Galan group: a leader in the beauty industry driving growth with data


Introduction:According to the data, the overall growth rate of the beauty industry in 2020 was 23%, while the growth rate of new beauty consumption was as high as 78%. Galan group, which owns many domestic brands such as Natang and Meisu, has recognized this trend for a long time. This base based on the data center has been officially put into use, and Galan group’s digital transformation has more imagination space and landing possibility.

Recently, the first financial business data center released the 2021 beauty industry trend insight report, which pointed out that in recent years, the scale of China’s beauty care market has continued to expand, and it is expected that the scale of China’s beauty care market will reach 364.4 billion yuan in 2021. At the same time, the number of domestic brands in the beauty care industry is also increasing rapidly, and the growth rate of domestic brands in 2020 is much higher than that of foreign brands.

After decades of development, China’s beauty industry has formed an industrial chain with a scale of hundreds of billions, from which a number of national traditional beauty brands, including Jialan group, Shanghai Jiahua, MARUMI Co., Ltd., have been born, becoming the backbone of domestic beauty.

However, as the industry market grows, besides the overseas brands of L’OREAL, Estee Lauder, Shiseido and other overseas brands continue to increase the layout of China’s market, many domestic pharmaceutical companies have also broken the trade barriers to play the fancy crossover, such as Ma Ying Long launched lipstick and eye cream, 999 dermatitis and various lines of lipstick, and Renhe pharmaceutical industry started a whitening mask.

On the other hand, generation Z is rapidly growing into the core consumer group of beauty care. As a native netizen growing up with the mobile Internet, they are more curious about new things in the consumption scene. Therefore, the cutting-edge beauty brands of “high beauty”, “more segmentation” and “wide dissemination” are more favored by them.

The industry is changing, the market is changing, and traditional beauty brands have to actively seek “change”.

Galan group: a leader in the beauty industry driving growth with data

The era of beauty industry 3.0 has come

Looking back on the development process of domestic beauty, it can be roughly divided into three times: traditional beauty, Amoy beauty and cutting-edge beauty.

The industry usually defines 2012 as the era of domestic 1.0. At this stage, the market attention is relatively concentrated. With the mass media channels, the traditional domestic beauty and skin care brands represented by nature hall, Ding Jiayi, baicaoji and kazilan have made great progress.

From 2012 to 2014, due to the arrival of the mobile Internet era, people’s consumption habits gradually shifted to the mobile end. With the help of e-commerce platform, yunifang, Afu essential oil, membrane method family and other “Taomei makeup” opened up the link of direct communication with consumers, entered the fast lane of development, and achieved the era of domestic goods 2.0.

In recent years, generation Z has poured into the beauty market. At the same time, the original relatively stable industry boundaries have been repeatedly broken, “cross-border innovation” and “cross-border marketing” have become more and more normal. In particular, the rise and rapid establishment of cutting-edge domestic beauty brands such as perfect diary and huaxizi have become a major symbol of the opening of the era of domestic goods 3.0.

According to the data, the overall growth rate of the beauty industry in 2020 was 23%, while the growth rate of new beauty consumption was as high as 78%.

Galan group, which owns many domestic brands such as natural hall and Meisu, has long recognized this trend and realized that in the era of rapid development of mobile Internet, it is far from enough for brands to rely on technical support. It is the only way to continuously occupy the market by timely adjusting response strategies around market demand and continuously improving product quality and consumer services.

Galan group: a leader in the beauty industry driving growth with data

andData is the basis of this “new campaign”.

Since its establishment in 2001, Galan group has accumulated a large amount of data in the development process of the past 20 years, including both market dimensions and other dimensions such as goods, channels, warehousing and logistics. These data are stored in various business systems of Galan group like ammunition, waiting for an appropriate opportunity and ready to go.

In 2019, under the leadership of chairman Zheng Chunying, Galan Group officially released two major strategies for future development – product technology and digital technology.

The time is ripe for Galan group to fully launch the digital transformation.

Galan group: a leader in the beauty industry driving growth with data

Three step strategy of “business data, data product and product operation”

Increasing revenue and reducing expenditure is the basic logic of digital transformation of beauty enterprises.

For Galan group, the ultimate goal of transformation is to provide more extreme consumption experience for the maximum number of consumers.

In the past, Galan group has built a considerable number of business systems, stored a large amount of data, and can use data to guide decision-making in common scenarios to provide consumers with pre-sales, in-sales, after-sales and other services – but at the same time, with the expansion of online sales channels and the increasing enrichment of marketing scenarios including short video platforms and social platforms, The consumer market that the brand can face has become broader. How to judge the core demands of the unknown market at the first time and choose the most efficient access path is difficult to achieve by empiricism or basic data analysis.

The second is cost and efficiency. With the continuous growth of the group’s scale, the original relatively independent system distribution increases the maintenance cost to a certain extent, and hinders the improvement of cross business collaboration efficiency to a certain extent due to inconsistent data indicators and invisible data processing process.

Thirdly, focusing on the “human” level, in most cases, there are high threshold requirements for employees’ operation ability in all links of data “acquisition”, “construction”, “management” and “use”. For front-line business employees, on the basis of obtaining data use permission, a complete set of visual data processing tools is urgently needed to improve data processing efficiency.

With these demands and under the layout of the established digital transformation strategy, Galan began to build a data center.

“Data center is the key project of Galan’s digital transformation,” said Zheng Chunying. At the same time, he stressed“Business digitization, data productization and product operation”It will be the path for the construction of gamma blue data middle station.

According to Luo Yujin, general manager of Galan big data center, “business digitization, data productization and product operation” is not a slogan, but what Galan is doing step by step.

Business digitization requires that Galan can fully online the current core business data as much as possible, so as to facilitate real-time call based on different business scenarios, which is also the basis of Galan’s digital transformation.

Through the series products of the data center, such as dataphin, quick audience and quick Bi, data upload and visual analysis for different business needs are realized on the basis of opening up multi system data, which is data productization.

After productization, even front-line business students can easily use instrumented products to master the application ability of basic data under the condition of obtaining corresponding permissions, so as to make data a normal working mode. So far, the progressive path of “business data online – data can be processed by products – front-line employees can call data in time” has been basically completed.

Galan group: a leader in the beauty industry driving growth with data

During the double 11 in 2020, Galan group achieved remarkable results in global marketing and accurate market insight through the data center, including the number of fans of tmall flagship store exceeded 20 million. Compared with before the introduction of data center, the number of Omni channel members doubled to 43 million, and the number of fans reached 350 million, an increase of 10 times.

Luo Yujin said: “with the data center, we can clearly know where a large amount of market data generated by the business side can flow back for further analysis and result export, and apply it to multiple business scenarios, including marketing, to form a positive feedback loop and truly revitalize the application of data.”

Comprehensive digitization online and offline

While moving away from the online scene, the “fight” of beauty enterprises in the online and offline market can not be underestimated.

It is no exaggeration to say that 2020 is the year of the outbreak of offline Beauty Collection stores. From toner and wow color to Huamei and Xiran, offline beauty collection has realized counter trend expansion.

These cutting-edge brands originally grown online have repeatedly “broken the circle” to attract the attention of the consumer market by entering Beauty Collection stores, laying offline market channels, and providing various consumption experiences such as trial makeup services and concept flash.

This is both pressure and driving force for Galan group.

This base based on the data center has been officially put into use, and Galan group’s digital transformation has more imagination space and landing possibility.

Agent is one of the core channels to reach the consumer market built by Galan group for a long time since its establishment.

In the past, each agent placed an order with Galan group according to the prediction of the covered market, and then Galan group arranged the delivery – under this mode, agents not only need to bear high warehouse costs, but also face channel risks;

On the other hand, for Galan group, because it is unable to further manage the goods of agents and dealers, the price of retail terminals is often opaque or unfair, which affects the user’s consumption experience to a certain extent.

Moreover, since most of the warehouses of agents in provinces and cities are relatively independent, and the logistics warehouses of department stores, convenience stores, supermarkets and even online channels are also independent, the goods in the inventory of various channels cannot be exchanged and used, and it is difficult to carry out efficient transportation and allocation according to the final receiving location of consumers, which increases the logistics cost of agents, Consumers need to wait for a certain logistics time to harvest.

In order to change the situation of goods supply with frequent defects, Galan made a big move that no one in the industry has ever done——Create an inventory

Galan group: a leader in the beauty industry driving growth with data

Zheng Chunying said proudly, “Galan is the first enterprise in the beauty industry to make an inventory. Despite many difficulties, we choose to meet the difficulties and comprehensively promote an inventory. We believe that this is a milestone for all stakeholders in the value chain.”

In order to realize one inventory, it is necessary to build a unified supply chain platform, not only get through the order, sales, logistics and other data including various channels, but also realize sales forecast and intelligent replenishment through the analysis of these data, so as to provide services for all to B and to C customers, reduce inventory costs and improve the operation efficiency of the supply chain, And ultimately improve the user’s consumption experience.

Luo Yujin explained: “We just want to do win-win things. In the future, agents and dealers under agents can place orders directly with us. After placing orders, the goods will still be kept in our warehouse. When end consumers place orders, we will send the goods directly to consumers within the specified time. In this way, not only consumers’ interests will be improved The experience will be very good. For agents and dealers, their burden will be much lighter, because they no longer need to maintain a complete set of warehousing system, logistics system and control system to realize asset light operation. “

For offline store channels, Galan’s digital landing also moves frequently.

At present, Galan group hasA complete set of incentive and assessment mechanism applied to the store scenario is designed, through real-time sales data, store BA (Beauty Consultant) can understand how far they are from the expected goal and how much commission they can achieve upgrading. In this way, their subjective initiative can be greatly stimulated.

At the same time,Based on the data, Zhongtai has opened up the “people” and “goods” systems, Ba can recommend the most appropriate products according to the needs of different members, and timely learn about member coupons and other relevant rights and interests, so as to provide more considerate and detailed services for members while improving sales transformation.

As one of the base construction of Galan group’s digital transformation, data center is closely embedded in its digital transformation strategy. Although it has been effectively verified in the scenes of goods supply, global marketing, new product innovation and user experience at this stage, it should be noted that there must be more challenges to deal with in the future.

“Future business scenarios must be supported by richer industry data and market data, as well as more powerful data mining, governance and analysis capabilities. We hope that while providing these capabilities in the future, the data center can also help Galan bring strategic solutions in various front-end business scenarios, so that we know what to do and how to do Do not do it, how to measure the results, “Luo Yujin said.

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