220 billion China's cosmetics market, profit margins far more than you think!

According to statistics, in 2016 China's total retail sales of 222. 2 billion yuan, cosmetics cosmetics market after Japan and the United States. , then, the high price of cosmetics exactly how high cost, how much is spent on research and development, and how much to spend on the platform in the star? Bought a lipstick brand, but also to eat half a month & hellip; … One thousand yuan to buy a bottle of lotion, really worth it? As people living standard rise, cosmetics, also there is an obvious upgrade consumption trend. According to the National Bureau of Statistics, in 2016 China's total retail sales of 222. 2 billion yuan, cosmetics cosmetics market after Japan and the United States, heralding the cosmetics market in China has great development potential. Buy a cream or advertising? According to each big company disclosed in fiscal year 2016 annual report data of the world's largest cosmetics company l 'oreal gross margins for 71. 58%, and the other cosmetics giant estee lauder estee lauder gross margins for 80. 6%, Asia's largest cosmetics company, shiseido group gross margin is about 75. 59%, China's domestic cosmetics giant Shanghai jahwa skin care product gross margin of 77. 7%. But under high gross margin, net profit of the cosmetics company, and no outsiders imagine is so high. Estee lauder, for example, the net interest rate is only 10. 6%. So, where are the other money? Estee lauder results show that, in the 2016 fiscal year, its net sales of 112. Used for advertising and marketing costs $600 million, and close to 28. $2. 1 billion, shipping and handling charge up to 3. $6. 3 billion, by contrast, used to develop the cost of only 1. 9. 1 billion dollars. The domestic cosmetics company is also so. In the a-share listed pearl of, for example, the prospectus will show that in 2016, pearl raya's revenue is 16. 200 million yuan, used for image propaganda promotion fee is 3. 1. 5 billion, packaging 3. 7. 9 billion yuan, the raw material cost is only 1. 6. 9 billion yuan, the cost of raw materials of the final revenue only 10. 43%. This means that, for consumers, most of the money is not pay for the raw material or research and development, eventually but pay for advertising and marketing costs and even the packaging. To the essence of a 40 ml sells for 320 yuan, for example, the final daub elite may only 40 - to face 50 yuan, 75 yuan was spent on packaging, and $63 is spent on advertising expenses. A cosmetics industry insiders told new client, marketing is one of the most major cost of the cosmetics company, marketing is not just advertising, also includes the stores and the laying of shelves, etc. How would you choose cosmetics manufacturer? According to the Beijing university, according to data from 19 - 25 years of age the user's purchasing power is stronger. That age the user has a significant in category select the advanced process of the internationalization of consumption trend began to appear, plunged goods more high-end brands such as estee lauder, dior, versace. How do these consumers think about the cost of expensive cosmetics? Live in li jing in Beijing dongcheng district is a senior cosmetics, in her dresser is crammed with from the Internet or the relatives and friends from overseas act as purchasing agency to cosmetics. When asked about her view of skin care products cost, li jing say even though she knew ads to dominate, but she still can choose relatively more awareness of the product: I'm not going to buy a I have never heard of the brand. And according to the raw material is not scientific, cosmetics also look at technology, after all. Another consumer Liu Gangze latitude and longitude to the new client said, due to its university major in organic chemistry, more focus on ingredients in cosmetics, rather than the brand, so the usual buy cosmetics, he will usually choose efficacy in line with the state of skin cosmetics manufacturer, but won't buy a line of cosmetics brand. Many cosmetics manufacturer company spent money on celebrity endorsements, please, but truly effective ingredients in the product is not much. In addition, there are a number of consumers, according to the usual buy cosmetics mainly rely on a friend recommended, paid little attention to cost, even know its brand high advertising costs will not be easily replaced. But after looking at the cost of the above statistics, who lives in Shanghai li dandan said thought packing is so expensive, suddenly want to use dabao.
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