Behind the closure of offline stores such as Betel Betel and Yiti’s House is the rise of new domestic brands!

      The impact of the epidemic on the global economy never seems to have stopped. Recently, another makeup brand over 50 years old can't stand it anymore and announced the complete withdrawal of its stores. For a time, the news that #Bei Lingfei withdraws the store on a large scale# caused heated discussion.

Concubine Bei Ling's withdrawal of stores in many cities in China will focus on online in the future

      On April 8, due to business adjustments, Benefit, a cosmetics brand that has entered the Chinese market for 14 years, has withdrawn stores in many cities in China, and currently only 7 offline counters are left in the country.

      The news that Concubine Bei Ling closed her offline stores was actually expected. Previously, since mid-March this year, news of Bei Lingfei's counter "closed" in many places across the country. In the 2020 financial report, LVMH Group did not release Bei Lingfei's specific performance data, but only said that it closed some stores, but online sales showed strong growth momentum. It can be foreseeable that under the sudden outbreak of the epidemic in 2020, the cost of store rent, labor, etc. has increased sharply, and offline business will inevitably be greatly affected.

      It is reported that Concubine Bei Ling was established in 1976 and its main product is Eyebrow products. He temporarily settled in Tmall in 2011, but closed the store in less than half a year. In 2017, Concubine Bei Ling moved to Tmall again. This time, the store was completely withdrawn. Bei Lingfei said that in the future, Sephora and the brand Tmall official online stores will be the main ones. One of the important reasons is that they have attracted the development potential of China's e-commerce industry.

Yiti House closes all offline stores in China

      Coincidentally, a news that "Korean makeup brand Yidi House has closed its offline stores in China" has also become a hot search on Weibo.

      The House of Eti is affiliated to the beauty giant AmorePacific Group. It was born in 1985 and is a beauty brand with a history of more than 30 years. Since 2013, Yiti House has entered the Chinese market. With its affordable prices and the eyebrow pencil products, it has gained a large number of fans. At its peak, it opened 85 brand-based direct stores in 25 cities in China.

      But the good times did not last long. When more and more players were in the affordable makeup market, the House of Itti inevitably lost its uniqueness. In addition, the development of the parent company AmorePacific Group has been setback, which accelerated the "weakness" of the House of Itti. In the 2020 financial report released by AmorePacific Group on February 3, Itiyi House suffered a large loss, with operating income falling 38% in 2020 to 111.3 billion won (approximately RMB 640 million), becoming the most dismal brand under the group.

      Nowadays, Yiti House has closed all offline stores in China. Users need to purchase goods through Yiti House Tmall official flagship store, WeChat official mall, Xiaohongshu official flagship store and other online channels, which may become the best way to save themselves.

Why are these cosmetic brands no longer in popularity?

      In the past two years, the rise of live short videos has also brought new development opportunities for the development of these new consumer brands. Influenced by leading anchors such as Li Jiaqi and Weiya, domestic cosmetic brands have appeared in the public's vision and have won the love and recognition of a large number of young consumers. I don’t know when domestic cosmetic brands represented by Perfect Diary and Hua Xizi began to squeeze out the long-term monopoly of international big brands and gradually gained a place in the hearts of young consumers.

      Under the impact of Chinese local brands, a number of "old-branded" beauty stores and traditional beauty stores such as Sephora, Wanning, Watsons, and SASA have gradually declined. Some choose to close their stores, while others quickly adjust their product structure after analyzing market data, transforming to develop simultaneously online and offline, and adapting to market changes to a certain extent.

Faced with the rapid rise of domestic cosmetics, more and more international cosmetics brands are gradually losing competitiveness in the Chinese market.

In the future, new opportunities for the development of domestic brands

      In the past two years, domestic beauty brands are developing in full swing. On April 13, the First Financial Commercial Data Center (CBNData) and the Tmall Golden Makeup Award released the "Tmall Domestic Beauty Attack Road - 2021 Beauty Industry Trend Insight Report". Data shows that the total amount of financing disclosed in the beauty track in 2020 was 4.812 billion yuan, with a growth rate of 324%, making it one of the hottest tracks in the consumer venture capital market.

      It can be said that these new domestic brands, mainly Huaxizi and Perfect Diary, have entered the fast lane of development with their ultra-high cost-effectiveness and younger and diversified products, with the help of the potential energy of e-commerce and the changes in users' online consumption habits, and have explored an unprecedented path of attack.

      In the future, in the continuous iterative consumer ecosystem, the development path of these beauty brands will also summarize experiences and point out the direction for more and more new domestic brands.

      In order to help more e-commerce people, an analysis report on the beauty and skin care industry has been compiled. ↓↓↓

      Including the series of beauty and makeup explosive products dismantling series, the beauty and makeup industry short video marketing report, etc., focusing on analyzing the road to creating popular products from brands such as Perfect Diary and Huaxizi for reference by friends~