500 yuan to buy a mobile phone case, why are young people so on top?

You can grasp everything big and small in the venture capital circle

Tencent Venture | ID：qqchuangye

"Mobile phone cases are becoming dark horses in the consumer field, can the enthusiasm of young people give birth to the next bubble Mart?"

The source of this article is "Direct Face Pie" (ID: baobiannews), which is reprinted by Tencent Venture with permission.

Text/Zhang Mengyi

Editor/Yang Liu

"Selling mobile phones is not as good as selling mobile phone cases to make money", Luo Yonghao's complaint about the mobile phone industry a few years ago is still outdated today.

Chen Xin, a post-90s girl, told "Leopard Change" that when she returned home from work at night, she brushed a good-looking mobile phone case on Taobao and Xiaohongshu, which became the main way for her to release negative energy. "I love cartoons and shiny phone cases, especially satisfying girlish hearts. Many stores buy three mobile phone cases and get 25% off, and I will place three orders at a time. ”

According to NPD GroupInc survey data, 75% of smartphone users will use protective cases, and 25% of users will buy more than 2 mobile phone cases to match different mobile phone styles and clothing.

For contemporary young people, the phone case is no longer a simple protective case, but a new type of social currency that can be used to express emotions, personality and attitudes. Cheap, fashionable, low-threshold mobile phone cases are easy to get addicted to. Capital is also chasing young people, and since the second half of last year, brands such as CASETiFY and Shell Factory have been financed.

The heat of new tea drinks and blind boxes is fading, and mobile phone cases have become a new consumption hotspot chased by young people. Will this traditional track run out of the next bubble Mart?

1

"Mobile phone case is like milk tea, easy to addictive"

Recently, Chen Xin almost once a week to change the mobile phone case, "buy a mobile phone case and buy milk tea, dozens of dollars, the price is not expensive, use the annoyance to throw away, spend money when not painful, easy to addict." ”

Although Xiao Qin, who has worked for many years, has passed the period of shell addiction, she told "Leopard Change" that she has to change at least four or five mobile phone cases every year.

For young people, the aesthetic significance of mobile phone cases is exceeding the practical meaning, and more and more people will change mobile phone cases according to the season, mood and color of clothes, rather than buying without shells.

Xiao Qin said: "Every season I will change a different mobile phone case, such as buying red in the New Year, buying flowers in the spring, buying bright colors in summer, buying textured in winter, mobile phones can not be changed often, good mood with cute wind, occasional aesthetic fatigue is replaced by solid color liquid silicone mobile phone cases, mobile phones can not be changed often, but changing mobile phone cases can change a mood and freshness. ”

After seeing the enthusiasm of young people to change shells, Han Bing, CEO of Play Shell Factory, led the team to develop a DIY mobile phone shell intelligent manufacturing machine in 2019. On the intelligent machine, users can customize individually, make it instantly, and buy it and take it. At present, in Beijing's Chaoyang Joy City, Hopson Hui and other business districts where young people gather, the DIY mobile phone shell intelligent manufacturing machine of the play shell factory can sell 20 to 35 mobile phone cases every day.

Mobile phone cases have become a way for young people to express their emotions and attitudes towards life, with strong social attributes. Han Bing believes that compared with the material and quality, some consumers are more concerned about the content of the mobile phone case itself. When the popular drama "The Hidden Corner" was on fire, the mobile phone case printed with "Climbing the Mountain Together" sold well; and when "The Beginning" was popular, the mobile phone case was printed with "out of the loop".

"Many slogans on mobile phone cases will touch on current affairs, and people like to print words and patterns that express their views and emotions on the phone case." Han Bing said.

On the e-commerce platform, the style and style of the mobile phone case are diverse, and the combination with the trend of fashion culture is also very close, some mobile phone cases will be printed with Lingna Belle, Diga Ultraman and other IP images, some work the material, making cream glue, three-dimensional oil painting, metal, laser, plush, leather material mobile phone cases, some take the emotional route, printed with slogans such as I want to self-discipline, resonate with young people; and some of the main funny wind, the mobile phone case into sockets, kitchen knives, snail powder shape, full of fun.

"Leopard Change" noted that the best-selling mobile phone case price on the e-commerce platform is concentrated between 10 and 40 yuan, and the consumers are mostly women, closely following the popular culture and network context, and catering to the needs of young people in pursuit of small luck.

Social media and the star effect are also fueling the mobile phone case consumption boom. In recent years, celebrities have become more and more popular with mirrors, and fashionistas have incorporated mobile phone cases into their own outfits to create a sense of atmosphere, which has been sought after by many netizens.

Picking up celebrities with the same mobile phone case on Little Red Book and Instagram has become a hobby of many netizens. From Yang Chaoyue, Zhao Lusi, Bailu to the Korean idol group BLACKPINK, they are all objects that young girls chase and imitate. After all, buying love beans and wearing the same style does not necessarily have the financial resources, but the economic pressure of buying the same mobile phone case is much smaller.

The same phone case about the star on the Little Red Book

This is how the star-chasing girl Yuanyuan entered the pit. She likes Korean stars Park Caiying and ROSE, and in the process of brushing the celebrity social accounts, she knows big-name mobile phone cases such as Wild Flower and CASETiFY. After changing the Apple 13plus, she held the idea of "a good horse with a good saddle" and started a batch of high-priced mobile phone cases, the most expensive of which was more than 500 yuan. As long as she has a lot of money, she will buy two or three expensive mobile phone cases every month, cheap mobile phone cases, as long as she likes it.

"I like a variety of original brands at home or abroad, but the most bought is CASETiFY, this brand of mobile phone case anti-drop, DIY strong, good pattern, but also often out of the joint name." I specially prepared a large storage box for mobile phone cases, mainly for caseTiFY limited editions. ”

Because she is good at shooting mobile phone cases, Yuanyuan has attracted many merchants seeking cooperation, as long as she publishes mobile phone case photos in Xiaohongshu, she can receive corresponding remuneration, and in March alone, she received the promotion of 13 merchants.

The small mobile phone case is becoming a dark horse in the consumer field, and the market share and prospects cannot be ignored. Statistics show that the stock of mainland smart phones has approached 2 billion, according to market research company GFK data, in 2021 China's annual mobile phone sales of 310 million units, is expected to be about 300 million mobile phone sales in 2022.

The mobile phone case, which is highly sought after by young people, is attracting bets from investment institutions, and since the second half of last year, the financing trend of mobile phone shell brands has increased significantly. In June 2021, the trend technology accessories brandCASETiFY received tens of millions of dollars in C capital A round financing; in December 2021, "Play Shell Factory" obtained Xiaomi and Shunwei Capital tens of millions of yuan A round of financing, and more and more professional players appeared in this market segment.

2

A lucrative business?

The mobile phone shell industry has no shortage of powerful players, the most widely known is the original mobile phone shell launched by mobile phone manufacturers, under the blessing of brand effect, the price is often not cheap. Meizu iPhone 13 Pro/ Pro Max "blackened unicorn" phone case costs 129 yuan, Apple liquid silicone phone case costs up to 329 yuan, Huawei P30 Pro limited edition set costs 400 yuan. By supplying Huawei, Gemmet has harvested about 2.8 billion yuan in revenue in 2021, becoming the only mobile phone shell listed company.

Not all consumers are willing to spend a lot of money on original mobile phone cases. "There are only a few styles of the original mobile phone case, the same model only produces three or five colors, all of which are plain and transparent styles, and the style and material are relatively small, which is more suitable for business people who like a simple and formal style, and the choice of young consumers is relatively small." Han Bing said.

Beijing Wangfujing Apple store mobile phone case display wall / visual China

There is also a category of mobile phone accessories brands, such as GreenLink, Momic, etc., the main functionality and high-quality materials, the price is mid-range, generally below 200 yuan, the style is also relatively simple.

In addition to these traditional 3C brands, more and more original design brands are emerging in the field of mobile phone shells, such as wild flower, CASETiFY, Holdit, etc., emphasizing the sense of design and IP co-branding, and the price ranges from 100 to 500 yuan. With the pursuit of young people's demand for personalization and trend culture, the popularity and brand influence of such mobile phone cases are increasing day by day.

At present, the most mainstream in the domestic market is still a low-cost mobile phone case. Han Bing told "Leopard Change" that there are many small factories that make mobile phone cases in China, and the price of small commodities in Yiwu and Huaqiang North in China has not been raised, and the price of the entire market is not as expensive as overseas brands. The domestic mobile phone stock market is also very large, 2 billion mobile phones a year, even if a mobile phone case only sells for 10 yuan, there is also a market share of 20 billion yuan. In this case, the merchants do not have the will to build a brand, and the overall volume is the mainstay.

Most of the e-commerce stores that sell mobile phone cases are such light operation, and the real producers and designers are the mobile phone accessories manufacturers in Huaqiang North and Yiwu. Taobao individual sellers only act as drainage parties, acting as front-end customer service and sales roles, after receiving orders, the sellers purchase goods from Huaqiang North.

According to industry insiders, some of the better stores will pay attention to the originality of products and hire one or two designers, but more are designed by Huaqiang North Small Commodity Market. If the store specifically recruits designers to design mobile phone cases, the cost will be relatively high, and the design drawings may not sell well. There are also some shops, the main to map customization, buyers to find pictures, sellerS P pictures, printed on the phone case, the purpose is to reduce inventory.

Do you make money selling phone cases? In Han Bing's view, the operation level of each store is different, and the profit margin is also different, "Now the average price of mobile phone cases on Taobao is generally about 20 yuan, offline stores are generally 30-40 yuan, online e-commerce deducts express delivery fees and traffic costs, and offline stores deduct shopping mall rents, in fact, the profit margin is very low." But if it is a model such as DIY mobile phone shell intelligent machine, the profit margin can almost reach 70%-80%, in addition, some high-end brand mobile phone shell profits are also very high. ”

On the other hand, the biggest pressure on selling mobile phone cases is too much inventory and too high SKUs. Han Bing revealed that when he opened a store in Beijing, each store needed to enter goods ranging from thousands to 20,000 yuan, and the area of the store was limited, mainly selling new models, such as Xiaomi 12, Apple 13, Apple 12, Apple 11.

Even so, Han Bing's inventory pressure is still very large, at the end of the year to clear the warehouse, "the model of the mobile phone is still too much, Apple 4 models a year, Android mobile phone models may be more, the update frequency is too fast, the previous model has not been sold out, the next one will come out." ”

Consumer preferences and fashion trends are also difficult to grasp, which is almost a common annoyance for mobile phone case merchants. "As long as the finished mobile phone case is sold, there is no guarantee that every prefabricated pattern can be sold and can be liked by consumers." The market is also very volatile, maybe this month a pattern sells well, next month there are new hot spots, it is outdated. This is a characteristic of this industry. Han Bing sighed.

3

Can you run out of the next "Bubble Mart"

The mainstream consumer group of mobile phone cases is young people, and the highest repurchase rate is also young people, and its cheap, trendy, and personality attributes can't help but think of the blind boxes and tide play that are highly sought after by young people. Is it possible for this field to run out of the next bubble Mart?

In fact, the phone case is not new, its history can be traced back to the Nokia era, but it has never changed much. When it comes to mobile phone cases, the first thing that comes to mind is the mobile phone cases of the brand side, such as the mobile phone cases launched by OPPO, Xiaomi, Huawei, and Apple. At present, there are no head brands in this field.

In Han Bing's view, the mobile phone shell industry currently lacks unified standards, the original mobile phone case can be sold to two or three hundred pieces, but some e-commerce stores and local vendors can sell 9 pieces of 9 free shipping. The quality of mobile phone cases on the market is uneven and the gap is huge.

Small goods tide shell shop owner Yu Wei (pseudonym) has been doing mobile phone shell agency business for four years, the main original design brand, in her view, low-cost mobile phone case although the appearance is very high, but in terms of workmanship, quality, and brand mobile phone case is very different. The brand mobile phone case will make an exclusive mold, the pattern is all original, and the joint model has also paid the copyright fee.

She said: "The feel, protection, material and cheap phone cases of these mobile phone cases are not the same, and many people no longer buy cheap ones after using them." ”

Original brands often place great emphasis on scientific research, and the awareness of copyright protection is also very strong. CaseTiFY founder Wu Peishen once revealed that design and product quality have been the key to CASETiFY to seize consumers for many years, and R&D and material costs are also the two heaviest links in CASETiFY costs. Every new product launch of the brand must be tested thousands of times to ensure that the quality of the mobile phone case is passed. In terms of design, in addition to forming its own team of designers, the company also invites designers from all over the world to cooperate.

In addition, CASETiFY has also cooperated with a number of well-known IP and launched co-branded products with Disney, the Louvre, Pokémon and so on. It is precisely because of the emphasis on quality and design that CASETiFY has sold more than 3 million mobile phone cases per year.

In contrast, some small and medium-sized mobile phone case manufacturers have poor brand awareness, still mainly mass-produced low-cost mobile phone cases, poor design sense, and the phenomenon of plagiarism is common.

Han Bing said that the mobile phone cases on the market should actually be sold more expensive, because there are celebrities and IP copyrights on it, but some merchants make it into pirated sales, because these pirated mobile phone cases and IP copyright parties, stars have not signed a cooperation, and they are sold very cheaply.

It is gratifying that at present, the brand side and the e-commerce platform are increasing the crackdown on piracy, the pirated mobile phone case shows a downward trend, and the genuine mobile phone case has gradually become the mainstream of the market. With the strengthening of copyright protection awareness in the market, there will be fewer and fewer pirated mobile phone cases in the future.

Developing original IP and emphasizing IP design elements may be one of the effective ways to improve brand value and customer unit price. According to industry insiders, with the IP blessing, fans are willing to spend money to buy, and the pricing of mobile phone cases can reach about 3 times that of ordinary mobile phone cases.

At present, the play shell factory is developing in this direction, cooperating with the IP party, printing the pictures provided by the IP party on the mobile phone case, inviting designers to settle in, in addition to cooperating with the IP side and designers, the play shell factory is also designing and creating its own IP, walking on three legs. But Han Bing also stressed that whether IP can be fired, to what extent, there is a great element of luck.

To some extent, consumers are not unwilling to buy expensive mobile phone cases, but are not willing to pay more for low-quality mobile phone cases, after all, in the Yuwei Taobao store, there are some customers whose annual consumption of mobile phone cases is more than a few thousand yuan.

Yu Wei said: "China's manufacturing industry has a unique and leading edge in the world, fully equipped with the ability to produce high-quality mobile phone cases, and what is lacking now is the control of industrial design, structure and materials. The logistics cost of Chinese brands is very low, and once the brand can do it, the pricing can be lower than that of overseas brands, and the consumer market acceptance is definitely higher. ”

When the traditional 3C accessories of the mobile phone shell are linked to young people and new consumption, there is also the possibility of consumption upgrading, and the future of this business still has a huge imagination space.

END

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