What are the advantages of the new 1 billion domestic beauty cosmetics？

1 billion, has always been an important milestone in domestic beauty.

For the brand,This is not only a numerical achievement, but also an important promotion of brand recognition, influence and consumer base in the market.

Recently, the "Annual Sales List of National Cosmetics Brands" released by User said that in the past year, 28 domestic cosmetics exceeded 1 billion.(The sum of GMV of the brand in Amoy/JD.COM/Tik Tok platforms); Among them, 10 brands have exceeded 2 billion yuan, namely Polaiya, Winona, Kanshu, Nature Hall, Huaxizi, Kerfumei, Kazilan, Grain Rain, HBN and Ou Shiman.

Rotation.

In recent years, the list of domestic beauty products that have entered the "1 billion club" has been changed several times. Behind the alternation of the old and the new is also an iterative history and evolution theory of the industry.

First, the pattern: Amoy system is stable, Aauto Quicker is reduced, and Tik Tok is "star-making" in batches.

In terms of platforms, Taoxi, Tik Tok, Aauto Quicker and other platforms have different star-making capabilities.

Take Amoy as an example. From 2021 to 2023, the number of domestic beauty brands that can break through 1 billion on the Amoy platform is 8, 9 and 9 respectively, which tends to be stable.

However, the Matthew effect of beauty brands on this platform is becoming more and more obvious. From 2021 to 2023, Polaiya won the title of TOP1, a domestic beauty product, and its GMV soared from 2.718 billion yuan to 6.361 billion yuan. The GMV of TOP2 brand, which is a domestic beauty product, has also been upgraded from 2 billion to 3 billion.

At the same time, the list of 1 billion+domestic beauty products on the Taobao platform is constantly changing: in 2022 and 2023, Zhiben, Kwadi, HBN and Kerfumei are all new members.

Compared with the stable output of Amoy platform, Tik Tok’s 1 billion domestic beauty brands are "gushing out". From 2021 to 2023, the number of 1 billion+domestic beauty cosmetics in Tik Tok was 1, 4 and 9 respectively, showing a rapid upward trend.

As can be seen from the changes in the list,The pattern of beauty cosmetics in Tik Tok is gradually diversified.

First, the head beauty of domestic products broke out.In 2023, Kans climbed to the top of Tik Tok Beauty TOP1 with a GMV of 3.34 billion. In addition, Polaiya also passed the threshold of 2 billion in Tik Tok.

Second, the beauty instrument brand has made a strong breakthrough.In 2022 and 2023, the strength of Shuguang and Extremely Meng exceeded 1 billion yuan, and the GMV of Extremely Meng in 2023 was even close to 2 billion yuan.

Third, Tik Tok brand has achieved an order of magnitude jump.In 2023, Diane and Jiao Runquan were two major Tik Tok brands.(generally refers to the brand that grew up in Tik Tok)They broke through one billion in succession and became the newest members of Tik Tok’s one billion club.

Different from the strong performance of Tik Tok platform, Aauto Quicker’s "star-making" ability in the beauty sector showed a downward trend. From 2021 to 2023, the number of 1 billion+domestic beauty cosmetics in Aauto Quicker was 2, 2 and 1 respectively.

Since 2021, domestic beauty brands that have exceeded 1 billion in Aauto Quicker are fast brands.(generally refers to the brand that grew up in Aauto Quicker)And the GMV of the head brand is decreasing year by year. In 2021, Dora Doshan, a brand ranked in Aauto Quicker Beauty TOP1, had a GMV of 1.539 billion yuan in that year; By 2023, the title of Aauto Quicker Beauty TOP1 was won by Dai Laixi, and the GMV in that year was 1.131 billion yuan.

According to the comprehensive multi-platform data performance(The sum of GMV of the brand in Amoy/JD.COM/Tik Tok platforms)In 2023, a total of 28 domestic beauty products entered the 1 billion+camp. Among them, many brands are new members, such as Caitang, Skin Future, Ermu Grape, Youshiyan and so on.

Second, a great leap in channels, marketing and products

In the decades of the development of domestic beauty products, the list of entering the 1 billion camp has changed several times.

G8 brand rising from CS channel(refers to the eight domestic beauty brands that ranked first at that time), to the Amoy brand that grew from the Amoy Department, and now to the shaking brand and fast brand that quickly occupy a place, all(Zeng)It is the main force in the 1 billion domestic beauty camp.

Behind the replacement of this list is a beauty industry about channels, marketing and products.(Consumer demand)The big jump.

Channel change: from offline to online, from amoy to new e-commerce platform.

In the past 20 years, the main channel of beauty sales has shifted from offline to online. According to Euromonitor statistics, the proportion of e-commerce channel sales in the beauty and personal care industry has rapidly increased from 9.90% in 2012 to 42.30% in 2022, and it has developed into a single sales channel with the highest proportion. The proportion of sales of traditional convenience stores and supermarkets decreased from 37.50% in 2012 to 18.80% in 2022.

Under the channel reform, the ranking of head brands has also changed a lot. Take the cosmetics category as an example. From 2008 to 2022, the sales proportion of cosmetics in e-commerce channels jumped from 2% to 54%. Therefore, before 2018, Kazilan and Mary Daijia, who grew up offline, have always been the leaders of domestic makeup; In 2019 and beyond, relying on the perfect diary that grew up in online channels, Hua Xizi successfully "took over". It is worth mentioning that Kazilan, which has successfully transformed, is still ranked in the first camp of domestic cosmetics.

Marketing upgrade: from TV promotion to social media announcement, from traditional advertising to content marketing, from graphic to short video.

In the past 10 years, there have been many changes in the way beauty brands go out of the circle. More than 10 years ago, TV advertising was once the main channel of marketing and advertising for beauty brands, and many brands won the market by virtue of the title film and television variety show. A typical example is Han Hou. According to China Entrepreneur Magazine, Han Hou once won the naming rights of Jiangsu Satellite TV Happiness Theater and If You Are the One with 200 million yuan, and won the right to use the "Little Man’s Waist" for five years. At its peak, the Empress Han earned more than one billion yuan only by paying taxes a year.

Since 2016, the rise of emerging e-commerce channels and social media, such as Xiaohongshu, Tik Tok and Aauto Quicker, has led to the second explosion of the vitality of domestic brands. Puyin International Research Report pointed out that during this period, cosmetics brands used the function of "planting grass" on various platforms to let consumers know the efficacy of products in detail, and at the same time, big data push also allowed brands to reach consumers accurately. The early "betting" on the perfect diary of Xiaohongshu and HFP who got the bonus of WeChat WeChat official account were the winners of this period.

Now, with the help of short drama marketing, Kans has achieved a breakthrough in Tik Tok. According to the previous report of Cosmetics Watch, in 2023, Han Shu took the lead in launching a new type of short play, and cooperated with Tik Tok’s head short play expert @ Jiang Shiqi for five short plays, which won a total of 5 billion broadcasts, directly completing the closed loop of planting grass and buying, and driving the sales growth of the product "Red Waist Series".

Product innovation: efficacy, composition and technology become the key words to win.

A few years ago, the efficacy of most domestic beauty products was mainly based on hydrating and moisturizing. Around 2017, with the awakening of consumer awareness, the "component party" became a common practice. Run Baiyan and Kuadi, whose main characteristics are hyaluronic acid, both broke through the 1 billion mark in just four years. As the earliest and most representative brand of China constituent party, HFP came to the 1 billion camp in 2018.

Nowadays, with the increasing popularity of recombinant collagen, the most representative brand in this field, Kefumei, has also come to the 2 billion camp. According to Dongguan Securities Research Report, collagen skin care products will become the largest category of functional skin care products market in China in the future, and its market scale is expected to reach 77.5 billion yuan in 2027.　

At the same time, in the TOP20 of the annual sales list of national cosmetics brands released by User Talk, the parent companies of brands such as Polaiya, Winona, Kefumei, Dr. Ai, Run Baiyan and Quadi all have certain advantages in scientific research.

Third, who still has a chance?

On the whole, the brand’s own efforts, market changes, consumers’ choices and the support of national policies have jointly promoted the development of domestic beauty brands to a higher level.

The user said that the founder Lin Kai-kun believes that domestic beauty products that can enter the 1 billion+camp at present generally have two commonalities:First, the brand has enough popularity and time accumulation.A long time span helps brands to build deep brand power, and also allows them to accumulate loyal customers and brand value through continuous market activities and user interaction.Second, a star single product or series with strong recognition.These brands are often able to launch at least one iconic product or series, which make users pay for their unique efficacy, design or concept.

In addition to having a trump card item and enough time to precipitate, we can also see many characteristics of the brand from the list of new 1 billion+domestic beauty products.

In the view of JASON ZHANG, the founder of Xieshu Consulting and the co-founder of Pinshu, the brands that can be listed at present,It is a very good signal that not only the main market is small and beautiful, but also some brands have got rid of the low-price label.

She said that the products of these brands are built around the core target users, so they have established their own differentiation and competition barriers. For example, Grain Rain has the right to speak in the whitening market because of its technological breakthrough in glabridin; Another example is Winona, who is deeply involved in the sensitive muscle market, and is currently the king in this field; At the same time, positioning the essence of minimalist skin care also allows it to break through in the market.

"Taking history as a mirror, you can know the rise and fall." The current characteristics of head beauty brands are an important factor for their success. In the future, what kind of brands have a better chance to enter the billion-dollar camp? From a comprehensive perspective, brands that can break through need to master the following competitiveness.

First of all, there are clear categories and market positioning.

Lin Kaizhuo said that brands need to clearly locate their target markets and consumer groups, including in-depth understanding of category attributes and accurate grasp of the needs of target customers.

JASON ZHANG also believes that brands need to have a particularly clear positioning, find a small and beautiful breakthrough, and create their own product differences and core advantages in a small and beautiful track.

Secondly, strong innovation ability and adaptability.　

"Under the background of diversified consumer demand and changing market, only brands with strong innovation ability are more likely to succeed, including product innovation, marketing strategy, channel expansion and customer experience." Lin Kaizhuo said.

Thirdly, brand strength and scientific research strength are also the key words to win domestic beauty.

JASON ZHANG mentioned that brand power and marketing power are two dimensions. To some extent, marketing power is linked to sales, but brand power is more linked to popularity. Take Hermes as an example, the users of Hermes are limited, because its price filters out many consumers, but basically no one knows Hermes. Marketing power creates users/users, while brand power creates popularity. At present, domestic beauty cosmetics are facing the biggest challenge, which is the lack of brand power.

She also said that the solution ten years ago could not solve the problem ten years later. Therefore,Constantly iterative technology and constantly improving scientific research strength can help brands cross the cycle.

Note: The statistical dimension of this article only includes online platforms. At present, beauty brands that have exceeded 1 billion offline are not included in the list. The data have not been confirmed by the platform and the brand, and are for reference only.

This article comes from WeChat WeChat official account:Cosmetic observation view (id: pinguanjun), Author: Chen Qisheng