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How to break the consumer loyalty of big brands
The cosmetics franchise store has become the third-largest sales channel for domestic cosmetics, drawing in both large and small brands. As a result, competition within these stores has intensified significantly. The author likens the brand competition in this channel to a "golden tower," where international first-tier brands sit at the top, followed by second- and third-tier international brands and domestic first-tier brands. Meanwhile, many domestic second- and third-tier brands occupy the middle and lower levels, while the fourth-tier brands struggle at the bottom. In this pyramid-like structure, brands are not content with their current positions and constantly aim to climb higher. However, consumers often equate "international brands" with quality and excellence, which makes it difficult for smaller domestic brands to compete.
Loyalty is a key factor in consumer behavior, reflecting preference and long-term purchasing habits. A loyal customer base means a stable market presence. For small and medium-sized brands, breaking into the loyalty of big names is a major challenge. This issue is widely discussed among operators of domestic cosmetics brands. Drawing from years of marketing experience, the author shares some insights on how to build competitive strength in this environment.
First, excellent quality is essential. 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 dream of beauty and happiness it brings. High-quality products are the foundation for achieving these dreams and building brand loyalty. In the 1990s, brands like Baoyusi, Anshangxiu, and Meisi gained loyal customers without heavy advertising, simply because of their quality.
Maru, one of the most successful domestic brands in franchise stores, emerged during a time when international brands dominated. While some credit its success to Sun Huaiqing’s business philosophy and strong advertising, the author found that Maru’s high reputation in the market stems from its product quality. A long-time franchise owner confirmed that the brand's success is rooted in consistent quality, proving that even with ads, poor quality won’t sustain growth.
Second, a unique brand personality is crucial. As competition intensifies, differentiation becomes a key strategy. Brand personality reflects the spiritual identity of a brand and helps it stand out. Herborist, for example, blends traditional Chinese herbal medicine with modern biotechnology, creating a distinct image as a "Chinese herbal care expert." This has helped it gain recognition and even enter the European high-end market.
To build a strong brand personality, the author suggests three steps: First, focus on real consumer needs and introduce concepts no one else has. Second, ensure product formulas meet those needs and reflect the brand’s identity. Third, loudly promote your chosen market segment and stick to it.
Third, feature products are a powerful way to differentiate. These specialized items can capture attention and elevate the brand’s image. For example, multi-functional products like BB creams, moisturizers, and makeup lotions have become popular. Domestic brands like Fa Xiannu Gold Water have successfully built their reputation through unique, high-performing products that stand out in crowded markets.
Fourth, the terminal image plays a vital role in attracting customers. Even the best products need to be visible and accessible. A strong brand image in the store helps guide consumers and increase sales. Many small brands now understand this, but they often limit their efforts to simple displays. A more effective approach involves integrated communication, such as unified store designs, signage, and promotional materials. Companies like Polaiya have successfully implemented comprehensive terminal image strategies, improving brand visibility and competitiveness.
In conclusion, domestic small and medium-sized brands must continuously improve their market position and cultivate consumer loyalty. This requires a long-term brand development strategy, combining various methods and sustained effort. Only then can they effectively challenge the dominance of international brands.