In 2017, the brand name of the natural brand of the company was about 4.5 billion yuan, which created a new high in the natural hall brand and maintained a good growth trend. In 2017, the sales volume of Baique Ling Group was 17.7 billion yuan, and the sales plan for 2018 was 23 billion yuan. The estimated return amount is 5 billion yuan. Shangmei Group is expected to achieve a return target of 16 billion yuan in 2018. The domestic beauty group’s goal of 10 billion is being contested and even crossed.
The early development of the domestic beauty group is inseparable from the choice of the third and fourth line channels and deep cultivation. Now the rise of e-commerce and new retail channels, the strong competition of international brands, and the tens of billions of roads for beauty companies, how to break the game?
Domestic beauty companies encounter a growth bottleneck of 10 billion
The domestic beauty group has different puzzles at different levels. Shanghai Jahwa brand assets and R&D strength have always been at the forefront, but capital and executives have seized power and disputes, and the strategic path is very different, causing the group’s development to stop. The newly-launched first-line group Jialan, Shangmei, Polaiya and Hanhou have risen rapidly, but they are also inevitably confused.
Shanghai Jahwa: capital internal friction, strategic confusion, difficult to cross the threshold of 6 billion yuan
Ge Wenyao served as chairman and general manager of Shanghai Jahwa since 1996. His three-year sales rose from 170 million yuan to 700 million yuan. In 2001, Shanghai Jahwa was successfully listed. In 2011, Ping An Capital entered the company. Due to capital constraints and infighting, Ge Wenyao gave up management. Shanghai Jahwa’s highest market value in 2013 exceeded 30 billion yuan, and the total assets at the end of 2015 was 8.159 billion yuan. Today, the market value has fallen to 20 billion, and the company’s revenue has also shrunk.
Shanghai Jahwa has herbal skin care brand Herborist, Meijiajing, Yihuayimu, Yuze, men’s brand Gaofu, makeup brand double sister, tea face, brand care Liushen, maternal and child brand Qichu, Tang Meixing, home care brand home Ann. Ge Wenyao promotes fashion strategy, strengthens the cultivation of skin care brands, and focuses on investing in order to establish a leading position in the market segment.
After the entry of Ping An Capital, the executives changed. Xie Wenjian actively developed the super-brand Liushen and Herborist, the main brands Gaofu and Meijiajing, the emerging brand Kaichu, the differentiated brand Jiaan, the tea brands, Yuze and Ge Wenyao’s special emphasis on the Shuangmei brand, suspended. Market input. From the perspective of market strategy, Xie Wenjian has become more profitable, consolidating strong brands to cater to consumers, but missed the great opportunity of the revitalization of domestic brands and the brand upgrade, and did not realize the combination of Herborist and Shuangmei. At the same time, it also missed the competition opportunities in the drug makeup segment, allowing Winona to successfully lead the cosmeceutical brand.
After Shanghai Jiahua adjusted its strategy and strategy, Zhang Dongfang took the position. Shanghai Jahwa has repositioned itself as the best provider of skin care, personal care and home care, and high-end and youthfulness have become a trend. Shuangmei and Chayan brands undertake the demand for makeup, Herborist and one flower and one wood to meet the skin care needs, Yuze meets the needs of sensitive skin people, Liushen, Herborist, Gaofu, Jiaan, TommeeTippee, one flower and one wood push key products.
Is it Lloyd or P&G in China? It seems that Jiahua has been biased towards the latter, but obviously missed the beauty of the dividends. The decline of domestication is not entirely a capital factor. The root cause lies in the unclear strategy and the lack of strategy.
Galan: Ten billion blueprints, the natural hall leads, where is the second brand?
The Jialan Group is the core business of the high-end skin care product cluster for the standard Estee Lauder Group, but the actual production effect is not satisfactory. In the blue skin care product matrix, the main brand natural card card in the middle of the public, ranking first in the domestic women’s skin care brand, channel share and brand equity leading. In 2017, the return value of the natural hall single brand exceeded 4 billion yuan, which formed a strong boost for the Jialan Group’s achievement of 10 billion brands.
But Galan is outside the natural hall, but has always lacked a strong brand to follow. Jialan’s first-line brand, Meisu, uses wild roses and Yunnan’s daughter country as its cultural source, but the high cost of brand building has not played a role in driving the strength of the group. The popular brand of plant wisdom is at a low price, and the performance of the franchise store channel is not good.
In June 2018, Jialan launched a younger brand in spring and summer. In spring and summer, the new retail is used as a coat, and the concept of spring bud and summer fruit is taken. The KA is the key channel, and the intention is to compete with the hundred que antelope for market share. However, from the initial investment and dealer feedback, it is difficult to take the second place in the spring and summer.
The Natural Hall card is in the Himalayas, and it has appeared in the World Expo, the Boao Forum for Asia, sponsored the Chinese diving team, and created the Chinese world-class brand. It has become a classic case of Chinese beauty. Founder Zheng Chunying served as the Principal of the Oriental Meigu Industry Promotion Center and used the “Belt and Road” to open up the international market and sell Chinese brands and cultures and cost-effective products abroad. CEO Liu Yuliang is not only an excellent technical talent who has led the technological innovation of Shanghai Jahwa, Libai and Jialan, but also understands management and brand strategy.
The Jialan Group’s 10 billion brand can be expected in the future, but how to break through the development predicament of the second brand in the short to medium term is very important. Otherwise, it may be difficult to get rid of the multi-brand mud.
Pelaya: After breaking the 3 billion threshold, can a single-brand store become another force?
Domestic beauty brands listed, Polaiya and Royal Mufang are all on the scale of 3 billion yuan.
The main brand of Polaiya positioned the ocean to replenish water and opened the way for brand development. Subsequent derived from the independent plant skin care brand, the company, emphasizes the skin management brand Han Ya, the makeup brand cat language rose, and elegant. From the perspective of the company’s brand structure, the Pellet brand still dominates. In 2017, A-shares were successfully listed, and Tang Hao signed the era of brand “core” and launched a new strategy of revitalizing the brand. Pellesia’s operating income in 2017 was 1.783 billion yuan, an increase of 9.83% over the same period of the previous year.
The confusion of Polaia comes from the multi-branding strategy that began in 2009. So far, the main brand, Polaiya, has outperformed. The Group adjusted its development strategy and started to promote the high-end Lai single-brand store project in 2017. In 2018, it will strive to expand no less than 500 stores and develop a single-brand store.
The Jinkun expert team believes that the follow-up of Polaia requires strategic thinking and brand top-level design. Otherwise, it is easy to entangle and linger in the left or right, and conduct scatter-type trial and error.
Shangmei: rapid expansion, rhythm structure needs to be controlled
In 2002, Lu Yixiong and his lover started from the agent and founded the Han Shu brand. At the channel level, Han Shu gradually spread the omnichannel, entered the KA channel in 2008, entered the TV shopping channel in 2009, launched the e-commerce strategy in 2013, and achieved omni-channel marketing in 2014. At the R&D and production level, Han Shu is also working step by step, with 3% of sales per year being used as research input. In 2015, Shanghai Fengxian Shangmei Science and Technology Park was fully started. In 2016, it entered the Huzhou Beauty Town. In terms of brand building, Shangmei attaches great importance to signing hot stars, including Lin Zhiling, Guo Caijie, Lu Han, Nicholas Tse, Zhao Wei, Angelababy, Naza, Liu Yuran, Song Zuer and many other endorsements.
In 2015, the sales volume of Han Shu single brand was 9 billion yuan, and the actual amount of return was converted to 2 billion. In the multi-brand building, a leaf was created in 2011, which is the main concept of plants. In 2014, it added a new concept. In 2015, Han Shu changed its name to Shangmei Group, and launched the men’s brand Wuzun, the high-end toiletries brand Sovia, the mother and baby skin care brand red elephant, the oral brand Shike, and the 2016 acquisition of the makeup brand Han powder family and flower puzzle.
Judging from the target setting of the US, the company plans to complete the listing in 2019, and the sales return in 2020 will exceed that of L’Oreal China (which has reached more than 14 billion). In 2022, it will achieve a sales scale of 50 billion yuan. In 2018, Lu Yixiong, the CEO of Shangmei, stepped down as the CEO of Shangmei Global and CEO of China Redway Cosmetics Co., Ltd., and devoted himself to overseas market development. Bao Yanyue, the general manager of the L’Oreal Paris and Maybelline New York brand, will be responsible for the expansion of the US market.
Compared with Jialan, etc., the main brand of Shangmei Group lacks precipitation, but in the creation of the second brand, there is indeed a veteran style. One leaf made a good support for the Shangmei Group in 2017, and at the same time contributed to the brand rejuvenation. In the multi-brand creation, the baby elephant brand red elephant and makeup brand flower puzzles have achieved initial success. The group’s statements were not disclosed, and the estimated volume was around 6 billion yuan.
However, the United States has also encountered its own problems in multi-line operations. How to control the pace of development and coordinate multi-party resources has become the focus. The Shangmei Group, which grabs the track, is good at capitalizing the brand, but short-term multi-brand coordination, medium-term group focus and long-term group focus need to be considered clearly.
Beauty brand breaks the tens of billions of winning ways
Judging from the development path of domestic beauty companies, they can’t get rid of billions of puzzles. The key to achieving the goal of 10 billion is whether the brand structure and development path of the group are clear.
It is more difficult for the domestic beauty group to break through a single brand, and they have turned to the second brand.
There are tendencies on the roads. Is there a clearer way to send beauty companies into the 10 billion camp?
As a marketing service organization that has been deeply cultivated in the beauty industry for many years, Jin Kun has established itself in the global market in the process of coaching and serving many platforms and brands such as P&G, Gillette, Shanghai Jahwa, Oriental Meigu and Hanhou. Exclusively proposed the roadmap and structure chart for the growth of the beauty enterprise’s 10 billion performance. (see picture 1)
Early channel wins 1 billion
The rise of Chinese beauty is obviously later than that of Europe and the United States. After 2000, the market was awakened by P&G and L’Oreal, and the increase was huge. International brands have rapidly entered China and are growing rapidly, and domestic brands have mushroomed. In the early days of Nature Hall and Polaiya, foreign brands were imitated, and the blank areas of foreign companies’ brand channels were found to be deeply cultivated. The channel sank to the CS store in the 3, 4 and 5 line cities, and continued to rely on the channel dividend for double-digit growth for many years, successfully reaching 1 billion scale.
China’s beauty market has special characteristics. First- and second-tier cities are occupied by international brands. The blank market in the third- and fifth-tier cities is in great demand. The key to the success of Nature Hall, Han Shu, Polaiya, and Han is to select the third- and fifth-five cities as the target market. The rural encirclement of the city and the lower-level strategy of the channel have become the key to success. The rising star Yumifang is also the e-commerce outbreak node. The most core advantage.
Find the brand core gene over 3 billion
Domestic beauty brands have been divided in the course of more than a decade of competitive development. The brand that found the core gene embarked on a high-speed track, and the brand that has been lacking its core tonality has been inundated. The domestic beauty brands are using natural, hydrating, herbal and other concepts. Herborist was first proposed, but because of its high price, high and low, it took a small and refined route. Appropriate Materia Medica successfully replicated the herb route, but because of the mistakes in the Watsons channel pre-judgment and the internal core decision-making, missed the opportunity, it is difficult to return to the front line.
In contrast, Baique antelope also found the core value of “Materia Medica + Moisturizing and Moisturizing + Popularity”. The characteristics of the national brand and the positioning of the herb, embracing new media in a timely manner, communicating with young people, successfully achieved the revival of the old brand. Han Shu uses the idea of “plant + technology + explosion” to launch the Ink Juju Water, Jushui Light, Red BB, and Shangmei is good at big communication for popularity and gains a certain market position. Nature Hall found the Himalayan to pure and pure endorsement, and in the words of the industry, Nature Hall has the feel of doing high-end beauty brands. The concept of marine water in Polaia also gives women a natural sense of moisturizing. Looking for the brand’s core genes, the brand will become stronger and stronger.
Double brands go hand in hand and fight 5 billion
Domestic beauty brands are expected to break through 5 billion yuan, and the second and third brands have been laid out early.
The brand structure is perfect, the brand is more subdivided, and the brand operation is bigger. The more it needs to be upgraded according to the new trend of the industry and the new pattern to form a new drive, the unified internal thinking and coordination of resources, and the release of brand new potential.
In 2017, the sales volume of Baique Ling Group was 17.7 billion yuan, a year-on-year increase of 22%, 90% of which was from the contribution of the Baique Ling brand. In 2018, the planned sales amount is 23 billion yuan, and the converted amount is expected to be about 6 billion yuan. Baique Ling and the young people are fully interactive, proposing a younger, more fashionable, high-end direction, and creating a younger Sanshenghua brand. After the Himalayas, Nature Hall found Yunnan Wild Rose to launch the Meisu brand and tried the young brand spring and summer. The main brand is strong, and actively cultivate the second and third brands of Baique Ling and Jialan Group, and is expected to successfully pass the threshold of 5 billion yuan.
Capital-driven multi-brand flowering, winning over 10 billion
In the future development, the driving force of capital and multi-brands are indispensable.
Shangmei is expected to achieve a return target of 16 billion yuan in 2018. Shangmei relies on the multi-dimensional layout of capital and financing, and the men’s, the mother-infant red elephant, the shampoo Sovia, and the makeup Korean powder family have built the Shangmei Group structure. Despite the lack of intensive cultivation and capital-driven risk of single-brands, Shangmei has already been ahead of many domestic beauty companies in terms of multi-brand creation and capital operation.
In addition to the road map, tens of billions of beauty companies need to find their own structure. (See Figure 2)
In response to the confusion of the beauty brand, the Jinkun brand marketing expert team believes that a clear top-level design is required in terms of business layout, brand and product structure, channel and communication strategy, capital drive and industry chain. Structure puzzles to grasp the timing of the realization of the tens of billions of performance on the road, the order, the structure, the rhythm and the strength.
In the business layout of the tens of billions of beauty groups, we must rationalize the structure of all categories, cores, skin care products, hair care, make-up, and perfume. Brand structure, 1+1+N, main brand + second brand + N sub-segment brands. Product structure, the whole series + large single product, the whole series + large single product + segmentation series of products.
In terms of communication, the multi-disciplinary and variety titles, frequent replacement spokespersons to get the hottest traffic stars at any time, while deep customization of cooperative high-traffic variety.
In the channel, the omni-channel is multi-structured, department stores, KA, etc. are targeted at the first and second lines, CS and so on for the 3, 4 and 5 lines, EC, e-commerce, etc. for young people, micro-business, etc. for third- and fourth-tier cities and township markets. After the financing, the company mainly invests in the acquisition and introduction of foreign mature brands or strengthens R&D and resources to carry out brand development, enriching its own brands and categories, and creating a diversified group.
In terms of capital, it can be used for financing brand acquisition, product research and development, and industrial chain layout to help the tens of billions of beauty groups to develop more steadily.
The tens of billions of beautiful makeup is the strategic goal of many beauty companies in China, and they will not retreat on the track. Chairman Mao said that the route determines that cadres are the determining factor and that the strategy requires people to implement. The goal of beauty companies is to rely on the “management + market + technology” three drivers to achieve.
Under the background of consumption upgrading, the beauty industry will be rapidly reshuffled, and there will be strong players who will successfully break through the tens of billions of competitions under the escort of capital with a forward-looking strategic vision and implementation of policies implemented in place.