Jialan Group: A leader in the beauty industry that uses data to drive growth

About data shows that the overall growth rate of the beauty industry in 2020 is 23%, while the consumption growth rate of cutting-edge beauty makeup is as high as 78%. As the Jialan Group, which owns many domestic brands such as Natural Hall and Meiso, it has recognized this trend very early. The base station based on the data center was officially put into use, giving Garan Group's digital transformation more room for imagination and landing possibilities.

Recently, CBN Business Data Center released the "2021 Beauty Industry Trend Insights Report". The report pointed out that in recent years, the scale of China's beauty care market has continued to expand. It is expected that China's beauty market will reach 364.4 billion yuan in 2021. At the same time, the number of domestic brands in the beauty care industry is also increasing rapidly, and the growth rate of domestic brands in 2020 is much higher than that of foreign brands.

After decades of development, China's beauty industry has formed an industrial chain of hundreds of billions of dollars, from which a number of national traditional beauty brands including Jialan Group, Shanghai Jahwa, and Marumi Co., Ltd. have emerged, becoming the backbone of domestic beauty products. .

However, as the industry market continues to grow, in addition to overseas brands such as L'Oreal, Estee Lauder, Shiseido, etc., continue to increase their layout in the Chinese market, many domestic pharmaceutical companies have also broken industry barriers and played fancy cross-borders. For example, Ma Yinglong launched lipstick and eye cream. 999 Piyanping launched a variety of lipsticks, and Renhe Pharmaceutical started a whitening mask.

On the other hand, Generation Z is rapidly growing into the core consumer group for beauty, cosmetics, and care products. As native netizens who have grown up with the mobile Internet, they are more curious about new things in the consumer scene, so they are "high-valued". The new beauty brands that are more subdivided and widely spread are more popular among them.

The industry is changing, the market is changing, and traditional beauty brands have to actively seek "changes."

beauty industry 3.0 era has come

Looking back on the development history of domestic beauty makeup, it can be roughly divided into three eras: traditional beauty, Amoy beauty, and cutting-edge beauty.

The industry usually defines before 2012 as the era of domestic products 1.0. At this stage, the market attention is relatively concentrated. With the help of mass media channels, traditional domestic cosmetics and skin care brands represented by Naturetang, Dingjiayi, Herborist, and Cazilan have achieved rapid development.

From 2012 to 2014, due to the advent of the mobile Internet era, people’s consumption habits have gradually shifted to the mobile terminal. “Amoy Beauty” such as Yunifang, Afu Essential Oil, and Memfa Shijia used e-commerce platforms to open up the chain of direct communication with consumers. Road, enter the fast lane of development, and achieve the 2.0 era of domestic products.

In recent years, Generation Z has poured into the beauty market, and at the same time, the originally relatively stable industry boundaries have been repeatedly broken. "Cross-border innovation" and "cross-border marketing" are becoming more and more normalized, especially for new and cutting-edge domestic beauty brands such as Perfect Diary and Huaxizi. The rise and rapid establishment of a firm foothold has become a major symbol of the opening of the 3.0 era of domestic products.

Data show that the overall growth rate of the beauty industry in 2020 is 23%, while the consumption growth rate of cutting-edge beauty products is as high as 78%.

As the Jialan Group, which owns many domestic brands such as Nature Hall and Meso, actually recognized this trend very early, and realized that in the rapidly developing mobile Internet era, it is not enough for the brand to rely on technical support alone. The only way to continue to occupy the market is to adjust the response strategy in time to market demand and continuously improve product quality and consumer services.

The data is the basis of this "new battle".

Since its establishment in 2001, Jialan Group has accumulated massive amounts of data in the past 20 years of development, including market dimensions, as well as other dimensions such as commodities, channels, warehousing, and logistics. These data are stored in Jialan like ammunition. Among the various business systems of the group, only waiting for a suitable opportunity, ready to go.

In 2019, under the leadership of Chairman Zheng Chunying, Jialan Group officially released two major strategies for future development-product technology and digital technology.

The time is ripe for Jialan Group to fully launch its digital transformation.

Three-step strategy of "business dataization, data productization, and product operation"

revenue and reducing expenditure is the basic logic of beauty companies in their digital transformation.

For Jialan Group, the ultimate goal of the transformation is to be able to provide consumers with a more extreme consumer experience.

In the past, Garan Group has built a considerable number of business systems, stored massive amounts of data, and can use data to guide decision-making in common scenarios, and provide consumers with pre-sales, in-sales, and after-sales services-but at the same time, With the expansion of online sales channels and the increasingly rich marketing scenarios including short video platforms, social platforms, etc., the consumer market that brands can face has become broader. How can we judge the unknown market in the first place? The core demands, and the most efficient access path is selected, which is difficult to achieve by empirical or basic data analysis.

The second is cost and efficiency. As the size of the group continues to grow, the originally relatively independent system distribution has increased maintenance costs to a certain extent, and due to inconsistent data indicators and invisible data processing processes, it has hindered the efficiency of cross-business collaboration to a certain extent. Promote.

Thirdly, focusing on the level of "people", in most cases, whether it is the "collection", "construction", "management" and "use" of data, there are high threshold requirements for the operational capabilities of employees, which imposes higher requirements on the front-line business employees. In other words, on the basis of obtaining data usage rights, a complete set of visual data processing tools is urgently needed to improve data processing efficiency.

With these demands, and at the same time under the layout of the established digital transformation strategy, Garan began to build a data center.

"Data center is a key project of Jialan's digital transformation." Zheng Chunying said. At the same time, he emphasized that " business digitization, data productization, and product operation " will be the path for the construction of Jialan Data Center.

According to Luo Yujin, general manager of Jialan Big Data Center, "business digitization, data productization, and product operation" are not slogans, but what Jialan is doing step by step.

Business digitization requires Garan to make the current core business data as comprehensive as possible to facilitate real-time calls based on different business scenarios, and this is also the basis for Garan's digital transformation.

And through a series of products in the data center, such as Dataphin, Quick Audience and Quick BI, data upload and visual analysis for different business needs are realized on the basis of opening up multi-system data. This is data productization.

After productization, even first-line business classmates can easily use tool-based products to master the basic data application ability under the condition of obtaining corresponding permissions, and make data a normal way of working. So far, from "Business Data Online" -The data can be processed by the product-The progressive path that front-line employees can call data in time is basically completed.

During Double 11 in 2020, Garan Group has achieved significant results in global marketing and accurate market insights through data center. Among them, the number of fans in the Tmall flagship store exceeded 20 million. Compared with the introduction of data center, the number of omni-channel members has increased Doubled to 43 million, and the number of fans reached 350 million, an increase of 10 times.

Luo Yujin said: "With the data center, we can clearly know where the large amount of market data generated by the business side can be returned to for further analysis and result export, and to use it for the second time, including marketing. A positive feedback loop is formed in a number of business scenarios to truly revitalize the use of data."

online and offline comprehensive digitalization

Looking away from the online scene, the "fighting" of beauty companies in the offline market should also not be underestimated.

It is no exaggeration to say that 2020 is the year of the explosion of offline beauty collection stores. From colorists, WOW COLOUR, to Meimei, and Xilian, offline beauty collections will expand against the trend.

These cutting-edge brands, which originally grew up online, have repeatedly “broken the circle” to attract the attention of the consumer market by entering the beauty collection store, laying down offline market channels, and providing makeup trial services, concept flashing and other diversified consumer experiences.

For Garan Group, this is both pressure and motivation.

base based on the data center has been officially put into use, and the digital transformation of Garan Group has more room for imagination and landing possibilities.

Agents have been one of the core channels to reach the consumer market that Jialan Group has built for a long time since its establishment.

In the past, in accordance with the pre-judgment of the coverage of the market, each agent placed an order with the Jialan Group, and then the Jialan Group arranged the shipment. Under this model, the agent not only had to bear higher warehouse costs, but also Will also face channel risks;

On the other hand, for Garan Group, because it is unable to further manage the goods of agents and distributors, retail terminals often have opaque or unfair prices, which affects the consumer experience of users to a certain extent.

Not only that, since the warehousing of agents in various provinces and cities is mostly relatively independent, the logistics warehousing of department stores, convenience stores, supermarkets, and even online channels are also independent of each other. As a result, the goods in the inventory of each channel cannot be interoperable. It is difficult to carry out efficient delivery and deployment according to the final receiving location of consumers. While increasing the logistics cost of agents, consumers need to wait for a certain logistics time to harvest.

In order to change the supply situation of goods with frequent abuses, Garan made a big move that no one in the industry has ever done before- to create a .

Zheng Chunying proudly said: "Gallan is the first company in the beauty industry to make a single shipment. Despite the difficulties, we have chosen to face the difficulties and fully promote the single shipment. We believe that this is important for all stakeholders in the value chain. It is a landmark."

To achieve a single shipment, it is necessary to create a unified supply chain platform, which not only needs to open up data including orders, sales, logistics and other channels, but also through the analysis of these data to achieve sales forecasts and intelligent replenishment. It has reached the goal of providing services to all to B and to C customers, reducing inventory costs, improving the efficiency of supply chain operations, and ultimately improving the consumer experience of users.

Luo Yujin explained: “We just want to do things that are mutually beneficial. In the future, whether the agent or the distributors under the agent, you can place an order directly with us. After the order is placed, the goods will still be stored in In our warehouse, when the end consumer places an order for purchase, we will send the goods directly to the consumer within the specified time. In this way, not only the consumer experience will be good, but also for the agents and As far as distributors are concerned, their burden will be much lighter because they no longer need to maintain a complete set of warehousing systems, logistics systems, and control systems to achieve light asset operations."

Regarding the offline store channels, Jialan's digital landing also moves frequently.

At present, Group has designed a complete set of incentive and assessment mechanism applied to store scenes at 160ab5601ea979. Store BA (beauty consultant) can understand how far away from the expected goal through real-time sales data, and how much commission can be upgraded. Then, their subjective initiative can be greatly stimulated.

Meanwhile, based on the table data to get through the "people", "goods" system , BA can demand based on different members, for the most suitable product recommendations, while timely informed members of coupons and other related rights and interests, while increasing sales conversion, Provide members with more considerate and meticulous services.

As one of the foundations of Jialan Group’s digital transformation, Data Center is firmly embedded in its digital transformation strategy. Although at this stage, it has been validated in terms of product supply, global marketing, new product innovation, and user experience. But it should be noted that there must be more challenges to be dealt with in the future.

"Future business scenarios must be supported by richer industry data and market data, as well as more powerful data mining, governance and analysis capabilities. We hope that while providing these capabilities in the future, Data Center will also help Garan brings strategic solutions to various front-end business scenarios, so that we know what to do, how to do it, and how to measure the results.” Luo Yujin said.

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