Zhejiang Jinzhuang: Traditional Agents Will be Eliminated

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 cosmetic track is still lively.CHAILEEDO invited Huang Bo, General Manager of Zhejiang Jinzhuang Cosmetics Co., Ltd., to share the beauty trends in China.

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

Huang Bo: It will be more difficult for agents next year, that's for sure. I feel that the traditional agents have reached the end of their lives because they can not keep up with the development of the properties of the times. No one said that destroying the agent. The main reason for the decline in the value of agents is the impact of channel change.

Currently, the channel has developed from the past single department store, KA, CS, to now more and more cosmetic channels. In the past, we did a good job with 3 channels, relatively closed, information is not transparent enough. Agents naturally have a certain space for survival. But now, the channel is almost borderless, and the whole price is very transparent, so it will lead to the traditional agents being eliminated, which is the inevitable result of development.

CHAILEEDO: What is the next new channel of beauty?

Huang Bo: At present, traditional agents can not stand still, we are also starting to do other things. What we are currently doing is a supply chain for the whole country. For brands that have more traffic online, we help them do 0~1 things offline, such as expanding stores and building channels. From my observation, the best place to do cosmetics business now is the wholesale market because the depth and breadth of products in their supply chain are very strong and the prices are very competitive.

I think agents can learn from the operation mode of online TP service providers and offline wholesalers to find a breakthrough point for their business. In the past, we often said that agents are service providers, but now this service has been very empty. Because there is no cost to supporting the service. The so-called service team may not be as professional and service level as the store itself, so they naturally do not need your services.

Some years ago, it was always said that the offline has gotten whacked by online, but in fact, now you have me and I have you. For example, now the community associations or community group purchase. Does it belong to online or offline? In the past, we defined them as online new retail, but many of their transactions are done offline, just because their platform transaction properties are online. From a business perspective, they are all To C oriented.

So I still think that the agents do some flow of brands to help the stores to gain traffic. This may be a very important role to play in the future.