Chinese cosmetics need more legs
Channel is king. The “truth” that those who get the channel get the market is no exception in China’s cosmetics industry. Not counting foreign brands, there are thousands of domestic cosmetics manufacturers, and the market competition is quite fierce, which naturally leads to channel competition.
Foreign brands firmly grasp the high-end channels such as department stores, while domestic brands can only fight in supermarkets, franchised stores and other channels. Of course, some local brands have taken an “ordinary” road, that is, to open brand stores. Originally a very normal commercial format, but in the domestic cosmetics industry is regarded as “heterogeneous”.
Those who open brand stores don’t play their cards according to the rules, or they are seen as helpless moves that can’t be “mixed” in the first three mainstream channels, such as department stores, supermarkets and franchise stores. In fact, with the maturity of the industry, all the regularities embodied in the mature industry will gradually appear in the field of cosmetics. Brand stores are no exception, and will become one of the mainstream channels of cosmetics.
However, why can’t brand stores be too popular now? Chen Xi, general manager of Boya beauty and cosmetics industry consulting agency, once analyzed and pointed out that the reason is that there are still some conspicuous customers in the consumer groups of international famous brands, and these customers are not willing to spend in the street. In addition, it is difficult for a merchant to become a city, and the merchant gathering side is the city. “Who is the first to open a franchise store will suffer”.
However, Chen Xi also believes that it is only a matter of market development stage and time. Brand stores have obvious advantages for the brand, which can display the brand image and the latest products, and enhance the brand premium.
For customers, brand stores will give people a sense of trust, quality and workmanship are guaranteed in all aspects. And c