1, market prospect-the second and fourth quarters are improving, and the cosmetics market still has huge room for development. Although the growth rate of the industry has slowed down, the development space is still broad in the long run. Compared with Japan and South Korea, the per capita cosmetic consumption in 2020 is 103 and 165 respectively, while that in China is $45, which is significantly lower than that in Japan and South Korea. Combined with the awakening of beauty consciousness and the cultivation of beauty consumption habits in the sinking market, as well as the industry development law of escalating consumer demand, China beauty market still has a large penetration space. However, with the increase of the base and the decrease of the flow dividend, the industry will inevitably enter the stage of low-speed growth. From the perspective of industry growth in 2022 alone, in the first quarter, with the continuous epidemic in many places across the country, beauty consumption entered a weak period, superimposed on last year's high base, and the growth was weak. With the improvement of epidemic situation, the recovery of consumer confidence, the coming of the big promotion period of merchants in the second and fourth quarters and the release of consumption power, the industry is expected to gradually improve.
2. The development stage of the industry-the polishing of products is an iron rice bowl, and the industry has entered a stage where channels are king and products are king. In the past, the growth of beauty brands was highly dependent on offline channels, and the traffic dividends brought by online and offline channel switching. However, with the increasing maturity of consumers and the increasing cost of traffic under the intensified market competition, enterprises must return to the essence and pay attention to the polishing of products, and the beauty industry in China will gradually enter the product-driven stage.
3, product trends-overweight deep-level research and development is the key, in the domestic beauty market competition intensified, as well as the general trend of demand refinement and upgrading, brand overweight deep-level research and development innovation has been put on the agenda. We will go further from the past innovations such as brand replacement, category addition and product appearance design, dig deep into consumer demand, and promote innovations at the basic level such as formula innovation, raw material innovation, process innovation and product differentiation. From the perspective of product layout, local beauty companies continue to attack high-end brands. For a long time, the high-end market has been the main battlefield of international brands, and the layout of local brands is limited, but this year will be an important turning point for domestic beauty companies to attack the high-end market and supplement the vacancy of brand matrix. In 20021year, after Laqi's parent company Shangmei Co., Ltd. completed the 400 million yuan series B financing, its founder said that it would further lay out the high-end beauty market, and planned to push the brand share to the top three in the market in 2022. Bettaney also talked about the high-end market many times last year, and plans to launch a high-end anti-aging brand this year at a price of about 1 000 yuan. Shanghai jahwa also launched the skin care brand herborist Taiji at the end of last year, betting on hitting the high-end beauty market this year. In addition, Marumi, Polaiya, Lin Qingxuan and Huaxi Bio all released new products, and focused on high-end racetracks to compete with European and American brands. The scale, volume and market education formed by the collective investment of domestic beauty brands in the high-end market are also expected to promote the accelerated growth of the industry.
4. Growth strategy to consolidate product differentiation. Under the background of the rise of domestic products and the homogenization of products, marketing differentiation has become the key to brand breakthrough-avoiding traditional selling points from entering the aesthetic fatigue period, deepening the demand of generation Z, focusing on R&D capabilities and star components through tracking and utilizing hot spots, tailoring more subdivided buying scenarios, reshaping consumers' minds, and competing with international brands on the same stage.
5. Pay attention to the promotion of brand power, social media marketing gradually enters the Red Sea market, and the traffic cost continues to increase. ROI6。 Rebuild the channel value. Beauty companies need to re-examine the channel value on the basis of focusing on brand power. With the continuous differentiation of online traffic and the sudden emergence of new offline beauty shops and medical beauty channels, we should mobilize marketing resources to deepen various purchase scenarios, spread and amplify existing brand power in public channels, establish corporate reputation and brand power in private channels, establish user stickiness, and finally achieve sales growth.
7. Multi-brand and multi-category layout. In 2022, the development of multi-brand and multi-category will remain the core topic of beauty enterprises. In the past two years, the listing process of beauty group has been accelerated, investment institutions have supported cutting-edge brands and provided capital for their own incubation and mergers and acquisitions, and the pace of multi-brand and multi-category beauty enterprises has been accelerated. With the improvement of product and brand matrix, the synergy effect of enterprises in product development, channel bargaining and marketing resources will be obvious, thus opening up the imagination space for medium and long-term development.
8. The benign development under the tightening of industry supervision, the overall supervision of the cosmetics industry has become stricter, and the threshold of product safety and marketing compliance has been continuously improved. This increases the capital cost of enterprise product testing and the time cost of new products, and at the same time helps to eliminate the industry chaos to a certain extent, which has obtained a more friendly development environment for enterprises and helped the healthy growth of brands.
9. Going out to sea to start new growth and speeding up domestic beauty. Huaxi Zi, Perfect Diary, Zhiyouquan, Mao Geping, etc. , either rely on platform and channel resources to achieve brand output, or acquire local brands to achieve overseas market layout. With the rapid development of global e-commerce industry, domestic brands with mature online operation experience and product strength are expected to make breakthroughs in overseas markets.