Selling wigs to wigs

Source of the manuscript: CCTV Financial Channel "Transaction Time"

Broadcast time: 9:00-11:50, 13:45-15:33

Moderator: Li Yuxi

Li Yuxi: You are welcome to continue to watch the "Business Time to investigate whether new consumption can lead new investment ideas." When it comes to wigs , in the past many people’s impressions, it will be felt that it is a clever thing to cover the defects, but now it is different. With the improvement of living standards and the rapid development of wig manufacturing technology, wigs have begun to enter The sight of the consumer group has gradually become a part of fashion, the trendy hair style, the bright hair color, and the comfortable feeling, especially the realistic external light sense, are the reasons why it is more and more accepted by people. . So what is the outlook for the wig market? Where is the investment value of the relevant company? We continue to conduct today's company survey.

Ms. Yang is a salesman of a public relations company. She faces customers from different industries every day and often participates in activities held on different occasions. Fashion wigs have become her new consumption choice.

Miss Yang (a salesman of a public relations company): Because this is the requirement of my work, I have to attend different occasions and have different images. This wig can change different shapes in just two minutes. And the wig is very realistic, breathable and very stylish, very stylish, can meet my requirements.

High-end wig: a new choice for beautifying life

There are not a few cases like Miss Yang. Nowadays, more and more people regard wigs as fashion, and they are beautifying their own equipment. The concept of fashion wigs is deeply rooted in the hearts of the people, and it is the largest hair products manufacturer in China. Henan Rebecca ( 3.75 , -0.08 , -2.09% ) Hair Products Co., Ltd. has gradually turned its attention to the domestic market.

Interview:

Li Wei (Reporter): At the corner of the Rebecca showroom, we can see that the company has developed more than 30 kinds of fashion wigs for the domestic market. The realistic shape can be chaotic, and the customers who come to buy are also very enthusiastic. How much can you achieve this sales every day?

Salesperson: Our daily sales here are two or three thousand yuan, if it is more than one or two thousand yuan.

Li Wei: This is the production workshop of Rebecca. Currently, six out of every ten high-end wigs in the world are produced here. The sales market of wigs has always been in Europe, America and Africa. Now Rebecca Yue The more I turned my attention to the country.

According to the data, more than 90% of Rebecca's products are sold overseas. North America and Africa are his main markets. With the improvement of domestic consumption levels in recent years and the increasing pressure of RMB appreciation, it is imperative to vigorously develop domestic consumption. .

Zheng Youquan (Chairman of Henan Rebecca Hair Products Co., Ltd.): The domestic market is a market that is too big and too big. This year, we actually increased by 4 times compared with last year's sales, which is four times that of last year. We expect that there will be a big explosive growth in the domestic market in the next five years, and we expect to maintain a growth rate of more than 25% in the next few years.

Wu Yuyu (Researcher of Textile and Garment Industry of Xiangcai Securities Research Institute): First of all, because of the financial crisis and the European debt crisis, foreign consumer demand is slowing down. Secondly, we think exchange rate risk factors have a relatively large impact on export enterprises. Finally, we feel that for the foreign market, the domestic market may be a bit larger in terms of consumption space.

Due to the different consumption habits and consumption concepts at home and abroad, it is not easy to open the domestic wig market. The wigs that sell well in foreign countries may not be satisfactory in China. This has become a challenge that Rebecca must face when returning to the domestic market. Domestic fashion products are popular for a short period of time and change rapidly. To enter this field, companies need to prepare for a long time, and the company's sales expenses are also gradually increasing. In the first half of the year, sales expenses alone increased by 62.14%.

Wu Yuyu: The amount of domestic consumption is generally small according to foreign countries. We mainly think that there are two points. The first point is that in the guiding mechanism, how can enterprises cultivate consumers more effectively to select the products they need? The second point is in the training of the sales team.

How to expand the beautiful industrial market

Li Yuxi: Just now, this film, we focus on the current wig industry, and the only listed company is Rebecca. When it comes to this company, let’s first talk about the wig industry. The wig industry is currently very space-oriented. Big? Because it is true, the understanding of wigs, including some ways and concepts of consumption, is changing. What kind of concept is the current annual growth of this space?

Ren Jing: Because the wig is first used from abroad, especially in the black population, it has a rigid demand. From the perspective of his hair quality, it is a necessity for them. The foreign market is particularly good. For many years, because the country used to be a defect-based use, it is now slowly increasing because of the current level of consumption. Another concept of people pursuing fashion has also been strengthened. There is also one, for example, the growth of the younger generation. After getting up, he has a good hair style, such as dyeing hair, the number of perm will be many, will require changes, but slowly with the strengthening of health, he will gradually realize that wigs may make up for his many chemistry Some of the adverse effects, hair dyeing, perm adverse effects, so I think this market space, there should be a trend of accelerated growth.

Li Yuxi: What we specially invited in our studio today is Renjing, the sales and trading headquarters of Guotai Junan Securities. Just now we Rebecca, it not only has its own sales channels, but also the entire wig production is done by itself, the whole wig production industry What is the distribution of the chain?

Ren Jing: From the very beginning, it should be a human-made acquisition. This is when Rebecca first started, the chairman of the board of directors went to various villages to collect fake hair, sold the wig to the wig factory, and gradually became a large-scale Production began, and the products were exported to foreign countries later. Because they are mainly foreign markets, the scale is now bigger. The economic benefits of these two years are very obvious. From the economic benefits of the stock market in recent years, it is a very strong growth. It is gradually developing upstream and downstream. First, it is going upstream. It is the production of chemical fiber raw materials. This is already in production. Another development downstream is to open up the domestic market and do domestic marketing. This has been done for four or five years. In terms of effect, it should be said that this year's results are more obvious. We feel that after the next year, we will enter the domestic sales and enter the profit stage. Therefore, it may be another stage of obvious growth for the company. .

Li Yuqi: At present, we have seen that it is the only listed company that is doing wigs. But for the whole industry, is competition fierce? In fact, I feel that the threshold for entry is not high.

Ren Jing: It is not high, because I just started to do it from the income of people. This basically does not have much cost. Therefore, many domestic small-scale enterprises belong to the family workshop, so the competition is very chaotic, or the market is in a mess. status. Rebecca now has the responsibility of the industry first, it has a responsibility, that is, we hope to gradually regulate the market, so there may be some successive market elimination, and the concentration may be improved. Rebecca hopes to Its own high-end brand to determine its absolute leading position in the industry, and then through some low-end brand entry volume growth, this from the small defects of the previous small workshop, cover the use of defects, expand into the concept of fashion consumption, So I think the Rebecca industry's responsibility is still very obvious.

Li Yuxi: One is responsibility. The other one I think is also true. I want to make my own brand. You said that it is high-end. I feel the same. In fact, I have seen Rebecca in many big shopping malls. Selling my own products, I was very surprised at the time. I didn’t expect a wig. Generally speaking, it started with one or two thousand dollars. A good one might be, for example, four or five thousand with real hair. I had a question at the time. This product is so expensive. Is it actually that its gross profit margin is quite high?

Ren Jing: Some of them are relatively high, but there are some high-end varieties. Because they are handmade, the cost may be relatively high. However, Rebecca’s philosophy is to start with high-end and establish the absolute brand advantage. Then go to the expansion of the volume, and then develop a brand that is now relatively low-end and expand more consumer groups.

Li Yuqi: Is there any problem with Rebecca in the development? Just now you mentioned that it may have been mainly exported to foreign countries. The domestic market may be a small proportion of his income. What is the current situation? Is there any impact on it because of the impact of the financial crisis in particular?

Ren Jing: The impact of the financial crisis is still very obvious, because it is mainly export-oriented, so the European and American markets were severely shrinking in the past, but as we have mentioned before, it is a rigid demand for the black community. Therefore, after a short-term shock, it is also relatively quick to recover. Like overseas markets, companies in the European and American markets have basically recovered. The African market is a relatively new market. The company is now doing its best to make it from manufacturing. To sell new African markets, the growth rate in these years is also relatively large. This piece of domestic production is only because it is started, and because it was originally manufactured, foreign overseas sales are sold through wholesalers, and there is no direct retail. The country is now entering a complete retail field, so The company is a brand new business. It has to have such a professional marketing team to do this. This is on the one hand, there is a lack of talents, or a new business has a process for them, and the other is domestic. The concept of human consumption needs a newer process. Therefore, for it, the domestic one may be slower than the past few years, but we have mentioned that the benefits this year are better. We can see that there may be Faster development.

Li Yuqi: It may be just getting started, there will be a lot of room in the future.

Ren Jing: This is a start in China because the sales revenue in these two months has grown very fast.

Li Yuqi: But for the enterprise, the face is, for example, the construction of some sales channels as you said, this is slowly going to be completed after a while.

Ren Jing: This is a cultivation process.

Li Yuqi: From the current point of view, Rebecca's stock price in the market is about 12 yuan. In fact, this stock price, do you think it is a normal reaction to its growth?

Ren Jing: At present, according to this year, it is basically a reasonable price. There may be a certain amount of space next year, because next year, China will enter the profit period, domestic sales, we just said that it is direct sales, so the channel profit is higher than the wholesale channel. A lot, if the income growth next year, including the cost of the store, after deduction, there may be a relatively large profit contribution, there is still room for relative valuation.

Li Yuqi: Ok, thank you for your analysis. Just now we are focusing on the wig industry, including one of the listed companies. In the later programs, we have to pay attention to another industry, the cosmetics industry. Let’s take a look at this to bring beauty to people’s skin. Can the nourishing industry bring some investment opportunities to investors?

Li Yuqi: Ok, welcome back and continue today's company survey. Just now we have analyzed Rebecca in detail, as the domestic market prospects for providing beautified living products, the development of the wig market in China, and the challenges it faces. Next, we will focus on the beautiful industry of new consumption, and then talk to you about the cosmetics industry. This industry that brings beauty to people's skin, can it bring some returns to investors?

Li Wei: Into the major department stores in China, the prominent position on the first floor is mostly cosmetics counters, foreign brands are mostly, this is a fully competitive market, the survival and development of domestic brands is not easy.

Shanghai Jahwa ( 45.31 , -0.28 , -0.61% ) : Participating in international competition in China

Miss Zhu is a white-collar worker who works in overseas companies. Cosmetics is naturally an essential daily consumer product. Now, she often visits a cosmetics store called Shuangmei.

Miss Zhu (consumer): First of all, I really like the taste of it, and it is very refreshing to use. I have used some international big brands abroad, but I think this product is more cost-effective.

Miss Zhu chose the domestic cosmetics brand. Its manufacturer, Shanghai Jahwa, was born 110 years ago. After successfully listing in the Shanghai Stock Exchange in 2001, it quickly became the leader of the national cosmetics industry. With the full opening of the Chinese market, Many brands from the United States, France, Japan and other major cosmetics countries have taken advantage of their respective technologies and capitals, and they have seized favorable positions. Shanghai Jahwa has become the only local cosmetics company that can compete with international counterparts.

Jiang Qingyun (Professor of School of Management, Fudan University) has more than 4,000 companies in China. Up to now, 40 companies, including P&G, Unilever and other international brands, have occupied more than half of the market. Some of our local companies, like Shanghai Jahwa and Jiangsu Longliqi, have also achieved certain competitive advantages in the competition and are in the top ten in the industry.

With the rapid expansion of the domestic cosmetics market, foreign giants quickly occupied the middle and high-end market by virtue of their technical and financial advantages. According to the data, the number of local cosmetics companies accounted for more than 70%, but only contributed about 20% of the income, while foreign joint ventures Enterprises account for less than 30%, but they contribute 80% of their income.

Ge Wenyao (Chairman of Shanghai Jahwa United Co., Ltd.): In the domestic market, it means that all the major brands in the international market are competing in the domestic market. There are 5 international companies with more than 20 billion US dollars, and less than 10 billion US dollars to 1 billion. There are 29 above the US dollar, and we have 34 strong opponents.

The more complete the competition, the more subdivided the cosmetics market, and the differentiated sales become inevitable. Among them, the competition for high-end cosmetics is particularly fierce.

Li Wei: This is the side of Nanjing East Road near the Bund. Since August this year, Shanghai Jiahua high-end brand Shuangmei has also had its own place here.

Shanghai Nanjing Road Bund currently brings together the world's major fashion brands, high-end clothing, watches and jewelry stores are row upon row, want to show themselves in this feng shui feng shui treasure.

Ge Wenyao: We used to be popular, low-end, we are not willing, so in the past few years we began to cultivate the "Herbs Collection" more successful, the two years launched "double sister", we hope that in the high-end market, we also have a certain share Can not all rob the foreign companies.

Jiang Qingyun: Cosmetics in the high-end market require more investment in the brand's emotions. In the path, you should choose a more fashionable location to conduct marketing.

Although domestic high-end cosmetics can face consumers in the same location as international brands, price is the magic weapon for its success.

Ge Wenyao: "Herbs Collection" is actually the most expensive among domestic cosmetics, but it is better than foreign cosmetics. Our price/performance ratio is very good. Our quality can reach their level, but the price is only about one-third to five-point. First, the development is relatively fast now, probably about 1.5 billion yuan in retail sales this year.

Li Wei: In fact, compared with high-end cosmetics, the market for popular personal care products is broader, and it is equally important to attract consumers' attention in this field.

From the perspective of the contribution to income, the gross profit margin of high-end cosmetics is much higher than that of low-end and mid-end products, but due to the huge sales volume, the contribution of personal care products to profits is actually quite rich. Shanghai Jahwa faced the masses' products, the United States and Canada, the Six Gods and other more to go to the big store to receive, in the large supermarket reporters saw that Shanghai Jahwa's personal care products were placed in a prominent position.

Ge Wenyao: The retail of Liushen is now more than 2 billion yuan, and the number of pieces sold in one year is 240,000 pieces. "Mega, this year, we have developed less than 15 pieces, and the price is very good.

Shanghai Jahwa 2010 third quarterly report shows that the company achieved a total operating income of 2.43 billion yuan, an increase of 11.4%, net profit of 209 million, an increase of 10%, although from the financial data, Shanghai Jahwa fierce competition in the cosmetics industry In the middle, it can still maintain growth, but the growth rate is slowing down.

Jiang Qingyun: In the process of all the marketing methods of cosmetics, advertising expenditure is the most important way. Like some international brands, it has relied on a large amount of advertising investment for a long time, which has formed its brand influence and needs to improve us. The marketing effect of cosmetics and the investment of advertising are still essential.

How to expand the beautiful industrial market

Li Yuqi: Well, we just learned about the current situation of the domestic cosmetics industry, represented by Shanghai Jahwa. I think that for these domestic cosmetics companies, the situation is very difficult. Currently, the cosmetics listed in China are listed. How many companies are there?

Ren Jing: Very few, it is Shanghai Jahwa and Sophote ( 4.74 , -0.25 , -5.01% ) .

Li Yuqi: On these two big companies?

Ren Jing: Right.

Li Yuqi: Why is there so little listing? Also because of the status of this industry?

Ren Jing: It should be said that it is very weak. These enterprises may have relatively poor benefits compared to the current ones. The brands have not been played out and it is difficult to go public.

Li Yuxi: So when I first passed the survey, we found that our domestic cosmetics companies are all in the middle and low-end markets, and the profits are relatively small. For these companies, what they want to develop in the future, what kind of mode? For example, enter some rural markets?

Ren Jing: If it is possible to follow the original model, it may be difficult to develop according to the original model. I think Shanghai Jahwa may be a good example because its "Herbs Collection" has been running for seven or eight years, and now it is better to enter a better one. In the profit stage, it has directly entered the high-end brand. It is a brand that can be listed in the big shopping malls with foreign imported cosmetics. The time is very long. For other small enterprises, it should develop their own distinctive products and promote their brands. The process of going to occupation or slowly expanding market share may be a difficult process.

Li Yuqi: Actually speaking of cosmetics, the two of us should have more say, because there is a special feeling. Once you enter the mall, including the supermarket, you will see some foreign brands and even domestic brands. It is very difficult to find, facing this situation, for example, Shanghai Jahwa, on the one hand to expand its own varieties, there are some products in the low-end, is it possible that it may have more room for growth in the future, or in some, for example, the second and third lines City, or relatively low consumer demand areas?

Ren Jing: According to its current development model, or its idea, it should be two ways, one is to continue to the high-end development, because "Herbs Collection" is now the only domestic brand, able to import brands abroad, At the same time, it is listed as the only brand in the big shopping mall. This is the first one. In addition, it has not opened a “double sister” recently, and restored the old brand, but it is definitely a high-end, this is a high-end route, and One is the low-end, to the rural market, because now the rural market should not be covered by imported brands, or very few, according to China's national conditions, this piece is a big market, how to occupy this market, or improve What about this share? I think that Jiahua should rely on its tradition, because it is a veteran Japanese company, so it should be in the hearts of the people, it should have a certain status, so it is necessary to make a renewed propaganda in this regard. To promote their own products, especially for rural areas, such as small packaging, quality is OK, packaging is smaller, the price is relatively cheap, to occupy the rural market.

Li Yuxi: Ok, thank you for your analysis. Thank you for your studio.