The giants are scramble for the cosmetic retail market. What should cosmetic retailers do?


The beauty of “her economy” has made more and more people begin to covet the beauty market. In March 1st, Jingdong invited dozens of stars such as Fala Chen, Li Qin and Wang Sulong to promote the platform for Jingdong butterfly Festival. In March 4th, Tmall, Fan Bingbing, Wu Chun, Song Jia and other stars issued the 2018 Tmall gold medal, the beauty of cosmetics retail into the eyes of the “sweet cake”.

According to the latest financial report of the Changjiang Heji Industry Co., Ltd., Watsons group’s revenue in 2017 was HK $21 billion 783 million (about 17 billion 570 million yuan), up 4% from the same year, and the sales volume in the fourth quarter was 0.1%. It is understood that Watsons has more than 480 new stores a year, with more than 60 million members of the database, through the membership system can understand what shops shoppers often go shopping, and what to buy, so that it is targeted to push the relevant information to customers through WeChat.

A few days ago, Watsons, with Paris L’OREAL and Maybelline New York, designed the first Colorlab brand new color makeup concept shop in Shenzhen Feng Sheng shop and Guangzhou Zhonghua Plaza store, with many technology elements, such as “virtual trial makeup” service achieved by AR technology, and the free custom nail design of digital nail Machine and so on.

As the bellwether of the cosmetics retailing industry, what are the hints of Watsons’s action for the industry?

Launch personalized trend shop and create diversified service forms.

Watsons has worked in domestic health care and cosmetics industry for more than 28 years, not only has experienced the glorious time of shopping, big run hair, Carrefour and Huarun, but also experienced the baptism of the e-commerce age such as Taobao, Jingdong and Suning, and the complicated experience of the industry, so that the Watsons can keep pace with the times. In April 2017, after Gao Hongda became president of Watsons China, Watsons carried out a series of changes in diversified layout, including the launch of brand new upgrades, the introduction of imported goods, more exclusive brands, more yuan, and sexual services, with Paris owl in the store. Ya, Maybelline New York, MAX FACTOR, Japan and South Korea brand KATE, City doctor, DHC and many other imported explosive products.

Among them, last year’s store upgrade is a good example of the beauty retailing industry. In the past, retailers have been standardized, and Watsons has launched a variety of stores, in addition to a brand new fashion store, a brand new Colorlab, and a hot theme store.

In March 2017, Watsons 3000th stores and the first tide store opened in Shanghai Zhengda square, and by the end of 2017, more than 30 have been opened.

After the tide store, Watsons Colorlab brand new cosmetics concept shop is also refreshing, in addition to the regular make-up area according to the cosmetics brand display, and the I ‘M Hot area (such as foundation, lipstick), “Look Wall”, and “Look Wall” area.

In addition to the tide store and Colorlab, in February Watsons and the two game “love and producer” co opened the 15 “love Watsons” theme shop, through the cross sub marketing cooperation, let the IP itself flow value into the offline consumption, in traffic and exposure, the Watsons and “love and producer” also Achieve a win-win situation.

Improve strength, embrace change

Standardization is the retail form of ten years ago. Nowadays, consumers’ cognitive level, self awareness, shopping preferences and so on have changed greatly. Consumers pay more and more attention to “me”. This means that retail industry must provide different forms of service for consumers to synchronize with consumers’ changes, otherwise, they can not keep up with consumers. The rhythm will automatically be eliminated by the consumer. Like Internet products, retail industry also needs to grow and change, and retailers, including a large number of retail stores, need to make up their minds not only online, but also to provide diversified services like Watsons.

Watsons has previously launched a “store self” and “lightning delivery” service. Through strategic cooperation with logistics companies such as starving and Shun Feng, the time of customer line from payment to delivery is concentrated to 2 hours, and more than 3000 stores in 300 cities all over the country are now covered. In addition, Watsons has also launched a lightning delivery service with Tmall and Jingdong. The entity under the line of the entity into the “preposition”, in the field of e-commerce, there is a precedent, but in the beauty of retail, Watsons industry is the first to launch the strategy.

Service industry is the most irreplaceable industry in the Internet, and the proportion of service in the field of beauty and makeup is also very large, such as the consumer’s trial makeup, lipstick test, and so on, will involve the service experience. By strengthening the service experience of offline stores and developing online integration, consumers can feel better pre-sale services.

In the Colorlab brand new color makeup concept store, it combined Maybelline and L’OREAL brands to create “Look Wall” six major make-up areas, providing cosmetics for the white consumers as a whole makeup guidance and makeup experience, so that consumers can quickly find their own makeup and production. Consumers can choose either of the six makeup styles, and the make-up artist will create a complete makeup for him. Watsons members can also make an appointment with WeChat card to shop for free makeup and skin care service experience.

Colorlab also launched a “virtual trial” service based on AR technology. Consumers only need to sit in front of the tablet computer. After the device automatically identifies the consumer’s face, consumers can get different make-up proposals. In addition, “Skin Test to try me” is used to analyze the skin state and professional for customers through the skin tester. Skin care guidance. In most of the Watsons stores, customers can experience the service of self-help collection, and the mobile phone WeChat scan can identify the membership card and complete the online payment, shorten the time of queuing. As part of Watsons’s upgraded store, Colorlab is more focused on consumer experience, reflecting Watsons’s professionalism in the field of make-up.

Although big data is no longer a “fashionable” key word, it does not affect the commercial value of large data, and Watsons is the principal in mining the commercial value of large data.

At the end of 2017, Watsons announced the launch of the first partnership with Microsoft, EPAM, Ovolab, Rubikloud, Mte and other groups in data visualization, large data, digital experience and so on. Through cooperation with Microsoft and EPAM, Watsons is improving its capability of big data.

As you can see, Watsons is increasing its strength to provide consumers with a diversified service and a personalized experience, which is what the retailer should do. When the retail center returns to the consumer, the retailer should be consumer oriented, and the consumer is the decision maker that determines the retailer’s store regulation. On this basis, the brand image can be better built.

In recent years, the concepts of new retail, unbounded retail, smart retail, consumption upgrading and consumption decline have come out in an endless stream, and the real retailers such as big run hair, Yintai, Baisheng and Sanjiang have also integrated with the online retailer, and the whole retail industry is changing. For cosmetics retailers, this change is both an opportunity and a challenge. A little carelessness may be a complete drop out, and if you want to seize this opportunity, it is the only way to improve its own strength and embrace change. Fortunately, both men, women, young and old are paying attention to health, health and maintenance. This trend is extremely good for the beauty industry.

Wen / Claire, WeChat public address: Claire’s Internet circle

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