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Why the cosmetics industry are favored in the shopping center?

Date: 2017-07-18
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Instead of being a simple cosmetic store, shopping centers offer more lifestyle experiences and purchases for younger, upper-class people. For example, high-end cosmetics brands can be individually equipped with beauty parlors to meet the deep lifestyle needs. The company is located in:


In recent years, the retail industry has been paying close attention to how to seek a break in the face of adversity. The reason is that consumers are more knowledgeable, pay more attention to quality and experience than ever before, and pay attention to social networks at the same time. Consumers disposable incomes continue to increase, but loyalty is harder than before.


In such a rapidly changing environment, two types of events in the cosmetics industry sparked our thinking. First, the distribution of Korean and domestic mid-range cosmetics stores in China's shopping mall channels has become more and more active: more and more brands of South Korea's first cosmetic group Amore Pacific, such as Hyatt Regency, Edith House, and Another Korean brand TonyMoly have settled in Hang Lung Plaza, the Aegean Sea and other shopping centers.


Second, more and more shopping malls have introduced separate department store cosmetics stores: Hong Kong Hysan Place introduces DFS Group's Tallel Cosmetics Zone, and Taipei 101 Taipei has introduced 4,000 square meters of SOGO department store.


We can not help but have a question: why more and more cosmetics favor shopping center? Next, the author explores how consumers' values diverge, and how differentiated consumer values drive the cosmetic industry to refactor channels.


Consumer differentiation of values


The underlying reason behind this series of events is the divergence of consumer values that has made it difficult for traditional cosmetic counters in department stores to meet the diverse needs of consumers. For women of different ages and different purchasing power levels, the differentiation of consumer demand is more and more obvious. Next, we will classify the groups of women who purchase makeup by age group (young / old) and different purchasing power (mid / high end) to explore the differences in needs and value differentials among various groups of people.


1. Older age (36-46 years) in the high-end women.


The elder middle-aged women are generally more capable of spending power, pay more attention to the quality of the products, have a higher level of cognition of the brands, and online shopping occupies a smaller proportion of all their shopping ways and often patronize large well-known shopping malls. Shopping on such people have a greater impact on the factors of both TV ads and product reputation, as well as in-store promotions and sales staff.


Further investigation found that the more prevalent middle-aged women, promotional discounts, membership points and other incentives for their shopping the greater the impact. As a result, cosmetics counters in large, traditional department stores can satisfy most of the needs of older women.


2. young (18-25 years old) high-end women.


The spending power of young middle and high-end women is gradually increasing and is the mainstream consumer group in the future, paying more attention to the quality and efficiency of service (the efficiency of service means the convenience of purchasing goods). They typically pursue excellence in service and a highly personalized experience while focusing on product performance.


At the same time, the influence of social media on them can not be underestimated. Online shopping accounts for a large proportion of all their shopping methods, and they share product information primarily through social networks and websites.


Data show that 600 million of China's 1.3 billion people are active in social networks, especially urban consumers, and are more eager to exchange information through social media. Whether it is foreign YouTube or domestic Sina Weibo, in a similar social platform, there have been a large number of beauty bloggers emerged, acting as the opinion leaders in the field of cosmetics, pointing to young women.


A further breakdown of the young middle and high-end groups found that the more biased towards the mid-end young women, the more they have a stronger brand awareness, and more through the brand to express themselves and reflect the identity and social status needs. At the same time, the more frequent the online shopping, the more influential social networking for shopping; the more biased towards the high-end women, the more the new spirit, good at digging niche brands, and pay more attention to the brand compared to the effectiveness of the product itself.


With age after 90 and millennials, the proportion of women in the consumer armies of cosmetics is growing. However, for this future mainstream consumer group, the cosmetics stores and cosmetics stores (such as Sephora) in traditional department stores can no longer adequately meet their diversified needs (experiential needs, social needs, etc.). There are still many unmet needs, such as the need to purchase convenience, the random discovery of innovative needs of niche brands, and the demand for lifestyle expression and recognition.


Cosmetics industry channel reconstruction


In the situation that consumers appear the differentiation of value, cosmetic brand retailers reconstruct the channels in order to meet the diverse needs of consumers. It can be said that the differentiation of consumer values drives the systematic upgrading of cosmetics industry. Specifically, the cosmetics brand is no longer relying solely on the department store and store channels, but in the shopping center opened a single brand shop, opened up the deep plowing of the mall channels.


Cosmetics brands use shopping center diversion traffic, selling popular products on the one hand, to meet the convenience of young people to buy popular products on social media; on the other hand, brand owners based on the flow of shopping centers to make members of the base layer, Lower cost of the new. Through comparative analysis we can easily find the profound meaning.


Cosmetics counters in department stores as an important drainage category shopping malls, each counter area is relatively small, and concentrated in the cosmetics store on the first floor area. Moreover, the cosmetics counters in department stores are usually arranged in accordance with the strength of brand power station counters, so similar brand counters are located together, similar brand counters target customer purchasing power is also similar, then when consumers buy cosmetics easy Affected by the neighboring counter brand. The company is located in:


In contrast, the shopping center cosmetics single brand stores, brand image can be molded more three-dimensional and independent. From the interior decoration, display of goods to lighting, music, smell and other angles, deepening the consumer's overall perception of the brand, and to some extent, to isolate the interference of other similar brands, thereby reducing the cost of new satisfied. The company is located in:


Cosmetics brands stationed in the mall have two types of stores, one is a purely commodity shop, the other is a lifestyle shop. The reproducibility of these two business models are very strong.


Australia's natural skin care brand Julie Kwan opened in Chengdu, the world's largest concept store, customers can take the exclusive escalator from the store, directly to the third floor, in the purest atmosphere closest to nature, to enjoy the pure and beautiful SPA to enjoy.


In addition to true spa treatments, Jurlique also creates an experience from the visual, listening, sniffing, and tasteful aspects: Australian-style display design in a pure atmosphere; healing music heard in every corner; refreshing air filled with breathtaking flora Essential oil aromatherapy; there are anti-step-down soothe the nerves, Runfei Shengjin, Ziyuan eyesight, blood beauty of the dessert or tea.


Cosmetics stationed in the mall's suggestion


1. For brands, it is important to focus on how shopping centers can effectively help the brand diversion construction, a clear department store counters and shopping centers brand positioning customer division, the shopping center into a diversion of cosmetics young customers end.


The cosmetics brand store in the mall focuses on young and middle-aged female groups, combining the promotion of online social media, guided by innovation, and meeting the social experience needs of high-end young customers. The department store cosmetics counters focus on less attention to social media, online shopping less high-end older women groups, relying on professional sales and discount vouchers and other activities to maintain membership and maintain loyalty.


2. For shopping centers, it is important to enhance the affordability of shopping centers by introducing cosmetic brands. The way to achieve this is to create the most customer-satisfied and most valuable customer experience from both professional and user-friendliness perspectives.


First of all, to enhance the professional experience: shopping center is not a simple cosmetic store form, but for the young high-end crowd to provide more lifestyle experience and purchase, such as high-end cosmetics brand can be equipped with separate beauty salon, to meet the depth of lifestyle demand.


Secondly, to enhance the convenience of the experience: If you place the brand in the Nakajima metro mouth of the shopping mall, increase the exposure and randomness experience, thereby increasing the purchase rate.


As mentioned earlier, the era of pure reliance on brand power is gone. In today's market, who can profoundly understand the value to be realized behind the consumer demand and grasp the channels of communication with them so as to accurately grasp their own high-value customers and who can grasp the winning way.


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