Muji And Other Cross-Border Cosmetics Are Attractive

about H&M For clothing brands such as Muji, the accumulated brand advantages and channel advantages can help them greatly save costs when entering the cosmetics field, resulting in higher profit margins and lower difficulty in promotion.

In the field of fast moving consumer goods, beauty is undoubtedly a "big cake" with low risk and high income. Even clothing brands H&M and Muji have decided to open up beauty product lines to share this cake. However, everyone admires the cake. Whether it can be eaten well or not is another matter.

As early as the end of January this year, H&M announced that it would launch the H&MBeauty beauty series through the 2014/2015 financial report released by Hennes&MauritzAB. Recently, this series of products was officially exposed. The H&MBeauty autumn series, which contains 700 products, includes not only lipstick, nail polish, eyeliner and other cosmetics and makeup tools, but also hair care and body care products. The price range of the series products is from US $2.99 to US $24.99, which is consistent with H&M's positioning of "fast fashion". The product is expected to be launched in September this year, and will be sold in 900 stores and brand websites around the world. However, the first product will not involve Chinese stores or official online stores in China. This is not a strategic choice, but the result of complex customs import procedures, and the company is stepping up contact with this matter.

On April 17, MUJI (Shanghai) Commercial Co., Ltd. also announced the news of MUJI's upcoming cosmetics through its official WeChat. Now, Muji's cosmetics products have been sold on its official website. According to the information on the commodities released on the official website, Muji cosmetics products cover more than ten categories, including eye shadow, concealer, lip liner, eyeliner, eyebrow pencil, foundation milk, blush, powder, makeup powder, makeup lotion, mascara, lip gloss, mascara nourishing liquid, etc. The cheapest wood eyeliner is 25 yuan, and the most expensive dual-use eyebrow pencil is 98 yuan. Before that, Muji has launched skin care products and cosmetics, involving cosmetics, make-up removers, emulsions, creams and other categories, and its pricing is also very popular.

It is speculated that the reason why H&M and Muji have made such a move is that in recent years, the competition in the clothing industry has become fiercer, a large number of brands are facing the pressure of de stocking, and many more brands have fallen in the competition. However, the performance of these two brands in recent years is really unsatisfactory, and it is urgent to find another way to improve their performance. and Clothing cross-border makeup In fact, it is not uncommon. The major luxury brands are successful precedents. The cosmetics product line has become a "cash cow" of luxury brands, even more profitable than the main business. When PRADA tried to launch the perfume business, the British media reported that the liquid composition of a bottle of perfume only accounted for 3% of its production cost, and its retail profit space was as high as 95%.

According to insiders, luxury goods The profit margin of positioned cosmetics is generally as high as 80%. Even the profit margin of ordinary cosmetics business is quite high, which can still reach 30% - 50% under the premise of huge advertising expenses, personnel costs and channel costs. Compared with other industries, this profit margin is really amazing.

For clothing brands such as H&M and Muji, the accumulated brand advantages and channel advantages can help them greatly save costs when entering the cosmetics field, resulting in higher profit margins and lower difficulty in promotion.

When I think of the time I used to go shopping for H&M and Muji products, I always felt that I could not buy them for several times, so I had to choose some socks, hair accessories or earrings and necklaces in the area in front of the cash register. So, will we pick up some bottles of nail polish and choose some blush, lip gloss and mascara to pay the bill when we go shopping in clothing stores such as H&M and Muji? In this way, it seems that it can solve the big problem of "unable to buy clothes". So wait and see.

Xiao Bian believes that fast fashion cross-border play is not a new thing. It seems that all fast fashion brands feel that the world is not stable and the market is not optimistic. However, the fast fashion "fast" has become the target of other brands to imitate. While focusing on sidelines in style, the main business must not be lost.