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How to break the consumer loyalty of big brands
In recent years, the cosmetics franchise store has emerged as the third-largest sales channel for domestic beauty products. As a result, both large and small cosmetic brands have entered this space, intensifying competition within the franchise stores. The author compares the competitive landscape of brand presence in these stores to a "golden tower." At the top are international first-tier brands, followed by second- and third-tier international brands and domestic first-tier brands. Many domestic second- and third-tier brands occupy the middle levels, while fourth-tier and emerging brands are at the bottom. In this hierarchical structure, brands are not content with their current positions—they aim to climb higher.
However, the perception of "international brands" among consumers often equates them with quality and excellence. Established global brands benefit from strong brand equity, long-standing reputations, and loyal customer bases, which pose significant challenges for smaller domestic brands trying to compete.
Loyalty, defined as the emotional connection and repeated purchasing behavior of consumers, is a key factor in brand success. A loyal customer base ensures stability and market presence. For smaller brands, breaking into this established loyalty is a major challenge. How can they gain an edge in such a competitive environment? This question is on the minds of many operators of domestic mid-sized cosmetic brands.
Drawing from years of marketing experience, the author shares insights on how to overcome these challenges. First, excellence in product quality is fundamental. An industry insider once said, “We are not selling products; we are selling hope.†Women buy cosmetics not just for the product itself, but for the dreams and emotions it represents. High-quality products are essential for fulfilling these aspirations and building consumer trust. In the 1990s, brands like Baoyusi, Anshangxiu, and Meisis gained loyal customers without heavy advertising, thanks to their quality.
Maru, a well-known domestic brand in franchise stores, succeeded despite the dominance of international competitors. While factors like Mr. Sun Huaiqing’s business philosophy and celebrity endorsements contributed, the real reason for Maru's success lies in its product quality. A long-time franchise owner confirmed that the brand’s consistent performance and high-quality products were the main reasons for their continued support.
Second, differentiation is crucial. As competition intensifies, brand personality becomes a powerful tool. It reflects the brand’s unique identity and values, setting it apart from others. Herborist, a Chinese herbal-based brand, successfully carved out a niche by positioning itself as a specialist in traditional herbal care. Its image is distinct from most competitors, and its long-term investment in branding has helped it gain recognition both locally and internationally.
To build a strong brand identity, companies should focus on meeting consumer needs, creating unique concepts, and clearly communicating their brand message. Consistency in messaging and product development is key to establishing a lasting brand image.
Third, feature-driven products can serve as a shortcut to brand distinction. By focusing on specialized items that stand out, brands can capture attention and build a reputation. Multi-functional products, such as BB creams, multi-tasking lotions, and makeup-infused essences, are becoming increasingly popular. Domestic brands that specialize in such products can quickly gain visibility and market share.
Finally, the terminal image plays a vital role in attracting consumers. Even the best products need to be effectively displayed in retail environments. A well-designed store, clear signage, and branded elements all contribute to a stronger consumer experience. Companies like Shenzhen-based brands and Hangzhou Polaiya have invested in comprehensive terminal image projects, improving their visibility and competitiveness in the market.
In conclusion, domestic small and medium-sized brands must continuously enhance their market position and cultivate brand loyalty. This is a long-term effort that requires strategic planning, consistent execution, and a deep understanding of consumer needs. Only through sustained efforts can they break through the barriers set by larger competitors.