With the in-depth development and expansion of channels, beauty consumer groups promote the rapid development of beauty industry, and multiple factors affect the development of beauty industry. How should the beauty industry seize the private dividend and promote its better development? The author summarizes some methods, hoping to help you.
With the diversification and in-depth development of sales channels, the consumer groups of beauty brands continue to expand, and multiple factors jointly promote the sustained and rapid development of the beauty industry. As a beauty brand with the highest degree of private domain matching, how to seize the private domain development dividend, break through the growth bottleneck and realize rapid growth?
Now, the beauty industry faces many problems and challenges in private domain operation. Merchants will face three stages in the process of private domain operation: construction stage, growth stage and maturity stage, and each stage will encounter relatively core problems.
First of all, during the construction period, there is a lack of standard operating tools and operating methodology.
Brand is in the exploration period of private domain construction, and it is in the acceptance and learning stage for concepts such as applet, community operation and data management. Secondly, there are many kinds of private domain tools in the market, and merchants are dazzled when choosing, so it is difficult to choose tools that suit their own brands.
Secondly, in the growth period, private domain operations are separated from each other, making it difficult to form a benign closed loop.
Brand private domain has many contacts, such as small program mall, enterprise micro, community, offline shopping guide and store mall, but they can’t get through and cooperate effectively.
Finally, in the mature period, there is a bottleneck in the stock operation, and it is difficult to tap the effective increment.
The brand has successfully accumulated some effective experience, but with the decline of incremental dividends, the traffic is gradually lacking, and the "extensive operation" has a growth bottleneck.
Turning to the current private domain development trend of the beauty industry, it mainly presents the following points:
According to the data compiled by EROMONITOR Prospective Industry Research Institute, among the changes in the proportion of major sales channels in China cosmetics industry (unit%) from 2015 to 2021, the proportion of e-commerce channels has increased rapidly year by year.
In the penetration rate of Tmall TOP100 beauty brand applet mall, 79% of beauty brands have their own applet malls.
Several well-known brands: Maybelline gradually withdrew from the Shangchao department store channel in 2018, only retaining brand boutiques and developing in parallel with online channels; In August, 2020, Vichy built the first O+O (online and offline integration channel) operation center in China. After consumers completed skin testing and product trial in the store, they placed orders in small programs. All major beauty brands in the industry began to increase their efforts to lay out online channels in 2020.
It can be seen that the brand is not only trying a new integration of online and offline, but also trying to expand more attempts including private domain.
According to the brand database data of Quest Mobile Truth Brand in September, 2021, compared with typical consumer industries such as food and beverage, household appliances, mother and baby, the scale of private users in the beauty industry after weight reduction still ranks first.
In the investigation of Tmall Top100 beauty brands in the growth black box in 2020, we can see that there are over 20% beauty brands, and their private domain sales account for nearly 25% of the total e-commerce volume (the proportion of private domain sales of beauty = private domain sales/omni-channel sales of e-commerce).
Therefore, beauty brands should pay attention to the development of private domain while developing their business, and at the same time pay attention to the potential and opportunities of customers’ deep exploration.
In fact, the brand private domain is not an additional single sales channel, but a secondary undertaking of the brand’s existing global channel passenger flow and advertising traffic. On the basis of not raising the marketing cost, it can effectively undertake the brand global channels and users reached by advertisements, and realize the precipitation and long-term transformation of user assets and brand data assets.
In the initial stage, the private domain investment of the brand is small, and the input-output is not obvious. With the introduction of drainage and fission, the scale of private domain grows rapidly and its complexity increases. At this time, the brand is exploring a suitable private domain model, and the net income (output MINUS input) presents a high negative value.
However, with the maturity of brand private domain operation, the scale of private domain has entered a stable period, the cost of innovation and operation has begun to decrease, and the customer repurchase rate (the average monthly repurchase rate in the beauty industry is 10-15%) and LTV(life time value Life Cycle Value) are also increasing. The net income is gradually improved, moving towards breakeven and creating long-term compound interest.
Therefore, by settling the private domain of brands, brands can get higher profits, and users can also get a more direct and better shopping experience.
With the development of private domain operation in beauty industry, six typical private domain operation models can be sorted out.
1. Multi-positioning promotion type: a number of small programs with different positioning, with sales promotion as the main operating mode.
Representative brands: Perfect Diary, Polaiya, Ou Shiman, etc.
Taking Perfect Diary as an example, the brand has 20+ WeChat official account with different positioning and 10+ small program malls with different positioning, which cooperate with the daily member day +bigday activities to achieve continuous promotion and transformation.
Representative brands: Lin Qingxuan, herborist and Estee Lauder.
Take Lin Qingxuan as an example, get through every contact of WeChat Ecology to drain the live broadcast room and insist on daily broadcast. By constantly trying various links and ways to transform live drainage, we found the most suitable mode for Lin Qingxuan. Moreover, the store shopping guide resources are fully mobilized, and the 3000+ store community shares the live video number.
Representative brands: Guanxia, Huaxizi, HFP, etc.
Seize the beauty component party as the core user of the brand, constantly polish the content of WeChat official account, and finally achieve the reading volume of 600,000-100,000 articles. At the same time, the brand community is operated in the applet, and users are guided to participate in sharing through official topics and activities.
Pay attention to the brand experience of users in the private domain, and guide users to complete the continuous punching of the first purchase and cultivate the habit of re-purchase through the combination boxing of exclusive gifts for newcomers, members’ trial use, sign-in courtesy (customized periphery) and limited spike by members.
Representative brands: shanghai jahwa, etc.
From the offline ordering mode to the online cloud store ordering, the efficiency of goods circulation has been greatly improved; And through policy planning, training and teaching, we will make every effort to build a benchmark store, effectively improve the sales of dealers’ cloud stores, realize the annual sales rate in ninety-seven percent, and at the same time, the headquarters will empower dealers to operate cloud stores and transform live broadcasts.
Representative brands: Sephora, Afu and so on.
Taking Sephora as an example, the SmartBA project was launched in June 2020, which systematically promoted BA from top to bottom. Through corporate WeChat, consumers are guided to enter the private domain of brands, and every "beauty consultant" is empowered by numbers. With their professionalism and aesthetic vision, they will continue to provide consumers with professional 1V1 personalized services and online extension services in the private domain community, which will eventually drive online and offline business growth.
6. Feedback to the public domain: the mall not only carries the purpose of sales transformation, but also uses user research and data analysis to guide product development in the opposite direction.
Representative brands: L ‘Oré al, Elizabeth, Ya Dun, etc.
Taking L ‘Oré al as an example, in 2018, it has started to build technical applications such as SCRM and CDP. The brand uses the accumulated data for user value analysis, and adapts and develops products according to different people and regions. L ‘Oré al is the first brand in the industry to achieve C2B innovation. It took 59 days to tap the demands of thousands of consumers aged 18-30 for "ideal cream", and quickly put into research and development and launched a zero-point cream, which sold 100,000 pieces on the day of listing.
Self-test operation mode interactive test
First of all, if you are a newly created beauty brand or want to try to upgrade the brand and expand the beauty private domain business, then the first step is to think about the private domain organizational structure and operation team building.
Regarding the organizational structure of private domain and the construction of operation team, there are generally the following four modes. Brand merchants can choose which organizational structure to build according to the comprehensive evaluation of the advantages and disadvantages of each model.
Secondly, when preparing for private domain operation after the team is formed, it is necessary to consider the whole link process from traffic to retention and then to sales.
The first step is to plant grass in the commons. Establish brand awareness in the public domain through explosive products, and then conduct global drainage to the private domain through e-commerce/live broadcast, store activities /BA live code, and small red book planting.
The second step is to raise grass in private areas. In the private domain, we will deepen users’ three-dimensional cognition and preference for the brand through various operating means such as enterprise micro-customer service, WeChat official account, community and video number.
The third step is to pull weeds in private areas. Finally, private domain can be realized through mall+live broadcast+member marketing.
What needs to be emphasized here is that the beauty industry has a very typical marketing model: live broadcast with goods. This interactive marketing model with goods is a growth weapon for beauty businesses. According to C2CC Media’s "Private Domain Operation & Status of Beauty Live E-commerce", 70.9% of beauty companies have chosen live broadcast to bring goods.
With the advent of the "self-broadcasting era" of merchants, the live broadcast of video number based on WeChat ecology combined with enterprise WeChat can break the traditional live broadcast barrier and connect the live broadcast with community, WeChat official account, applets and other links in series. In the whole process before, during and after the live broadcast, a complete closed-loop transaction of drainage-conversion-repurchase is constructed to carry out refined operation, thus helping beauty brands to sell goods in private domain and realize sales growth.
Taking the live broadcast of "Lin Qingxuan" private domain video number as an example, with the help of video number operation+mall operation+community operation+advertising operation, the GMV of the live broadcast increased by 570% in four months. The highlights of its live broadcast operation are as follows:
With the help of friends’ circle advertising, the live broadcast is drained, and the big data orientation ability of WeChat advertising is used to lock the brand target customers, effectively shortening the grass planting path and introducing traffic to the live broadcast room.
Fully mobilize Lin Qingxuan’s shopping guide resources, and warm up the live broadcast room by sending skin care knowledge, giving coupons by interactive question and answer, and interacting with red envelopes.
In the live broadcast, on the one hand, by setting up an order lottery activity, the interaction enthusiasm of users in the live broadcast room is enhanced, and the length of stay of users in the live broadcast room is increased; In addition, in the product selection strategy, focus on mature female customers aged 30 -50, and cooperate with drainage products to comprehensively improve GMV.
With the higher offline costs and the fading of the e-commerce dividend period, the beauty industry has moved from "flow" to "retention". For the beauty industry where quality and experience are paramount, private domain operation plays a vital role in the brand omni-channel strategy. It is the key to improve the performance growth to realize the refined operation of users and enhance the loyalty of users through the layout of private domains.
Based on the increasingly mature and diversified private domain gameplay, beauty brands can control traffic, user assets and transactions in "private land", maximize the full-time global advantages of public-private domain linkage, and finally promote the brand and benefit with a complete and efficient private domain marketing closed loop.
This article was originally published by @ Xiao Y’s operating notes. Everyone is a product manager. Reprinting is prohibited without permission.
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