"Pattern Fixation"
For beauty brands, offline is not only a window for direct contact between brands and consumers, but also an important way to enhance brand influence. Since the beginning of this year, many beauty brands have made efforts to go offline and re-examine the value of offline channels.
Recently, Xia Yu, general manager of Beauty Star, was interviewed by Qingyan, telling the secret of the rapid development of the number of stores and the company's development plan for the next three years.
According to public information, Beauty Starry Sky was established in 2022 and is a beauty chain in the Yangtze River Delta region with explosive products, famous products, trendy products, and drainage products as its main categories, and has developed into a new chain system with 108 stores.
"Based in Jiangsu, Zhejiang and Shanghai, facing the whole country, this is the starting point of the beauty starry sky, if we can be in the forefront of Jiangsu, Zhejiang and Shanghai, we will be in the forefront of the country." According to Xia Yu, Beauty Star's stores are mainly located in Jiangsu, Zhejiang and Shanghai, and since last year, Beauty Star has begun to deploy in other cities.
It is reported that Beauty Star was founded during the most serious period of the epidemic, and due to the difficulty of doing business, it finally chose the business mode of "mainly through the economy, supplemented by side shops, and no street shops".
Xia Yu told Qingyan, "At first, the area of the beauty star store was very small, about 20 square meters, which was not only a small investment, but also a low risk component. Under this model, in less than a year and a half, the number of beauty star stores has reached 108, including 92 multi-point stores and 16 side stores. ”
As a global beauty brand and famous brand collection discount chain store, in addition to the main high-end beauty brands, since last year, Beauty Star has also introduced some domestic beauty brands. Xia Yu said that this is mainly based on two reasons: first, domestic beauty must be the mainstream and trend in the future; Second, at present, international famous beauty products have begun to proliferate, and it is difficult to distinguish between the real and the fake.
Based on the insight into domestic beauty, Xia Yu also founded a second brand, Crescent Time, which is mainly engaged in domestic beauty, and the number of stores has reached 3. Relatively speaking, the age of the audience of New Moon Time is relatively low, mainly students, and the product has a high cost performance.
As far as the people and goods yard are concerned, Xia Yu believes that "people" is the most difficult link to manage, among them, "people" include employees, store managers, partners, among them, the gap between different store managers and BA can be 108,000 miles, so it is very important to choose the right people.
As far as many beauty brands are talking about restarting offline, Xia Yu believes that the spring of offline entities is far from coming. 5-10 years ago, in the automotive industry, Mercedes-Benz, BMW, and Audi were the three major foreign giants of automobiles. However, after the rise of domestic electric vehicles, they have seized a large part of the market share of foreign-funded vehicles.
"Just like the spring of the automotive industry, domestic beauty or offline beauty physical stores will definitely usher in spring, but we still need to wait, and it is not yet possible to predict what the opportunity point of the outbreak will be."
When talking about the planning of the number of beauty star stores in the next three years, Xia Yu said that this year, beauty star is mainly for stability, and may not open large-scale stores, and the number of stores is expected to be between 130-160. In 2025, the beauty stars will go all out to increase the speed of force. In the next 3 years, the number of stores is expected to increase by 2-3 times.
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On March 19, the 2024 (9th) China Cosmetics Trends Conference was held in Hangzhou, hosted by Blue Eye, Blue Eye Intelligence, and CHAILEEDO, and jointly supported by Meidd. With the theme of "Offline Reconstruction", Xia Yu, General Manager of Beauty Star, delivered a keynote speech on "Offline Opportunities for Explosive Beauty", sharing Beauty Star's understanding and interpretation of offline channels.
The following is a transcript of the speech:
Good afternoon, everyone!
This is the second time I have stepped on the stage of blue eyes, I am the project leader of the emerging brand of beauty starry sky, I have listened to the sharing of several top 100 cosmetics chain stores, and next, we will listen to the sharing of "Xiaoqiang who can't be killed", and the organizing committee has arranged 3 topics for me:
First, the future of offline entities
The future of offline entities is simply understood as which sectors are the most important for offline entities, or how to make offline entities better. After taking a moment to sum up my experience, I drew it into 4 sections: model, fund, culture, and team.
Without a good business model, it can't be fast. It has taken more than two years since the opening of the first store. Starting from the time of the severe impact of the epidemic, it has been done in an orderly manner until now, relying entirely on the soundness of the business model to run its volume.
It doesn't do much without funds. In fact, I have always been a boss and a businessman, and since I was 18 years old, I have started to open a store and lead a team to do business. However, I used to be a small business, and I never had a concept of the word "capital". It wasn't until today, after the good sale was on track, that I discovered this eternal truth, "Money is not everything, but sometimes it is really impossible without money", so I put the "capital" section in the second, and I can't do much without funds.
Culture is the foundation and gene of an enterprise. Now many enterprises, including my own business, I think, 90% of the enterprises are the boss's enterprises, and the boss's culture is the company's culture, I don't know if you recognize it. Anyway, I can't be so great, I can't be as great as Ma Yun, and I can't be the entrepreneur greatness of their generation of gods after Zong Qing.
Personal experience tells me that in many enterprises, especially small and micro enterprises, the boss culture is the corporate culture. So, what is the culture of beauty starry sky, it is very simple, down-to-earth, and one word. I believe you can tell from my attire that I just came back from the front line, I was still in the store, and I came to our conference after the store was busy. Many people think that the company where the boss works will never be big, and I think how can it be big if I don't do it.
There is no team that is not strong, and this goes without saying. In any brick-and-mortar store, one monk carries water to drink, two monks carry water to drink, and three monks have no water to drink. No matter what company you are in and out of, as long as there are more than 3 employees, a small team is formed, and no team in any physical industry can not be strong.
Second, the customer's consumption portrait
I think the consumer portrait is some data about the customer. The unit price of Beauty Starry Sky is 560 yuan, which is neither high nor low. How did this data come from, it was a PPT I made myself three days ago. The data of 560 yuan I found in the average sales price of the store in February is very accurate. At the same time, the gross profit margin of beauty stars has declined, only 33%-38%, and the era of profiteering is gone.
As a popular beauty discount store, the customer group of Beauty Star is mainly gathered in white-collar workers, families, young women and so on aged 25-45, and the student population is small, with 70%-80% of the customers aged 20-40.
Regarding the repurchase rate and repurchase cycle, the repurchase rate of Beauty Star has increased by 22% compared with previous years, why has it increased by 22%? Because Beauty Star has only been established for two years, and the previous year was the year of the epidemic, the repurchase rate has increased by 22% compared with the epidemic. In addition, the repurchase cycle is 80 days, and I deduced it from the data of customer repurchase and member repurchase, which is not necessarily accurate.
At the same time, the beauty starry sky linkage rate is as high as 66%, what is the linkage rate? The joint rate is not easy to calculate, I deduced it from the number of single transactions of the mini program members. For example, if a customer buys once, there may be one, two, or three products, and I extrapolated based on this data, so our linkage rate is as high as 66%.
In addition, we have been deeply involved in this industry for many years, and our sales team has strong sales capabilities from BA to store managers.
Third, the offline opportunity point of popular beauty
This is my third topic, not so much the opportunity point of the popular beauty offline physical store, but how to do a good job of the beauty offline store, or where is the opportunity entry point for it? I've been thinking for a long time about where the beauty offline store opportunities are, and if I could answer it in one word, "wait".
I don't think this opportunity has yet arrived, and I have to wait. Beauty brick-and-mortar stores have not yet survived the cold winter, and have not yet ushered in the spring flowers. Maybe not everyone on the scene is the owner of a physical store, and you may understand a story better if I tell you.
5-8 years ago, the automobile manufacturing industry Mercedes-Benz, BMW, Audi, the three major international giants in China's automobile market share was comprehensively crushed, and some domestic cars were overwhelmed. But today, domestic cars are up, new energy vehicles are up, Mercedes-Benz, BMW, and Audi are starting to panic, and even Porsche is developing new energy electric vehicles.
I have 3 cars at home, 2 of them are new energy, and I drive my own VOYAH. This story is not familiar compared to beauty, and now Lancôme, Estee Lauder, La Mer and other international brands are frantically plundering in China, and basically no domestic brand can wrestle with it.
They have plundered countless Chinese consumer resources, but I believe that like new energy vehicles beating fuel vehicles, domestic beauty companies will definitely make a comeback, which is also the entry point and opportunity point for cosmetics physical stores. But I think that day has to wait, it has not yet come. With a large number of Chinese talents, comprehensive technology, brand innovation, and application of learning, I believe that China's beauty will bring the latest revolution.
Many people say you're talking about the future, so where are the opportunities for beauty right now?
If from the traditional perspective of brick-and-mortar stores, the opportunity point is nothing more than a human goods yard, I can't find the third one. Among them, I put "people" first, and I don't have any high-tech to share with you here, but I can only talk about the internal system of Beauty Starry Sky, that is, the master-apprentice model.
The image of the beauty starry sky has been done well, but it still hasn't been copied on the rivers and lakes. The beauty starry sky goods are actually similar to those on the market. But you won't be able to figure out the beauty starry sky model, and if I tell you the answer, you won't be able to learn it.
Therefore, I think "the model sets the country". Among them, goods are our core, and the procurement of beauty stars is my wife, and I give the most core things to the closest people. The products include famous products, explosive products, trendy products, and drainage products, and there are not many profit products, so the gross profit of the beauty star store is not high, only more than 30 points. We have very high requirements and are very cautious in the selection of profit products, but in these four products (famous products, explosive products, trendy products, and drainage products), we will open the door and welcome them in.
In addition, as a cosmetics physical store, the choice of venue is also very important. I used a very popular sentence here, "I would rather be a chicken head than a phoenix tail" site selection model, for example, a store located on the 10th floor of Hangzhou Tower is not as simple as the first floor of a small county town.
Before the next era comes, the offline entry point of beauty physical stores lies in the fixed model, and at the same time, the people, goods and yards will always occupy a very important position.
Thank you!
(Interviewed by Gloria)