How will you deal with these crises

cosmetics industry contains huge business opportunities and market space profits self-evident, which also makes more and more people to invest in cosmetics beauty shop. But the business is not a simple matter, cosmetics franchise business process, not a wind, also need to pay attention to the crisis management.

with the rapid improvement of the socio-economic level, the middle of the 80s cosmetics stores booming, reached its peak in mid 90s and late 90s, however, because of the dramatic change in the retail channel and integration, in the strong hypermarkets, supermarket chains and other new terminal extrusion, cosmetics store living space has become increasingly narrow, a large number of business the old concept have quietly exit, or put up the shutters, or to other projects. After the first wave of market reshuffle competition at this stage, as the cosmetics in Southwest China / Northwest / northeast city and county-level market, other developed regions in the township market an important sales channel, cosmetics stores are facing a new challenge:

first, the opening of cosmetic beauty stores loss of tourists crisis. Consumer polarization leads to customer churn. High income consumers tend to choose the elegant environment of the high-end department stores, to enjoy the large department store shopping experience and beauty consultant service; middle income customers are more willing to accept the store image rich taste of the professional beauty salon all in one service; low income groups are often in a one-stop shopping, cheap discount the large and medium-sized supermarkets around, get a lot of benefits. Compared with the above types of stores, cosmetic beauty stores in all aspects have no advantage, the inevitable loss of customers.

two, the opening of cosmetics beauty stores customer trust crisis. In order to solve the cosmetics shop franchise turnover decreased, some operators often take short-sighted sales price, price war chaos, although a slightly stable source, but it will not damage the entire cosmetics price system, which will greatly reduce the profits of cosmetics stores. In order to protect the franchise store profits, operators not instant success, or will operate shift to higher margin goods, and in the case of quality do not fully understand customers to recommend; or full of smuggled goods store, rely on cheap promotional gifts, all the Decepticons figure and other means to induce emotional consumer random impulse buying. The final result can only be to allow customers to gradually learn rational consumption, loss of confidence in the industry as a whole, more and more away from the beauty shop.

although the cosmetics industry prospects, when for investors, want to successfully open a cosmetics beauty shop, in fact, is not so easy to imagine, need to consider a number of factors. In particular, we should pay attention to the above summary of cosmetic beauty franchise stores in the course of the operation of the problems you will face, investment managers must be prepared to do more than ten thousand feet of various difficulties.

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