Previously, the Estee Lauder Group’s makeup brand BECCA closed down the news caused a lot of discussion, but on the contrary, the domestic makeup brand, seems to be “hot” development and growth The market value of the parent company of the perfect diary exceeded 100 billion years ago, the parent company of Clarkie completed 400 million yuan of financing …… but in the hidden corners, there have been many domestic makeup brands opened a clearance sale mode, or into the countdown to closure.
This reporter found that KACH, Apinkbaby, scratch cat and many other niche national makeup brands in early 2021 choose to liquidate the official Taobao store and close the brand.
Dump/clearance/closing, they fell in early 2021
Data show that color cosmetics is the fastest growth rate in the market size of all segments of cosmetics, 17-19 years year-on-year growth rate are more than 20%, 2019 China’s color cosmetics has reached 55.17 billion yuan, is expected to 2024, China’s color cosmetics market size will exceed 100 billion yuan. In last year’s double 11 Tmall makeup category turnover TOP10 list, perfect diary and flower Xizi even overpowered various international big brands and won the first and second respectively.
What can be seen is that in recent years, the head of the new national makeup brands, fueled by capital, from online to offline, and continue to expand the scale. However, in the unseen corners, there are more in 1 to 2 years Time, quietly established and fallen brands.
Recently, the reporter noticed on social media that some consumers discuss some of the national makeup brands are being liquidated, and after finishing, it was found that in less than 3 months since 2021, there are actually many national makeup brands that have been liquidated, closed, and collapsed.
In addition, the reporter found that the main OEMs of these makeup brands are some of the larger, have a certain industry reputation, such as for the name of the brand, flower West, orange Duo OEM Lixin biotechnology; with Itchy House, Red Earth and other brands, such as the cooperation of Xi Rouxi; for Sephora OEM companies Paris Ti; while working with brands such as Wizzy You Quan Timan biological.
From the market situation, KACH Tmall flagship store has now shelved all the goods, emptying the store; Apinkbaby in the store Home page to indicate the imminent closure of the store, switching to micro business to sell pupils; grasping cat Dramo is in liquidation, customer service response “plans to close the grasping cat 2021 “; Two Space customer service response to whether the brand will go bankrupt, replied “can still survive for a while “; Woodz Beauty also put out the slogan “Clearance is not replenished”. In other words, these Chinese makeup brands are not only in the market, but also in the market.
In other words, these national makeup brands are down in early 2021.
Why can’t fire up?
Frozen three feet is not a day’s cold, the reporter found that the early 2021 national makeup brands “closing tide” early signs.
The reporter found that most of these brands are in the low-end price band, through 1-2 core single product quickly harvest consumers, in the seeding platform, beauty forum layout, but often because of the product, marketing strength is not enough, failed to really break the circle, and gradually in the market disappeared, the overall sound has been covered by the head of the makeup brand.
For example, on Little Red Book, the makeup brand KACH’s small ice cube blush mentions account for more than half of the entire brand, but the total number of notes is one thousandth of the perfect diary.
Also interestingly, the reporter found that these brands are often noticed by consumers because of the appeal of a significant price cut when they are about to exit the market. In a forum beauty group, some users said “the first time I heard of Two Space brand, should be no money to do promotion”, “really no promotion of the country. It’s true that national products that are not promoted end up facing liquidation. The price of its single-color eyeshadow is between 20 yuan and 40 yuan, and the price is even lower than 10 yuan when it is on clearance.
According to CBNData data, more than half of the sales of the national makeup market are occupied by 1% of the head of the national makeup brands, in the crowded makeup track, the survival space of niche national brands is obviously infinitely compressed.
An industry insider told reporters: “For contemporary young people, the network information is very developed, they have seen, used a lot of makeup, how to attract their attention and get their favor is very important. “However, niche makeup brands have limited funds, less promotion, less voice means fewer opportunities to be seen by consumers, sales are naturally difficult to improve.
The company’s parent company, Colorkey, completed 200 million yuan of financing in April 2020, and completed 400 million yuan of Series B financing in January this year. Obviously “not bad money”.
In fact, the positioning of the new national makeup brands mostly have a high degree of overlap: the same is “national makeup”; the same take the affordable route; the same to The same “grass marketing” is the main, mainly through online sales channels. But nowadays, new brands are emerging, consumers’ attention is constantly scattered, brand stickiness is weakening day by day, and to attract consumers through the grass way, it needs a short period of concentrated outbreak plus a long period of brand image penetration.
In this case, we all stand in the same starting line, and these “unknown” emerging makeup brands, to compete with the well-funded head brands in product power, marketing The power to compete, naturally, is more difficult.
Lower price, faster market environment
In addition to the lack of funds and weak marketing at the brand level, the entire makeup market environment is also undergoing huge changes, especially online.
Microblogging has more than 100,000 fans of the blogger “unknown old king’s head”, operating a major brand affordable alternative to the national makeup Taobao store. The store customer service told reporters: “The whole store sold out without replenishment, the boss decided not to do. “And talking about the reasons for their decision to close the store, the blogger showed that the average quality of domestic goods are not bad, but high-end brands or mid-range brands, in the domestic channel are particularly easy to reduce prices, gradually become meaningless, buy flat alternative rather than wait for the big brand price cuts.
He further said, “the domestic channel discounting is too powerful, such as Estee Lauder Group’s makeup brand Becca, previously were 100 yuan -300 yuan price, now 49, 59, 69 yuan. “However, Becca also did not survive the market tough, on February 25, its official website announced that it will officially shut down the brand in September.
As the international makeup brands entering the Chinese market gradually adapt to the environment of the local e-commerce platform, its are beginning to deepen the Chinese online channel, well versed in e-commerce discounts, price reduction promotion strategy, by the impact of online channels, consumers are able to purchase products at a lower price than pricing on e-commerce platforms. In addition to the annual 6.18, double 11, double 12 network-wide promotion, there are many “10 billion subsidies” and other daily discount activities. The reporter checked on Taobao, the same Dior 999 lipstick, the price of a single product ranging from 155 yuan – 350 yuan.
And this also means that, with the international makeup brands “localization” process continues to accelerate deepening, the past with online marketing, price reduction promotions of emerging national makeup brands The advantage of “affordable” will be weakened.
In addition, the low entry barrier to the makeup industry, the problem of homogenization is also always a major destabilizing factor. In order to occupy market share, most brands choose to constantly accelerate the speed of product iteration to prevent being swamped by waves of “similar alternative” products.
The brand director Ma Jiayuan told reporters: “The update of color cosmetics is very rapid, the brand to continue to breakthrough innovation, to pull up the threshold of consumers, flowers know the new frequency is very high every year, is a product to update to ‘head bald’ company. “According to the reporter statistics, in the domestic non-special use cosmetics filing query platform, flower know in 2020 filed nearly 160 products, while the head of the domestic color cosmetics brand perfect diary in 2020 in the State Drug Administration filed SKU is up to 900 +.
In the face of the price of high-end makeup brands in the downward strike, the head of the Chinese makeup brands on the new faster competitive environment, niche Chinese makeup brands caught in the “lack of money – lack of marketing – lack of explosive products -Lack of sound – lack of sales – lack of money” of the deadly cycle, how to get out of this circle, kill the siege? Need more time and experience to experiment.
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