Feng Jianjun: Analysis of the Competition Pattern of Cosmetics Stores in Guangdong Province

With a history of more than 2,200 years, Guangdong is known as the birthplace of Lingnan culture, the birthplace of the Maritime Silk Road, the source of modern democratic revolution, and the pioneering place of reform and opening up. In the long history of the long river, the South Guangdong land has nurtured the Lingnan culture with a rich blend of Chinese and Western cultures, and it has become a wonderful flower of Chinese culture.

In Guangdong, as a form of retail industry, cosmetics stores appeared earlier in the late 1980s. With the rapid development of Guangzhou's daily chemical circulation business, cosmetics stores have already scaled in the early 1990s; and then with the continuous development of reform and development The continuous influence of cultural elements and fashion consumption concepts in Guangdong and Hong Kong, the cosmetics franchise stores achieved rapid development in the late 1990s, and occupied a huge sales share of the overall daily chemical products in Guangdong.

In the past five years, along with the rapid development and growth of a number of beauty chain stores such as Watsons, Thousand Colors, Wanning, Yanli and Meiyanfang, the daily retail business in the Pearl River Delta region and even in Guangdong has occurred. A huge pattern has changed. Among them, a number of Guangdong specialty franchise stores, such as beauty stores, cosmetics boutiques, and personal care products stores, have begun to play a more important role, with its high-quality product quality, good marketing plans, Specialized services, competitive prices and beautiful promotional forms are constantly being watched and accepted by more ordinary female consumers.

Watsons rides the dust and dominates the Pearl River Delta

Watsons, the full name is Watsons Personal Care Products Store (hereinafter referred to as Watsons), Watsons is the largest personal care products chain in Asia at this stage, is currently the world's largest retailer of health and beauty products and perfume and cosmetics retailers. In the field of “personal three-dimensional care and care products”, Watsons not only gathered many world-class brands, but also developed and produced more than 1,300 self-owned brands. Watsons currently has 18 retail brands and more than 7,700 retail outlets in 1800 cities in 36 markets in Asia and Europe, providing personal care products to more than 25 million people worldwide each week.

Watson's personal products store has a business philosophy of “health, beauty and joy”. The target customers are located in the fashion city white-collar workers aged 18-45. The products include cosmetics, skin care products, fashion accessories, health products, snack foods and gifts. Divided into four categories, subdivided into 47 categories, bringing together more than 20,000 items in more than 20 countries. According to drugs, 15%, cosmetics accounted for 52%, accessories accounted for 15%, and candy accounted for 18%.

In the localization process of Watson's past 18 years, its leading “discovery display” and “experience shopping” have consistently adhered to and strive to create a friendly, energetic and exciting shopping environment. Customers can easily find unique, creative and interesting, high quality and value for money products.

Among the more than 380 stores in the first- and second-tier cities in China, the number of stores in Guangdong accounts for about one-third of the total number of stores. In Watson's store operations, we have always adhered to the brand building concept of “discovering new ways to make customers more beautiful, healthy and happy”. Among Watson's product group structure, the main products are composed of well-known brand agent products and private label series products, and its own brand series products account for roughly 25%.

Guangdong has always been a key market and production area of ​​Watsons. It has always played an extremely important and positive role in the context of the systematic management of Watsons. In the past three years, Watsons in Guangdong has achieved the following results: First, in the business field: Because the market foundation of Watsons in Guangdong is the best, and its performance is directly related to the business results of the national market and Operating statements, therefore, Watsons headquarters for the Guangdong region Watson's main business income indicators and business sales increment indicators are the highest in the country, of course, also gives the Guangdong region Watson's large independent flexible space; second, in the promotion field : The Watsons store in Guangdong has taken the lead in launching “end and swear, real low prices” and “half the price difference” and other terminal competition and promotion strategies. Furthermore, in the field of management: Since Watson's headquarters is located in Guangzhou, with the development of its national market and the speed of opening stores, the contradiction between the demand for human resources cadres such as site selection, operation and procurement has become increasingly prominent, due to the special management of Watsons. Culture and strict promotion system, therefore, most of the newly opened markets and expatriate cadres are selected from the cadres of the Guangdong market; finally, in the business field: since Watson’s own brand development base is mainly set up in Guangzhou headquarters, in order to reduce Market risk and capital investment, therefore, from data index research collection and target locking, to private brand marketing planning and development and promotion, from how to enhance the trading weight of own brands, and then to effective and harmonious agent brand and own brand Mutually beneficial symbiosis, from the tentative technical test of non-main business income, to the formation of effective marketization standards. All of the pilot work related to the level of productivity transformation will be first placed in Watsons in Guangdong, so the role played by the Watsons store in Guangdong is indeed not to be underestimated.

Yan Li, thousands of color shop ladies and nobles

Yan Li, the full name is the Yanli Cosmetics Center (hereinafter referred to as Yanli). In August 1995, the first store of Julie opened in Guangzhou, targeting Yanli in the middle and high-end consumer groups. In the location of the store, it also chose a high-profile strategy, which was mainly established in the high-end shopping plaza and the first-tier business district. Direct sales stores, such as Guangzhou Tianhe City, Shenzhen CITIC City Plaza, Shenzhen Vientiane City, Shenzhen Zhenxing Road and other shops, customers are often eager to linger, and the holidays are crowded and overwhelmed, and the company is mainly engaged in business. The market competition strategy of selling "low-price monopoly" of international brand products has continued.

In Guangzhou and Shenzhen, Yanli has attracted many white-collar female consumers with its graceful store decoration, good in-store environment and consumption atmosphere. Many people will experience the shopping experience of Yanli as a symbol of self-identity. Or as a tea to talk about mutual spending. After more than ten years of steady development, Yanli has already stepped out of the Guangdong region and extended its market outlets to southern China. Currently, more than a dozen stores are mainly concentrated in Guangzhou, Shenzhen, Shunde and Nanning.

As the most outstanding representative of the local cosmetics chain in Guangdong Province, “Shenzhen Qianshendian Commercial Chain Co., Ltd.” (hereinafter referred to as Qianshang Store), since its establishment in 1995, it has always adhered to the brand of “exquisite woman, boutique life”. The concept is to provide busy urban women with well-known domestic and foreign products with personality and taste, guiding trends, and authenticity, and strive to add color to urban women who pursue fashion and exquisite life.

The products managed by Thousand Colors are mainly divided into nine categories: skin care products, makeup, perfume, film, beauty, daily necessities, jewelry, leather goods, underwear. Among them are not internationally renowned cosmetic brands such as Lancome, SK-II, Shiseido, Clinique, CD, Estee Lauder, L'Oreal, Maybelline, An Lifang, KENZO, CK, BOSS, etc.

In Shenzhen, Qianshen is the only local cosmetics chain that can compete with foreign investors, Watsons, its unified shop decoration, good shopping environment and open-frame sales atmosphere, due to its market positioning in high-income cities.