Chinese Skincare Retail Brand with 400+ Stores to Target Fragrance Market
- Chaileedo Press
- Sep 14, 2022
- 3 min read
Updated: Sep 15, 2022
Forest Cabin's omnichannel performance during the Chinese 618 Shopping Festival broke 100 million yuan this year, an increase of 34.5% year-on-year. In addition, the performance in Tiktok China soared a 1000% increase in the same period last year.
Forest Cabin is a Chinese brand using traditional Chinese herbs as ingredients, targeting young users in the mid-to-high-end market and its Camellia oil has become a top-selling product. In November 2020, Forest Cabin got hundreds of millions of yuan in Series A financing. Less than 10 months later it completed Series B financing with a more than threefold increase in valuation. CHAILEEDO invited Sun Laichun, founder of Forest Cabin, to talk about the future trends of Chinese cosmetics.
In his opinion, the share of local brands in China will continue to go up next year, but the overall industry growth rate will slow down. Sun Laichun is very bullish on skincare essences and fragrances. He believes that essence is the largest skincare category and is a necessity for consumer upgrade, while the fragrance is a must-have product for stress relief and high quality of life. This year, Forest Cabin will launch a limited version of "Haute Perfume".
It is known that Forest Cabin's omnichannel performance during the Chinese 618 Shopping Festival broke 100 million yuan this year, an increase of 34.5% year-on-year. Moreover, its performance in Tiktok China soared a 1000% increase in the same period last year. Forest Cabin Camellia oil ranked TOP 1 in the Tiktok China e-commerce best-selling essence oil list, and TOP3 in best-selling facial essence oil list on Tmall, which is the only single product of more than 500 yuan(about $71.9) within the list.
Despite the great performance of the online channel, Sun Laichun expressed his concern. He said that sale of Tmall stabilized and that of Tiktok China began to make money, but the cash-burning model will not be able to maintain. Tmall has a strong perception of brand power and is the first choice for shopping, especially for cosmetics. Tiktok China has traffic, but for most of the brands in the past two years, the performance of the profit is worrying. This situation can not last need to refine the operation and maintain with profits.
In the face of increasingly expensive traffic, he believes that although innovative brands are the hope of China's national cosmetics, they cannot form a strong brand with stickiness just by casting traffic to operate. Once the online rules change, it will be exceptionally difficult. Offline channels have stability and are easy to form strong brand power by service.
In 2021, Forest Cabin open online and offline channels. It takes online as the traffic entrance and it offers services and experience to undertake the traffic in offline channels. Through the private domain operations and CRM management to activate fans, it formed a sales closed loop of "OMO model" .
It is reported that Forest Cabin previously announced that it will open the offline arrangement of the affiliate model in 2022 in order to further expand the stores. Sun Laichun also said in the online streaming that the essence of the private domain is a tool to improve the efficiency of the service. He believes that developing in the long term also needs strong brand power, so the brand bonus is a long-term bonus. Retail brand + direct marketing (associates) is the business model to ensure brand power, and this model will be the future trend of Chinese high-end brands.
On September 22, the 5th Conference on China’s Cosmetics Trends will be held in Hangzhou, China. CHAILEEDO will be live streaming the entire event, register now to book a live stream: https://www.chaileedo.com/events.
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