Zhejiang Xiya: To do a good job with efficacious products

At present, we need person who have ideas to iterate and those who can break through traditional thinking in offline channels.

The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China’s efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Pan Bingli, general manager of Zhejiang Xiya Cosmetics Co., Ltd. to share with us the cosmetic trends in China.

CHAILEEDO: Will it be more difficult for offline cosmetic agents next year?

Pan Bingli: The hard ones will be more difficult, but those who have ideas to iterate and those who can break through traditional thinking will see the light. As far as agents are concerned, their core value is the goods and personnel in the warehouse, and maximizing the activation of this value is the key.

I personally think that at present, between the couple stores(couple stores refers to a small store jointly operated by a husband and wife) and the traditional top 100 chain stores, there is a vacancy that many people do not see, such as a single store with a new mode called “Qian Dian Hou Yuan”(Qian Dian Hou Yuan refers that the front part of the store where products are displayed and sold, and the back part is the place where services or sales services are provided for customers who buy products.). From a business point of view, the couple store relies on contacts, the traditional top 100 chain stores rely on traffic, but now CS channels relying on traffic and clientele is less reliable, because their stickiness with customers is no longer.

Because of this, the gap between the couple stores and the traditional top 100 chain stores came out. Therefore, agents who tend to develop customers or transition to open stores, should go in this direction, which is a little opportunity that my Wenzhou company seizes.

In addition to the original goods and personnel resources, I think to do the efficacy of the product to do a good job as an agent. First, the efficacy of the product channel is relatively narrow, they will not do all channels. Second, because the channel can be controlled, so the price control is better. Furthermore, such brand products have a large added value.

For example, the reason that a product of brand can be sold at more than 10,000 yuan per unit is that its ability to meet the needs of the store members want to become beautiful. More importantly, this product can increase the customer unit price of the store. Moreover, such products are not sold in shopping malls and traditional top 100 chain stores, because they need shopkeepers to slowly promote to customers and ask them to experience the product.

It should be said that there is no way to break the fixed mode of traditional agents. But in the long run, I am still more optimistic about offline, especially after the online e-commerce and offline have done. Because we are more clear where they are associated with each other. Now it is meaningless for us to be agents of some cosmetic brands. We should think that how to make efficacy cosmetics gaining more popularity. Then the products can be sold in offline channels.

Consumers now do not have a lot of time to listen to you in the sale of goods, but they are willing to go to the cosmetics store to take care of their skin. This is where the Internet can not be replaced. What we need to do is to build trust in the product through service. Through the efficacy of the product to build future repurchase and stickiness, which is also a step that offline retail stores should think about.




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