Differentiated positioning and cost-effectiveness advantages, helping domestic brands rise rapidly
Competitive advantage 1: The product positioning of local brands is more in line with the skin texture and needs of Eastern people
Local cosmetics are more suitable for Eastern skin types. Unlike European and American cosmetics that focus on technology and Japanese and Korean cosmetics that focus on concepts, domestic cosmetics in China are more oriented and fit the skin characteristics of Chinese people. Their functions mainly focus on moisturizing, repairing, and soothing effects; The formula mainly focuses on traditional Chinese herbal skincare, which is more easily accepted by Chinese people.
Unique product positioning, seeking differentiated competitive space.
In recent years, more and more domestic brands have begun to focus on differentiated positioning in order to break through the fierce competition in cosmetics.
For example, Pelaya is positioned at the marine skin care, Royal Mud Workshop uses mineral mud for skin care, and Nature Hall uses snow essence for skin care.
In addition, some domestic brands also combine their own advantages to develop emerging categories and strive to seek differentiated competitive space, such as Yuze from Shanghai Jiahua Hair, and beauty products developed by pharmaceutical groups such as Yunnan Baiyao, Pianzihuang, and Tongrentang. Through differentiation in product positioning and channels, they avoid direct competition with foreign cosmetics giants and provide space for brand growth.
Competitive advantage 2: Local brands mainly focus on the mass consumer market, with deep channels and high cost-effectiveness of products
Focus on the mass skincare market, with clear product positioning. Unlike international brands that focus on the mid to high end market in primary and secondary cities, domestic brands engage in differentiated competition, relying on their product cost-effectiveness advantages to cater to the needs of the mid to low-end public in skincare. This effectively captures the increasing penetration rate of cosmetics and the upgrading trend of middle class consumption.
The channels are sinking deeply, seizing vast third and fourth tier markets.
In terms of channels, local brands are more familiar with the channel structure of the local market, and the cost-effectiveness advantage of domestic brands is more conducive to their full penetration into the vast third, fourth, and fifth tier markets through the dealer system, thereby firmly grasping the rising trend of cosmetics consumption demand in lower tier cities.
Competitive Advantage Three: The Rise of Diversified Marketing Models, IP Operations Helping Chinese Brands Become Young
With the advent of the new media era, the marketing model of cosmetics is no longer limited to traditional media such as television advertising and print advertising, but forms a multi-dimensional marketing network matrix both online and offline.
According to data released by the Weibo Data Center, the proportion of users who understand cosmetics through Weibo or beauty apps has exceeded 70%. At the same time, in recent years, successful cases of cosmetics brand IP operation have emerged one after another, attracting market attention while also providing new ideas for diversified marketing of cosmetics brands.
The transformation of marketing methods in the cosmetics industry not only brings challenges to cosmetics companies, but also brings opportunities for brand exposure for the rise of domestic emerging brands.
Domestic brands have strong competitive advantages in IP operations, rapid innovation, and flexible production, and can combine with market hotspots to create popular products.
On the one hand, domestic brands are rooted in the local market, have a better understanding of domestic market hotspots and consumer preferences, and can fully utilize new media (film and television implantation), new channels (e-commerce), etc., to reach consumers more quickly;
On the other hand, the management and marketing teams of domestic brands operate locally, eliminating the layer by layer approval process for foreign brands in developing new products and exploring new marketing models, enabling rapid response to market hotspots.