A brief analysis of the 2010 cosmetics franchise store market

As an important channel for the sales of cosmetics, the development of the domestic franchise store market continued to flourish last year. According to relevant data, although Shangchao still accounted for 48.9% of the market share in cosmetics sales in 2010, the sales share of cosmetics franchise stores has reached 33.6%, which is highly competitive with Shangchao’s office, making it impossible for people to be small. watch for. In the past 2010, what are the distinctive characteristics of the domestic franchise market? What are the new trends in the franchise market this year? To this end, "China Washing Cosmetics Weekly" reporter interviewed authoritative experts in the cosmetics industry, Mr. Chen Yu, general manager of Boya Beauty Cosmetics Consulting Services.

Six characteristics of the franchise store market in 2010 When talking about the changes in the domestic cosmetics franchise store market in the past year, Chen Xi, who has many years of research experience in the franchise industry, talks about it, and he told the “China Washing Cosmetics Weekly” Reporter, in the past 2010, the domestic franchise market has the following six characteristics:

First, the growth rate of franchise stores saw a turning point last year. Since 2004, the growth of franchise stores has begun to develop at a rapid rate. For example, in 2004, the growth rate was 27% higher than that in 2003. This high-speed growth reached a peak in 2009 and the growth rate exceeded 30%. However, this rapid growth trend is The slowdown began in 2010. Although the number of stores is growing, the speed of opening stores in the entire franchise store has slowed down last year.

Second, the number of franchise stores opened from the county-level market to the absolute proportion of the county-level following markets (collectively referred to as the township market), the number of shops and the county-level market is the same or basically the same number. In other words, cosmetic stores that used to be county-level markets had an absolute advantage in quantity, but this advantage has now been challenged. Until last year, the number of shops in the township market was basically the same as the number of shops in the county-level market, but only in market share. In the past, the share of the township market was still smaller than the county-level market.

Third, chain stores and chain stores (open branches) entered high-speed growth.

Fourth, the sales of specialty stores from the introduction of the market began to grow into long-term, the number of stores will accelerate the pace of development in the coming period. In other words, the store's store growth rate will gradually increase (here the store is one of the three types of franchise stores).

V. The new cosmetics franchise chain stores began to appear. As the subdivided business of cosmetics stores develops very quickly, a relatively new type of market-competitive industry has gradually emerged and matured. It is a mixed new franchise store format and is called Beauty Makeup Chain.

6. Some international brands or international cosmetic companies are either explicitly or implicitly increasing their penetration in the cosmetics market. In addition to those international brands that have publicly launched channel products for franchised stores, there are also some international brands who have played "infighting" and secretly bypassed their super dealers to silently infiltrate franchise stores.

Beauty Chain, the new format of the franchise store market in 2010 when it comes to what kind of franchise stores in the future more competitive advantages, Chen Hao said that in 2010 there has been a new franchise store format - the United States and cosmetics chain, this The format will be more competitive in the future. He said that cosmetics specialty stores can currently be subdivided into four types, one is a low-grade, small shop in the township market, similar to a grocery store; the second is a boutique, with relatively high-end decoration, a certain grade, and a counter; The third type is daily chemical supermarkets, open shelves; the fourth type is daily chemical shopping malls, and the area is relatively large, generally more than 500 square meters, and some even reach 2000 square meters, to sell cosmetics and daily necessities, health products, snack foods and other connotations Associated commodities, similar to Watsons, Wanning, U.S. and so on. These four types of business have their advantages and disadvantages in terms of competition. Low-grade stores can only survive at low-end, and they cannot withstand storms. Compared with daily-use supermarkets, boutiques have higher unit prices, and daily supermarkets have a higher number of passengers. Is the difference between the two formats, although the customer price than the guest number has an advantage, but the boutique has a problem that is the lack of traffic, so the customer's unit price advantage is relatively not obvious.

Chen Hao also reminded those franchise store operators who are mainly pursuing the supermarket format, which mainly consist of customers, to try to find a way out. Because the Watsons are good at loyalty, their competitiveness is obvious, and it is difficult to imitate. Imitating Watson's will basically be defeated by Watson's. With the continuous expansion of Watsons and the downward movement of channels, it will be a matter of time for local franchise stores and Watson’s encounter. Therefore, franchised stores in the domestic supermarkets that mainly pursue customer demand should seek for new business early.

What is the new format? Chen Hao told the "China Washing Cosmetics Weekly" that he learned of this new franchise store business, namely the beauty makeup chain. Beauty makeup chain is a mix of boutique stores and daily chemical supermarkets that mainly focus on customer unit price and customer order, and is compatible with some closely related categories. The sales of Beauty Chain are mainly skin care products, supplemented by makeup. A few places are supplemented by perfume. This format belongs to the franchise store format, but there is a mix of boutiques and daily chemical supermarkets, and it is a very competitive franchise store format in the future. The brand-new franchise store chain has emerged last year, but it has not yet received widespread attention for the time being. Chen Hao said: “The advantages of this type of beauty makeup chain in the market have gradually emerged. From last year, some DPRK cosmetics have been applied. The franchised stores that have adjusted their franchise have already demonstrated its competitive advantage. This year's competitive advantage in this format will be more pronounced."

The next three years will be the integration period of the franchise store. For the future development of the franchise store market, Chen Xi thinks that from the development trend of the developed countries, the franchise channel will certainly exist and will not disappear, and will not disappear in the foreseeable future. He said that at present the cosmetics franchise stores are divided into three types of business: monopoly, professional and franchise. Of the three formats, the high-end market is dominated by franchised stores and has now entered a growth period; Sephora, the number of stores will not have much growth; the largest number of distribution is the franchise store, the future franchise store format will enter an integrated process. This integration process will start this year for an approximate period of three years. This integration process will have three basic characteristics:

1. The number of franchise stores still holds an absolute advantage in terms of quantity, accounting for more than 99%. Although the proportion of the market in the future may be reduced, its advantage in occupying a dominant position will not change.

2. Fine-tuning of the format, and development of franchised stores that have become chains of beauty and cosmetics, will have a more competitive advantage in the future market.

3, large and medium-sized franchise stores will be more competitive. The franchise stores represented by county-level cities with an area of ​​120 to 300 square meters will have a more competitive advantage in the future.

“The advantage of the cosmetics store in the future is to play the 'kingdom of the region'.” Chen Yu said that because the cosmetics chains that can be a national chain are only a handful, and more are the kings of the region, the region may be a province, or it may be several. There may also be several county-level markets in each region. Therefore, he believes that only those franchised stores that can look far ahead and can clearly see which type of business has a more competitive advantage will become the king or the king of the region in the future.