Cosmetics O2O omni-channel e-commerce is the future trend

Looking back on the past ten years, the domestic cosmetics market has achieved impressive results of increasing sales volume and maintaining an average annual compound growth rate. However, as the market gradually enters an adjustment cycle, the era of sustained high growth for all categories of the cosmetics industry has become a thing of the past, and the overall trend is to enter an era of low-speed growth. Peanut Technology believes that although the market stages of each category are slightly different, product upgrades and channel transformation in the overall cosmetics market have become the general trend for all categories.
Product upgrades are accelerating and structures are changing
After rapid growth in recent years, the cosmetics industry has entered an era of low-speed growth.
Looking back on the past ten years, the domestic cosmetics market has achieved impressive results in increasing sales scale and maintaining an average annual compound growth rate. However, as the market gradually enters an adjustment cycle, the era of sustained high growth for all categories of the cosmetics industry has become a thing of the past, and the overall trend is to enter an era of low-speed growth. Peanut Technology believes that although the market stages of each category are slightly different, product upgrades and channel transformation in the overall cosmetics market have become the general trend for all categories.
Product upgrades are accelerating and structures are changing
After rapid growth in recent years, the cosmetics industry has entered an era of low-speed growth.
Channels have entered a period of transformation and positioning needs to be adjusted
The proportion of retail sales of e-commerce channels in the cosmetics industry has gradually increased in recent years, and the annual proportion of retail sales in the e-commerce market will break through.
In comparison, large chain stores are positioned in first- and second-tier markets and have been significantly affected by e-commerce. In addition, rents and labor costs have increased, and they are in the stage of structural adjustment. Supermarkets have poor service experience and user stickiness, and lack competitiveness. The market Share is being eroded.
With the development of Internet technology and the popularization of mobile terminals, online sales will continue to develop rapidly. However, although the development of e-commerce is irreversible, it will also encounter growth peaks. In the long term, offline channels for cosmetics will still be the main force. However, due to the impact of e-commerce, the original four-level price system formed due to high information acquisition costs and opaque prices has become unsustainable. The distribution system that focuses on the construction of distribution channels will collapse. , and was replaced by a retail system dominated by focused sales + service support, and the marketing method transformed to the Internet and social marketing.
The future development of the online and offline cosmetics market will inevitably move toward integration. In the future, the cosmetics industry will enter an era of development. Peanut Technology's ideal home appliance model is for online and offline markets to coexist and penetrate each other, thereby returning to the business essence of good products + good services and creating new capabilities such as user operations and data operations. Under the new situation, it is necessary for channel dealers to rethink their cooperation strategies with manufacturers and choose to cooperate with excellent manufacturers to strive for greater development space in the future.
Channels have entered a period of transformation and positioning needs to be adjusted
The proportion of retail sales of e-commerce channels in the cosmetics industry has gradually increased in recent years, and the annual proportion of retail sales in the e-commerce market will break through.
In comparison, large chain stores are positioned in first- and second-tier markets and have been significantly affected by e-commerce. In addition, rents and labor costs have increased, and they are in the stage of structural adjustment. Supermarkets have poor service experience and user stickiness, and lack competitiveness. The market Share is being eroded.
With the development of Internet technology and the popularization of mobile terminals, online sales will continue to develop rapidly. However, although the development of e-commerce is irreversible, it will also encounter growth peaks. In the long term, offline channels for cosmetics will still be the main force. However, due to the impact of e-commerce, the original four-level price system formed due to high information acquisition costs and opaque prices has become unsustainable. The distribution system that focuses on the construction of distribution channels will collapse. , and was replaced by a retail system dominated by focused sales + service support, and the marketing method transformed to the Internet and social marketing.
The future development of the online and offline cosmetics market will inevitably move toward integration. In the future, the home appliance industry will enter an era of development. Peanut Technology's ideal home appliance model is for online and offline markets to coexist and penetrate each other, thereby returning to the business essence of good products + good services and creating new capabilities such as user operations and data operations. Under the new situation, it is necessary for channel dealers to rethink their cooperation strategies with manufacturers and choose to cooperate with excellent manufacturers to strive for greater development space in the future.