In 2022, the cosmetics industry bid farewell to high growth: the makeup market has fallen significantly, and wearing masks affect makeup.

"Chinese cosmetics will reach a trillion scale in 2025, which is expected to become the world's largest consumer market." In 2021, data institutions gave predictions. However, from the results of Intemin's market research, the growth rate of the cosmetics market has slowed significantly since this year. What changes do the epidemic have brought to the cosmetics industry? A few years ago, the tide of domestic goods was turbulent. Is it now the tide?

Focusing on the above two issues, from August 23 to 24, at the Chinese Cosmetics Conference in 2022 (15th) of Pin Guan, six entrepreneurs from the brand, channels, and raw materials production of the cosmetics industry accepted " The interview with the reporter of the Daily Economic News, including Li Jianfei, chairman and CEO of Vitality Group, Liu Qianfei, founder of the book, Wu Tao, CEO of Yanli Cosmetics (China) Co., Ltd. People and chairman Li Hewei and senior analyst of Intelmin Jin Yaoting.

They told reporters that under the influence of the epidemic, the cosmetics industry bid farewell to high growth, but the trend of subdivisions such as skin care is righteous. In the past, star companies entering the transitional pain period did not mean that the trend of domestic goods faded, and the capital tide was subsided. Farewell to the traffic dividend, the cosmetics industry has entered the era of research and development from the marketing era.

Photo source: Photo Network-500692755

Has the trend of domestic goods retired?

With the development of the national economy, many industries have ushered in the wave of domestic products, including the cosmetics industry.

The perfect diary in 2020 (that is, Yixian e -commerce YSG, the stock price is $ 1.32, the market value is US $ 788 million) to log in to the capital market, becoming the first stock of the Chinese goods beauty, bringing the light of domestic goods to the cosmetics industry. The spread of financing in the industry has also opened the biggest stage of the tide of domestic goods.

However, the performance of the perfect diary after listing is not as good as expected. In less than a year and a half, the delisting warning was received. The impact of the epidemic was superficial.

In response to this issue, the six interview objects said that the tide of domestic goods has not subsided. They believe that the fundamental motivation of the tide is changes in consumer demand. Young consumers are more confident in national brands. Although they are affected by the epidemic, consumers have for domestic goods on domestic goods. Enthusiasm is still.

"Capital is a amplifier. The so -called tide is a wave of investment in the cosmetics industry." Liu Qianfei, the founder of the book, said.

In Liu Qianfei's view, the perfect diary was successfully listed, and the capital had a good exit case in the secondary market, which led to many "hot money" into the first market. Capital has begun to ripen cosmetics companies, causing a large amount of capital to grab projects, project valuations are too high, and new domestic products have grown rapidly.

Now that capital returns to reason, investors in the entire consumer brand have uncertain concerns. The project selection is more discerning, the threshold is higher, and the decision -making is more cautious. The calmness of the secondary market is passed on to the first market. Liu Qianfei believes that capital has enlarged fear and anxiety.

The founder of the Greater Growth System Lion Bright said that in the past few years, the beauty of domestic products has experienced a multi -dividend period for price replacement, channels, and low -cost traffic on online development. The domestic brand brands have ushered in a high -speed development. Now these dividends have disappeared. In the past Star companies have also entered a transition period. But this does not mean that the trend of domestic goods is falling.

Lion Liang pointed out that the fundamental motivation of domestic goods stems from the younger generation of national self -confidence. Rise, in the process of economic development in the same economy, will definitely usher in the rise of the national tide. "

Li Jianfei, chairman and CEO of Vitality Group, also expressed the same view. He believes that in the past, it was unrealistic to complete what others did for 20 or three decades in just two or three years. To a certain extent, the epidemic has accelerated the retreat of bad enterprises and returned the market to rationality, which is more conducive to industry development.

Li Jianfei also mentioned that the trend of domestic goods has allowed more people to pay attention to this industry, resources and talents have poured into the industry, and they have brought new development momentum and opportunities to the industry.

At present, the national pride of Chinese consumers is continuously enhanced. In the Intemin survey, 48%of the beauty consumers aged 18-49 support the local economy. They are not only confident and proud of local products/raw materials, but also hope Express the support of the local economy through your own purchase behavior.

In the observation of Intelmin's senior analyst Jin Yaoting, consumers' enthusiasm for buying domestic products in recent years has exceeded the Japanese and Korean brands.

It is positioned as a direct -operated chain brand of imported cosmetics. So far with more than 300 brands, Wu Tao, CEO of Yanli Cosmetics (China) Co., Ltd., said that Yanli initially cut in with international brands because there are no particularly high -quality brands in China. With the development of the industry, with the development of the industry In recent years, the national tide has risen, and high -quality domestic products have been rising. Since 2020, Yanli has also begun to introduce domestic brand brands.

"There are not so many. We will have inspections in many aspects such as unit price, technology research and development, and brand concepts." Wu Tao said that although the current operation is still mainly based on international brands, domestic goods are still right.

Photo source: Photo Network-500553887

What changes do the epidemic bring to the industry?

However, it is undeniable that the cosmetics tide encountered the epidemic, and the two also reacted. All six entrepreneurs talked about the three -year outbreak to bring a lot of changes to the cosmetics industry. There are three points in summary. The first is that the cosmetics industry has entered the era of research and development from the marketing era. Li Hewei, the founder and chairman of the Weibo Haitai Biological Group, said that a change is the intensified competition of channel marketing. Whether it is live broadcast, short videos, or the entire channel planting, it is increasingly lower and lower. status.

Wu Tao said that under the influence of the epidemic, the decrease in offline traffic has prompted cosmetics companies to find new traffic online, and channels and brands are online. This also makes online traffic more and more expensive. Accelerate the elimination.

The epidemic also allows the cosmetics industry to accelerate the era of fine cultivation. "Before 2022, the play of all brands tends to be consistent, and the live broadcast of the Internet celebrity economy will now be differentiated. The category and traffic play will be extremely differentiated. "Liu Qianfei said.

"Before the epidemic, the company focused on traffic drivers. Now everyone pays more and more attention to the operation of internal exercise. Before the meeting, everyone's discussion focused on live broadcasting, traffic, private domains, and operations. This year, it is completely focused on the profit level." In the cosmetics industry, the cost before the epidemic, and the post -epidemic era has become a cost rear.

"Cost prefix means that before the result of the result of the result, it invested a lot of costs, such as traffic delivery, high pit fees, and endorsements, which means that they are very confident in themselves. After the epidemic, especially this year, it is basically cost. Rearialization thinking, everyone may not even want to pay a penny before seeing sales, and the advertising income of the platform is affected. "Lion explained brightly.

Lion Liang believes that the main reason for this change is "expected worse", and the market's future uncertainty, new policies, and external factors may lead to mutation in the industry.

The expected difference has brought the second change directly. The supply chain and upstream companies have received more attention, which is also the era mentioned earlier. "Increased competition, enterprises must be differentiated on the product side, and naturally extend to the source of the supply chain." Li Hewei said that the intensification of traffic competition brings another obvious change to extend the upper reaches of the competition, focusing on R & D and raw materials production.

Lion Liang also mentioned that the integration of upstream and downstream is being strengthened, and the traditional marketing is based on marketing. Now more based on R & D orientation or product force, so as to enhance competitiveness. "In the past Channel return channels, it may now be the integration of factories, brands, and channels. Brands with integrated production and sales will be more competitive. "

In the past few years, the development of the brand has also brought the prosperity of the supply chain enterprise. In the context of the expected difference, the operation of the supply chain enterprise is more stable. Lion Liang believes that this also explains that capital is transferred upstream supply chain transfer. The upstream supply chain of the upstream supply chain is also explained. Fast development, more and more supply chain companies are seeking listing.

As the upstream supply chain company of the frozen -dried mask subdivision, Weibo Haitai and L'Oreal, Betteni, Shanghai Jahwa, Xiangyi Materia Medica, Baique Antelope and other brands have cooperated. The raw material company, as a company behind the brand, has also begun to enter the public vision in recent years.

The third change is that in 2022, the makeup market showed a significant decline. Consumers pay more attention to skin care, and cosmetics bid farewell to high growth, but the segmentation fields ushered in high -speed development.

According to the Cosmetics retail data of the National Bureau of Statistics, in 2021, the total retail sales of cosmetics in my country was 402.6 billion yuan, an increase of 18.41%year -on -year, the largest increase in the total retail sales of cosmetics in the past 8 years. However, according to the main data of the total retail sales of social consumer goods in July 2022, the total retail sales of cosmetics from January to July were 216.1 billion yuan, a year-on-year decrease of 2.1%.

Data source: National Bureau of Statistics

In fact, since this year, the total retail sales of cosmetics have shown a significant decline. The cumulative cumulative retail sales of cosmetics from February-June increased by 1.8%,-3.6%, -5.2%,-2.5%, respectively. Far.

In the first half of this year, Yingmud launched a survey of nearly 3,000 consumers in 4 first -tier cities in Beijing, Guangzhou and Shenzhen. Tendering buying food and basic family care products, which are more important than beauty and personal care products.

Make -up products are no longer the first consideration during difficult periods. Consumers may reduce consumption products with cheaper consumption and lower non -essential priority. Consumers will choose to use the previous stocks and even stop buying. "There is a very interesting data in our survey. Only 26%of consumers say that even if we wear a mask, the steps of makeup are still the same as before the epidemic. Jin Yaoting said.

According to Yingmine data, the Chinese makeup market is subdivided by facial, lips, eyes, and nail art. Compared with 2021, total sales and growth rates have declined to varying degrees.

The epidemic caused local atrophy to the cosmetics market. Liu Qianfei said that consumer consumption habits have changed and impulsive purchase decreases, but not all categories are declining, but structural changes have occurred. The Lion Liang also expressed the same view. He said that Volkswagen cosmetics was very serious this year, especially the decline in makeup, but there were also new opportunities to grow, that is, the growth of the segment. In terms of point, the efficacy of skin care, light medicine beauty, children's mother and baby skin care, men's beauty and other segments have increased significantly.

According to IT Orange, the number of investment events from the domestic first-level market cosmetics industry from 2018-2021 is 37, 38, 70, and 113, respectively, and the number of only increases. The number is only 17. In these 17 investment incidents, production, supply, research and development, skin care, and men are keywords for investment companies.

At the same time, as an executive director of the China Fragrant Fast Fast Cosmetics Association, Li Hewei also paid attention to policies such as the "Regulations for the Management of Quality Management of Cosmetics Production", "Measures for the Supervision and Management of Cosmetics Production and Management", and "Regulations on the Supervision and Administration of Cosmetics". Sexual requirements are also increasing.

Daily Economic News

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