China Electronics First Street, Asia’s largest electronics distribution center, can the transformation of beauty be successful?

Magic Huaqiangbei's beauty

Source: E-Commerce Online (ID: dianshangmj )

Text / Cui Hengyu

Edit / Swen asked

Huaqiang North, China Electronics First Street, Asia’s largest electronics distribution center.

At its peak, Huaqiangbei, with an area of ​​1.45 square kilometers, gathered more than 20,000 small and medium-sized mobile phone businesses, and more than 80,000 practitioners flocked here, generating 25 billion yuan in sales a year. From here, mobile phones, 3C digital products and other products are sent to all parts of the country, but also exported to Southeast Asia, Africa and other regions.

However, as the global mobile phone market shrinks, those tags belonging to Huaqiangbei are fading, and “electronic products” can no longer support all of Huaqiangbei’s dreams.

Since 2018, Huaqiangbei’s development trajectory has been frantic with bitcoin mining business, rampant e-cigarette business, and unexpected beauty industry. Although the first two quickly fell into the policy, they still belonged to electronics. Beauty has become a completely opposite path, and the main customer base has also shifted from men to women.

When SKII, Mystery of the Sea, Mystery of Dior, Lancome and other first-line international brands of cosmetics are neatly coded on the shelves of the Digital City, everything becomes magical.

Magic Huaqiangbei's beauty

The E-commerce Online visit found that the electronic malls represented by Mingtong Digital City, Yuanwang Digital City and Bauhinia City have been covered with rouge gouache, and more than 1,000 stalls are engaged in international beauty products. Wholesale and retail, many of them are the direct transformation of the former individual electronic products.

In 2019, hundreds of media came to Huaqiangbei, trying to discover the beauty stories of Huaqiangbei. Everyone’s question focuses on two aspects:First, can Huaqiangbei, which transformed beauty, create the glory of the electronics market in the past? Second, Huaqiangbei, which has first-rate cottage capabilities, are the cosmetics sold authentic?

None of these questions are currently answered.

The only certainty is that the same individual at different times has experienced the development of personality over time. Regardless of whether it is an electronic street or a beauty rush gold sacred place, different subjects in various periods show a multifaceted Huaqiangbei. But no matter how the appearance switches, magic is still the background of Huaqiangbei.

“One of the only irreplaceable abilities that Huaqiangbei has so far is that all kinds of fresh, strange things in China will be gathered there. This is its natural” pathway “attribute.” Liu Ye said in an interview with “Poor Review”.

After the transformation of Huaqiangbei, a group of electronic product merchants began to sell international beauty, and magic reality kicked off.

Duty free shops no less than Seoul and Tokyo

The beauty market in Huaqiangbei must start with the Mingtong cosmetics market (formerly known as Mingtong Digital City, hereinafter referred to as Mingtong). This digital city on the central axis of Huaqiangbei first transformed the beauty field. It is also currently the cosmetics market with the highest occupancy rate in Huaqiangbei. In the four floors above and below, there are about 1500 stalls, almost all of which are filled by beauty businesses.

They just came out of the doorstep. Data show that in 2015 the entire Huaqiang North air paving rate reached 30-40%, and some markets even reached 50%. Those were the years when Huaqiangbei was in trouble.

However, Mingtong has his own glory. When it opened in 2005, 5,000 merchants subscribed for rent on the spot and queued in order to enter the venue. The security at the scene to maintain order exceeded 100 people. At the time of prosperity, the average daily passenger flow reached 100,000, which was the largest domestic mobile phone store at the time.

Magic Huaqiang North's beauty

Mingtong ’s official website vaguely explained the reason for the transformation of the cosmetics market: In view of the effects of multiple factors, in March 2017, Mingtong Digital City aimed at the domestic huge domestic market for cosmetics and rapidly transformed it. A high starting point for the construction of imported cosmetics market.

The beauty market today is really blossoming. According to Zhiyan Consulting data, the size of China’s beauty and personal care market in 2018 was approximately 410.5 billion yuan, an increase of 12.3% year-on-year, and the market size is expected to reach 621.4 billion yuan in 2023.

After the transformation, this digital city built at the beginning of the century is as lively as Seoul.Duty Free Shop in Tokyo.

“None of the duty-free shops in Japan has reached the scale of Huaqiangbei.” A beauty industry practitioner told E-commerce Online.

Every shop is like a mini version of a duty-free shop. Cosmetics from Europe, America, Japan, and South Korea are arranged in order. The most popular and limited beauty products can be found here. Even selling only product samples can hold up a shop. On the contrary, a few mobile phone communication merchants seem to be incompatible with the entire mall-although they were the mainstream in the past, the liveliness of the entire mall today has nothing to do with them.

Magic Huaqiangbei's beauty p>

This excitement starts with the entire roll of packaging tape. A sharp tearing sound rang through the entire beauty city. Each tearing is like a victory, representing their credit and the beauty industry. Footprint.

Cosmetics packed in packing boxes are piled up in stalls and aisles, waiting for the connection of small carts, then loaded onto trucks, transported to highways, and delivered to users.

But not all digital city transformations can go straight. Walking more than 100 meters from Ming to the north, Bauhinia City is also undergoing a transformation of beauty.

The Bauhinia Beauty World opened soon, and the “Grand Opening” sticker at the door has not been worn off. But this does not prevent Hi Tea from opening early on the street front of the north entrance of Bauhinia City, waiting for its take-off here.

Magic Huaqiangbei's beauty

Compared to the full shops and merchandise in Mingtong, the Bauhinia City looks much more spacious, with fewer people, less goods, and more empty shops. Even in the shops that have been rented out, there are many closed shops, just at the door. Post a note to leave contact information, but the investment promotion advertisement is spread out in every corner.

“There are also some shops on the second floor, the price is cheaper than Mingtong, 600 square meters, basically all are about 10 square meters.” A staff member of the Bauhinia City Merchants Office said.

Anxious to transform is Yuanwang Digital City. On the facade of the computer and mobile phone repair service center, a pink banner is drawn: the main cosmetics and photographic equipment. In the case of electronic product merchants who have not yet completed the retreat, they have been busy in the “cosmetics market welcomes you”Small banner.

Hua Qiangbei, who transformed beauty, also has her own anxiety. When thousands of merchants collectively entered the beauty market, how to find goods from the source and how to make these goods better circulated … near-competition and questioning in the distance have become propositions that weigh on Huaqiangbei.

Magic Shopping Business

Purchasing a black plastic bag, pushing a small cart to deliver goods to the shop, carrying a hot delivery guy, a casual guest with a probe … crowded into the not-so-spacious aisle of Beauty City.

There are few bosses in the stall who actively solicit business and immerse themselves in the computer and mobile phone business. Online business is their main position.

Li Hao will publish at least 10 circles of friends in the circle of friends every day, recommending products of his own. MAC Christmas limited 12-color lipstick kit, Armani cushion, Dior star lipstick kit, Mickey co-branded fairy water …

Magic Huaqiangbei's beauty

His beauty store just opened about six months ago. Until now, he hasn’t figured out Lancôme and Estee Lauder’s flagship products, and he doesn’t know how to recommend them to customers. In the circle of friends, the words are generally simply “the mystery of the sea blue, the essence of water is available in small quantities,” and there is no more introduction.

“Purchasers know very well, they know what they want, they know the price, and they know what the different products do and what kind of people they are suitable for.” Li Hao explained.

“E-commerce Online” visited several stalls on the grounds of doing beauty business. A stall owner explained in detail how to do business in his stall-

If you add a WeChat friend, you will receive a detailed list of product quotations; you only need to advertise cosmetics in your circle of friends (the content can be directly moved to the circle of friends of the stall owner); when you have customers to buy, just put the address and need The specific product is sent to the boss’s WeChat, and the stall will arrange delivery.

“If it ’s all from Huaqiangbei, how do you explain the source of cosmetics to customers?”

“I can change from where you want to ship from, both at ports and bonded warehouses,” said the boss.

A purchasing agent who purchased in Huaqiangbei revealed that as long as he sends a circle of friends, a box of facial masks can earn dozens of dollars. Usually do not have to go to Huaqiang North, the goods do not need to go through the hands of purchasing.

Magic Huaqiangbei's beauty

Zhou Wei is an e-commerce business in Shenzhen, but came to Huaqiangbei for the first time. “I heard that I am doing beauty business here. Come and see how the price is here.” Not satisfying him, “Maybe it’s the first time I’m here, I can’t get a good price if I’m not familiar with it.”

For several years, Zhou Wei has accumulated a group of customers on WeChat, and usually sends a circle of friends. When an order comes, he arranges delivery. He did not disclose the source of the goods to E-commerce Online. “We are not particularly concerned about the authenticity of the product. Anyway, it has been sold for a few years, and there are not many customers who have received counterfeit goods. I will give them back if there is feedback.”

Under this logic, each stall accumulates its own purchasing group, and beauty products are thus diversified.

Besides small purchasing, Huaqiangbei is also breeding hundreds of millions of big businesses.

Magic Huaqiangbei's beauty

On the first floor of the Bauhinia City, there is a boutique supermarket-like “imported goods collection shop”. During the visit, the owner of this shop is working with a platform to discuss. In words, it seems that Huaqiangbei has unlimited potential.

“The logic of supplying the platform is very simple. You must give the platform a sufficiently low price. How can you go to other platforms with a higher price? I have to stock up in advance, otherwise how can I get a business worth 100 million yuan? The market price fluctuates greatly and I suffer, but the platform has to make more orders for me elsewhere. “The owner of the assembly shop said.

Apart from scattered purchasing, this is a big business for Huaqiangbei.

Where does the beauty of Huaqiangbei come from?

A list of quotations sent to me by a stall owner lists 167 items. The brands covered include SK II, Estee Lauder, Armani, Saint Laurent, Givenchy, Mystery of the Aquamarine, etc. The quotations are basically at Between 50% -75% of the official selling price.

Take the mystery of 60ml essence of sea blue as an example, its price on the official website is 2550 yuan, and in the price list of Huaqiangbei merchants, the price is only 1280 yuan; SK-II Shenxian water two packs (230ml * 2) The price is 1510 yuan. In the official channel, the single price is 1540 yuan.

Magic Huaqiangbei's beauty