RUOYUCHEN: New Product Strength and Content are the Key to Growth
- Chaileedo Press
- Oct 7, 2022
- 3 min read
The current DAU of TikTok has exceeded 600 million and the penetration rate of TikTok E-commerce will further increase next year.
Recently, "alive" has become a hot word, and the beauty industry has encountered various challenges this year, but we can also see that the efficacy of cosmetics track is still lively. CHAILEEDO invited the General Manager of the Operations Department of RUOYUCHEN, Po Tian, to share with us the Chinese cosmetic tends.
CHAILEEDO: From your perspective, what are the biggest trends in the cosmetic industry next year?
Po Tian: First of all, under the background of a recurring epidemic, pressured consumer environment and limited business growth, the sink market has become an important battlefield for brands to compete due to the large population base and strong consumer willingness, and it is predicted that big international brands will further capture the sink market in the next few years. They may also take the "people-friendly" route in their marketing strategy, which will to a certain extent weaken the competitive power of Chinese brands, leading to increased competition in the industry.
Secondly, with the rise of the ingredient-centric and the use of collagen and other higher-order ingredients, consumers have higher demands on skincare products, and brands with real technological strength will further strengthen their advantages, such as BLOOMAGE BIOTECH, WINONA, PROYO, etc. Meanwhile, the emerging market of recombinant collagen and artificial biosynthesis will have some development potential and room for development.
CHAILEEDO: In your opinion, what changes will there be in the online channel next year?
Po Tian: The penetration rate of TikTok E-commerce will further increase next year. In the era of traffic dividend, business is wherever people are. The current DAU of TikTok has exceeded 600 million, so we can see that users are the key force of TikTok ecological prosperity. Although TikTok is still relatively restrained in terms of E-commerce, based on this background, the growth rate of TikTok E-commerce has far exceeded that of traditional E-commerce, and the TikTok E-commerce ecology is gradually improving, so we are continuously optimistic about the development of TikTok, which is an important field for brands to seek new incremental business. This is why we invested in TikTok service provider MOFAN this year.
CHAILEEDO: When will the brand that developed and relied on TikTok appear?
Po Tian: To some extent, TikTok brands have already appeared, such as old brands that have turned red like Proya and YAYA, as well as new brands in the clothing and fruit wine categories like local apparel brand WHITE T-SHIRT and low-degree fruit wine brand Seventeen Light Years. For new brands to grow fast and become a TikTok brand on the E-commerce platform, they must find the right track, continue to develop, plant a wide range of grass, and find the differentiated selling points of their products, and only through the scenario-based bring-in and the layout of the influencer matrix do they have a chance to break through. In general, the ecological environment of TikTok is actually very friendly to white label goods, and TikTok gives more rights and support initiatives to new brands, so there is still a great chance to become a TikTok brand.
CHAILEEDO: Traffic is getting more and more expensive, what is the new breakthrough point for brands from the perspective of agency-operators?
Po Tian: New products and content are the key. Mainly divided into 2 stages, the first stage, the existing traffic can be efficiently undertaken and have a good repurchase ability (whether it is the same product repurchase or cross product repurchase); the second stage, according to the product differentiation selling point (preferably to be able to reverse customize the product according to the user's needs), refining the core scenario-based content communication, and then combined with TikTok AD and influencer matrix to do a lot of traffic import, in order to convert and enhance traffic-to-cash. At the same time, cross-category operation is also the next breakthrough for brands after the traffic dividend disappears, which can break the existing industry perception and operational restrictions, and also bring new consumers to the brand.
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