The Competition Between Domestic Cosmetic Brands And International Cosmetic Brands Is Fierce.

This year, consumers are more willing to spend money, because "face", domestic cosmetics in the successful battle after the middle and low end market, also began to develop high-end market, launched a new market game.

Burberry, YSL, George Armani, every once in a while, there will be a number of foreign brands entering the Chinese market. At the same time, AVON (AVON), Olle Jaca Neil and Unilever POND'S, which are familiar with foreign brands, are leaving in a fierce competition.

In Shanghai, the capital city of foreign capital, the competition between domestic cosmetic brands and international cosmetic brands can be seen everywhere.

Whether located in the busiest Nanjing Road Pedestrian Street in Shanghai or in the traditional business circle of Shanghai core, the scene of the withdrawal of old faces and the entry of new brands can be seen everywhere, and those foreign brands who have entered the earlier stage have noticed this, and have begun to decorate and upgrade their own counters.

Once upon a time, foreign cosmetic brands were playing a leading role in China's high-end market. At that time, domestic brands were more dominant in the mainstream market of the three or four tier cities.

But with the rise of domestic brands and the success of the low-end market, the domestic cosmetic brands are no longer satisfied with only occupying China's mid end cosmetics market, but have begun to encircle and suppress the high-end market.

Shen Napeng, founder and executive partner of Sequoia Capital China fund, said that in the next 5~10 years, local cosmetics brands in the domestic cosmetics market are expected to gradually replace foreign brands, and there will be plenty of opportunities for local cosmetic brands.

Because the foreign cosmetic brand has a significant influence on the Chinese market for a long time, the impression of the masses on the domestic brand is still the "three or four line city".

However, according to the "China cosmetic retail development trend insight report" released by the Kay consumer index, China made up 5 of the top 10 cosmetic brands, while 3 years ago, only 2 Chinese cosmetics were squeezed into the top ten.

In addition, in the context of slowing growth of China's fast moving consumer goods, the growth situation of the cosmetics market is still eye-catching. During the period ~2015 2013, the cosmetics industry completed triple jump with the annual growth rate of 7.5%, 10% and 12.8%, far exceeding the growth rate of 3.5% of China's overall fast food products in the same period.

China's cosmetics retail development trend report also points out that the rapid growth of China's cosmetics market is mainly due to the consumer's upgrades. Consumption upgrading means that consumers need to buy more high-end products and buy more kinds of products.

At this point,

Has a more natural local advantage.

Many cosmetics industry practitioners said that compared with foreign brands, local cosmetics companies know more about China's mass cosmetics market, which is the reason for the rise of domestic cosmetic brands. But at the same time, this does not mean that China's cosmetics brands are not competitive in the high-end market. On the contrary, in the past 2 years, brands including CHCEDO, hundred antelope, suitable herbs and Herborist have all performed well. For domestic cosmetic brands, this is a steady and steady contest, which is different from that of seven or eight years ago.

A survey released by consulting firm Rui International showed that in 2015, the growth of high-end brands in the beauty and personal care industry was staggering. The growth rate of 6% exceeded the growth rate of the public brand for the first time, with sales amounting to nearly US $100 billion.

A report by Technavio, another market research firm, shows that the global high-end cosmetics market will grow at a CAGR of 4%. By 2019, the market value will reach US $126 billion.

At home, China's overall high-end cosmetics market has a growth rate of 8%, and the growth of this high-end market is mainly driven by make-up, perfume and skin care products. In the face, body and hand care and other sub categories, consumers tend to buy higher priced products. Consumers are increasingly seeking authentic and personalized products, which can meet this consumption trend in a unique way, and are welcomed by the market.

It is worth noting that in the high-end process of China's cosmetics industry, local brands contributed more than 73% to the growth of the high-end cosmetics market, of which only CHCEDO contributed more than 9%, which means that domestic brands have become the main growth engine of high-end cosmetics market in China, which may not be a good news for foreign brands.

Because in the field of high-end skin care and cosmetics, European and American companies once occupied the whole market, but in recent years, with the popularity of Korean cosmetics, such brands as snowflake show and Korean post have also been popular. The rise of China and Korea cosmetic brands has occupied the high-end market of other foreign brands.

Taking snowflake show as an example, in 2015, the brand became the only brand of Korean local cosmetics brand with a breakthrough of one trillion won (about 5 billion 580 million yuan) in middle-aged sales.

As a high-end skin care brand under the Korean Emory group, the snow show is mainly aimed at women who are more than 30 years old.

Similar to its brand name, its brands are located in the front line, competing against the high-end cosmetics brands of Estee Lauder group and L'OREAL group. The former mainly goes through department stores and special duty free channels, and the latter has made great efforts in addition to the department store counters.

Model, space lab, strategic partner of the United Nations Development Programme (UNDP), and wild seeds of wild roses for satellite breeding.

These are not the L'OREAL, which was a splendor before the Paris science and technology exhibition, but the original high-end brand MAYSU JALA, a leading cosmetics company in China.

Two years into the market, 47 high-end department stores are located in 31 cities. Today, the brand of pure domestic product claims to fill the gap in high-end market of local cosmetics.

Born in 2001, it is actually a relatively old brand. More than 10 years ago, its sales channels were mainly cosmetic shops and major beauty salons.

Until 2009, its parent company, the group, decided to reshape the brand's positioning.

"We repositioned beauty and decided to position this brand at the top end."

Chen Juanling, senior director of public relations of the blue group, told the first Financial Daily reporters that the era of channel is king. The brand effect and strong marketing are the necessary means to mold the brand image.

In 2014, it was re listed, and Wong Kar Wai, a well-known director, filmed an advertising film for him.

Nowadays, people can see this brand in Shanghai's new world big pill department store, Nanjing Golden Eagle, Hangzhou's Yintai shopping mall and so on.

These high priced goods at hundreds of thousands of dollars in retail price also mean high cost.

Once the brand is located at the top end, it must enter the high-end shopping mall or open shop in the prosperous area, while the market rent and personnel wages are very expensive.

The single brand has no support from behind group companies, and the initial investment stage will be very difficult.

Unlike other brands, thanks to the harsh pursuit of "technology and aesthetics", CHCEDO's brand, its beauty, plant wisdom and medical Ting are all recognized by the mass market and high-end market.

Zheng Chunying, chairman of the blue group, said that in the next five years, America will invest heavily in department stores and open 60~100 stores every year.

After entering 2016, "

"The word began to become the direction of Chinese brand pursuit.

Lei Jun, President of Xiaomi company, said in an interview with CCTV that he hopes to change the established impression of Chinese products through the products of millet, and lead the "new domestic product" to the world and change the global impression of Chinese manufacturing industry.

Not only in China's manufacturing industry, but also in China's cosmetics industry.

In the eyes of the industry, the success of domestic mobile phones on the international stage has, to a certain extent, given a revelation to the domestic brands, that is, the progress of the whole industry will be pushed down by high performance price ratio. When the whole industry has a great diversity of competitiveness, the domestic brands will also have the right to speak the brand premium.

Chen Juanling, a public relations director, said, "the arrival of consumer escalation has made consumers pay more attention to the quality of products, and they are more willing to pay for products with high cost performance.

Our products have the quality of the international first-line products, and many international innovations, but the price is much cheaper. Besides, aesthet also inherits the essence of the oriental culture from the aesthetic and skin characteristics of the Orient, and combines the advanced technology of the world to produce the renewable energy of flowers and seeds, so that every product is effective.

For consumers, this excellent product with high cost performance will be more attractive. "