Source: China News Weekly
Original title: Christina: The traffic password of "beauty + new consumption"
Abstract: Behind Christina's headwinds, products and services are the eternal theme
Since the mid-1980s, China's beauty industry has experienced a period of rapid development, with the market size from small to large, and the number of employees from few to many. According to the data, by 2010, there are about 2.5 million beauty salons of various types, more than 3,500 cosmetics manufacturers, more than 6,000 beauty salon training institutions, and the whole industry chain has formed a scale of 700 billion. The beauty industry has become the fifth largest consumer hotspot after real estate, automobiles, electronic communications and tourism.
After more than 30 years of development, the domestic beauty industry still has great potential, reaching a market size of nearly one trillion yuan. However, while the market scale is becoming more and more rapid, the drawbacks of the traditional beauty industry are becoming increasingly prominent, and excessive sales lead to customers not going to the store, poor experience, not suitable for young people to like, no new traffic, etc., which is also forcing the industry to accelerate change. For the beauty industry, how to seize the opportunity period and achieve "new life" is a problem worth pondering at this stage.
Founded in 1989, Christina just from the exploration period of the traditional beauty industry to the opportunity period of today's traffic is king, with drastic changes, not only the performance is gradually bullish, as of June 2021, the number of mainland stores soared to 4721, an increase of 5% over the previous year, successfully restored to the level before the epidemic in 2019. Where is Christina's nascent traffic password?
Break through the traditional beauty industry category
The shortcomings of the traditional beauty industry are highlighted and declining, and in the final analysis, it is not accurate to find the traffic entrance. Traffic, or foot traffic, is the number of customers who arrive at the store in a unit of time. For Meiye stores, obtaining traffic is equal to acquiring customers, and the way to obtain is either to introduce new customers by old customers, that is, to expand internally, or to run offline online advertising and cooperate with channels with customer resources.
However, these forms of customer acquisition can not retain people after all, especially since the outbreak of the epidemic, beauty salon layoff storms, transfer and closure of the storm emerge in an endless stream, low customer entry rate, consumption power and other degenerative characteristics are obvious. However, this does not mean that people no longer need to become beautiful, nor does it mean that the beauty of life will be replaced by medical beauty, and the rise of "self-pleasing" consumption is an example.
Cho Seung-y, CEO of Klittina Group
Beauty salons to transform and restart the "traffic era", the first thing to consider is product attractiveness. As Zhao Chengyou, CEO of Klitina Group, said: "Beauty consumption must return to products, and Klitina has always been not only a chain beauty institution, but also a product company." In fact, Christina started with the product, and in 1989, she developed the E.P.O. Cleansing Cream using amino acids, which made its product essentially different from other skin care products.
In view of the unprecedented attention to health beauty after the epidemic, Christina has already opened her own strategic layout last year, proposing an upgrading strategy of "beauty + new consumption", focusing on healthy beauty and laying out a healthy ecology of "water, microecology and regenerative medicine". Zhao Chengyou introduced that Christina's confidence is a strong R & D team and close cooperation with top laboratories, authoritative universities and medical institutions at home and abroad.
Taking the field of microecology as an example, in 2020, Klitina joined hands with P&S in Taiwan to make P113+ bacteriostatic active peptide ingredient using peptide synthesis technology, which was first discovered by Dr. Oppenheim of Boston University in the United States, and extended to oral microecology, skin care microecology and other fields; in addition, it also introduced the German ocean pharma Rhinebec Marine Pharmaceutical Microbiology Laboratory to develop a patented bacteriostatic ingredient for problem skin - Bernat Spirulina, Strive to help consumers build a healthy micro-ecological microbiome balance of skin throughout the body. In addition, as early as 2017, tongji University Lifeng Regenerative Medicine Research Institute was established with Tongji University to explore regenerative medicine anti-aging with fat mesenchymal stem cells and exosomes.
"This is no longer part of the traditional beauty industry." Zhao Chengyou said that from daily life beauty and medical beauty to regeneration and anti-aging, Klitina hopes to truly "move from beauty to health and expand the quality of life". And the number of stores can be achieved to more than 4,000 orders, the underlying logic of Christina is the product. Relying on the insight into the United States and the customer-oriented positioning, it has achieved the first layer of "traffic password" of its brand out of the circle.
Embrace digitalization across the board
From new retail to big data, from the launch of the middle office system to the comprehensive digital transformation of enterprises, every digital concept is accompanied by a round of big shock in the beauty industry. Nowadays, whether it is the consumer Internet or the industrial Internet, the digital wave is profoundly affecting the beauty industry. However, the road to digitalization in the beauty industry is difficult.
According to the "2020 China Life Beauty Industry Development Report", the online rate of the beauty industry is only 1.5%, which is about one-tenth of the catering service industry. Therefore, for the industry, digital transformation is no longer a question of "do or not do", but a question of "when to do" and "how".
Christina's digital transformation began in 2015, when most companies were still in the embryonic stage of digitalization, and some companies even approached digitalization, usually using external digital tools but not touching the organizational changes within the enterprise. Zhao Chengyou said that the first time of Critina's digitalization is internal digitalization, establishing a digital operational thinking, "so that everyone has a certain understanding of digitalization, and the improvement of personnel quality and ability is very important."
This is first reflected in digital decision-making, including product development, operation direction, consumer demand model and other aspects of the whole line with "data management" as the guideline, the results of big data analysis are applied to the implementation of programs or performance goals, so as to improve the overall operational efficiency and competitiveness. At the same time, we will upgrade the digital system and digital applications, build and improve our own e-commerce platform Xinmeili and the training platform Cloud Classroom APP, expand cooperation with other digital platforms, attract public domain traffic, and empower stores.
Zhao Chengyou boiled this down to "a genetic transformation", allowing the traditional beauty industry to break through the limitations of time and space, so that the consumption of beauty can occur anytime and anywhere. In addition, a large amount of data accumulation provides a direction for the future development of aesthetics and promotes the healthy and orderly development of the entire industry. It is worth mentioning that New Meili has played a key role during the epidemic, assisting The alternative operation of Christina's franchise stores that cannot open stores under the epidemic. From the figures, in the first half of 2020, its revenue increased by 29% compared with the same period last year.
It can be said that the store opens a digital new consumption model, even if the epidemic hits, it can also be consumed online, and the single profit model is not limited to in-store services, and the practice of fully embracing digitalization has thus become the second layer of "traffic password" for Christina against the wind.
A new era of beauty consumption
At present, the post-90s and post-00s have become the main consumer groups, and the innovative vitality of young people stimulates the awakening of customers who pursue beauty, and also promotes the progress of new consumption such as fast beauty, skin management, light medical beauty, and national tide. As a national brand, Christina is also growing with consumers along the way.
Zhao Chengyou introduced that Christina has now become a leading enterprise in the beauty industry that integrates the production and research and development, product sales, education and training, and e-commerce services in the fields of beauty salons, mainly beauty salons. At the same time, the Group launched the YapuLide Precision Medicine Platform, which integrates the three core businesses of medical beauty chain, medical anti-aging center and post-operative care products, and combines Christina Life Beauty, authoritative medical beauty and anti-aging technology to launch a new full-chain service of medical beauty and beauty industry. Such a "concentric diversification" development strategy is also the basis for its ability to empower the great health trend across borders under the epidemic.
"Behind the consumption upgrade is people's yearning for a better life, in fact, the good life in everyone's eyes is different." Zhao Chengyou said that what Christina has to do is to embrace change, iterate quickly, and constantly deepen the supply capacity of beauty, so that everyone can achieve common beauty.
If long-termism is the touchstone of corporate success, then the long-termism of creating beauty, creating beauty, and pursuing beauty is the biggest password for Christina to retain "traffic". As Zhao Chengyou said, "No matter when and where, we must achieve customer value for the purpose, everything around consumer needs, will never be left behind." We always believe that the beauty industry is an eternal sunrise industry, and our goal is to provide everyone with a beautiful life plan that is most suitable for their whole life cycle. ”
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