Source: All of the statements in this article are reliable** Repeated at the end of the article.During the epidemic, what is the biggest change for the daily consumption and shopping of Chinese people, one thing is very noteworthy, that is, everyone has focused on domestic brands, especially for makeup or facial care productsThose big names in the past are becoming less and less popular. Among these beauty brands, the biggest fluctuation should be Estee Lauder, she used to make a lot of money in China by virtue of her positioning, but in the whole year of last year, the net profit fell by 92%, what is the reason for this situation.
Estee Lauder once positioned itself as an exclusive for noblewomen, a bottle of essence, with the name of anti-aging and anti-aging, can be sold for thousands of yuan, but according to Estee Lauder's own financial report, it can be seenEstee Lauder, which used to have a good momentum, did suffer Waterloo last year.
This financial report shows that the crisis encountered by Estee Lauder this time is unprecedentedly cruel, since 1995, Estee Lauder has never had such a serious situation, so why, in 2023, this year that the epidemic seems to have passed, has become the most frustrating year for Estee Lauder.
Estee Lauder believes that the main reason for this situation is that under the influence of the epidemic, everyone has their own ideas about beauty, and many people are not willing to spend so much money on skin care, but focus on more hedonistic things that can be obtained in a timely manner.
However, as long as you take a look at the situation of other beauty products, you will find that Estee Lauder's rhetoric is just a placebo for herself, and no matter how big the impact of the epidemic is, it will not let a company go to a site that is almost dying, let alone Estee Lauder's opponentToday, the goods are still booming.
Therefore, one of the main reasons for Estee Lauder's current fiasco is actually because Estee Lauder has gradually lost the market in the Asia-Pacific region, especially the Chinese market, many ChineseNow that Estee Lauder is no longer paying for it, China's cake will naturally have an impact on the entire enterprise.
Indeed, no matter what kind of company, as long as it can develop in the Chinese market, it can truly appreciate the benefits of China, China's population base is too large, and there are many people who are willing to spend money, and the potential of many markets is unlimited, especially the beauty market.
Since the beginning of the last century, Estee Lauder has entered the Chinese market, mainly in Shanghai to make its own reputation, at the same time when Estee Lauder entered Shanghai, many companies in Shanghai at that time also announced that they must wear lipstick to be able to come to work, which pushed Estee Lauder to the peak.
As mentioned in the TV series Blossoms directed by Wong Kar-wai, if people at that time could afford an Estee Lauder lipstick, they definitely had the capital to show off to all the little sisters around themSo it can be seen that Estee Lauder still had a good reputation in China at that time, and the market value was also very good.
However, in the next choice, Estee Lauder took a wrong step and removed China, a major consumer head, from its own dining table, the most obvious point is that Estee Lauder felt that the Chinese market was very large at that time and was ready to build a factory of its own in the Asia-Pacific region.
The ghost is that Estee Lauder did not choose China, which provides a lot of value to herself, but chose to spend a billion dollars to build a factory in Japan, and then take the products produced and sell them to China, Estee Lauder would never have imaginedOne day Japan will dump nuclear wastewater directly into the sea, and China will resist everything from Japan, including their products.
In fact, Estee Lauder has always positioned herself as a very high-end big-name product, and the products she played at that time were actually based on the small brown bottleThe advertising slogans are anti-aging and anti-agingIn fact, it can be seen from this positioning that Estee Lauder at that time hoped that its consumer group would be like the Shanghai girls back then.
Estee Lauder's positioning for herself is to hope that those girls who are struggling in the super line or the first line, starting from the age of 25 to the age of 35, will not only have financial strength, but also have no life pressure, and will buy their products because they want to take care of themselves.
After all, under the influence of the epidemic, many people do have money in their hands, but they are not willing to spend it so fanfare, they prefer to put their money in the bank, or to meet the timely hedonismand do not want to fall into the bubble drawn by capital.
That is to say, it is true that everyone's consumption is more rational, and they will not be so blind to pursue some big brands, but pay more attention to ingredients, which causes brands to be unable to unscrupulously pay premiums as usual, and at the same time, many of their own products have emerged in China.
So it can be said that Estee Lauder has slowly lost the Chinese market, as well as the minds of Chinese consumers, and over the years, Estee Lauder has not produced any powerful products except for small brown bottles, product updates have become slower, and there are fewer masterpieces, so there will be fewer people willing to try.
Maybe Estee Lauder is also aware of this problem, but at this stage, she made a wrong choice, Estee Lauder may think that no one wants to buy their own goods, because their ** is too high, so as long as the ** is lowered, there will still be many customers.
Why is Estee Lauder's practice wrong, because everyone has their own consumption habits, and women who were willing to buy Estee Lauder products before will not stop buying them because of this ** becoming expensiveAnd people who didn't like this brand before, even if Estee Lauder becomes cheaper, will not buy it.
On the contrary, it is because of this price reduction behavior again and again, so that Estee Lauder has lowered its value, and a small brown bottle at the beginning can cost thousands of yuan, and later it became four or five hundred yuan, it can be said that Estee Lauder has more than half of the discount, but it has not attracted so many consumers.
On the contrary, it is the people who are already buying Estee Lauder, and part of the reason why they are willing to buy Estee Lauder is because they feel that Estee Lauder is still a high-end brand of skin care products anyway, and it is still very face-saving to take it out, but now the price of the product has been reducedThe noblewomen who are not satisfied with their psychology are no longer satisfied, so this group of people will also stop buying.
This kind of thing, to put it bluntly, is that consumers have a very serious crisis of trust in the brand, what should this thing be, if it can reach 400 yuan, then is it not the brand asking for the price before, and it also does not mean that the actual ingredients are not so good.
The very funny thing about Estee Lauder's situation this time is that those products that have intertwined business with her are basically still good, only Yazhi Lauder has appeared on the top, and the rest of the lady productsFor example, Lamer, or affordable products, such as Belle, do not have this problem.
In fact, consumers now have higher requirements for the efficacy and safety of skin care products, so the skin care market has also changed, and businesses need to be aware of these problems and then make adjustments.
The first is high-performance products, and today's consumers are more inclined to choose high-performance products when choosing skincare products, because they recognize that skincare is not only a daily habit, but also an investmentCan help them maintain young, healthy skin.
Due to the impact of the epidemic, consumers are increasingly concerned about ingredients such as chemical ingredients and preservatives, therefore, natural and organic skincare products are increasingly favored by consumers, these products are often chemical-free, made with natural ingredients, and are more gentle on **.
In addition, with the continuous upgrading of personalized consumption, skin care products have also begun to move towards customizationFor example, brands can provide consumers with customized skin care solutions according to consumers' skin type, age, problems and other factors to meet the personalized needs of consumers, which is a more suitable product for ladies.
Moreover, due to the impact of the epidemic, consumers' travel has become more inconvenient, so small package skin care products are becoming more and more popular among consumers, and almost many businesses have released this kind of product, which is more lightweight, easy to carry, and can meet the skin care needs of consumers anytime and anywhere.
Estee Lauder has changed its positioning from a high-end lady product to a money-losing product that no one cares about through its own operation, which is actually partly due to the official decision-making level of Estee LauderNow it is almost impossible for Estee Lauder to return to its original position.
In fact, any product, want to be in today's era, through some analysis of the consumer's heart, and the tactics made casually, are easy to be seen through by consumers, today's goods, the best thing to pay attention to is the composition and function of the real material, so as to win respect.
References:1, Shangguan News - Estee Lauder appeared in "Flowers", archaeology: Is Shanghai just a beauty giant counter?
2. Flush Finance - "Estee Lauder's turnover on January 30 was 2$9.2 billion Turnover decreased by 3186%》