The Predicament and Breakthrough of Old-fashioned Cosmetics in China

In the local cosmetics market, international big brands occupy more than half of the country, and they have the right to speak in fashion. None of the local brands can compete. Looking through history, it is not difficult to find that old brands such as Xie Yuchun, Kong Fengchun, Shuang Mei, Bai Qunang, etc., whose initial development and international brands started at the same time (China’s Qing Dynasty) were on the same “starting line”. After a few hundred years of development, the local "old" brand and international brand are completely different from the same age.

The old name falls into the mystery of development difficulties. Mr. Huang Zhidong, general manager of the Brand Management Center of Piaoying International Group, believes that a number of domestic and old brands such as “Kong Fengchun”, “Xie Yuchun”, “Two Sisters”, and “Hundred Quedu” are due to system, country, market, The major reasons for the government are that compared with foreign brands, they encounter the situation of “different ages in the same age”.

Institutional reasons are one of the reasons that cannot be avoided. The state-owned cosmetics company's state-owned enterprise system has caused a disconnection from the market. There have been serious problems in R&D, production, and sales. Natural sales have been poor and companies have stagnated, leading to product lagging behind market demand.

At the national level, backdating the history of modern times, from the Qing government's implementation of the policy of “locking up and shutting the country” and beating back again and again, resulting in the death of creativity and technology; followed by the warlords’ melee, anti-Japanese war, liberation war, and cultural megalomania, etc. The Chinese market economy was basically “gunfire”. Or campaign "destruction."

From the perspective of market, Huang Zhidong believes that after the reform and opening up, when foreign brands used the “joint venture” or “acquisition” approach to open their country’s doors, they quickly laid out channels, and at the same time carried out “double education” for Chinese consumers through a large number of “star advertisements”. "- Consumer education and church Chinese use cosmetics. Due to the serious psychology of the country’s “from the ocean”, it is always believed that “foreign moons are more gardens”, and for a long time, these world-wide makeup brands that “attack the city and sweep the pool” will naturally make China's “old name” cosmetics companies go down.

From the perspective of government, for the time being, there is basically no professional guidance and protection for the “cosmetic industry/enterprise”. Basically, it is the self-development of the enterprise, and it struggles with international multinational corporations with limited resources and strength. Ms. Ma, President of the Chamber of Commerce of the Beauty & Cosmetics Industry of the National Federation of Industry and Commerce, called for the government to help the local cosmetics companies.

In addition to calling for the government to “help” the national brand, the old brand breakthrough approach is self-reliant for the company itself.

In 2010, with Karen Mok's endorsement of the Baique Ling herbal skin care product “Shuixu Xian”, the Five Elements Series of Herbal Products, Shuang Mei relapses into the high-end market, Kong Fengchun’s “The First Classical Beauty” Sun Feifei interprets the “National Beauty”, and the old brands have Shows vitality.

In fact, for the 100-year brand Kong Fengchun, the rebranding plan of the brand started earlier. It is understood that from the merger of Guangdong Pengying Group 6 years ago, Kong Fengchun has already invested heavily in the implementation of four major initiatives: "New plant and equipment upgrades, product promotion, channel development, brand communication and remodeling," with a view to achieving brand revival.

In respect of product promotion, Jiang Hongbo, general manager of Hangzhou Kong Fengchun Cosmetics Co., Ltd. introduced that “Kong Fengchun will build a brand pyramid: the mother brand 'mother music' and the traditional series 'blue classics' take the popular route, 'Chinese goods boutique' go to the low end, ' Yu Fang Materia Medica' takes the high-end and the 'Royal tribute' takes the high-end. "The overall layout of the product line, covering a wider consumer groups.

For brand communication and remodeling, Kong Fengchun invited King Feifeifei, “China's first classical beauty,” to dedicate a new image of Kong Fengchun’s “national makeup”. In terms of channel layout, Kong Fengchun continued to make efforts in the Hangzhou base camp and successively entered several department stores such as Baida, Yintai and Yizhijia. And plans to change the original route of the supermarket, the distribution of stores, department stores counters, boutique channels, plans to take different channels for different brands. Jiang Hongbo revealed that the company plans to develop more than 1,000 specialty stores, franchise stores, and shopping mall counters with annual sales of 200,000 to 300,000 yuan at the brand's 150th anniversary.

Kong Fengchun, Baique Ling, Shuang Mei and other old brands have all recovered. The time-honored brand has injected new fashion personality elements and started a national recovery program. It can be foreseen that in the future domestic high-end cosmetics market, the foreign brand's dominance is expected to be broken, and a new round of shuffling is just around the corner.