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Nature, you are already beautiful. Domestic consumers will not be unfamiliar with this cosmetic brand advertising slogan.
Founded in 2001, this domestic cosmetics brand can be said to be one of the representatives of the early domestic cosmetics brands. However, consumers know very little about the parent company behind it, the Garan Group.
Recently, Jialan Group officially announced that it will change its name to "Shanghai Nature Hall Group", hereinafter referred to as "Nature Hall Group"). Founded more than 20 years ago, why the name was suddenly changed is attributed to "based on the needs of strategic planning and brand development, in order to better serve the majority of consumers." At the same time, the Group has launched a new strategy30, focusing on the United States from four aspects: single focus, multi-brand, full format, and internationalization, leading the group to the United States.
The name change of Nature Hall is obviously deliberate. A consumer researcher told Electricity & Stores"Naming the group through a single brand that consumers are familiar with can attract consumers' awareness of the group and expand the overall popularity of the group. In fact, there are many such precedents at home and abroad, such as international brands such as Estee Lauder, L'Oreal, etc., and domestic brands such as Proya, which is the same period as Nature Hall. But these are only the surface, and the deeper is that Nature Hall wants to use this name change to show its determination to transform. ”
01 The old domestic products missed the outlet
As half of the group's revenue, the development of the main brand Nature Hall in recent years has not been satisfactory.
Before 2020, Naturetang, a domestic cosmetics brand, was still a frequent visitor on the Tmall Double 11 list, but since 2020, it is difficult to find Naturetang on the Tmall Double 11 list. Until 2023 Double 11, with the overall rise of domestic cosmetics brands**, Naturetang re-entered the list of Tmall Double 11 beauty brands with the fifteenth ranking.
In contrast, Proya, a domestic cosmetics brand that came out almost at the same time as Nature Hall, has become a dazzling dark horse, killing all sides among many international brands, and constantly counterattacking in the annual list rankings, and won the first place in the list of beauty brands on Tmall Double 11 last year. At the same time, in the list of Tmall Double 11 in recent years, there are also cosmetics brands such as Winona.
"In 2018, the traffic of traditional e-commerce in China reached a peak, and the traffic after that became more and more expensive. Because of their own marketing expenses, international brands have become the main marketing force of traditional e-commerce platforms such as Tmall. At that time, short ** platforms such as Douyin had just emerged and became a new traffic growth depression, and some early domestic brands such as Proya and some new consumer brands began to switch to short ** platforms such as Douyin, and they also successfully enjoyed the channel dividend of live streaming. ”The above-mentioned consumer analysts analyzed "Electricity and Stores".
Under the tripartite attack of international brands, friends and rising stars of the same period, the market share of Nature Hall has been continuously eroded. Euromonitor data shows that from 2014 to 2017, the market share of the Naturedo brand increased from 12% to 18%, which has remained stable since then, but from 2020 to 2022, the market share of the Naturedo brand has slipped to 15%。
The above-mentioned consumer researchers believe that the "conservatism" of Nature Hall has made it fall into a passive situation for nearly three years. "In the early days, domestic consumer goods brands relied more on offline CS channels and were not sensitive enough to changes in online channels. Especially during the three-year epidemic period, offline consumer stores have been severely impacted, which has a greater impact on brands with a high proportion of offline stores. And those new domestic consumer brands, which were born out of Internet channels, are naturally the first to get the first month. The only early domestic cosmetics brand that has seized the opportunity of this wave of channel change is Proya. ”
According to the data, in 2019, the offline revenue of Nature Hall Group accounted for about 70%. At that time, Proya Group's online revenue accounted for more than 50%, and after the outbreak of the epidemic in 2020, it vigorously developed online channels, making the proportion of online revenue jump to 70%.
02 Can you catch the last train?
Seeing that the competitive landscape is becoming more and more unfavorable to itself, Naturedo Group has also begun to seek new changes. The first step in the change is to go public and raise funds.
In September last year, the market reported that Naturetang Group was considering listing on the Hong Kong stock market in 2024, which made the market feel like "the millennium iron tree is finally blooming".
Because the "conservatism" of Nature Hall is not only reflected in the lag of channel reform, but also in the expansion of capital. In 2017, while Proya was preparing to carry out a series of changes, it also chose to list and raise funds on the A-share market. Since then, both the traditional domestic cosmetics brand Marubeni Group and new consumer brands such as Winona Bethany have sought to go public and raise funds to continue to expand the market after having a certain market scale. However, Naturedo Group believes: "As long as the financial problem can be solved, it can not be listed." ”
"With the increasing competition, there is no way for the Nature Hall to continue to stand still, and it must be time for change. But if you want to make new changes, you also need some financial support. Especially at present, the cost of traffic is high, and the marketing expenses of major cosmetics companies are not low. Without sufficient ammunition, it is difficult to fight a good war. ”The consumer researcher told "Electricity and Stores".
Judging from the release of the new generation strategic plan, the transformation goal of Nature Hall is also clear. Single focus - focus on the products of the large single product "Nature Hall", multi-brand - to create other sub-brands of the group to form the second growth point, all formats - to achieve full coverage of different positioning groups, internationalization - to go to sea.
"This strategy is actually similar to Proya's original 'big item, multi-brand' strategy. It can be said that Proya has already made a sample first. The key is to look at the specific implementation. The fact that the Nature Hall has survived for so many years is actually not bad. The main brand has a certain consumer base and popularity, its sub-brands have sufficient reserves and do not need to be re-acquired or incubated, and have certain R&D capabilities and offline channel advantages, but lack the ability to create popular products and new brands. ”The above-mentioned consumer researcher analyzed.
It is reported that in addition to the main brand of Nature Hall, the group also has six sub-brands, including beauty and skin care brands Meisu, Plant Wisdom, Spring and Summer, and Perfuyan, perfume brand Assassina, and baby care brand "Love as Yourself". However, these brands have not yet made their own reputation, and the group still relies more on the main brand Nature Hall in terms of revenue.
In fact, with the rise of the national tide in recent years, there is no shortage of opportunities for domestic cosmetics brands to develop. As the trend of consumption downgrade becomes clearer, the balance in the minds of consumers will also be more and more tilted towards more cost-effective domestic cosmetics brands. Now, the posture of transformation has been put on the table, and the natural hall that missed the previous opportunity needs to show more strength to catch the last train this time.
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