In the analysis of the traffic confrontation behind the tide of opening and closing stores in recent years, we can see more new trends about cosmetics stores.
With the increasing scale of the American market, the competition among stores is fierce.
The market scale of China beauty industry has shown a high growth trend for many years. According to relevant statistics, the market size of China beauty industry reached 1.3 trillion yuan in 2065, 438+06. 1% year-on-year. It is estimated that the market scale of China beauty industry will reach10.5 trillion yuan in 20 19 years.
However, with the increasing scale of the US market, the competition between offline stores is becoming increasingly fierce. According to a survey, the number of offline stores in China in 20 19 was around 3 million, but at the same time, the annual store closure rate was close to 30%, with a high replacement rate. Among them, especially in first-and second-tier cities, Chinese shops are upgrading very quickly.
According to relevant data, among the fashion boutique shops on the first floor of shopping centers in first-and second-tier cities, beauty care shops account for the largest proportion, accounting for about 20%, accounting for about a quarter of the total number of fashion boutique shops. However, in 20 18-20 19, the proportion of newly opened stores was greater than that of newly opened stores, accounting for nearly 25%. It can be seen that the offline stores of beauty cosmetics are facing a competitive format that is constantly shuffling.
Under the fierce market competition and cruel survival pressure, industry operators have to pay more attention to the standardized operation and cost management of stores, which also urges stores to put forward more and higher requirements for Internet information services and data system applications.
At the same time, in the face of the intensification of market competition in first-and second-tier cities and the further impact of online traffic, more brands and distributors are also looking for opportunities through online channels.
The sinking trend of brand stores
In the increasingly competitive environment of first-and second-tier cities, in recent years, the consumption power of third-and fourth-tier cities is rising, and it is also set off with the upsurge of returning home to start a business. In addition to individual single stores, many big brands and chain stores also focus on the business opportunities in the sinking market, thus driving more brands and stores to overweight and sink market channels.
For example, Han Jun, the national sales director of L 'Oré al China Volkswagen Cosmetics Department, said at the "20 19 Top 100 China Cosmetics Chain Conference" that he was optimistic about the offline consumption potential of third-tier and below cities, because "the deeper the city, the greater the offline volume."
Lancome is the first international brand to enter the sinking market. 20 1 1 officially entered the third-and fourth-tier cities. In 20 18, 272 stores have been set up in cities across the country 1 15.
As a result, many international brands such as Procter & Gamble, L 'Oreal, Johnson & Johnson, Shiseido and so on. We began to increase the number of CS channels, that is, cosmetics franchise stores, which are widely distributed in the sinking market, so that consumers in various cities, counties and towns can understand and buy brand products and strengthen the exposure of brands in various markets.
For example, since the well-known chain brand Guerlain launched its franchise business at full speed on 20 15, the number of stores has been increasing rapidly. By the end of 20 17, there were about 2,200 stores in Guerlain. In fact, Guerlain has laid out most of the county markets.
At the end of 20 18, Guerlain put forward the plan of "2065438+09"1510 ",which comprehensively promoted the township version and planned to cover the north and south of the country within three years. It is reported that by the end of 20 19, the cumulative number of chain stores in Guerlain has reached more than 5,000.
However, during this period, Guerlain's stores were opened and closed, and there were not a few closed and opened. For chain stores, the sinking market has great potential, but it still faces challenges such as unstable flow of people and different economic levels in villages and towns, which leads to problems such as reproducibility, joining conditions and profit model adjustment faced by village stores.
On the one hand, offline traffic drops sharply, on the other hand, online traffic becomes more and more expensive. Guerlain emphasized in the "15 10" plan that it will comprehensively promote the development of online and offline omni-channels, namely CS channels, brand e-commerce and social e-commerce (APP Mall). Cai Ruqing, chairman of Guerlain, has made it clear that promoting the omni-channel integration of online and offline will become the future development trend of the store.
The immersive experience store has become another "salvation army"
Different from multi-brand chain stores such as Guerlain Jiaren, some brands have put forward the way of saving offline retail with immersive experience stores. For example, the CS channel brand women's manifesto, which is called the new beauty species, has adopted a different way from the general brand collection store.
The founder of the Women's Manifesto, the trading queen, predicted that under the changes of today's consumer market, the daily chemical stores will gradually disappear in the future, thus forming a large number of offline experience stores. Therefore, from the perspective of industry changes and consumer psychological changes, changing store marketing strategy has become the first step to reverse store operation and improve performance.
It is reported that as a brand women's manifesto established on 20 16, the development trend is surging. From the establishment of 20 16 to 20 17 and 20 18, the achievements were1500,000 and 220 million respectively.
In the first half of 20 19, it is reported that the hostess declaration has reached a cooperative relationship with 12000 stores. In the second half of 20 19, Women's Manifesto will turn this 12000 store into 5,000 exclusive offline stores, and the brand agency trend of Women's Manifesto will sweep across the country.
This business model from "standing" to "lying" is gradually valued by physical stores, from the on-demand selection when consumers enter the store to paying attention to the personal experience of consumers and the changes of consumers' immersive experience consumption.
In addition to beauty beds, the introduction of high-tech "VR cosmetic mirror", "small bubble" and "skin tester" is also a means to attract consumers with interesting experiences. For example, in 20 17, the retail industry in the United States was depressed, and many cosmetics stores were facing the fate of closing their stores. Sephora stores survived by these high-tech experiential marketing methods.
New retail has once again set off a "craze"
Nowadays, at the beginning of 2020, when the epidemic was raging, the integrity of cosmetics stores was hit hard, and how to survive became the collective wish of the American people.
Driven by the "home economy", new retail methods such as online shopping, short video and live sales have become new forms to save store performance.
For example, Watson's launched the "1 hour delivery+enterprise WeChat assistance" program on February 3rd, which called more than 24,000 shopping guides nationwide and served more than two million consumers through enterprise WeChat. At present, botanists are also developing IT systems to communicate with customers online and maintain some services and transactions. Starting from February 7th, Yintai organized the live broadcast of shopping guides and a number of business assistance policies to alleviate the crisis of small and medium-sized businesses, and so on.
Embracing "new retail" seems to be an important breakthrough for brands and physical stores to counterattack and regenerate in desperation. At present, Libei Road, a WeChat commercial brand founded on 20 14, is also trying to alleviate the crisis of offline stores through online means.
According to Zhang Shubi's analysis of the current situation, although many stores have not yet opened in early February, they have just lost the increment of offline channels and the experience service for customers. Because people can't stay at home, online shopping just ushered in a wave of online traffic opportunities.
At present, Li Beilu's online drainage and private domain traffic have little impact on the store performance.
Zhang Shubi also mentioned that there are currently 140 brand franchise stores in Li Beilu, including 4 overseas stores. Although a few shops have closed due to poor performance or want to transfer their plans, most of them are operating well as a whole, and there will be plans to further expand overseas markets. It is planned to expand the number of global stores to 1000 in two years.
What are the future channel development methods of the brand?
So what does the brand think of the future channel development model? Zhang Shubi believes that online drainage may become an important breakthrough for many brands and physical stores to alleviate the crisis in this special period. However, she believes that the brand is still inseparable from the layout of offline channels. In the future, brands will develop more in diversified channels, and promoting online and offline integration is what brands need to do more at present.
However, the founder of the Women's Manifesto, Trading Queen, believes that the future development of brand channels is likely to turn online, but online channels must also be diversified. For daily chemical stores, their promotion to online channels may not be so fast, but in the next two years, the existence of online channels may be more in the form of live selling goods or entering Taobao e-commerce.
At present, Women's Manifesto is using a set of online marketing programs to help stores overcome difficulties. According to the Queen, although offline stores haven't opened yet, many stores can make achievements online and do word-of-mouth time offline through live online broadcast, and have achieved good results. Many shops have begun to make profits.
Whether it is a diversified channel model or an online-offline integration model, we can't ignore that the online channel model is coming at us with an irresistible trend, which is more obvious in the current special period and may still become the trend force for the long-term development of the brand in the future. In the industry, you should have an attitude of following the trend and embracing.