The rapid development in the past decade has intensified competition in the cosmetics franchise market and entered a mature period. According to ACNielsen's survey data, from the beginning of the 21st century, cosmetics franchise stores are growing at a rate of 28% per year. By 2009, the number of cosmetics stores reached 150,000. This means that there are more than 50 stores in each county-level (including township) market, which means that each store has an average of 800 or so consumers (*, according to the average population of 1.3 billion, of which more than 50% are rural) . The competition in cosmetics franchise stores has shifted from a large market share to a growth period from the grabbing of other retail terminals to a mature competitive era in which the existing franchise stores compete for share.
Shangchao sinks and erodes the market share of franchised stores. Today, Shangchao has become a mainstream retail channel, and shopping in the supermarket has become an indispensable part of people's lives. When the first-line market became saturated and the competition became more and more cruel, the business super giants began to move to the second and third-tier markets. Take Weifang, Shandong Province as an example. In 2009, Wal-Mart and Tesco opened stores here. Wal-Mart announced that it will focus on second- and third-tier cities as a store in 2009, and launch new formats such as small supermarkets and congested hypermarkets. At the beginning of 2009, Carrefour finally entered Zhengzhou, Henan. In October 2008, the approval authority for foreign-invested enterprises to open stores was devolved from the Ministry of Commerce to the provincial-level Ministry of Commerce, which accelerated the sinking behavior of Shangchao. This poses a huge threat to the survival of specialty franchise stores in the second and third-tier markets. Taking Weifang as an example, the number of franchised stores in the whole city is no more than 10; in Mianyang, a cosmetics distributor will completely withdraw the products distributed in the franchise stores, and switch to over-the-counter or shelves, or even the operation of the package. A cosmetics chain franchise store owner lamented that once the store opened a slightly larger scale, its turnover will drop significantly by 30-40%.
The store resources are scarce, and the good storefront is “a shop is hard to findâ€. China's development from the EMKT.com.cn urbanization, the rapid expansion of the city scale, once supported the rapid development of cosmetics franchise stores. But nowadays, the cost of a good location is high and “a shop is hard to findâ€, while the slightly inferior part is a cosmetics store. Li Ka-shing once said, "The factors that determine the value of real estate, the first is the lot, the second is the lot, and the third is the lot." This also applies to the operation of the franchise store.
Perhaps the “4S†cosmetics store, which focuses on Store designs the door, emphasizes Selfhold, perfect after-sales service, and enhances information feedback, will be the leader in the future.
Store designs the door: Good location is the key to ensuring the flow of people, and the unique store design is the key to ensure the store rate. Watson's store design can be used as a reference. From the door design, to the flow of people, to the display of brands and categories, to the placement of the checkout counter, etc., there are strict scientific management and layout, and the design of the store is under the premise of ensuring the unification, each store will be based on There are small differences in geographic location. This is a place worthy of in-depth study in domestic cosmetics franchise stores. However, the study of Watsons is not a simple imitation and copying, but must have its own characteristics, otherwise "painting tigers can not be anti-category dogs", it will harm itself.
Emphasis on personalized sales (Selfhold): This is reflected in two aspects. One is to sell brands or products that are not available in other countries. This is very difficult because brands are not willing to put their products in too few terminals. Sales, the more powerful the brand, the more extensive the pursuit of the terminal; the second is to sell the sales method that no other family has, which is more difficult than the former, but once this "personalized" sales method is established, it is difficult to be imitated and Beyond, it has formed its own unique sales competitiveness.
Perfect after-sales service (Service): The front store backyard has been popular for a while, but recently it is no longer "squatting". The reason for the excitement is that on the one hand, the professional line companies have expanded into the past, the “front store backyard†has become a good card, on the other hand, many people have “faced†as “after-sales†and “surfaced†after-sales service. . The after-sales service of the cosmetics franchise store not only serves the "face" service to the consumers after the products are sold, but also includes tracking and solving the effects, conveniences and other problems of the products. The “Membership System†is an important tool for perfect after-sales service, but it is not limited to discount sales and simple information registration.
Enhance information feedback (Survey): More information exchange. For example, communication between franchise stores and consumers, better delivery of brands, products and popular information; franchise stores and agents, brand exchanges, better delivery of product sales, improvement and market intelligence; franchise stores and The communication of employees will better convey the development direction of the franchise stores and the magic weapon of sales. Information must always focus on two-way communication, which is the guarantee to maximize the effectiveness of information.
Of course, the formation of 4S stores, in addition to the efforts of the cosmetics franchise stores themselves, should also draw on external forces.
"Intimate contact with capital": The golden decade is about to pass, the cruel Red Sea has become a reality, and the words "opportunity" and "accident" will appear less and less in competition cases. Therefore, it is the most likely path to “close contact†with capital and rely on corporate strength and management norms to achieve transcendence in new market competition. “Capital†does not mean listing. Listing is of course a good choice. In addition to obtaining sufficient financial support, it can also obtain management-level norms to strengthen the competitiveness of enterprises, and the supervision of the public is more conducive to the development of the brand. In addition, financing, mergers and acquisitions, cooperation, etc. are all areas of “capitalâ€. The core of intimate contact with capital is not how much money is obtained, but rather the abandonment of the idea of ​​single-handedness and the expansion of the “business platformâ€.
Following Shangchao: In January 2010, Watsons and Wanda Group and COFCO Property signed a strategic cooperation agreement, which will be fully integrated into Wanda Plaza and Joy City across the country, and will expand simultaneously. Previously, retailers such as RT-Mart, Wal-Mart, and Parkson also joined in the marriage with professional commercial real estate developers. If you can't stop the trend, you should be part of the trend. Such a comprehensive approach by Watsons may be difficult to learn from, but through partial and individual cooperation, it may be feasible.
The last sentence: Cosmetics “4S shop†is just an advocacy, and its connotation can be more abundant. Only by grasping the pulse of the market, with a sagacious vision, creative mind, stable and strong team, cosmetics franchise stores can be invincible in the future market competition.
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This article originated from China Washing Cosmetics Network , specializing in creating the most authoritative cosmetics investment platform.
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