On the Beauty Market and Enterprise Development

Zhang Zhiwei, the founder of Abel, entered the beauty industry in 1994, founded Abel Material Co., Ltd. in Beijing in 1995, and set up a branch in Guangzhou in 1996. He has not only spared no effort to promote the development of facial mask industry for 11 years, but also how the masters of facial mask industry view the Chinese cosmetics market after China's accession to the WTO.
Reporter:
Mr. Zhang, do you have any unique insights into the current beauty and cosmetics market in China?
Zhang Zhiwei:
China is developing rapidly, and the quality of life of its people is approaching the level of developed countries. The proportion of consumers of beauty products continues to grow, which has made the country pay close attention to the cosmetics industry. The regulatory efforts have also increased accordingly. The cosmetics industry has been continuously regulated and rectified, leading to a qualitative development of the quantified market. Gradually, manufacturers that prioritize brand, image, and quality have emerged, especially with the intervention of the Guangdong Provincial Food and Drug Administration, making the domestic cosmetics market more in line with the requirements of the international mainstream market.
Reporter:
What are your views and suggestions on the future market?
Zhang Zhiwei:
I think we will develop towards a truly specialized market direction because every manufacturer has their own research projects, and it is impossible for every product to be thoroughly researched. In the past, our customers often researched and produced film powders themselves, with the aim of imitating varieties of the same quality as Abel's products. However, in the end, they were unable to produce them. Some were adjusted to have similar fragrance but poor toughness, but the cost was already higher than the price of purchasing finished products from Abel. In the end, they not only lost money, but also wasted time.
You can see clearly when you go to the American International Fair every year. All the manufacturers that have a foothold today are clearly defined. For example, the manufacturers that develop and produce special products, the daily chemical companies that specialize in marketing strategies (brands: "Maybelline" specializing in cosmetics; skin care brand "L'Oreal"; perfume of "CD"; daily chemical washing "P&G"; Ciba Technology), etc. In terms of capital and strength, they are absolutely capable of producing products, but these companies have chosen to focus on sales. Similarly, Abel has the capital, ability and R&D strength to produce cream products, but we have always focused on facial mask products. I think only in this way can products be refined and refined, and the more mature the market develops, the more segmented experts in the industry will appear. Only in this way can the overall industry continuously move towards new heights.
Reporter:
Diversified development is a common marketing strategy used by many enterprises, which has a high return on investment and fast capital recovery. However, Abel did not take this seriously and maintained a solid research approach. What belief do you rely on to resist the temptation of substantial and rapid returns?
Zhang Zhiwei:
Diversified development is a trend, and in order to survive and develop, enterprises must obtain profits. Most enterprises are concerned about how to avoid risks and maximize profits. Therefore, many enterprises with good research and development capabilities have entered the market. Due to the loss of the main line of company development due to the two line expansion, they have ultimately declined. As long as enterprises can truly achieve a virtuous cycle of development, they can maximize profits and avoid risks.
Eleven years of development have provided Abel with clear guidance that only by improving product core competitiveness, ensuring quality, and increasing market share through research and development can long-term stable profits be obtained.
So Abel's diversification will only appear in the diversification of product types, product research and development, and technical talent. The best development trajectory for the enterprise is long-term stability in the future.
Reporter:
What is your opinion on the different concept products being presented now?, What do you think of the word "concept"?
Zhang Zhiwei:
Most concept products on the market nowadays are packaged with promotion as the core, and "stem cells" and "7-day spot removal" are all aimed at catering to the taste of ignorant consumers, without any practical significance. (Stem cells: According to research, stem cell products cannot be absorbed subcutaneously. So far, the medical community has not launched a stem cell product on the market. The things currently used on the market are generally biological or non biological agents, some of which are even chemically synthesized. If these products are injected into the body, the body's immune system will be damaged, making it easy to develop symptoms such as lupus erythematosus. 7-day spot removal: Medical evidence shows that the cycle of fading spots takes at least 28 days, and 7 days is basically impossible. The so-called immediate whitening and spot removal products only contain excessive addition of "mercury" and "hydroquinone", which have strong toxicity to the skin.) Stimulus, currently the country has strict control over the addition of these two ingredients in cosmetics, and even prohibits them
In fact, the core of the concept should be put on technology. Taking the plant fiber facial mask launched by Abel in recent years as an example, we launched the plant facial mask product with the concept of pure nature. It uses real plant fiber as a carrier, and is developed and manufactured through high-tech extraction technology. Its pure natural structure can not be artificially copied, and the product has obvious efficacy, health and does not stimulate the skin. Taking the core technology as the concept is the true conceptual product, which cannot be achieved simply through advertising or media packaging.
Research and development require years of accumulation and accumulation. As an enterprise, we should have a long-term vision, focus on product quality, and be close to the international market, which is the future development trend.