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Your Global Turnkey Cosmetic Packaging Manufacturing Partner-LISSON

Native Japan second-line brand 'dealer base underwriting' mode

L 'oreal, procter & gamble, the move to the countryside to rely on domestic cosmetic brand in three or four line city channel business suffering from shock. Domestic some domestic cosmetic second-tier brands are giving up retail mode, instead use the dealer base price exclusive sale mode to reduce costs, and foreign brands. This success, however, by differences in the industry. Under the 'base underwriting model', a dealer can often do for multiple local cosmetic brand stores, thus effectively save the cost, for is yet to be developed domestic second-tier cosmetic brands, can quickly into a line of stores and foreign competition, foreign capital will accept new challenges. But this model also has disadvantages, how to find and control good quality for the second-line cosmetic brand dealer is a test. Softto business management director Ma Zhenhang tells a reporter, at present a lot of brands in the first-tier cities are difficult to survive, not their products in the city is not popular with consumers, more because of a line of hypermarket cost is too high. In Ma Zhenhang view, many domestic cosmetic brands are unable to support the high occupancy fee, so can only in the secondary market, the super to expand, but foreign investment to the countryside to break the original market pattern. So local cosmetic brand hit from the two aspects, at this point, the base operating mode is local daily and the new trend of foreign competition. Is expected in the future there will be more and more domestic second-tier cosmetic brand through the hand of base operating mode of distributor with full access to K A hypermarket and foreign PK. Editor: Johnny

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