The "retreat" and "advance" of multinational cosmetics giants

China Business Daily (Reporter Ma Jiawen/Picture) In the first half of this year, in the financial reports of multinational cosmetics giants, the performance of the Chinese market was under pressure, and the multinational beauty giants adjusted their "tactics". Or cut off the store to reduce operating costs; or incubate new projects to enhance brand competitiveness.

In the first half of this year, multinational cosmetics giants withdrew stores in the Chinese market and sold their brands, so that they were not as "calm" as they looked.

China's market performance pressure

Among the multinational cosmetics giants that have announced their performance in the first half of this year, seven are facing the decline in the performance of the Chinese market. In the first half of this year, the net sales of Shiseido's Chinese market fell 14.2%year -on -year, becoming the largest decline in performance in the first half of the past six years. At the same time, the Chinese market has also become the market with the largest decline in Shiseido's global sales in Shiseido; The overall sales of categories in the Chinese market decreased by 5%year -on -year; Estee Lauder, Takashi, LG, L'Occitane, and LVMH Group's revenue in China have all declined to varying degrees.

The new coronary pneumonia's epidemic has become the main reason for the pressure of giants in the Chinese market. In the financial report, Shiseido said that due to the epidemic, related activities such as shop operations and shipments with Shanghai as the core have been restricted, which has declined in China's market performance. Estee Lauder said that the decline in performance was mainly due to the repeated epidemic affected its retail, supply chain, inventory, logistics, etc., which led to a decline in its operating capacity in Shanghai's distribution center. In addition, limited tourism has also led to the decline in sales of duty -free shops such as Hainan; Hua Wang said that due to the problems of urban blockade and logistics caused by the repeated Chinese epidemic, the group's performance in all aspects of the Chinese market is lower than that last year.

"The consumption of high -end cosmetics is mainly concentrated in places where traffic gathering of malls, shopping malls, and other people's flow. In the first half of this year, the epidemic was repeated. The time to stop business in these places was longer than the opening time. Among them. "The relevant person in charge of the Asia -Pacific region of Koty Group told a reporter from China Business Daily that fortunately the impact of the epidemic was temporary after all. In the long run, in China, especially China's perfume market, it still shows a growth trend. And China's perfume market is expected to become the world's second largest market.

L'Oreal China's market also faces a slow growth in performance in the first quarter of this year. At that time, L'Oreal told reporters in this regard that the scale of the Chinese market is huge, so it is normal for the market with a smaller scale, and the Chinese market has made very important contributions to the growth of the global market business.

"From the current situation, there are indeed a lot of uncertainty this year, but we are confident in the entire beauty industry, because the beauty industry itself has strong toughness and recovery. In order to better serve consumers. From the middle and long term, we believe that the Chinese market will still maintain a high growth rate. "L'Oreal said.

Broken -arm survival strategy has now available

In the first half of this year, multinational cosmetics giants, such as withdrawing stores in the Chinese market and selling their brands, etc., making it or not as "calm" as if they looked.

In the first half of this year, cross -border cosmetics giants have repeatedly withdrawn from some offline stores in the Chinese market. In February this year, Irimi Pacific announced that it had closed the brand HERA HERA Heyan's offline counter and gradually closed the online WeChat mall; June and July this year, Estee Lauder announced that its makeup brand TOO FACED and GLAMGlow Tmall official flagship store will be in Operations ended in August; the brand of L'Oreal Merbolia will also close all offline stores in China.

At the same time, many cosmetics giants also pressed the "brand sales key". Taking Shiseido as an example, in January this year, Shiseido's ZA Ji Rui and Bomi were sold; in July this year, Shiseido's professional hairdressing business was acquired by Shi Hua's parent company Han Gao. According to incomplete statistics from China Business Daily, from 2021, Shiseido has sold at least 15 popular line brands. Shiseido told reporters that the group operating method will change from the high -speed growth of the pursuit of operating income, to the transformation of profitability and cash flow. %.

"Volkswagen and affordable cosmetics brands are not as profit as high -end cosmetics brands. Now the attention of consumers of Volkswagen and affordable cosmetics brands is on e -commerce platforms and live broadcast rooms." Copy marketing practitioners Kong Sihan admitted to reporters, such as Merboline and other brands. Naturally, this part of the consumer group will change the sales strategy, cut off the stores, reduce operating costs and increase sales. If you have multiple brands of cosmetics groups, further considering the return of online brands and optimization of brand matrix optimization, brands that do not make money are likely to be sold and realized.

The Chinese market is still a must -have

E -commerce channels have become the next battlefield for multinational cosmetics giants. In the first half of this year's financial report, many cosmetics giants focus on the role of China's online shopping festival on product sales.

L'Oreal said that in the Chinese market, affected by the promotion of "June 18", L'Oreal achieved double -digit growth in June; Shiseido also said that online e -commerce sales in China continued to grow, and Tmall channels Grow 9%. During the "6 · 18" period, its NARS brand sales increased by more than 60%; L'Occitane also mentioned that due to factors such as the "6 · 18" promotion, in June of this year, the sales of the group's sales in the Chinese market were doubled in double sales in the Chinese market. Glit increase. L'Oreal told reporters on the side: "In the past 10 years, the online channels of the Chinese market have developed rapidly, mainly based on three factors: First, the online platform has created the opportunity to directly contact and interact with consumers for the brand, so that we can be better. Land communicates with consumers; second, we have established a good partnership with many high -quality online platforms, including Tmall, JD.com, WeChat, Douyin, Kuaishou, Pinduoduo, etc.; Third, whether it is online or online Below, all show an increasingly obvious digital trend. In the future, we will choose an omnichannel strategy of online and offline linkage. "

In addition, multinational cosmetics giants are also increasing the business layout of the Chinese market through investment. In the future, the competition between giants in Chinese makeup companies and new projects will continue to be hot. In August of this year, Shiseido China announced the first investment of nearly 100 million yuan in the Ziyue Fund, which its exclusive funding fund, to the leading enterprise of domestic reorganized collagen biomagon. It is understood that Ziyue Fund is China's first international beauty group special investment fund, focusing on the investment opportunities of emerging brands such as beauty and health such as emerging brands and upstream and downstream related technology companies.

Shiseido China CEO Fujiwara Kato said: "Shiseido has been based on China for more than 40 years and has always believed in the huge potential of the Chinese market and has never shaken the confidence of investing in China.

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