as COLOR KEY, VNK, Judy Color Lab and HOLD LIVE.

Fourth, have the strongest supply chain.

There are thousands of products in the beauty collection store, which is to test the supply chain ability.

How to get the most complete goods with the fastest speed and lowest cost is a problem that puzzles all retail stores.

However, for China brands with the strongest supply chain, these have become one of the advantages in competition with imported brands.

• Xinshi beauty cosmetics jihe branch Chu quan San ban fu

The new beauty collection store is very popular among young consumers. On platforms such as Xiaohongshu and Tik Tok, there are countless punch-in posts.

Among them, there are many shops about NOISY Beauty, HARMAY Plum, THE COLORIST Colorist, WOW COLOUR, H.E.A.T, and so on.

So, what do these new beauty shops rely on to capture the minds of this young consumer?

First of all, the big card sample drainage.

Speaking of big-name samples, its history can be traced back to 2008, and business model innovation appeared after the financial crisis.

Under normal circumstances, the inventory control of international brands is the best. When the financial crisis or epidemic breaks out, consumers above the middle class will reduce their consumption or even stop consuming high-end products in a short time.

At this time, the inventory control of these high premium categories is not less than 5%, but increased to 10%-30%, which leads them to digest the inventory as soon as possible in a short period of time (about 1-3 years), and it is necessary to re-formulate consumption plans and production opportunities.

Big brands solicit customers and transform them through samples and gifts, which leads to a new category with huge short-term circulation.

According to NPD Group data, skin care and beauty samples have developed into a huge market in the United States, with sales of 1.2 billion US dollars (about 8 billion RMB) in 2018.

Nowadays, samples are also continuously exported in China market, and they are still a major way to attract customers and drain brands.

Among them, HARMAY’s plum blossom is popular by "warehousing+sample".

Its founder said that on the one hand, the sample increased the customer unit price, on the other hand, it lowered the threshold for new customers. For shops, it is also a way to increase the overall gross profit margin through the combination of high and low gross profit products.

The gross profit margin of the sample can reach 20%, which is twice that of the formal dress.

Faced with the temptation of high gross profit and low new cost, more and more beauty collection stores are aiming at samples, including OnlyWrite, WOW COLOUR, Want, HAYDON Black Hole, THE COLORIST and so on.

Secondly, the selection of products is mainly based on domestic explosions to improve profits.

In the selection of products, the new beauty collection shop is mainly made of domestic brands, focusing on explosive products, so as to increase profits.

H.E.A.T, which is positioned as "offline little red book" by users, likes to burn, which is more obvious in the selection of explosives.

Gary, its founder, said that at present, its store makeup category accounts for 45%, and the brands that have settled in include Odin, Orange Blossom, Perfect Diary, JOOCYEE Fermented Color, HEDONE and other trend brands; Skin care products account for 28%, and the cooperative brands include Winona, HFP, Grain Rain and Daisy Sky.

Gary also said that the products that like to burn are mainly based on Internet sales data and word-of-mouth data, and are investigated from three dimensions:

1, whether the product itself is reliable, whether it is true with characteristics;

2. The sales trend of products in Tmall, the brand volume of Xiaohongshu, Tik Tok and bilibili;

3. Whether the word-of-mouth and rise of the trend brand can truly become a brand.

Including WOW COLOUR, etc. is also this kind of gameplay, which is already a common game rule of new beauty collection stores.

Finally, around young people, create a consumer place with social attributes.

Love to share and experience is the lifestyle of this young people.

By creating a "paradise" shopping scene, the new beauty collection shop has gradually become a new consumption and social place for young people.

More than 20 square meters of rainbow gradient walls made of beauty eggs and lipstick give consumers the strongest visual impact.

This is the unique symbol of THE COLORIST colorist, which attracts many consumers to punch in.

HARMAY’s plum blossoms break consumers’ stereotype of beauty shops and highlight the encirclement with a sense of advanced industry.

It takes "black, white and gray" as the main color of the store, and combines elements such as stainless steel, concrete and glass curtain wall in an orderly manner to present a brand-new image of a beauty shop.

At the same time, Huamei combines the "warehouse-style" shopping form to stimulate consumers’ autonomy and exploration, and increase interest while shopping.

LITTLE B, a subsidiary of Fauvism, is obsessed with art curation. The store has a special exhibition area. The brand has joined hands with high-end ice cream brand Pree to build a flash cart and co-organized a life photography exhibition with BROWNIE Art Photography to attract tasteful consumers with unique artistic tonality.

These new beauty collection stores have their own unique styles and social attributes.

The domestic beauty market has performed strongly, and the number of brand players entering the market has also increased.

According to Tianyancha, in 2020, there will be 2.75 million newly registered enterprises whose enterprise names or business scope include keywords such as "cosmetics, make-up and beauty cosmetics".

Even under the black swan epidemic, new enterprises still maintain a growth rate of 30%, which shows the industrial activity.

According to the data of iResearch, the market scale of China beauty industry will exceed 500 billion yuan by 2022, and it is predicted that the scale will increase to about 598.7 billion yuan in 2023.

While e-commerce accelerates iteration, offline channels are gradually upgraded in store layout, store design and brand selection, actively catering to consumer expectations.

In this industry background, the beauty collection store is becoming more and more important as an offline channel for drainage.

After entering the era of beauty collection store 2.0, there will be a battle between traditional beauty collection stores represented by Watsons and Sephora and new beauty collection stores.

So, what are their respective advantages? Where is the difference?

1. People: Different target customers, what is the necessity of BA (Cosmetics Shopping Guide)?

From the point of "people", the target customer orientation is significantly different: the traditional beauty collection store mainly serves young people, while the target customers of the new beauty collection store are young people of generation Z.

In addition, in sharp contrast to the "enthusiasm" of traditional beauty collection stores, the "coldness" of new beauty collection stores.

The new beauty collection stores advocate more BA-oriented and adopt an open and undisturbed independent shopping mode.

For example, THE COLORIST colorist’s service concept is to provide customers with the help they need without active service, so that customers can fully enjoy the fun of shopping alone.

The clerk will give the customer some support and help, but will not force the sale and excessively disturb, and even "welcome" is not allowed to say.

WOW COLOUR will innovate the traditional BA, and they will cultivate the BA in the store into a KOS group.

While understanding consumers, they are also operating their own businesses such as Tik Tok and Xiaohongshu, so that they can understand what is hot and what products are hot online. This is also based on their understanding and professionalism of consumers, different skin types and products.

2, goods: product selection differentiation.

The selection strategy of traditional beauty collection stores is: mainly international big brands, old domestic products and self-operated brands.

Traditional beauty collection stores have the right to speak, and they are conservative towards new brands, which is relatively strong.

On the other hand, the new beauty collection store actively embraces the national tide and attracts new brands to settle in; On the other hand, they will also lay out international brands, Japanese and Korean minorities, big-name samples, etc., and the selection is more comprehensive.

3. Field: New and old changes in the scene.

Traditional beauty collection stores have done a good job in standardized operation, mainly reflected in store layout, product selection, supply chain and other aspects.

This is an advantage, because the expansion is rapid; On the other hand, it will also become a bondage.

For example, the store layout of traditional beauty collection stores is more or less lacking in design sense and social attributes.

The new beauty collection store pays attention to personalization, and creates a online celebrity scene with punch-in and social attributes through the decoration of the store and the placement of goods.

With the concept of the new beauty collection shop getting hotter and hotter, latecomers who are good at learning from it will flock to it, and there will be problems such as similar images and homogenization of products.

For example, the beauty collection stores such as YAO LIAN Yaolian in Shenyang and PEONIA Penny Beauty in Yiwu have almost copied the plum blossom.

Serious homogenization may become a price war in the future, especially for new beauty collection stores that solicit customers at low prices.

How to stand out in the homogeneous market and maintain high growth at the same time is a difficult problem to test all beauty collection stores.

References:

• [1] Dialogue WOW COLOUR: a revived beauty collection shop, born for generation Z, CBNData.
• [2] Illustration of major beauty collection stores in China: Who is most favored by shopping centers? Lianshang. com
• [3] China Beauty Collection Store Industry Report, iResearch.
• [4] the fire is limited! What is the manager of the beauty collection that makes the Z generation want to stop? Yingshangyun think tank

Because of the impact of epidemic and economic transformation, the population of third- and fourth -tier cities is flowing. Many of these migrant workers who returned from Shanghai, Shenzhen and other places are highly educated groups. In the golden area of ??third- and fourth -tier cities, they purchased houses in the "rich area", not only high -quality school district houses, but also supporting and greening are comparable to high -end houses in large cities. The houses in these high -end communities have risen first. Compared with other communities, the "hot island" effect appears, which is a lot higher than the surrounding house prices.

First, return home to snap up high -end houses

Many people who return home sell houses in big cities and buy a high -end house in their hometown. They can take their parents to live together. If you go back to the outside, you will have a place to settle in your hometown. Someone was affected by the mortgage of large cities. A loan of millions of dollars in a house made their lives and work suffer a lot of pressure. Buy a house in his hometown, and there are still funds in your hand to start a business or use it for daily life.

Second, the family replacement school house of the provident fund loan

Most families with provident fund loans are groups with stable income. Now many cities have increased the amount of provident fund loans and reduced down payment. They can buy a high -end house with a small amount of down payment. People who lived in the old town or high -rise houses were currently replacing high -quality school district houses. Therefore, high -end communities in third- and fourth -tier cities have recovered and rose against the trend, forming a sharp contrast with the surrounding second -hand housing.

Third, the scarcity of resources and the superiority of the location

Most of the "rich people areas" in third- and fourth -tier cities are mature communities built by large -scale housing companies that have been stationed before. From design style to supporting facilities are first -class. Now, many large real estate companies are far from the third and fourth -tier property market. It is difficult for local small development companies to have such a large handwriting, so it is particularly popular. The "rich area" is not only high in house prices, but also the local group is also rich or expensive in the local area. Therefore, house prices do not worry about selling the road.

From the trend of the property market this year, it can be seen that the rise and fall of the same city is blurred. So many favorable introduction, most of the property market is still not shocked. There are three changes:

01, the population continues to flow, but the house price is very strong

The phenomenon of the population of third- and fourth -tier cities is very common, and most of them are going out to make a living. If you say that Anjia Real Estate, you will choose to return to his hometown to buy a building. After all, house prices in large cities are high, living costs and housing costs are also high, and they can’t afford it. Therefore, many people will come to buy a neighborhood with good money outside. After all, Ye Luo will be rooted in the future, and now he will be filial to pick up his parents to life in the city.

02, interest rates have been reduced sharply, but most people do not buy a house anymore

Recently, with the introduction of the measures and interest rates, although the property market has stabilized and selling the building without panic, the transaction is still unconventional. Many third- and fourth -tier cities have no imagination scenes, and buyers are silent. Many families already have plans to buy a house, and the down payment can be available, but they are still watching and waiting. High -end communities are relatively hot, many people can’t afford it, housing prices in other areas are also falling, and few people buy it.

03, the vacancy rate increases, but the speculators do not throw the house

At present, the vacancy rate of third- and fourth -tier cities has increased by up to 30%. Many families have unstable income because of the high cost of housing. Therefore, when they return to the countryside, the house cannot be sold. There are also couples who work in the field. The speculators and groups of real estate have good housing in their hands, do not rent nor sold, and have no throwing house. Perhaps there are fantasies about the future property market.