Domestic Cosmetics Industry-Pricing Challenges and Market Dynamics

The reporter learned that with the continuous decline of the domestic cosmetics industry, the price system of some high-end domestic brands is facing an impact.

On some e-commerce platforms, the price of an essential oil product in the official flagship store has gradually declined from 808 yuan at the beginning of its launch to 728 yuan, with the price shrinking, more supplies appear in individual stores, and the price has further fallen to less than 350 yuan.

In the face of the high-end dilemma of the industry, a founder of a domestic brand bluntly said: "High-end brands must be niche, serving specific groups of people, and now high-end brands want to be high-end positioning, and then use traffic products to rush sales, the logic itself is contradictory."

In his view, to break through the high-end beauty brand faces greater challenges, "functional value, skin care products are difficult to make a gap; In terms of emotional value, Chinese people do not recognize it. [So] I think it's more feasible to do brands that people can afford."