The spring rain that used to be a piece of people's hands can't be sold in China anymore
Recently, the Chinese operator of "Spring Rain Papa Recipe" Hangzhou Shenmei Brand Management *** hereinafter referred to as "Hangzhou Shenmei") issued a store closure announcement on **, Douyin, WeChat *** and other platforms. According to the announcement, the Papa Recipe store will cease sales operations on December 31, 2023. After the operation is stopped, product consultation and after-sales service will continue to be provided for the purchased products in accordance with the platform rules.
In this regard, there are many consumer messages saying, "Why is it so sudden", "Isn't it selling very well", "Tears of the times", "The first ** in the student era".
Consumers regret it, but the attitude of the brand operator Hangzhou Shenmei is goodbye, behind this "breakup", China's ** market has quietly undergone tremendous changes.
It is worth noting that the announcement of the cessation of operation of the Chunyu Papa Recipe brand in China was issued by Hangzhou Shinmei, who is the head office of the former's regional brand in China, and has full authority to operate the online and offline distribution channels of the brand in the Chinese market, including Tmall*** and Douyin*** of Chunyu Papa Recipe
This also means that this announcement means that after the end of the cooperation between Hangzhou Shinmei and Chunyu Papa Recipe, the Chunyu Papa Recipe brand store operated by it will be closed, and it is not that the Chunyu Papa Recipe brand will withdraw from China. As for whether the follow-up brand will continue to operate in the Chinese market, whether it will change the first-class business or turn to self-management, it is still unknown.
fbeauty future traces of the future of the consultation of its customer service, customer service response also confirmed that this matter is the end of the cooperation between the two parties: "There is no banquet in the world, paparecipe Chunyu and our long-term cooperation is about to draw a successful end, whether there will be other related in the future is not yet known, please do not worry about your unfinished product services, we will continue to provide you with product consultation and after-sales service." ”
According to public information, the Spring Rain Papa Recipe brand was established in 2012, which means "Daddy's Gift". The brand's founder, Chunyu's father, Jin Han, is a cosmetics brand founded to improve the skin quality of his daughter with allergic skin, and the brand's theme is to "introduce safe cosmetics made with natural ingredients that can be used by children and pregnant women." ”
In 2014, Hangzhou Shinmei introduced Chunyu Papa Recipe to China, and by the peak of 2020, the annual retail turnover reached 2 billion.
At the 15th anniversary celebration of Hangzhou Shenmei in May 2023, the company's CEO Jin Xingguang also publicly said: "It is precisely because Shenmei Group has its own independent brand that it better understands the pain points in brand operation. We really think about the brand and consider the long-term development of the brand. ”
However, only 6 months later, Hangzhou Shinmi decided to terminate the cooperation with Chunyu Papa Recipe, which seemed a bit sudden.
But Hangzhou Nobumi's anniversary celebration actually revealed more information. It is understood that at present, its self-operated brands include the streamlined skin care brand Dafyan, the age-specific anti-aging brand Yiling, in addition to investing in the efficacy skin care brand Troubless, and signing a new strategic cooperation with the high-end medical beauty cinema brand Oganacell and the trendy brand Wiggle Wiggle. It can be found that the main business model and brand positioning have undergone major changes compared with the past.
A senior industry insider commented: "Foreign brands operating in China in the ** model do have various risks of instability, and it is very common for brands to change or abandon brands. On the one hand, it depends on the ability level of the first business, and on the other hand, it also depends on the depth of cooperation between the brand and the first business. ”
In 2015, Chunyu Papa Recipe** began to become popular in China, and became the representative of "Internet celebrity"**, and its classic product "Honey**" was almost "one piece of everyone" among college students at that time.
Nowadays, the once popular Spring Rain**, along with Korean cosmetics brands such as Etude House and innisfree, has gradually faded out of the sight of Chinese consumers. Until today, the Paparecipe brand officially announced the cessation of operations in China, why did the once popular model begin to decline?
First of all, in terms of the overall environment, the era of spring rain is very different from today.
The popularity of Chunyu was also the period when Korean cosmetics were "popular" in China, and Chinese consumers at that time had natural filters for Korean cosmetics. However, with the influence of multiple factors, the performance of Korean cosmetics in China is becoming less and less than before.
According to the import data released by the General Administration of Customs of China, the year-on-year growth rate of China's cosmetics imports from South Korea has been declining continuously since 2018, until January to October this year, with an import value of 1297.4 billion yuan, down 16 percent year-on-year97%。
At the same time, domestic brands are beginning to rise during this time period, the domestic market competition is more intense, a new generation of consumers is beginning to rise, the recognition of Korean cosmetics in the hearts of consumers is declining, and the natural filters originally built by Korean Wave culture such as Korean dramas are gradually disappearing.
Secondly, as far as the product itself is concerned, Chunyu also faces many challenges in the domestic market.
On the one hand, its "natural" tonality is questioned.
As mentioned above, the founding story of Chunyu originated from a father's love for his daughter, and the brand has been focusing on pure natural and additive-free since its inception, and it is written "90% natural ingredients" in the poster of its highest-selling "Korean Huang Chunyu Pro**".
This statement has been questioned by many bloggers on the Internet, such as a blogger in Xiaohongshu pointed out that the natural ingredients such as honey featured by Chunyu ** are mostly used as solvents in butylene glycol, and the chemical components in the honey that are easy to dissolve in butylene glycol are extracted by using the principle of similar solubility.
In addition, the alcohols such as butylene glycol, caprylyl glycol, and glycerin contained in its products are used to moisturize, and at the same time have antiseptic effects, which are all chemical ingredients, so in the blogger's opinion, it is difficult to stand up to the statement that it is pure natural and additive-free.
At the same time, as consumers become more and more rational, it is difficult to impress consumers with the once touching "father's love for his daughter" and the main natural additive-free storytelling.
On the other hand, after the popularity of Spring Rain**, a large number of fakes appeared in the domestic market.
In October 2016, the relevant departments found a large number of Papa Recipe Chunyu ** packaging materials in a factory in Baiyun District, Guangzhou CityIn April 2017, the Shandong Weihai Inspection and Quarantine Bureau and the Weihai Food and Drug Administration seized 150,000 counterfeit imported well-known brands**, including Chunyu**.
Searching for "Chunyu ** Identification of Authenticity and Falsehood" on Xiaohongshu has 2200+ notes, which shows that the problem of fakes has affected the main consumer groups of Chunyu.
In addition, with the increasingly fierce competition in the market, there are many high-efficacy products on the market, and the "2023 Trend Insights" launched by Nosbel and users shows that in the top 10 sales list of Tmall and Douyin's patches, in addition to moisturizing, many products with soothing, repairing, pore shrinking, whitening and other effects are on the list.
And after Chunyu became popular in its main natural, moisturizing classic honey**, there is no product that can be compared, and there is no Chunyu on the sales list of these platforms.
In recent years, the domestic market has developed rapidly.
2023**Trend Insight*** shows that the scale and penetration rate of China's **market are increasing year by year, and the market size will reach 451 in 2021800 million yuan. In the decade from 2012 to 2021, China's first-class market has expanded rapidly, the consumer group has gradually expanded, the market penetration rate has increased from 32 in 2012 to 56 in 2021, and the compound annual growth rate of the market size has reached 1913, and it is estimated that the scale of China's ** market will exceed 72 billion yuan in 2024.
Mojing market intelligence shows that from January to October 2023, the total sales of Tmall+**'s patch** products will reach 1386.1 billion yuan, sales volume of 1312.7 billion;The total sales of patches on the Douyin platform** smearing** from January to October reached 2095.1 billion, down 29% with a total sales volume of 2282.3 billion, a year-on-year increase of 08%。
Judging from the data provided by Mojing Market Intelligence alone, the overall sales of the Douyin platform are better than those of Tmall+**
In terms of brand sales, among the top 10 sales of Tmall +** and Douyin brands from January to October 2023, the brand overlap is low, and only the three brands of Fuerjia, Ou Shiman, and Fan Beauty Diary are on the two lists. At the same time, the growth rate of the top 10 brands on the Douyin platform is even more fierce, and only one brand has a year-on-year decline in sales.
It is worth mentioning that in the ** track, the rate of domestic brands on the list is extremely high, such as Tmall +** platform, only L'Oreal and Kiehl's are foreign brands, and only Oronnasu and Jean Destrees are two foreign brands on the Douyin platform, and the rest are domestic products. The ratio of domestic products to foreign capital on the two platforms is 8:2, which shows that domestic products have been able to compete with foreign capital in the first track.
At the same time, the total sales of L'Oreal, the top 1 brand on the Tmall + ** platform, and Proya, the top 2 brand, are much higher than the rest of the brands, while the overall sales gap between the major brands on the Douyin platform is small. It can be seen that on the Douyin platform, new brands have a greater chance of breaking through.
But in general, at least on the channel, the market concentration of the track is still very low.
According to the division of industrial concentration by American economist Bain, the market share of CR8 between 20% and 40% is called a low-concentration competitive marketA market with a market share of less than 20% of CR8 is called a decentralized competitive market.
From the above data, it can be seen that the share of ** track CR8 has just reached 20% on the Tao platform, and it is only 17 on Douyin1%。This also means that China's market as a whole is still in the era of "decentralized competition", and the entire market is in full bloom.
According to the "2023**Trend Insights*** In terms of product situation, the current ** market mainly presents these trends:
1.The efficacy of the product is highlighted, and it is developing from the single effect of moisturizing and hydrating to the multiple effects of soothing, firming, and oil control
2.**Involution, 0-10 yuan tablets and 60 yuan within 100ml g are high acceptance** range, hydration and repair**Low price involution;
3.**Among the ingredients, hyaluronic acid is hot, and the plant ingredients are "wind and water".
It can be seen that today's "efficacy wind" has also blown to the world, and the situation of spring rain is actually a manifestation of industry metabolism. Unable to keep up with changes in industry channels, marketing, R&D, etc., many brands are gradually fading out of consumers' sight, which is also a wake-up call for brands that remain at the "table" to accelerate change.
Written by Wu Wanqing.
Edited by Wu Sixin.