The beauty industry is shocking, with low cost and high marketing. It turns out that we are all capital leeks.

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The beauty industry is shocking, with low cost and high marketing. It turns out that we are all capital leeks.

Recently, a picture of "Cost Distribution of 79 yuan Flower Xizi Eyebrow Pencil" has gone viral on the Internet.

The insider of the industry revealed in it is surprising.

The picture shows that,79 yuan’s Huaxizi Eyebrow Pencil was awarded as high as 63 yuan in Li Jiaqi, accounting for nearly 80%.

This makes people wonder why the anchor, as a lip-service salesman, draws such a high proportion.

You know, the percentage of ordinary cosmetics counters only accounts for about 5% of the total selling price, and the maximum is no more than 20%.

Back in March, 2019, Huaxizi Loose Powder became popular in the live broadcast room in Li Jiaqi.

In 2020, in the live broadcast room in Li Jiaqi, Hua Xizi appeared 71 times, with an average cooperation of 5.9 times per month.

With Li Jiaqi’s amazing ability to carry goods, Hua Xizi surpassed the perfect diary from the "618" promotion in 2020 and became the first seller of domestic cosmetics.

It can be said that Hua Xizi grew up by relying on Li Jiaqi. In order to maintain cooperation with Li Jiaqi, he can only increase the proportion of rebates.

In addition to Li Jiaqi, Hua Xizi also used a set."high rebate"In the mode of anchor with goods, more than 300 online celebrity bloggers were launched within 3 months.

In addition to cooperating with the anchor, Hua Xizi has a similar growth path to other cutting-edge domestic cosmetics brands, and also has a variety of marketing methods.

Please be endorsed by the first-line stars, put in elevator advertisements, plant grass in KOL, online celebrity, etc.

howeverHua Xizi, who started from marketing, has a low cost performance.

69 yuan’s eyebrow pencil in the official flagship store of Huaxizi,The refill is only 0.07 grams.

What is this concept? In other words, Hua Xizi’s eyebrow pencil averages 985.71 yuan per gram, which is equivalent to 1.5g of gold.

This is not selling eyebrow pencils, this is selling gold pens!

Lao Yang, who OEM eyebrow pencils for various brands, revealed that,An ordinary eyebrow pencil of 49-69 yuan on the market, the cost price is 4.3 yuan/piece.

In addition, except for a few domestic beauty brands with self-built factories, most enterprises choose to entrust OEM production.

The same foundry often produces products for multiple brands at the same time, so it is easy to produce products with different brands and different prices, but with the same quality.

It is understood that the manufacturer of Hua Xizi Eyebrow Pencil not only OEM for Hua Xizi, but also owns its own brand.

The price of two eyebrow pencils sold by the factory’s own brand is lower than that of Hua Xizi, and the price of one of them is 0.2g in 57 yuan.

According to the unit price of grams, the price of the factory’s own brand eyebrow pencil is three times cheaper than that of Huaxizi eyebrow pencil.

Normal people can choose which product is cost-effective with their toes.

But as the eyebrow pencil incident happened, a beauty blogger said:"If you only talk about the product itself, you can buy the same quality eyebrow pencil for 10 yuan, but if you don’t care about the quality and just want to spend the shell of Xizi eyebrow pencil, then 79 pieces are worth it."

In reality, there are also many people who are eager for the fancy appearance of the brand.

What can I buy for 799 yuan? You’ll never believe it.

Huaxizi gift box with gorgeous appearance can be called "straight man gift ceiling".

On major social platforms, Tucao received countless posts from her boyfriend’s Huaxizi gift box.

In the luxurious packaging similar to the moon cake box, only three lipsticks are filled, and the other boxes are all empty.

Things are average, and the price is not low. Which fairy is not angry when she receives this?

In addition to Hua Xizi, other domestic beauty cosmetics have made a lot of efforts in appearance.

For example, Yixian E-commerce, the parent company of Perfect Diary, and Fanmilin, who sponsored a variety show, applied for most of the patents related to design, and the patents for component research and development accounted for a relatively low proportion.

Some netizens said: "I won’t buy a cosmetic when it starts to emphasize how beautiful the packaging is."

The gaudy domestic beauty made on the outside can only fool boyfriends who don’t understand cosmetics, and exquisite pig girls would rather pay higher prices to buy foreign goods with higher quality in their hearts.

However, high-priced international beauty brands must represent good quality?

Please take a look at Netease Commercial’s published price composition chart that analyzes international big-name beauty and skin care products.

The price of perfume is 776.6 yuan, and its raw material cost is only 15.6 yuan, accounting for 2%; The tariff is as high as 257 yuan, accounting for 33%.

The advertising and promotion expenses of Lancome Essence Muscle Liquid are as high as 334.8 yuan, accounting for 31%; The cost of raw materials is 21.6 yuan, accounting for only 2%.

SK-II Fairy Water, which costs thousands of dollars, and Shiseido 730 yuan/15g eye cream, all cost less than 10 yuan.

This shows that,International big-name beauty and skin care products are expensive in advertising promotion fees and tariffs, and the cost of the products themselves is extremely low.

Why can the raw material cost of international brands be so low? It is because many of their products are also produced by domestic foundries.

For example, Kosmeishi, the first makeup factory in China, which works for many domestic brands, also cooperates with international brands such as Lancome, Shu Uemura and Maybelline.

In other words, many imported cosmetics you bought are actually Made in China. But after putting on the coat of an international brand, it was presented to the altar.

After all, consumers are willing to spend a lot of money to buy international beauty brands for it.Brand awareness and international brandsPay for this identity.

And the efficacy of international big-name products may not match its high-end image.

Previously, Zhihu netizens anonymously broke the news that Estee Lauder products used hormones.

This netizen’s original skin has never been allergic, and there is no need to worry about eating spicy acne.

After using Estee Lauder’s products, her face always itches, and she also has red pimples that can’t be eliminated.

In addition to the quality of the products themselves can not be guaranteed, some international brands also make false advertisements in order to increase sales.

Just at the end of last month, Watsons was fined 80,000 yuan by the Market Supervision Administration for publishing a false advertisement that moisturizing aquatic products contained "whitening" and other effects.

So you see, international brands are not as perfect as we thought, and there may be deeper inside information in places you don’t know.

Domestic beauty cosmetics want to crack the big-name worship of consumers and seize the market quickly, not by overwhelming marketing means.But listen to the real needs of consumers, improve the quality of products and lower the price.

In this respect, other categories of domestic brands provide a good reference.

With the continuous fermentation of Li Jiaqi’s live rollover event, "a flower falls and everything comes to life", many domestic brands have taken advantage of the situation to come to the table.

Among them, the most representative is the old-fashioned daily chemical brand "Bee Flower" founded in 1985.

On the night of Li Jiaqi’s rollover, the live broadcast room of Bee Flower flooded into ten thousand people, and was teased by netizens: "This is the most unpretentious business war".

The official account of Bee Flower in Tik Tok has also increased by 569,000 in one day. Some people say that all the fans lost in Li Jiaqi have been picked up by Bee Flower.

Compared with picking up fans, Fenghua is better at picking up boxes.

Before, some netizens placed an order for bee flowers, but I didn’t expect the courier box I received was not a bee flower.

The bee flower responded that the box was too expensive and had to pick up the unwanted box thrown away by other families.

When some netizens commented that the packaging of bee flowers was "cheap", it replied "I am already very cheap".

Not long ago, when actress lareina was caught in a tax evasion scandal, Bee Flower released a video in Tik Tok saying, "If I don’t have the money to invite a spokesperson, I won’t collapse."

Why are the bees that have been selling badly so poor that they have no money to buy boxes, change packaging and invite spokespersons?

Because it is to reduce their own profits to provide you with cost-effective products.

"The price increase is only 2 yuan in 10 years"

"It has been established for 36 years without any punishment record"

"The only funds are used to research the breakthrough and upgrade of products."

……

It is this business strategy that is considered for consumers everywhere, which makes bee flowers win the hearts of consumers.

According to the chairman of Bee Flower, the gross profit margin of Bee Flower is only 15%, which is far lower than 40% of international brands.

In his view, instead of spending a lot of money on advertising, it is better to win by product quality and give profits to consumers.

Until now, bee flower is still implementing this strategy.

And Fenghua is just the epitome of many high-quality domestic brands.

For example, Hongxing Erke, an old shoe company that donated money to Henan, and Baixiang instant noodles, which have always insisted on hiring employees with disabilities, have all caught this "splash of wealth" and once again glow in the second spring.

Compared with the beauty brands who spend money on marketing, these domestic brands only use high-quality products to stand at the core of the brand.

Without the guarantee of high quality and reasonable price of products, no matter how gorgeous packaging and fancy marketing are, what is built is just a castle in the air that may collapse at any time.

Obviously, Hua Xizi did not see this clearly.

This time, it is inevitable that Huaxizi will follow Li Jiaqi’s word-of-mouth rollover.

First of all, Hua Xizi, who relies heavily on the anchor, needs to bear the negative impact of the anchor’s personal mistakes on the brand.

Secondly, the business strategy of focusing on R&D and marketing has left a flashy impression on consumers.

In addition, in the apology statement, I have always stressed that I am a domestic product, but the product has not achieved the same high cost performance as other domestic products.

For domestic products that have national feelings and are really considered for consumers, the masses will support them sincerely and with real money.

But for those brands that make money under the banner of domestic products, no one wants to be kidnapped by morality and become the leek of capital.

With the maturity of the concept of national consumption, the people’s fascination with foreign beauty brands has gradually dispersed.

If domestic beauty cosmetics want to seize the market, they still have to rely on excellent products and innovation that keeps pace with the times while "marketing opens the way".

Believe that even if there is no anchor shouting "buy it, buy it", there are still people who are willing to pay for the truly good quality products.

No one likes routines, and sincerity is always king.

Author of this article | Zhang Mo Yi
Editor in charge | faint Cui
Planning | Blue Orange

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