The development of the Internet has brought about a new retail model, online shopping has become an integral part of modern life. In recent years, e-commerce in China's rapid development, the beginning of the major integrated e-commerce platform to solve the consumer "where to buy" difficulty, now the rise of vertical e-commerce, live e-commerce and short-video content e-commerce began to solve the problem of the beauty industry, consumers "what to buy". The bloggers are personally experiencing various brand products and giving the viewers grass.
Beauty e-commerce companies have used every trick in the book to attract a large number of loyal users, whether it's live selling on Jitterbug, Shutterbug, and Taobao, or sharing grass on Xiaohongshu. As the consumer army of generation Z gradually dominate the market, the development of beauty e-commerce will be more diversified, and the entry of capital makes the development of beauty e-commerce potential space becomes larger.
Major listed companies in the beauty e-commerce industry: Liren Lixiang (605136), One Net One Creation (300792), Ruoyu Chen (003010)
The core data of this article: China's beauty e-commerce penetration, China's beauty e-commerce industry transaction size, China's beauty e-commerce industry investment and financing
Investment and financing in the beauty industry Beauty e-commerce industry investment and financing
Upstream market: rapid development of China's beauty industry, e-commerce penetration continues to increase
With the rapid development of China's economy, the per capita disposable income of Chinese residents is growing steadily, and even though the growth rate will drop in 2020 due to the impact of epidemics, the growth rate will continue to increase in the long-term perspective. Under the environment of consumption upgrading, the market scale of the face value economy industry, represented by the skin care, color cosmetics and medical beauty industries, is expanding, showing the strong growth potential of the face value economy.
China's beauty industry has formed an industry chain of hundreds of billions of dollars after decades of development. In addition to the international big brands continue to enter the Chinese market, national beauty products are also emerging in large quantities, and the number of national brands in 2020 is growing at a much higher rate than foreign brands.
In recent years, beauty e-commerce service providers this track is exceptionally hot. With the expansion of online sales channels, as well as increasingly rich marketing scenarios, including short video platforms, social platforms, etc., the consumer market that brands can face has become broader.
On the one hand, from 2012 to 2014, due to the arrival of the mobile Internet era, people's consumption habits have gradually shifted to the mobile terminal; on the other hand, Generation Z is rapidly growing into the core consumer group of beauty, as a native netizen growing up along with the mobile Internet, the online purchase of cosmetics has gradually become the preferred way of shopping for consumers. Coupled with the current booming e-commerce industry in China, beauty e-commerce has become a leader in the development of e-commerce.
Industry Development Status
-- Beauty e-commerce diversified forms of transformation
As of now, the development of China's beauty e-commerce can be divided into three major phases: the budding period, the rise of the period, the storm clouds of the outbreak of the period.
With the development of the Internet, "online" gradually penetrate into daily life, the rise of beauty e-commerce has brought a lot of convenience for consumers and users to provide a more direct way to buy, a key to order, delivery to the home; but also to solve the drawbacks of the possibility of going to the store merchants out of stock.
China's beauty retailers have already begun to explore the online model:
In 2004, Xiangyi Benqiao set up an e-commerce platform.
In 2006, Sephora opened a Chinese online shopping platform, Taobao platform, beauty sales also reached 2.6 billion yuan in 2007.
After 2008, the comprehensive e-commerce platforms represented by Ali and Jingdong and the vertical beauty e-commerce platforms represented by Lepi and Jumeiyuping accelerated the e-commerce of beauty retailing, and each brand and each beauty store chain formed the online and offline synergistic development model. 2009 began with the popularization of 3G networks, the mobile Internet began to emerge, and by the end of 2013, 4G networks were emerging, and the mobile Internet entered a rapid development mode. By the end of 2013, the 4G network emerged, and the mobile Internet entered a stage of rapid development. At this time, international brands continue to pour into China, sweeping the mainland beauty retail market, and cooperate with major e-commerce platforms to develop online channels.
Live streaming with goods has now become one of the hot sales practices on various platforms since it was created on the Taobao platform in 2016. Thanks to consumer demand and changes in streaming patterns, live streaming has grown rapidly in the winds of the times and has become a young but much-anticipated industry. From the category point of view, cosmetics is an important sales category of live broadcast. Analysis suggests that live broadcasting helps the cosmetics category continue to grow at a high rate.
2020 double eleven Tmall platform sales of major cosmetic brands, in the opening two hours easily into the "100 million club"; Jingdong beauty category is also a bright performance, the opening ten minutes turnover growth of four times.
--e-commerce penetration continues to increase
Because of its high brand premium, e-commerce penetration is in the stage of rapid increase, become the core category of the operation, the rapid growth of the beauty industry driven by the beauty of the operation demand continues to rise. According to data published by Euromonitor, the penetration rate of China's e-commerce channel has also grown steadily from 10.0% in 2012 to 31.5% in 2019.
According to Jitterbug monitoring data, Jitterbug fashionistas have the highest live attention and the strongest power to bring goods. The core industries of fashion live broadcasting are mainly wearing and beauty. The lifestyle during the special period of the epidemic made the fashion industry suffer an abnormal impact on people's lifestyles. During the epidemic, live streaming became one of the hottest topics.
In May 2020, Giant Arithmetic released various data on Shake Beauty Live Streaming and found that from January to May 2020, in just five months, the number of users watching the broadcast increased by 122%, the number of hours watched increased by 257%, the number of 10,000-powder anchors also increased by 120%, and the number of live broadcasting venues increased by 187%.
With the rise of social media e-commerce and beauty-related KOLs, e-commerce for beauty products offers more convenient and wide-ranging options, and Chinese consumers are turning to e-commerce platforms. According to NetSense, the transaction scale of China's beauty e-commerce industry reached 15.16 billion yuan in 2019.
According to the third-party data disclosure of Ali, the largest online shopping platform in China, the GMV of the beauty category increased by 31.17% year-on-year in 2020 due to the impact of the epidemic, and based on this, China's beauty e-commerce industry transaction scale in 2020 was measured to reach 19.88 billion yuan, with the growth rate declining compared with that of 2019.
Industry Investment and Financing
- Beauty e-commerce financing of more than 1.95 billion yuan in 2020
In recent years, beauty e-commerce service providers this track is exceptionally hot. From this track has run out of one net one creation, if the feather Chen, Liren Lizhuang, Baozun and other beauty e-commerce service provider "giant", successfully knocked on the door of the capital market, harvested the market and capital recognition: beauty e-commerce service provider is a good business.
2020 capital on the beauty of the online market is still fully valued, according to the network of the "electric number treasure" e-commerce database (DATA.100EC.CN), from January 2020 to March 29, 2021, the beauty of the field of e-commerce **** occurred 26 investment and financing events, total financing more than 3.16 billion yuan, involving companies such as May Beauty, UP, MOODY , 4INLOOK , Ximuyuan, East Point West Point, Big Eyes Buy Buy Buy, Perfect Diary, Liran, Flower Knowing, and Pupil Hui.
Competitive pattern
--Multiple parties involved in the market competition
Currently, China's beauty e-commerce innovation model is diverse, and can be divided into comprehensive e-commerce platforms, vertical e-commerce platforms and content The three major types of e-commerce platform. Comprehensive e-commerce platform has a lot of advantages such as traffic, capital and resources, so in the layout of the industry is more rich; vertical e-commerce platform is generally a start-up company, and beauty brands directly contract and their own brand products, most of the same time with APP and small program, but the lack of traffic-driven operations; content e-commerce online traffic is sufficient, but supply chain lack of upstream products, the downstream logistics is not mature.
--The three major modes have a place
Comprehensive e-commerce companies represented by Jingdong, Tmall, etc., rich in traffic, with a strong brand advantage, but at the same time a wide range of commodities, consumers are prone to picking the eyes of the huge number of merchants, resulting in a comprehensive E-commerce platform on the authenticity of the product is more difficult to check;
The vertical e-commerce companies represented by Liren Li-Makeup, Jumei Youpin, etc. focus on the beauty of affordable, discounted mode of operation, generally and the beauty of the brand in direct cooperation with the source of the industry chain began to intervene in the chain link, at the same time, with the category, the price advantage, but due to the product is more single, fewer types of products leading to a narrower choice of consumers, the user's viscosity is weaker;
Jittery voice is the most important element in the development of the industry. /p>
Content e-commerce represented by Jitterbug and Xiaohongshu is the most popular new e-commerce model in recent years, the business of the product through the blogger and the star's live broadcast marketing, or recording short videos to write reviews for consumers to grass, and finally consumers in the platform directly involved in the purchase. However, the quality of goods lacks standardization, and there are also pain points that make it difficult to identify real and fake goods.
Overall, the three modes have their own advantages and disadvantages, and all of them have occupied a place in the market.
--Comprehensive beauty e-commerce is located in the first echelon
While content-based e-commerce platforms with a strong content sharing attributes, so that it has become a high-trust object for consumers to generate shopping demand, choose brands and commodities, and share the use of commodities, it has also become a natural seed for KOLs. At the same time, it has also become a natural grass-raising platform for KOLs.
The new media marketing game of Xiaohongshu platform is mainly to take advantage of the fan influence of the head KOL and the consumer's trust in the waist-tail KOL, to deepen the consumer's memory of the brand or product through the graphic, short video, and live broadcasting form of the construction of the matching recommendation, evaluation, with goods, unboxing, notes on the experience of grass pulling, and other grass to deepen the consumer's memory of the brand or product, and to guide the consumer to achieve conversion through the mall or external trading channels. The company's products and services have been widely used in the market for a number of years.
However, at the end of the day, a large portion of consumers still go to comprehensive e-commerce platforms to buy the products they need or have been weeded. The 2020 China Internet Annual Report, published by QuestMobile, found that almost half of Jittery Voice and Shutterbug users went to Taobao to buy goods after watching live or short videos, one-third went to Pinduoduo, and a portion of users went to Jingdong to buy goods.
Star chart data show that in 2020, the whole network of double eleven beauty sales of 15.4 billion yuan, an increase of 38% year-on-year; Tmall official data show that in 2020, double 11, *** 30 brands Tmall turnover exceeded 1 billion yuan, and the beauty brand accounted for 7 seats. In addition to the 2019 double 11 has stepped into the "billion club" Estee Lauder, L'Oreal, Lanc?me, OLAY, after Whoo, SK-II, Shiseido become "billion club" new members.
Comprehensive e-commerce platform due to a strong source of goods and flagship stores and other relatively high credibility of the store, as well as perennial accumulation of strong viscous customers, and there are also a part of consumers in the live e-commerce platform to understand the goods, or choose to return to the large-scale integrated e-commerce for the purchase of goods, so the comprehensive e-commerce platform in the surge of live broadcasting + short video and other content e-commerce impact! Under the still occupy the first echelon of China's beauty e-commerce.
Development prospects
--Market size is expected to exceed 100 billion yuan
In recent years, the Internet and the development of digital technology technology has brought about sweeping changes in people's lives. The use of the Internet has made our lives more convenient and faster. Online shopping has become an indispensable part of modern people's lives, especially for e-commerce such as beauty, they not only solved the pain point of consumers' purchasing channels, but also solved the difficulty of commodity shopping, so they are more and more sought after by the public.
China's beauty e-commerce their development with the upgrading of the public's consumption level, the increase in demand for beauty products and the expansion of social media traffic, in the future will usher in a new peak. But with the hot development of the beauty e-commerce industry, there will be a corresponding product quality control problems, the State Council issued the "Cosmetics Supervision and Administration Regulations" has been implemented on January 1, 2021, reflecting the future of the government's management of the beauty e-commerce will be more and more stringent, the development of beauty e-commerce will be heading towards a more formal road.
In the future, China is still a global cosmetic consumer market with potential, and more and more international brands and local brands will join China's e-commerce platform, and continue to sink into the consumer market at all levels of the city as well as various cosmetic consumer groups. According to the net economic data, in 2019, China's beauty e-commerce industry transaction scale reached 15.16 billion yuan. 2020, China's beauty e-commerce industry transaction scale reached 19.88 billion yuan;
The future of the cosmetic e-commerce industry is still in the dividend period, the market size will continue to grow steadily, with a compound annual growth rate of 40.3% or so, and it is predicted that by 2026, China's beauty e-commerce industry transaction scale will exceed 140 billion yuan.
-- For more industry-related data, please refer to the China Beauty New Retail Industry Market Outlook Forecast and Investment Strategy Planning Analysis Report
.