How long have you not used these brands?
Editor’s note: This article is from WeChat public account “Retail boss Gaoshen” (ID: lslb168 ), author Sun Yuan.
Core Guide:
1. Lafang, two-sided needle, what happened to these faucet brands?
2. What caused a collective loss of the brand?
3. Can the national brand revive, can a brand share a piece of cake?
I believe that in the memory of many 80s and 90s, there are more or less familiar brands.
From the colorful, friendship cream to the “Dabao every day to see”, from the skin care of Longliqi, Meijiajing, to the hair care of Lafang, floating shadow, Guangzhou Haodi, then to the oral care of the three smiles, two needles, these domestic products The products appear in TV commercials and appear in large and small supermarkets, which once occupied all aspects of people’s lives.
But I don’t know when these brands have faded out of the consumer’s eye. Instead, they are international daily chemical giants such as Procter & Gamble, Unilever and L’Oreal, as well as imported goods from Europe, America, Japan and South Korea.
Under the “national goods” sweeping the whole industry, the personal protection industry is no exception, and a number of new domestic brands such as Perfect Diary and Mary Yujia have emerged, and the cross of the “Forbidden City Series” and “White Rabbit Series” Industry products.
However, those brands that have survived in memory and have been lost for a long time have not yet ushered in their own spring.
A brand leader, now relying on financial management
Become the first in daily lifeLafang of the stock market has been very beautiful.
On March 13, 2017, Lafang Jahwa was successfully listed. After experiencing a daily limit of 10 consecutive trading days, as of March 27, 2017, Lafang’s share price closed at RMB 68.67, and the market value was as high as RMB 12 billion.
No one would have thought that two and a half years later, the market value of Lafang Jahwa shrank to 3.145 billion yuan, only a quarter of the peak period.
Successfully used the phrase “Love Life, Love Lafang” to occupy the mind of consumers. Lafang once used the same brand as Renaissance and Head & Shoulders as the leader of the care market.
But after the listing, Lafang’s performance has declined year after year. In the latest financial report for the first half of 2019, the company’s semi-annual operating income was 457,706,726.56 yuan, an increase of 3.67% over the same period of last year. The net profit attributable to shareholders of listed companies was 47,439,682.13 yuan, a year-on-year decrease of 43.15%.
In Lafang’s product layout, including its own brands “Lafang”, “Meduosi”, “Yujie”, etc., the exclusive overseas quality cosmetics brands include “Mulper” and “Rui Platinum”. Wait. Among them, “Lafang” and “Medosi”, which are the high-end essential oil care routes, accounted for 75.61% of the operating revenue, which is the pillar brand of the company.
In terms of channels, due to the late start of e-commerce business, Lafang E-commerce and retail channels accounted for only 12.12% of operating revenue, still based on distribution channels.
At the same time, rising sales costs and insufficient R&D investment are also major constraints. According to financial report data, Lafang’s sales expenses for the first half of 2019 were 194 million yuan, up 27.72% year-on-year. In the same period, the research and development expenses were only 18.79 million yuan, a year-on-year increase of 0.34%,
Products, single channel, brand aging, Lafang is not the only one.
“A good tooth, two needles”, once a well-known advertisement, and the “national toothpaste brand” of the double-sided needle is now difficult to trace outside the hotel.
In 2018, the two sides of the needle sold more than 1.2 billion toothpastes, including 117,355,500 toothpastes. Transforming to B business, the two sides still face difficulties.
According to the 2019 semi-annual report issued by the double-sided needle, in the first half of 2019, the operating income of the two sides was 606 million yuan, a year-on-year increase of 3.21%; the net profit was 28.07 million yuan, an increase of 331.57%.
Behind the increase in net profit, the company has deducted non-net profit for several consecutive years of losses, relying on the sale of financial assets to supplement funds to make up for losses.
In the first half of 2019, the non-net profit of the two-sided needle buckle was -27,133,400 yuan, a year-on-year decline of 59.61%. As of 2018, the non-net profit of the double-sided needle has been losing for 13 consecutive years.
Chinese goods protection brand collectiveStall
There are many cases like Lafang and double-sided needles. In fact, a group of domestic brands in the 1980s and 1990s are facing collective losses.
The exit of some of the brands was caused by the ineffective operation after the acquisition of foreign capital.
For example, the Silk Group, which was acquired by the German daily chemical giant Bayersdorf, has four hair care brands “Shu Lei”, “Wind Shadow”, “Shun Shuang” and “Mei Tao”. And Mei Tao is still selling, and Feng Ying and Shun Shuang have almost withdrawn from the market.
The same fate also appeared in the cosmetics brand “Yu Xi” and the mask brand “Mei Yi” acquired by L’Oréal Group, and Ding Jiayi, a skin care brand acquired by Coty, which all experienced a decline in sales and sales after the acquisition. Sharply reduced.
Among them, Ding Jiayi was bought back by founder Zhuang Wenyang four years after being acquired, but he never returned to the first position in the Chinese sunscreen market.
After analysis, the most important thing for foreign brands to acquire Chinese brand is the value of the channel, but lack of awareness of the brand and the market. As a result, after the acquisition, these well-known domestic brands have collectively declined.
The other part of the brand that has not been sold to foreign companies, such as Lafang and the double-sided needle mentioned above, has not escaped the curse of brand aging.
These brands often use the traditional dealer system and KA channel as the core, and lack of feedback mechanism to the market, which is likely to cause inventory backlog.
When faced with rapid changes in the consumer market, these brands often lag behind. When millennials become the main consumer, e-commerce and overseas purchases become new consumption channels. Faced with a broader dimension of competition and more “like new and old” consumers, being abandoned is a matter of time.
Taking hair care products as an example, when high-end hair care products from Europe, America, Japan and South Korea enter the Chinese market, consumers begin to accept “silicone-free oil” and advocate “natural hair care”. Consumer demand begins to be natural and fluffy. The trend of scalp and scalp care is not changed. The domestic hair care brand is still emphasizing “anti-dandruff” and “softness”. Market faults appear. In the early years, relying on consumer cognition generated by advertising bombing, e-commerce shopping guide, content e-commerce, etc. Covered by channels.
Therefore, perhaps people still remember that Hao Di’s “Hello everyone is really good”, the “shadowing, more confident” of the shadows, but when it comes to the wallet, the same slogan is better than The grass planted on the little red book.
Lost is inevitable.
Why is it difficult to revitalize a brand?
Does the revival of domestic products bring a glimmer of life to these brands?
The answer is, it’s hard.
These brands that have strong consumer perceptions are trapped in this perception.
Different from the clothing industry, the national tide renaissance is a visual “time symbol”No. “product, a care industry, to the experience is the innovation of new technology research and development.”
To tell today’s consumers a low-end family consumer brand, how to have high-tech technology, is a pseudo-proposition.
Dabao is an exception. Like the standard Tingwei E milk of Concord Hospital, the low price threshold and the wide applicability have given Dabao SOD honey a new use scenario for the cross-age products. Face cream, is it possible to use body lotion now?
For traditional personal care brands, the brand is higher than the product, which is also a fatal factor.
Take the same as Dabao, mention Dabao, the fist product “Dabao SOD honey” can basically be equal, the fist product is easy to use, and the brand value is promoted.
The same reason can be used in the white rabbit’s toffee, the old godmother’s spicy sauce, the domestic product revival, the revival is the product, not the category.
When you raise Rafang and lift the double-sided needle, we think of shampoo, toothpaste, and the lack of specific product images.
It’s hard to take advantage of the “national goods” Dongfeng, and the time left for them is not much.