Why Does Fashion Asos Come Into The Beauty Market?

The glittering UK that has always been shining.

Online retailers

To enter the beauty make-up

And just after announcing the news, another colleague Boohoo followed suit.

According to the world clothing and shoe net, in order to continue to increase its share in the millennial fashion market, Asos recently released its first private brand make-up series, Asos Make-Up, including 46 products, including lipstick, eye shadow, Gao Guang and dressing, priced at 5-12 pounds.

Asos also plans to launch the beauty box ordering service (that is, every month the user will receive a box containing a variety of cosmetics every month after a month's payment), and compete with the well-known British cosmetics business Feelunique and Birchbox.

(Asos's own brand beauty makeup products)

Boohoo also released its own brand cosmetics series Boohoo Cosmetics this month.

The series includes 10-20 products, such as lipstick, eye shadow, bottoming and cosmetic tools, priced at between 4-19 pounds.

(Boohoo promotes its own brand beauty products on Instagram)

It is known that Asos and Boohoo websites have been selling third - party brands of beauty products before that.

Asos sells beauty products including make-up, skin care, manicure and hairdressing. It covers Nars, NYX, Benefit, Cowshed, Baxter of California, Korres, LOr E and other popular brands.

Boohoo sells third party brand beauty products, such as facial mask, false eyelash and hair dye paste.

Thereafter, their own brand make-up series will also be sold together on the website.

In order to promote cosmetic products, Asos recently held a new trial line activity in London, and introduced AR technology to enable consumers to see the upper body effect of cosmetic products and clothing products.

Boohoo said that the launch of the beauty make-up series was driven by the latest trend, and then different new products will be launched according to different seasons, hoping to "meet all the needs from professional makeup artists to beauty make-up novice".

In fact, it seems to be a trend to enter the beauty market with fashion clothes. Asos and Boohoo are far from the first to eat crabs.

Before that time, H&M, Inditex group's Zara and Bershka, Topshop, Forever21, Free People and other fast fashion brands have already set foot in the field of beauty makeup, and the earliest and even launched their own brand cosmetics products from 2009.

This can not help thinking: fast fashion market gradually slow down, the growth rate has slowed down, these brands need to continue to respond quickly to the needs of consumers. Is it a good direction to make beautiful makeup?

There is no doubt that the apparel retail industry is experiencing a depression in the global market, which is the most direct reason for fast fashion brands to cross the border.

Under such circumstances, even the Inditex group, the Zara parent company that has been highly appreciated by peers, is no longer so strong.

The group's 2016 financial year results show that although sales and net profits have maintained a year-on-year growth of more than 10%, the gross profit margin has narrowed from 57.8% in the previous year to 57%, the lowest in 8 years.

At the same time, H&M group's operating profit margin in 2016 has dropped to a new low in recent years.

However, compared to the sluggish clothing industry, the beauty industry is showing signs of vitality.

According to European information consulting, the global growth rate of cosmetics and skincare products is much faster than that of clothing shoes.

After deducting the cost of advertising, channels, personnel and so on, the cosmetic products can still achieve the profit rate of 30%-50%.

Obviously, for the fast fashion brand with the advantage of channel, entering the field of beauty makeup can rely on these foundations to save money and gain higher profit returns.

At the same time, the younger generation of consumers is more willing to pursue novelty, and more willing to try different products. It is also a reason why fast fashion brands are entering the beauty market.

As an overseas analyst has said, the millennial generation is a social group who has a brand new view of the United States. They promote the cosmetic industry to the "faster" direction in social media, and this fast fashion brand is good at it.

In addition, for the fast fashion brands with many offline stores, the introduction of beauty products is also a way to attract customers.

While many clothing retail outlets have closed, cosmetic stores are expanding, for example, Ulta Beauty, Bluemercury, Cos Bar, Rituals, E.l.f., Hourglass and other cosmetics retailers announced plans to open shop this year.

On the one hand, it represents the rise of consumption of cosmetic products. On the other hand, it is also because millennial consumers pay more attention to the shopping experience of cosmetic products, which makes stores more and more important.

Obviously, if the fast fashion brands selling clothes sell beauty products in stores, and add some cool experiences (such as the popular AR makeup technology, etc.), the attraction will come naturally.

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