Chapter 81 Countermeasures, Public and Private (3/5)
On this day, the story of Flowers Small Green Bottle created many cosmetics sales records.
Sales of 300 million per day!
1 million bottles of single products sold in a single day!
Cosmetics are sold in limited quantities for the first time ever!
The first time in the history of cosmetics marketing is hunger marketing!
...
This time, the entire cosmetics industry, both domestic and foreign brands, was really shocked.
When the Flower Story mask was launched, everyone was surprised, but they didn't take it too seriously.
They feel that the Flower Story mask is a surprise victory through marketing, and the price is cheap enough, and it can only be sold so many when major cosmetic giants do not pay attention to this product. Once these old cosmetics companies push their own masks, they can turn the Flower Story mask back into its original form.
In the past two months, various cosmetics brand companies have been working hard to develop their own new mask products, preparing to get a pie.
But their new mask product has not yet been launched, and Flower Story hit another heavy blow, which is really a big hit. Cosmetic giants like L'Oreal and Estee Lauder all feel dizzy.
This is the essence, it is the core product of every cosmetic brand. Moreover, the small green bottle of Flower Story cannot be said to be very cheap, and a bottle costs 308 yuan. Just such a new product can sell 1 million bottles a day, with sales reaching 300 million yuan?!
And this is done under limited sales. If sold in limited quantities, how much can this small green bottle be sold!
The first ones to feel the threat were the Estee Lauder and Lancome brands, because the Story of Flowers clearly benchmarked their products.
Estee Lauder has a small brown bottle and Lancome has a small black bottle. These are the core products of the two brands. The pricing positioning effect is basically the same. They are fighting each other in the global market. Now the winner is not decided yet, why does a small green bottle suddenly appear?
Wen Boyuan, president of Estee Lauder Asia Pacific, paid attention to this matter as soon as possible. He ordered his subordinates to find a way to get a few small green bottles of Flower Story and send them to the laboratory at the headquarters for testing overnight.
After getting the test results, Wen Boyuan's face looked ugly, because according to the tests of the R&D personnel at the headquarters, the efficacy of this small green bottle is indeed not inferior to their small brown bottles, and it even wins in some of the effects!
"Damn it! Why do you sell such good cosmetics so cheaply? You don't know how to make money if you have money. You're stupid!"
After coming to the mainland for a long time, Wen Boyuan also learned classic national swearing. He was so excited that he blurted out.
What to do now? Wen Boyuan feels overwhelmed. The days of these two months just passed a little bit, and through the online channel of Meigou.com, a lot of products have been sold.
Every year at the end of the month, Wen Boyuan will be full of joy when looking at the rising sales data. It has only been two months of good days, and now such a strong competitor has emerged.
In fact, the small green bottle of Flower Story has just been launched, and it has been sold in a limited quantity of 1 million bottles. It has not had any impact on Estee Lauder's sales, at least it has not been seen now.
Who is Wen Boyuan? He has been in the cosmetics industry for decades! He keenly predicted that once the Flower Tale is supplied in large quantities, the blow to Estee Lauder will be devastating!
To make matters worse, the head of the customer service department reported to him that after a recent follow-up visit, almost all the old Estee Lauder users had received free trials from the Small Green Bottle of Flower Story.
"Damn it! This is not a way to live..." Wen Boyuan moaned in pain.
The Estee Lauder brand is the core brand of Estee Lauder company, and basically half of its sales depend on this brand.
When Wen Boyuan reported this situation to the headquarters urgently, the headquarters did not give any positive feedback. Because the sales volume in the mainland market is not high, it accounts for a very low proportion of the group's global sales.
It’s just that a competitor has appeared in the far Far East market, and this competitor has just been born and has not had any impact on Estee Lauder.
In this case, of course, the men at the headquarters don’t take it seriously and have a little disgusted with Wen Boyuan. This is simply a manifestation of incompetence. You, Wen Boyuan, are the head of the Asia-Pacific region. Shouldn’t you solve this problem immediately when encountering this situation? Is it necessary to report to the headquarters?
But what solution can Wenboyuan have? He knows who the boss behind Huazhishi is. That is Wang Ye! A billionaire, the major shareholder of Meigou.com!
Now Wang Ye has the small green bottle, a cost-effective product, and also controls the largest cosmetics sales channel in the mainland. How can he compete with him?
Not only can there be no competition, Estee Lauder's sales also rely on the channel of Meigou.com. If Meigou removes Estee Lauder now, it will be a devastating blow.
Wen Boyuan sat in the office, holding his head and pondering what he should do.
As for reducing Estee Lauder's price and competing with the Story of Flowers, Wen Boyuan immediately denied this idea.
That is impossible. Not to mention that his authority is insufficient. Within his authority, at most, he can sell the price at a 30% discount. It can only be a short-term behavior, and he must also make a written report to the headquarters.
Estee Lauder’s product positioning alone determines that it cannot be sold at a large scale in the long run!
Sales at regular prices are the quality of big brands! It is also one of the factors that make big brands a big brand. Once the fig leaf is pulled off, then Estee Lauder will not be Estee Lauder.
Moreover, if you suddenly reduce the price significantly, the effect may not be good, and it may have a worse impact.
Consumers will doubt that things that have never bargained, and suddenly sold at a sharp price cut. Something must have happened? The company is going to go bankrupt? Or is there a quality problem with this product and it needs to be cleared?
Wen Boyuan had no choice but to make a last-minute attempt and acquire it!
This is Estee Lauder's "fine tradition"! The rise of this company is a road to acquisition. The current Estee Lauder Group actually has only two brands that it has created itself, namely Estee Lauder and Clinique. The remaining twenty brands are all acquired.
As the president of the Asia-Pacific region, Wen Boyuan has the authority to acquire some potential cosmetic brands locally. In his eyes, the story of Flowers is not only potential, it is simply about to soar into the sky!
The more you think about it, the more you are, the more you are moved. The positioning of Flower Story is similar to L’Oreal, and the price is similar. And the Estee Lauder Group does not have a brand with this positioning. If you can really acquire Flower Story, it will make up for the group’s biggest shortcoming!
Although the Estee Lauder Group is positioned at a high-end position, it does not mean that it does not want to be an affordable brand. Everyone knows that affordable brands are the most popular. If you don’t believe it, just look at the L’Oreal brand.
They just haven't found a suitable acquisition partner, so they say that they only build high-end brands...
Now, this acquisition target has emerged!
This is the best way that Wen Boyuan can think of now.
...
The emergence of the small green bottle of Flower Story not only shocked Estee Lauder, but also had a greater impact on L'Oreal Group.
When Wangye set a price, two of the three brands were targeted by L'Oreal Group, Lancome and L'Oreal.
Lancome is positioned as a high-end position, while L’Oreal is considered to be a mid- and low-end position, but what surprised L’Oreal Group was that the Flower Story Small Green Bottle, this product actually seriously threatened the two brands of its own company, or two brands with completely different positionings!
How did this be done?
The president of L'Oreal Asia Pacific is confused. He has never encountered such a competitor in the industry for decades.
In the past, those competing brands were one-to-one competition. But Huazhishi was better, and a single item actually had to compete with two brands of its own group. And judging from this situation, it seemed that the threat was really great!
However, he was not worried that L'Oreal Group had been around the world for decades and had never encountered any competitors. Moreover, the group had high, medium and low brands, with more than fifty brands!
Don’t you want to compete with me? Then I’ll use L’Oreal to compete with you!
With his order, L'Oreal began to reduce prices and promote promotions through all channels, including 40% off for the full set, buy one and get two free, buy and get another free!
This is the killer weapon of L'Oreal Group. Originally, L'Oreal's products are not expensive and have a wide brand awareness. Once such a large-scale promotion will be held, the effect will be very good.
Their purpose is to drag down the story of flowers! Are you cheaper? I'm cheaper than you! And I just need to use a brand to compete with you. Your company has only one brand. Can you afford it if you spend it with me?
...
The two competitors of Flower Story each have their own tricks and come in full force.
As for Wang Ye, he is now considering the supply agreement between Meigou.com and Flower Story.
It turns out that the mask of Flower Story is supplied to Meigou.com at a 50% discount, and Meigou.com is responsible for subsequent sales, delivery, and after-sales procedures.
But as the Flower Story mask continues to be popular, and now another popular product is on the shelves, this agreement is not suitable. Because this is unfair to Flower Story!
Flower Story Company is Wang Ye’s private company, Meigou.com is a joint-stock company, and Wang Ye is also a major shareholder.
But there is still a difference between major shareholders and complete private ownership. Wang Ye is not a moral model, and it is impossible to use his own profit to support the other shareholders.
The products of Flower Story now can be said to be the biggest selling point of Meigou.com! In other words, when Meigou.com was first launched, it was the market opened by relying on the Flower Story mask.
At that time, such an agreement was signed in order to quickly build the scale of Dameigou.com, and to make a beautiful financial statement for it, and to increase its valuation. When the agreement was signed, Wang Ye had a backup plan and signed it on a monthly basis.
Chapter completed!