Still like strolling? Watsons was fined 80000 yuan for false advertising [Analysis of cosmetics retail industry with beauty]

Source: Photographic Network

(Data picture)

Recently, Shanghai Watsons Daily Necessities Co., Ltd. falsely advertised that ordinary cosmetics have whitening effect and ordinary food has health care function, It was fined 80000 yuan by Shanghai Yangpu District Market Supervision Administration.

According to the letter of decision on administrative punishment, from September 2022, Shanghai Watsons Daily Necessities Co., Ltd. will sell "Watsons Nicotinamide Moisturizing Water" on the "Jingdong to Home" online e-commerce platform, which will be produced and published by the company's marketing department on the sales page False promotion of the efficacy of "whitening" in the domestic non special cosmetics The product will be taken off the shelves in February 2023.

In addition, the letter of punishment decision shows that on December 17, 2021, Shanghai Watsons Daily Necessities Co., Ltd. sold "2g * 7 ISDG232 Refreshing Enzyme Drinks (Solid Drinks)" on the "Jingdong to Home" online e-commerce platform, which was produced and published by the company's marketing department on the sales page Falsely advertise that the common food has health care functions such as "improving intestinal function" The product will be taken off the shelves in May 2023.

Watsons is a health care and beauty retailer. According to the latest financial report, in recent years, due to changes in consumers and fierce market competition, Watsons' offline stores have been decreasing, sales have declined, and many data have declined significantly. Although Watsons China's performance is also declining, the beauty retail model of beauty collection stores is growing year by year, This benefits from the advantages of multi brand operation and proximity to consumers, which can help cooperative brands effectively expand the market. With the development of information technology, both domestic and international brands have entered the Internet and successfully transformed into e-commerce operations. But in recent years, The operating costs of e-commerce are rising, and the advantages of online stores are gradually weakening. The offline channel is once again valued by beauty brands. The trend of online and offline integration appears in beauty sales channels.

In 2020, the overall market size of beauty collection stores will be 48.36 billion yuan

Since 2019, domestic new beauty collection stores have started to develop, and innovative brands such as color mixers and plum blossom have emerged, which has a certain impact on traditional beauty collection stores. Compared with the traditional CS store, the new beauty collection store pays more attention to the sense of design and experience in the store, aiming to provide consumers with a more immersive experience.

At present, the industry of new beauty collection stores is transitioning from the embryonic stage to the stable development stage. In 2020, the market size of new beauty collection stores in China will be 1.41 billion yuan, accounting for 2.9% of the overall market size of beauty collection stores.

Currently, Watsons has the largest number of beauty collection stores

At present, the main market participants of traditional beauty collection stores in China include the beauty chain Watsons, Sephora, which focuses on high-end selected brands and private brands in Europe and the United States, as well as Wow Colour, colorist, Yanli and other brands. The new beauty collection store is represented by the colorist of KK Group, the WOWCOLOUR of Mingchuangyou and the Huamei that originated online. At this stage, the industry is still dominated by traditional beauty collection stores, Among them, the number of Watsons' stores accounts for 80% of the number of stores in the industry.

It is estimated that the market size will exceed 100 billion yuan in 2027

The market space of China's offline beauty collection stores is huge. It is estimated that China's offline beauty collection stores will maintain a compound annual growth rate of 36.5% from 2021 to 2026, and will reach RMB102.3 billion in 2027, of which, the new beauty collection stores will grow rapidly, reaching RMB44.22 billion.

In general, under the trend of online shopping, the market size of beauty collection stores is growing slowly, but with the rise of e-commerce operating costs, the advantages of online stores are gradually weakening, and offline channels will again be valued by beauty brands, Therefore, beauty collection stores are expected to enter a new stage of development.

Small survey: Will you still go to Watsons now? Do you know new beauty collection stores? Look forward to your message!

Prospective Economist APP Information Group

For more research and analysis on this industry, please refer to the Analysis Report on Market Prospect Forecast and Investment Strategic Planning of China's Beauty Makeup Retail Industry issued by the Prospective Industry Research Institute

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