The end of 2008, 2008 inventory of cosmetics channels, that is, we can see a variety of channels along its own path of development of the situation in big strides, but also feel faint channel changes and evolution of surging undercurrent, plumbing Spring duck prophet, The transformation of life and death environment, each channel is the challenge of change, but perhaps also a new opportunity for the business model changes. The domestic cosmetics business, you ready?
Transformation of life and death under the Chinese cosmetics industry

China’s economy in 2008 was an extraordinary year, the Chinese cosmetics industry is an extraordinary one.

With the U.S. sub-debt crisis triggered by the global financial turmoil, the world economy tends to slow down. In the domestic cosmetics industry in recent years been as high as 15% growth in 2007 to the cosmetics industry output value has been as high as 120,000,000,000 yuan.

China’s economy in 2008 is the most difficult year, with the upper reaches of the prices of raw materials, cosmetics products, manufacturing costs also rose. P & G, Unilever and so on from the beginning of August a substantial increase in product prices. Costs, a market jittery time, domestic small and medium enterprises to survive the difficult, big cosmetics industry in Fujian Province, large-scale collapse of the phenomenon of small and medium enterprises. Cosmetics industry and other industries began to experience severe winter.

Looking back over the past few years China’s well-known brand make-up, face the same life and death. In October 2007, Germany Beiersdorf (Beiersdorf) acquisition of International Wire Group silk Bao Bao on 85% of the shares. In April 2008, the traditional day of white corporate shares also pulled out of Japan in the field, the transition of real estate; in July 2008 as a national brand has been picking up the pride of the Beijing Dabao, the United States, a wholly-owned acquisition of Johnson & Johnson. Jahwa In addition, in such a short few years, China has been brilliant on the brand of small nurses, OG, Violet Beijing, Bao silk, Bao has been a spate of foreign acquisitions, the brand even more people from memory Disappeared, the China Day of the industry is faced with and re-shuffle.

In the cosmetics industry, raw material costs rise gradually, while the domestic market less than the spending power of the macro background, the cosmetics industry in the current economic climate will be great for the adjustment. In general, the cosmetics business in the following typical behavior to deal with, first, backed by strong brand reputation has directly raised the prices of products in order to make up for rising costs brought about by the loss of profits; Second, the capital of powerful enterprises, the SME sector For the integration of low-cost or acquisition; three channels is sinking, to seize or 23 in rural areas in order to obtain an increase in sales. Fourth, enhancing brand management, and integration to carry out a wider range of channel models.

Here we only look at the cosmetics companies operating in the channel on the behavior and characteristics, thus to explore possible future development path. Chinese cosmetics market in 2008, known as the “new channels of force”, various forms of franchise stores and shops that is the “wrestling war” in the main characters. Shiseido, represented by international brands and nature together, Su-Mei, such as a local brand to a chain of large-scale way into the franchise stores, boutique shop franchise.

In addition to department stores, supermarkets and franchised stores format, sales of cosmetics new format also in the ascendant. At present, factory direct sales, online shopping, TV shopping, mail order, automatic kiosks, cosmetic medicine shops have sprung up in various forms of development, well-known enterprises in the industry have varying degrees of concern and to participate in these new channels.

Of course, a growing number of brands to choose a variety of channels to develop. Shiseido, for example, not only have shopping on the counter, there are some open-shelf product sales in supermarkets, franchised stores in more channels have their own stores; and CLARINS (Clarins) in the shopping up a special counter set up at the same time, the agency also has a beauty of the body ; DHC more open network and telephone sales of the two virtual channels … … of big international brands have more than covered the area of sales channels to fully prove mix of sales channels means more sales and brand-building, and consumers of Cosmetics also will have more options, the purchase of experience will be further improved, we feel the cosmetics market access was opened up all at once.

The channel diversify, diversify the brand that is a necessary requirement for macro-environment is an inevitable trend. On the one hand, the diversified requirements of brand products and a high degree of matching channels in order to form an effective corporate profits; on the other hand, depression in the market environment, we must find ways of open-channel and multi-channels to create their own unique pattern of channels in order to To ensure continued profits.