How do beauty brands achieve from 0 to 1?

In recent years, the domestic beauty and skin care industry has developed rapidly. China has become one of the world's largest consumers of beauty and skin care products. Under the trend of high-endization, new luxury beauty brands have gradually become the object of consumers' pursuit. From the perspective of driving force, brands not only need to utilize 2.0 driving force, that is, use price to drive users to buy, but also need to operate 3.0 driving force to enhance brand values, so that customers can spontaneously recognize the brand and fall in love with your brand.

New luxury VS old luxury .

New luxury was born from traditional luxury and was innovated on this basis, gradually becoming a fashion and a phenomenon.

The new luxury seekers are willing to purchase high-quality, high-grade products and services, which, although expensive, are not out of reach.

Wolf Ratzler's book "Luxury Brings Wealth" gives two examples:

The main function of a mobile phone inlaid with diamonds is still making calls, but with diamonds and a gold casing, the price will be incredibly high. Buying such a mobile phone is an old-fashioned luxury.

For a white-collar worker working in the city, if he buys a Land Rover just for commuting to get off work, this is a new luxury because he is spending his money on using something rather than showing it off.

Things that are too expensive to buy are naturally luxury goods, but ordinary consumers can also buy some "new luxury goods". New luxury is shifting to the mass level.

Today, we take the new luxury beauty brand as an example and explore the gameplay of the new luxury brand from three dimensions.

01. Meaning: Establishing unique values ​​for new luxury beauty brands

We in the consumer industry have previously written an article titled "How to correctly embrace these 6 trends in new brand marketing ?" ”, the article mentioned 6 major trends in brand marketing, the first of which is: establishing a consistent brand “personality”.

In short, it is to continuously convey brand values ​​to consumers.

According to a survey by Deloitte, both business managers and Generation Z are most likely to support companies that share their corporate values.

Today, Generation Z consumers buy products not only based on cheapness or simple ingredients, they pursue what the brand represents.

This is especially important for new luxury beauty brands.

Light luxury beauty brands must first determine their own brand values ​​and understand the significance of the brand’s existence.

Brand values ​​are the core of brand culture and the brand’s DNA.

In 2018, the legendary French beauty brand Chantecaille finally entered China. What attracted consumers' attention was not only its products, but more importantly, Chantecaille's values.

For more than 20 years since its establishment, Chantecaille has been committed to paying attention to global conservation. Its founding philosophy is to build a platform to publicize and promote environmental issues to customers through products and to enhance the public's attention to global sustainable development.

Indeed, Chantecaille has always been committed to practicing environmentally friendly corporate values.

The product packaging design is mainly based on natural elements, presenting a simple and pure modern style, bringing everyone a complete experience from the five senses and six senses.

We continue to launch conservation cosmetics series, providing high-quality products to everyone while speaking out for endangered species.

Currently, Chantecaille has cooperated with 19 conservation groups and has launched makeup series for endangered species such as monarch butterflies, African elephants, and Polaris.

It is worth mentioning that whenever Chantecaille launches a new product, it will not mention the product in the entire advertisement, but will focus 100% on how to help the sustainable development of these endangered animals.

From the case of the new luxury beauty brand Chantecaille, we can see that good brand values ​​have the following characteristics:

Long-term stability: Brand values ​​do not win from the perspective of quantity, but focus more on quality. Once formed, they will play a long-term role.

Practicality: Brand values ​​are the guiding ideology for product development, operation, marketing, etc. The production and operation activities of an enterprise are all centered around brand values, so values ​​must be practical.

Sharedness: Brand values ​​are not owned by individuals, but are the truth shared by all employees. The cohesion, internal driving force and appeal of brand culture mainly come from the shared brand values.

▲Beauty and skin care

In particular, companies that create value for society are more likely to capture the hearts of consumers, and good brand values ​​can drive the loyalty of real consumers.

This is also what we are going to talk about next: how to increase the loyalty of real consumers of new luxury beauty brands.

02. Group: Capture consumer groups with high loyalty

Brand loyalty does not come from price or product efficacy, because there will always be products that are cheaper and more effective than yours. True loyalty is to align consumer and brand values.

Today is an era of dispersed traffic. So in the new luxury beauty consumer market where traffic scarcity is obvious, who are our target users?

1. Target audience profile of new luxury beauty brands

According to CBNData, there are 26% of people with high potential for luxury goods consumption and 74% of people with medium to high consumption power. The top and mid-level consumer circles are worthy of attention.

The so-called people with high potential for luxury consumption refer to those whose unit price of luxury goods is significantly higher than the average unit price of the category, and they are at the top of the high-spending group in luxury consumption.

People with high potential for luxury goods consumption: also known as entry-level luxury consumers, who are non-heavy users whose unit price of consumer items is parallel to or slightly lower than the average unit price of the category and whose purchasing power is slightly lower.

These two types of people are the target users of new luxury beauty brands.

2. High spending power potential group: professionalism + content-oriented

Purchasing luxury goods has become a "consumption habit" for some consumers to improve their lifestyle, most of whom are social elites and white-collar workers, and a few are students.

In real life, they are followers of stylish living and can be divided into: wine connoisseurs, collectors, photographers, fashion gurus, etc.

People with high spending power potential pay attention to fashion and focus on content and professionalism.

Juliette has a gun is a niche new luxury perfume brand. Its creation is inspired by Shakespeare's plays. It combines the romantic side of Juliet with the active wildness of modern women, allowing independent women in the 21st century to show their own personality and beauty.

First of all, the brand values ​​it conveys have touched many female users and captured the hearts of a group of independent women.

Secondly, the Juliet Gun team is very clear about who the target users of their brand are, so their marketing is particularly targeted.

Instead of looking for beauty bloggers, it sought collaboration with people in the art circle, LGBT community, painters, writers, photographers and other groups.

Finally, the brand and the corresponding blogger co-create content, which is the most important point in brand building. Branding does not just mean giving the product to bloggers, channels, or magazines.

3. High-end luxury consumer groups: easily driven by price factors

People with high potential for luxury consumption buy luxury goods more out of additional demands beyond practical life, and the purchase of luxury goods has also penetrated into the grassroots groups, who are trendy and pragmatic.

Trend-following pragmatists pay attention to fashion, focus on the entertainment value of content, and their purchasing decisions are easily driven by price factors.

Brands can combine limited edition and special style products to stimulate consumer purchases during festive occasions.

In the node marketing of new luxury beauty brands, more emphasis is placed on the Chinese Valentine's Day, Double Days, and gift-giving nodes, and full harvest is reaped in major e-commerce promotions such as 618 and Double Eleven.

▲Ranking of beauty and skin care brands

03. Dao: A community promotion model with thousands of faces for thousands of people

Once the brand's core values ​​are established, and you know how to position the brand;

When we know who our core consumer groups are, we know how to select our consumer groups and how to gain their love for the brand;

The next thing to think about is: how to convert?

In today's era of fragmented channels, content, and traffic, brands need to think about how to use the Omni-Channel approach to operate consumer groups.

Online channels: The WeChat platform ecosystem focuses on the operation of private domain traffic; Weibo, Xiaohongshu, vertical beauty apps, etc. are suitable for promotion; Douyin, Taobao, Zhihu and other channels are gathering places for public domain traffic, which can promote products to all users to the greatest extent.

The above is just a simple list of some social platforms and does not cover all communities. I would like to remind everyone that it is impossible for today's consumers to achieve consumption conversion through one channel, one platform, or one traffic.

Offline channels include beauty and cosmetics integrated stores, brand counters and other channels, such as Bonnie & Clyde (B&C), an offline channel under SHOPAL.

As a brand operator, you need to connect consumers through content, channels, operations and other means.

The strategy of the new luxury beauty brand: a community promotion model that caters to each individual user.

The impact of the community promotion model that has thousands of faces for thousands of people is not only on promotion, but also on channels and content.

First, reach thousands of people with thousands of faces

The "Thousand Faces for Thousands of People" model can be applied to every user operation link of the brand: from Taobao/JD's "Guess What You Like" to WeChat Moments advertising, all are based on precise reach after big data analysis.

Message wake-up, send wake-up messages to different fan groups.

During promotional events, matching coupons are given out based on past consumption records to reach consumers who are easily driven by prices.

Before new products are launched on the market, they are recommended to the corresponding consumer groups in a targeted manner.

Second, refine the fan source channels

Brands usually deploy multiple channels, and the population portraits of different channels are also different. For example, Xiaohongshu is mainly composed of female users aged 20-40 who are willing to share.

Consumption habits and choices vary among different consumer groups, so brands need to make targeted advertising efforts.

Third, community refinement

Everyone is familiar with community culture. People always live in social groups of one kind or another.

There are many types of book clubs in Shanghai. I have participated in one before. The group owner will classify the members participating in the book club into new fans (participated 1-5 times) and old fans (participated more than 5 times).

The advantage of this classification is that it facilitates management and communication between fans in different groups is smoother.

In fact, the same principle applies to brand community fan operations, such as Luckin’s community operations:

New users can enjoy a 38% discount coupon when joining the group; the advanced level is to set up exclusive coupons (15 yuan coupons per day); and then go to the exclusive welfare and discount community (9.9 yuan drink flash sale from 4 to 5 pm).

Build an operational chain for target consumer groups from three aspects: refined reach, refined channels, and refined communities.

▲USHOPAL

04. The rise of new luxury beauty products in China from the perspective of USHOPAL?

USHOPAL, China's leading international new luxury beauty brand group, is very experienced in the community promotion model that caters to each individual. In recent years, they have successfully promoted international brands such as Chantecaille and Juliette Has A Gun in China.

In 2018, we selected Juliette Has A Gun and deeply explored the opening model of China's rapid and healthy growth. In just 10 months, we built a huge voice and high-level mindset from scratch, and entered the top 3 international luxury fragrances in the second month of its entry into Tmall.

In March this year, USHOPAL completed a nearly US$100 million Series D financing round, led by FountainVest Partners, followed by Cathay Capital, Zhongyuan Capital, Hengxu Capital and other investment institutions.

Bonnie & Clyde (B&C), an offline channel of USHOPAL, has also become a leading brand of new luxury beauty stores in China.

B&C focuses on the repurchase model of "high net worth + high sophistication" groups, forming precise coverage of the target customer group of luxury beauty products. In 2020, its sales easily exceeded 100 million yuan, making it the beauty and cosmetics store with the highest average customer spending in the country, with an average customer spending of over 10,000 yuan.

B&C is able to deliver cross-border beauty products to customers in Shanghai offline within four hours, which means that if a customer is interested in a certain overseas product, as long as they place an order on the USHOPAL mini program, they can receive the goods within 4 hours.

Zhang Hui of FountainVest Capital said:

"In recent years, the domestic beauty and skin care industry has developed rapidly, and China has become one of the world's largest consumers of beauty and skin care products. With the consumption trend of younger, more personalized and high-end products, we are very optimistic about the development prospects of China's beauty and skin care market.

USHOPAL is a leading company in the high-end beauty and skin care industry with an experienced management team and a brand portfolio with great potential. The company has excellent brand operation capabilities and has established a full-link digital marketing system and omni-channel sales network.

We are delighted to have the opportunity to invest in USHOPAL. In the future, we will make full use of FountainVest Partners' investment experience and global network resources in new retail and brand management to firmly support the company's further development. ”

Author: Consumer Industry

Source: Consumer Industry