What are the growth opportunities for beauty this year?

"Fight the first battle"

editorial comment/noteA year’s plan lies in spring, and the industry changes and waits for no one. What new trends will emerge in the industry in 2023? Where is the new growth point of the market? Based on the upcoming 6th China Cosmetics Trend Conference on February 13th, Qingyan interviewed the founders and professionals of 30+ well-known companies at home and abroad, and helped the cosmetics industry get off to a good start with fresh views.

(in alphabetical order)

A Yan, general manager of Tmall beauty, perfume and fragrance and men’s care industry
"Brand Power"+"Goods Power" Two-wheel Drive Growth

In the future, the beauty market will show the following seven main trends: 1. In 2023, the beauty industry will show a good trend of "suppressing first and then promoting". For beauty brands, follow the general trend in the rhythm of pushing new products, and at the same time expand category richness and maximize demand creation. 2. Continue to deeply embrace the Internet and release the crowd penetration bonus. 3. The constituent party population will continue to grow, consumers will pay more and more attention to efficiency, and brands must grow through the two-wheel drive of "brand power" and "goods power". 4. Brands need to provide consumers with more emotional value through marketing, such as cultural traceability, national feelings, female power, sexism, olfactory economy, face value economy and so on. 5. The comprehensive strength of domestic cosmetics will be advanced, and domestic brands can seize this opportunity to continuously expand their own matrix. 6. In the new year, more brands will focus on improving their R&D strength and creating more patents and exclusive ingredients. 7. Policies will promote the optimization of industrial structure, force the industry to upgrade, promote the beauty industry to become bigger and stronger, and achieve healthy, orderly and high-quality development.
Rational skin care promoter bing Han

Oligopolization will continue.
Under the pressure of new regulations, enterprises are in a hurry, helpless under the influence of epidemic situation, fearful under weak consumption, the disappearance of small and medium-sized enterprises and the formation of oligopoly trend.

In the new year, oligarchy continues, small and medium-sized brands continue to be difficult, and the cosmetics industry is increasingly out of touch with ordinary people.

In the future, new brands will either have new ingredients or be rich, but in any case, they must have their own technology and characteristics, otherwise there will be no chance even if they are rich.

Haa co-founder Bai Xue

Speculation will be shuffled.

There are two kinds of innovations in the industry: minimally invasive products and great brand innovations. Micro-innovation needs to be done all the time, and it is the daily work of the brand to continuously optimize products and services according to the feedback from the market and consumers. Brand innovation takes time, such as developing new raw materials and applying for patents with high gold content, which takes at least two or three years to settle, and it is difficult to achieve it in a short time.

In addition, affected by the uncertainty inside and outside the industry, the industry flow dividend and capital dividend will gradually decrease, and the industry will return to stability and be less impetuous. Brands that do things will be more determined to do things, and speculative behavior will be shuffled.

Chen Shaojun, Chairman of China Fragrance, Flavor and Cosmetic Industry Association

Seize the opportunity of the industry from quantitative change to qualitative change

After decades of rapid development, the current industry R&D and sales have encountered bottlenecks. In terms of research and development, there is an opportunity to break through the stock through the integration of various cutting-edge sciences, but there has not been a substantial breakthrough. In terms of sales, Internet dividends, like traditional sales models, are basically stock consumption, and new breakthroughs are expected.

In addition, the industry should pay attention to cross-border cooperation, such as deep integration with beauty salons in products and sales models, and expand the space for flexible production; Attention should be paid to cutting-edge, and the ideas of these enterprises often give new inspiration to the industry.

In short, I hope that the industry will seize the opportunity from quantitative change to qualitative change based on R&D, efficiency as a breakthrough, science and technology as a guide, internal strength as a cornerstone, comprehensive innovation as a purpose and head enterprises as a benchmark.

Liang Dong, co-founder, chairman and CEO of Zhongke Xinyang

Synthetic biology will further open up the application space

At present, raw material innovation is the biggest pain point in the beauty industry. Taking domestic cosmetic raw materials as an example, it has long been dependent on imports, and its independent research and development ability is insufficient, and raw materials are precisely the focus that determines the efficacy of products and consumers’ attention. To do a good job in products, we must first do a good job in science and technology. Many domestic beauty brands are increasing their investment in basic scientific research, and upstream raw material enterprises, especially synthetic biology enterprises, are widely favored by capital and market.

Synthetic biology technology can realize the iteration of raw material production mode, improve safety, stability and biological activity, especially customize this kind of substance according to specific requirements, which can meet different skin needs and achieve accurate goals; Solve the pain points and shortcomings of many classic raw materials, and further open up the application space; Synthetic biology, as a low-carbon, green and environmentally-friendly cutting-edge production method, can effectively reduce the carbon emissions of cosmetics enterprises and achieve the national carbon-neutral development goal, which is also an inevitable choice for the new trend of Clean Beauty cosmetics.

Ding Wenfeng, founder of Shenzhen Weiqi Pharmaceutical R&D Co., Ltd.

The beauty market will continue to "look east"

China’s beauty market will continue to "look eastward", and the market focus will further shift from Guangzhou in South China to Shanghai, Hangzhou and other East China cities; In addition, many domestic counterparts are actively deploying overseas markets. For example, Vicky Technology has set up offices in the United States and France. From the category point of view, there have always been opportunities in the beauty industry, such as whitening, hair loss prevention, mosquito repellent and other market segments, and there are still many opportunities to be explored.

Innovation is bound to be the main theme. I believe that in the future, more and more new raw materials will be successfully declared in the national catalogue and become an important value in products. But good products are not only the accumulation of raw materials, but also require brands to have a deeper understanding of their own products, channels and consumers. Vicky is willing to continue in-depth study in this area, enhance her understanding of the beauty market, and share resources with the whole industry.

Fan Jun, President of China Department Store Business Association

The advantages of leading enterprises will be more obvious.

The trend of the beauty market may change: First, the advantages of leading companies are more obvious, and the group market share of cosmetics is relatively concentrated. Second, explosive information infusion and frequent marketing events have contributed to the "explosive product strategy" of the industry. Third, the number of entrants has increased and brand competition has intensified. Fourth, the rise of the national tide continues to occupy an increasingly important position.

In terms of categories, high-end functional skin care products, personalized makeup, combination suits and lipsticks will continue to show hot spots and maintain growth.

Fan Wenhua, founder and chairman of Fan Wenhua facial care chain

Online and offline must work together and be strong.

In the future, the beauty market in China will show the following trends: First, the regulation and supervision will continue to be strengthened, which will promote the development of the industry to be healthier, and at the same time, it will continue to speed up the reshuffle of the industry.

Second, for consumers, the fragmented consumption environment needs a fragmented service model. It is difficult to solve customers’ skin care pain points and needs simply by offline store experience or only by online channel sales of skin care products. Therefore, online and offline work together to meet users’ needs and make enterprises have a virtuous circle effect.

Third, technological empowerment will be further enhanced. Users will make their first choice because of "brand", but it must be "efficacy and experience" that can keep customers choosing. Therefore, we see that more and more brands begin to attach importance to research and development, and begin to analyze users’ skin problems and needs with various high-tech applications such as AR and artificial intelligence, so as to give users better solutions and experiences.

Fu Yanhong, Business Director of DSM Personal Care and Fragrance Materials in Greater China

Pure beauty is a reflection of sustainable response.

In the communication with upstream and downstream enterprises, we are glad to see that more and more brands or consumers are beginning to respond to sustainability. In fact, the popular "pure beauty" in the industry is also a reflection of sustainable response. In this regard, DSM has also been updating its product line. At present, we have updated a number of products to the Clean Beauty version, which can respond to consumers’ demands for environmental protection.

In order to maximize the positive impact, we strive to instill sustainability strategies in every stage and every field of operation. In order to promote this process, we have introduced the principles of sustainable procurement and sustainable innovation, hoping to implant the concept of sustainability at the start-up stage. At the same time, we also hope to encourage more enterprises to join the ranks of sustainability, penetrate the concept of sustainability into all aspects of business, emphasize the value of sustainability, and help our brands better serve end consumers.

Fang Xiangming, CEO of Shanghai Quanli Biotechnology Co., Ltd.

It will develop better to be specialized and strong.

In 2023, which is full of uncertainty, a big factory that does everything by itself may not be the only way to develop, but a business model that is specialized and strong and can produce flexibly will be better.

Copy a little of any new market ideas, and if you don’t continue to strengthen your core technology, it will only be consumed in the domestic market in the end. For example, some domestic manufacturers can synthesize boson, which is really powerful, but if their eyes are enlarged to the international level, can’t India synthesize it? Other people’s markets may not be smaller than ours, the cost of enterprises may not be higher than ours, and others may not be playing against the United States …

Personally, I still feel that we should take inspiration from what we are good at and inherit from China to continuously strengthen the enterprise foundation and encourage domestic counterparts to cooperate. A lot of repeated investment (especially capital and equipment) is unnecessary or even harmful for at least two years.

Fan Yuan, Vice President of Huaxi Biotechnology Co., Ltd.

Innovation in research and development of new raw materials is the key

In the future, China’s skin care market will still take "scientific and technological innovation" as the primary condition, accurate and safe skin care efficacy as the necessary condition, take research and development as the main orientation, and take the iterative upgrade of big star products as the product operation strategy to build market competitiveness and enhance brand competitiveness and consumer cognition.

Consumers’ acceptance of domestic products will be higher and higher, especially functional skin care products, and the innovation of new raw materials is the key. Consumers of beauty cosmetics and skin care in China are smart consumers, and the efficacy and safety of cosmetic raw materials are the primary factors in their choice. The classified management of new cosmetic raw materials by market supervision will further stimulate the enthusiasm of enterprises for R&D and innovation.

Huaxi Bio-raw materials started from scratch, and took the lead in arranging synthetic organisms. Two research platforms and six technical platforms built a sustainable innovation R&D system of Huaxi Bio, which ensured more development space for the follow-up innovation of skin care-grade raw materials of Huaxi Bio.

Gong Tiangui, founder and &CEO of Huaxikou

"Sustainable pure beauty" will become the main theme in the future.

Increasingly rational consumers have regarded efficacy as a hard indicator of payment, and with the increasing supervision, the beauty market has entered a new stage of success or failure based on "product efficacy".

"Sustainable and pure beauty" will become the main theme in the future. In 2023-2024, the innovative direction of skin care in the global market ranked green, pure and natural, while the domestic "double-carbon" strategy was launched, and the trend of "pure and sustainable" became more concrete. Besides paying attention to efficacy, the brand’s performance in ingredient safety, environmental protection packaging materials and corporate responsibility was becoming one of the important indicators for consumers to choose, and it was also a key link to enhance brand and product loyalty. The prosperity of pure beauty just confirms the signs of "sustainable" development.

Huang Xiaodong, Chairman of Mofa Shijia

Functional skin care is just needed.

With the increase of problem skin, and the expansion of the team of component party and efficacy party, functional skin care has become just needed. Correspondingly, consumers have higher requirements for product efficacy, safety and quality. At the same time, based on the continuous updating of user needs, category development tends to be subdivided, younger and diversified. In the overall stable development of the beauty market, product efficacy and brand protection are important considerations for beauty and skin care consumers.

In the past 15 years, Membrane Family has always focused on mask categories, leaving users with the brand impression of "specializing in masks". In the future, we will continue to deepen the cultivation of mask categories, and take efficacy as the king and precise skin care as the cornerstone, further subdivide the efficacy of mask products, accelerate the breakthrough and innovation in the four fields of anti-aging, acne, whitening and repair, deepen communication with users, and meet the needs of users as much as possible.

Huang Yongzhen, President of Amore Pacific China

The demand for functional skin care is increasing day by day.

With the change of social environment and the rise of social media, consumers in China are increasingly demanding functional skin care. More and more concepts, such as early C and late A, sensitive skin care and so on, quickly entered the field of vision of consumers in China, and the consumption mentality of functional skin care gradually matured. We believe that there is still plenty of room for development in this track in the future.

At the same time, consumers’ demand for environmentally and socially friendly products is increasing day by day, and the impact of sustainability on purchasing decisions is also increasing. To this end, we promise to embody 100% environmental/social friendly attributes in new products and carry out brand activities to promote customers’ sustainable lifestyle. For example, Yue Shi Feng Yin Lan Capsule Cream uses renewable environmental protection packaging materials and plastic-reducing replacement equipment; The bottle cap and body of Fu Li Myna’s soothing and repairing moisturizing cream are made of renewable plastic and glass respectively, and the instructions are printed on the packaging box to reduce unnecessary resource consumption.

Huang Jinfeng, founder, chairman and CEO of Yixian E-commerce

The new pursuit of skin care brings more opportunities for cutting-edge brands

With the advent of the post-epidemic era, consumers in China pay more attention to healthy lifestyles, and the demand for products to maintain skin health and solve skin problems will rise rapidly. Refinement of skin care, pursuit of use effect and more attention to product ingredients have become the new pursuit of skin care for the younger generation of consumers, which has also spawned more vertical and layered consumer demand points such as sensitive muscle repair. This will bring more opportunities for cutting-edge brands.

I believe that in the future, more beauty brands will integrate their own and external, and even global scientific research forces to launch more high-quality functional cosmetics according to the skin characteristics and problems of China people, which contains huge imagination.

Jiang shubo, manager of siqinuo brand

Raw material customization will become a brand standard.

The track is more "diversified", for example, the number of people who repair after skits, men’s skin care and medical arts will increase; Scenes are more "subdivided", such as outdoor camping and emotional healing at home, which will bring new demands; R&D is more "involuted", and raw material customization will gradually become the standard of every brand, and the first player will get a bonus.

We see that bionic, bio-fermentation, synthetic biology and precise targeted regulation are the main directions of cosmetics research and development in the future. Therefore, Schino is rooted in the track of "precise skin care" and puts forward an exclusive four-quadrant research and development formula of "precise skin care": core component screening+carrier transportation system+formula design tool+clinical efficacy evaluation, and takes the above paradigm of "precise skin care" as the guiding ideology of research and development.

Next, based on the scientific logic of the R&D model, we will strive to solve key problems such as targeted delivery, active sustained release, transdermal absorption and efficacy quantification, and make truly safe, scientific and effective products.

Kangle, head of Aauto Quicker e-commerce beauty cosmetics personal care industry

Brands can try to expand multiple channels.

From the category point of view, I think the beauty brands that focus on pure ingredients, excellent makeup effect and efficacy will be further developed. In terms of channels, beauty brands can actively try to expand more channels, such as community e-commerce, take-away platforms, etc. For example, Watson has settled in Meituan, Nature Hall has settled in Hungry, and opened up different retail channels to gain more sales growth. Possibility.

Specific to our live e-commerce platform, beauty businesses are also facing more requirements and changes. On the one hand, platform merchants must adhere to laws and regulations, serve consumers well and fulfill their trust; On the other hand, it is also necessary to continuously improve the ability of content to plant grass, and better show the product characteristics and advantages through short videos and live broadcasts.

In addition, I expect that more and more brands will make more attempts in the meta-universe layout in the future. Online purchase of products that cannot be tried has always been the biggest reason why many consumers have doubts about the quality and effect of products. The application of meta-cosmic technology has brought new ideas to solve problems, such as AR makeup fitting and virtual makeup, which can effectively restore the offline makeup fitting experience, and virtual anchor can further solve the problem of business efficiency.

Liu Wei, former president and director of dermatology hospital of Air Force General Hospital.

Skin care for children is a new direction.

At present, more and more dermatologists are joining the cosmetics industry, and they provide professional knowledge from many aspects, such as basic skin problems, basic lesions and sub-health problems, which are helpful for enterprises to set a correct direction for research and development. For example, sensitive skin, anti-aging, acne, skin barrier damage and other issues are the focus of product development.

Besides, children’s skin care is a new direction. The new regulations can not only ensure the safety of children’s products, but also provide a basis for the development of children’s products. At present, pediatricians have joined the cosmetics industry, so I think the development of children’s cosmetics will break out in the next few years. Accordingly, in the field of children’s cosmetics, it is very necessary to carry out research and development exploration and innovation, and finally create their own brands.

Professor Herry Liu, School of Life Science and Technology, Huazhong University of Science and Technology

Bio-fermentation technology helps the development and utilization of characteristic plant resources

The new regulations on cosmetics clearly point out that "it is encouraged to research and develop cosmetics by combining modern science and technology with traditional advantageous projects and characteristic plant resources". Therefore, using bio-fermentation technology to help the development and utilization of characteristic plant resources is one of the innovative angles of bio-fermentation raw materials in the future. The future trend is more likely to be the common development and integration of biological fermentation technology, plant extraction and chemical synthesis.

At present, there are three main forms of bio-fermentation technology used in cosmetics: the first is the fermentation products of special proprietary strains, such as Pitera live cell yeast essence and bifidus yeast fermentation product lysate cultivated by Bifidobacterium Estee Lauder; The second is to use fermentation technology to replace the monomer active ingredients obtained by traditional chemical synthesis, such as the hot functional ingredients such as ekdoline, sodium hyaluronate and ergothionine. The third is plant fermentation. The activity of enriching nutrients through microbial fermentation is much higher than that of traditional plant extraction methods, and at the same time, it can effectively reduce the toxicity of plant components.

Huazhong University of Science and Technology National Nanopharmaceutical Engineering Technology
Professor Liu Wei of Research Center

Cosmetics will enter a new era of "precise skin care"

In recent years, well-known domestic dermatologists and cosmetics experts innovatively put forward the concept of "precise skin care", aiming at different skin problems, through research and excavation of the mechanism of skin problems, from the precise anchoring of skin targets/functional pathways, to the precise screening and scientific combination of active ingredients, to the precise transdermal delivery of core active ingredients with high bioavailability, so as to realize "precise skin care" of functional cosmetics.

It can be predicted that functional cosmetics will enter a new era of "precise skin care" in the future, and the research and development of high-performance functional skin care products need to comprehensively apply life science and technology, as well as multidisciplinary collaborative innovation such as dermatology, dermatopharmacology, dermatopharmacy (transdermal drug delivery technology) and cosmetic formulation technology. Therefore, constructing the theoretical system of "precise skin care", guiding the research and development of high-performance and functional cosmetics, and applying innovative technologies under the guidance of innovative theories will be an important development trend of high-performance and functional skin care products in the future.

Liu Chuangao, founder of Golden Beetle

Changes in the beauty market depend more on policies.

I think a lot of big probabilities of market changes do not depend on the market or industry, but on policies. For example, for example, the "double reduction" of the education and training industry is only a guiding opinion and almost kills an industry. Therefore, what changes the industry will have in the future depends more on the policy level than on the industry or market level.

As far as beauty retail is concerned, offline and online are now in an anxious balance point, and the cost of online is not low. One of its opportunities to break offline is that the rent burden of the entire physical store can show a gradual downward trend. At present, the rent is almost the highest expense of all physical stores. From this perspective, if the future rent can decline and reach a balance, then this may be an opportunity.

Ian Xu, Head of HARMAY Huamei Market and User Operation

The consumption potential of male cosmetics market is great.

The loose epidemic policy and the return of offline people will bring a recovery period for offline people entering the store. Matching the increase of passenger flow, further promoting the degree of specialization in the service field and thus promoting the transformation will become the focus of the store. At the same time, it will also be an advantage opportunity under the new round of policy stimulation to build brand power, enhance the brand memory of customers entering the store and the innovation drive of private domain communities, and keep the flow of people in the private domain of brands to the greatest extent.

With the continuous promotion of the concept of beauty and skin care, the current male consumers’ willingness to buy cosmetics and price acceptance are constantly improving. Compared with women’s cosmetics market, men’s cosmetics market is still in the blue ocean market, with great consumption potential, and the market needs to be further explored.

Mai Yaoya, Vice President (Marketing Planning) of Northbell Cosmetics Co., Ltd. and Chief Executive Officer of Northbell (Hangzhou) Company.

Cosmetics market has officially entered a rational era.

In 2022, it was called "the first year of efficacy" by many people in the industry. After a year of "efficacy education", the market’s choice of skin care products has become more and more professional, and the scientific proportion of ingredients has become the new key to appeal. CBNDATA shows that the proportion/formula of concerned ingredients is as high as 73% in consumers’ attention to the ingredients of skin care products. This also indicates that the cosmetics market has officially entered a rational era, and focusing on research and development technology, reshaping majors and seizing consumers’ minds are important breakthroughs.

Therefore, it is the direction that Northbell is working hard and will continue to work hard in the future to strengthen word-of-mouth shaping, scientifically match efficacy and bearing forms, and realize differentiated and advanced products.

Maggie, co-founder of Pellet Group

Make-up+skin care has become a trend

In the channel change, from the original "operation-driven" to "content-driven", a large number of content-driven channel enterprises will be born. Realize mutual projection between online and offline: online planting grass drives offline trial, offline service, instant satisfaction, etc. promote user purchase conversion, and feed back online product word-of-mouth communication.

On the consumer side, consumers tend to be younger, domestic brands rise, and national style elements are increasingly sought after. In addition, the consumer groups of "component party" and "efficacy control" are dominant, and consumption tends to be rational.

On the product side, innovative product thinking combining makeup and skin care is needed. At present, the cosmetics market in China is in the growth stage, and it is necessary to meet the diversified beauty care needs if you want to stand out among many brands. Consumers all hope to get long-lasting and high-performance cosmetics, especially those that use skin care ingredients to provide moisturizing and durability.

Ruan Jinjian, Deputy General Manager of Jinsheng New Materials

The overall trend of packaging materials is multi-material fusion.

In the coming year, China’s beauty market should be more finely divided, and each brand will strive to highlight its own brand power. At the same time, the beauty market will pay more attention to the individual needs of consumers, and there will be more and more cross-border brands, personalized products and cross-border products.

In 2023, the overall trend of beauty packaging is the integration of multiple materials, simplicity is not simple, low-key luxury, exquisite personality; In terms of plastic packaging containers, the proportion of environmental protection materials will be higher and higher. The market performance of beauty packaging in 2023 should be on the rise as a whole. However, due to the need for a stage of macroeconomic recovery, the proportion of small-batch orders will rise.

Wu Qinglin, founder of Merrill Lynch Beauty Cosmetics

Offline channels should do two things well.

Personally, I think offline channels should be done from two aspects. First, we should strengthen the superiority of goods. The optimization of commodities probably includes eliminating unsalable products in time, introducing new products in time, purchasing seasonal products and best-selling products in advance, and forming a reproducible product selection model. In this way, with the continuous optimization of our products, we can further improve the competitiveness of our stores.The second is team building. It probably includes these aspects: first, competitive salary; Second, there is an open, inclusive and equal corporate culture; Third, a more optimized staff training system, so as to create an excellent management team and management team.

Xie Yong, founder of Plant Doctor brand and chairman of Beijing Plant Doctor Biotechnology Co., Ltd.

Focusing on market segments is a good way to survive.

As for the long-term change direction in the future, in fact, the markets in Europe, America, Japan and South Korea have given us a good reference, that is, the market is constantly concentrated, and there is also a long-tailed differentiated market, which will lead to several things. First, a few companies will get more and more resources. Second, if they want to survive, they will either give up the market, divide it or occupy some more differentiated market space.

China is a market with a vast territory, very complicated levels, and its consumption habits and customs are greatly different from those of other countries, which also creates many opportunities for some long-tail markets of brands. If a brand wants to survive, it is a good way to focus on a market segment, which is also a way to avoid being concentrated.

General Manager of Kose Cosmetics Sales (China) Co., Ltd. Kazuhara Shinohara

Will pay more attention to the creation of new beauty methods.

Skin care products, especially high-end skin care products, not only exert their strength in efficacy, products and technology, but also pay great attention to the texture and aroma of products. These elements are also very necessary for the success of a skin care product. Good packaging, skin feel and fragrance will bring people a sense of pleasure. This sense of pleasure can give people psychological hints, which will stimulate the spirit and make the body and mind happy, thus achieving a good skin care effect.

Therefore, compared with the breakthrough in composition, brands like Deke, which rely on the concept of "comprehensive beauty", will pay more attention to the creation of new beauty methods. In the future, we may focus on the adjustment and creation of the internal mechanism of the human body, for example, by promoting the production of happy hormones in the human body, to strengthen the beauty of the body itself.

Wei Xue, Managing Director of Northeast Asia of Beiersdorf Group

Technology skin care and precision skin care have become the new normal.

Under the background of economic recovery, China’s fast-growing domestic consumer market is an important development opportunity for us. The rapidly growing demand of China consumers for high-quality and personalized products naturally brings us huge development space for foreign-funded enterprises.

Looking into the future, consumers’ demand for products will change greatly, and they will constantly improve the requirements of product efficacy, which will make scientific skin care and precise skin care become the normal state in the future. At the same time, we also found that China’s digital technology innovation is a very valuable opportunity, which is also an important factor to attract many enterprises to invest and develop in China.

Nowadays, the mode of "technology+skin care" has become an important development direction of the industry in the future. Therefore, in terms of digital construction, Beiersdorf has been perfecting the digital infrastructure construction and actively establishing his own digital talent pool with the help of digital platforms and tools. Strengthening cooperation with China enterprises in innovation, especially in digital economy, is undoubtedly of great significance to enterprises.

Yue Min, General Manager of Baiyuete Biotechnology (Shanghai) Co., Ltd.

Strong efficacy mask is still the first choice for brand star products.

Aiming at the skin care needs of specific people, providing diversified life and different scenes, ampoule essence and powerful facial mask are still the first choice for brand star products. In addition, the functional food sector is also one of the future opportunities. Baiyuete has completed the research and development of TCI999 ancient prescription bacteria with the efficacy of large-scale IRB human clinical experiment and TCI188 tooth-whitening beneficial bacteria fermentation essence, which can expand the horizontal product sales matrix for the brand. Recently, we also launched a new probiotic cream for children’s skin allergies, which will be on the market soon.

Jolie, founder of Luoyang Color

Specialization will become the core competitiveness of physical stores

After several years’ development and the change of consumer habits caused by the epidemic, online new media will gradually become the main channel, and physical stores will face a more serious traffic crisis. In the future, physical stores will definitely strive for the ability to retain customers and lock customers, and specialization will become the core competitiveness. Therefore, products and services are constant topics. As a physical chain, we need to provide consumers with differentiated products and services with visible effects.

Zhu Hong, General Manager of Guangzhou Zhongtong Biochemical Products Co., Ltd.

Meet the needs of market segments

The breakthrough point of cosmetics lies in creating products to solve the demand, just as P&G’s earliest 2in1 shampoo solved the problem of convenient hair washing, and has been leading the market for 30 years. Many of our current cutting-edge brands are meeting the needs of increasingly segmented people. No matter how big this group is, as long as it is really in demand and can form repurchase stickiness, there will be a chance to form a breakthrough point. The improvement of current information and data services can get inspiration from past experience to create products, but the key to the breakthrough point of products lies in people, and the truth that customers don’t know what they don’t know is eternal.

Zhang Chubiao, Chairman and President of Danzi Group

Brand Breakthrough Driven by Category

Generally speaking, China consumers are upgrading from basic skin care to exquisite care, and the sales of essences, creams and high-end masks will be further improved; At the same time, users’ pursuit of skin care products has entered a high-quality stage, and it is becoming more and more mature for domestic products to focus on creating high-end star items and drive brands to break through by categories. There are only a few basic categories of skin care products and make-up, and it seems that they have almost been finalized.

However, if we have in-depth insight from the perspective of users, we can find many opportunities for innovation. Taking facial mask as an example, after the basic models of facial mask and mud film, peeling facial mask, good night frozen mask, bubble facial mask and freeze-dried facial mask have appeared in the industry. Now, there are some brands that combine micro-current into the face film, and also add the effect of electronic beauty.

I think, because the market in China is large enough, as long as it can meet the needs of a small number of people, it can support the survival and development of a category or brand.

Zheng Chunying, Chairman of Galand Group

In 2023, "digital drive and efficiency are king"

In 2022, thanks to three years of digital construction, organizational change and product innovation, Galand achieved sales of +2.6% year-on-year and maintained 43,000 retail terminals; 15.04 million new consumer data assets were added. More importantly, we have also gained a lot in digital transformation. At present, the proportion of our digital camp has reached 98.8%, which is 50.8% higher than that of 2019. The proportion of digital retail reached 67.1%, an increase of 105.7% compared with 2019. Among them, Nature Hall’s digital revenue accounted for 99%, and omni-channel digital retail reached 67.2%.

Facing 2023, Galand Group will increase its revenue, that is, the target will increase by 18%; But also a substantial increase in profits; We also need high-quality growth, that is, from scale growth with only sales volume but no quality to quality value growth. To this end, we need to do the following three things well: carry out overall organizational changes; A plate of goods should begin to play a role in improving efficiency and reducing costs; Strengthen process management and improve performance management.

At present, we are in an era of increasing uncertainty, and we don’t know what will happen when we wake up every day, and the business risks of enterprises are getting bigger and bigger. Everyone should have a clear understanding of this. In the new year, we need to go hand in hand with the brave, face the severe external situation together, set higher goals and make major changes: digital drive and efficiency are king.