Problems New Facial Mask Brands need to Avoid in China
More than half Chinese girls living in cities are used to facial mask (see more about facial mask market). And they are not loyal to one brand; in fact, they are very open to new brands. Thus, the number of brands in the market has increased from 70 to 300 in only 2 years!
However, with the development of the market, the new challenges are coming out one by one. Today, let’s take a look at what kind of new challenges that new comers are facing:
In only 2 years, there have been over 300 brands available in front of Chinese facial mask users, which has been increased by about 4 times. It means at each point of the chain, there are 4 times more competition. It also means in the end stores and shops, there will be more brands, the advantage of some monopoly brands will no longer exist.
No doubt it’ll have increase the pressure for brands, but on the other side, there will also be many competitors driven out of the market.
Low level of marketing
Since most brands are still focus 100% on the sales, many new problems for have come up, such as the war of price. Once a brand bogged down in it, it’s usually very hard for it to come back to the way to be a successful brand. Since customers are becoming wise and professional, the low level of marketing methods such as using others’ positioning, like hydrating facial mask doesn’t work as well as before. And then they can only focus on price war to make the sales. One advice for the new comers, find fast the positioning of your brand in this market can help greatly for the future growth.
Competitors are becoming bigger and stronger
Not only in quantity, but also in quality, the competitors are increasing. In fact, since 3 years ago, cosmetics tycoons have already turned attention to the players in this market. L’Oreal Group has purchased the leader MG and another brand “Carina Lau” has also been merged by digital domain on the last day of 2014.
Meanwhile, there are also more and more brands get investment:
Xiaoyao obtained about 10 million RMB investment in April, 2014;
La Lumiere got second round of investment at around 20 million USD in November, 2014;
With strong financial support, those brands can acquire more resources to push harder in the distribution channels and campaigns at a larger scale.
Quality of the products
There are many good brands also suffering this problem. Due to the lack of control, the facial masks sold on WeChat on not controlled very well in terms of quality. And this harms the reputation of the entire industry. Many people simply stop trusting the brands sold on WeChat or even all the brands.
The huge market on WeChat has also some side effect, such as the legal control. Many sellers on WeChat can’t offer any service for after service or guarantee, so the disputes upon the WeChat facial mask business are also increasing. And this undermines the reputation of a brand greatly.
Less benchmark for the new comers
After 2 years repent development of the market, there are less good benchmarks for the new brands. Most brands set their positioning according two aspects: materials and effect.
As for materials, many brands are working on promoting their special even esoteric materials such as cocoon fiber, soil of the Dead Sea, magnetite, skin of pig, or even snail.
Another popular way for the positioning is according to the effect of the products. Besides the popular effect: hydrating, or whitening, niche effects are also used by more and more brands, such as the facial mask for use before sleep, for overnight, for before makeup, etc.
Here are the challenges that facial mask brands will face this year. But there will probably be new problems and opportunities. If you have a plan for developing your facial mask brand, drop me an email, I’ll be glad to discuss with you 🙂