Home Business L’Oreal facial mask triggers pricing game and low-price promotion in live broadcast room traps “strange circle” | L’Oreal_Sina Finance_Sina.com

L’Oreal facial mask triggers pricing game and low-price promotion in live broadcast room traps “strange circle” | L’Oreal_Sina Finance_Sina.com

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Original title: L’Oreal facial mask triggers pricing game and low-price promotion in live broadcast room traps “strange circle”

Our reporter’s intern reporter Li Zhu and Liu Wang report from Beijing

Recently, some consumers complained about the false propaganda of L’Oreal Paris. The price of the mask purchased in the live broadcast of Wei Ya and Li Jiaqi was higher than the spot on “Double 11”. Some consumers communicated with the brand’s official customer service and wanted to make up the difference but were rejected.

This topic has aroused many concerns. On the evening of November 17, Li Jiaqi and Wei Ya officially replied “to suspend any form of cooperation with L’Oreal Paris”. L’Oréal’s official Weibo issued a statement in the early morning of the 18th that it apologized to consumers for the cumbersome and complicated promotion of “Double 11” facial masks, and gave instructions and solutions to the ampoule mask incident again in the evening. As of press time, the Weibo entry “Li Jiaqiweiya suspended cooperation with L’Oreal” has been read 840 million, and “L’Oreal responds to the ampoule mask incident again” has read 370 million.

It is understood that the delivery of goods by the anchor is one of the main forms of L’Oréal’s current e-commerce channels. L’Oréal Group’s financial report shows that for the 2020 fiscal year ending on December 31, L’Oréal Group’s e-commerce sales increased by 62% year-on-year, accounting for 26.6% of total sales.

Experts believe that L’Oréal has a large product matrix and low substitutability, which will have little impact in the long run. However, this incident shows that the current domestic beauty e-commerce industry’s phenomenon of “biding for quality” urgently needs to be standardized. “A single channel is unhealthy for beauty brands. The two anchor channels of Li Jiaqi and Wei Ya are like’aorta’, and other channels are like’capillaries’, and both are important’powers’. Some new brands mainly rely on the’aorta’ to survive, and there is a hidden danger of excessive and single channels, and the anchors are labeling low prices. Once the profits are compressed, the quality will be difficult to improve.” said Bai Yunhu, a beauty management expert.

You Yunting, a senior partner of Shanghai Dabang Law Firm, told the reporter of China Business News that if the investigation proves that L’Oréal’s “full year’s largest” publicity is deliberately defrauding consumers, then L’Oréal will not only refund consumers one compensation, but also Face penalties for violating advertising regulations.

  Mask price leads to the game

According to screenshots that are widely circulated on the Internet, L’Oréal customer service explained the price difference of the ampoule mask, saying, “Is Li Jiaqi saying that the low price is the low price? Li Jiaqi is just a hitman. There is no refund at all.”

The reply quickly fermented on the Internet and attracted the attention of many netizens. On the evening of November 17, Li Jiaqi’s live broadcast room stated that all cooperation with the official flagship store of L’Oréal Paris will be suspended until the matter is resolved. Subsequently, the Wei Ya live studio also issued a related statement: “The Wei Ya live studio will suspend any form of cooperation with the L’Oreal Paris brand until this matter is properly done.”

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As bloggers with topical traffic, Li Jiaqi and Wei Ya also emphasized the hope that L’Oreal Paris will come up with a “solution” within 24 hours. In response, the reporter sent an interview letter to the two parties, and as of press time, no response has been received.

A veteran in the field of e-commerce revealed that “Brands who want to enter the live broadcast room of two people usually have some verbal agreements in terms of prices, but they will not appear in the contract. Especially for the more powerful brands, the prices have been maintained for many years. It’s very good. I definitely hope that the price is controlled by myself.”

In the early morning of November 18th, L’Oréal’s official Weibo issued a statement, regarding the reasons for the different prices, it said: “After preliminary investigations, it appears that some consumers have taken products at lower prices after pre-sales because of the superimposed use of products. Discounts on multiple platforms and shops.”

In addition, L’Oréal also promised that “the company is cooperating with relevant government departments to investigate, and will propose appropriate solutions for all relevant consumers on the premise of protecting the interests of all relevant consumers.” As of press time, the reporter contacted relevant personnel to verify the relevant plan, but no response was received. But at 8:16 pm on November 18th, L’Oréal officially responded to the ampoule incident again and gave a solution by issuing coupons.

However, many industry insiders expect this incident to have little impact on L’Oreal. Li Chengdong, an e-commerce strategy analyst, said, “L’Oréal has a large product matrix and a broad product line layout, so the degree of brand substitution is relatively low.” It is understood that L’Oreal has more than 500 brands, including L’Oreal Paris, Maybelline, Lancome, Helena , YSL, Kiehl’s and other brands have entered the top echelon of the Chinese cosmetics and skin care brand market.

Li Chengdong said that brands like L’Oreal should indeed have pricing power. “As an international first-line brand, it should have its own definition in terms of pricing. Why do I have to let you sell at the lowest price, but I can’t sell it at the lowest price? This logic itself is also very strange, why not allow brands to do exclusive activities on their own?” He analyzed road.

In fact, today’s live broadcast e-commerce is consistent with the underlying logic of the traditional business model. The brand side has to enter the live broadcast room of a certain anchor, just like it used to enter a certain chain supermarket or a certain shopping mall. This is a change. The game of the soup without changing the medicine.

“Just as things need to be put on the shelves and need to pay the entrance fee to the supermarket, the brand side has to pay the anchor pit fee and rebate commission. If the brand is aphasic in terms of pricing power, it means that the brand has been kidnapped. In a sense In other words, the anchors themselves are not wrong. The mistakes appear in this circle of monopolistic signs. They can have enough influence to influence consumers’ decision-making, but in fact, the intermediate cost is not low. The above costs add up. Over 20 points.” Bai Yunhu said.

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Bai Yunhu pointed out that another reason why it has little impact on L’Oreal is that its channel distribution is very reasonable. “Like this kind of international brand that took root in China in the early years, the channel has penetrated into the fourth and fifth tier small cities. At present, L’Oréal should be ‘70% offline, 30% online’. The impact of this incident on its offline channels Smaller.”

  Low-price promotion chaos to be dealt with

It seems that offline is still the main force of L’Oreal. L’Oréal Group’s financial report shows that for the 2020 fiscal year ending on December 31, L’Oréal Group’s e-commerce sales increased by 62% year-on-year, accounting for 26.6% of total sales. L’Oréal’s e-commerce business continued to grow in the first half of this year, but due to the reopening of retail channels, the growth rate of e-commerce has slowed down. In the first half of the year, L’Oréal’s e-commerce business grew by 29.2% year-on-year, contributing 27.3% of sales.

Bai Yunhu believes that in the current consumer market, monopolistic e-commerce platforms account for almost a quarter of the market share. The two top-stream anchors Li Jiaqi and Wei Ya’s “Double 11” pre-sale transaction volume exceeded 20 billion on the day of the pre-sale. Yuan, these data indicate that the “aorta” is getting thicker and the “capillaries” are getting thinner, and even lose their function due to blockage.

According to many long-term consumers of beauty and skin care products, when they buy cosmetics in offline shopping malls, they encounter the situation that the reserved products are off the shelves and not picked up because the products they book are more cost-effective than the live broadcast room. Industry insiders pointed out that in terms of product selection and price setting, live broadcasters have a lot of say, because they are “low prices”, and most of them rely on “low prices” to attract traffic.

Bai Yunhu believes that the brand should not be “kidnapped” by the anchor’s low-price competition, and should have the right to set prices independently. “When the entire beauty industry is trapped in the chaos of pursuing the lowest price, the company cannot grow rapidly. At present, many domestic beauty brands invest very little in research and development, because the entire profit has been suppressed, and few people go there. Do R&D and innovation.”

Li Chengdong said that live broadcast has become the core marketing method and channel for beauty makeup, and the competition is also very fierce. Using the “lowest price on the entire network” as a gimmick to attract users for a long time is a “weird circle” that live broadcasters can’t get out of.

Bai Yunhu said, “The live broadcast room is a sales portal, essentially like a store. The problem is that the store is caught in a’low price’ cycle, and it must rely on low prices to attract consumers to the live broadcast room. In the live broadcast room, if there is no price advantage, Especially without the’lowest price on the entire network’, goods cannot be sold, and traffic cannot be turned into sales.”

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Liu Dahe, chairman of Lanni Planning, pointed out that in addition to promoting consumer decision-making, the low price of the live broadcast room is also to cater to the flow algorithm mechanism of the platform. “The promotion of low prices and discounts in the live broadcast room is based on two points: one is to promote transactions quickly, consumers have no resistance to products that are too cheap, and do not need to think too much, which will stimulate interest and demand. The other is that some anchors use low prices. Price products or ways to give fans benefits to increase fans’ staying time in the live broadcast room. The algorithm of an e-commerce platform is based on the fans’ staying time in the live broadcast room and the degree of interaction to decide whether to give you more weight and more traffic to expose .”

  One price is lower than one price

The lawyer pointed out that the L’Oréal incident may involve penalties under the Consumer Protection Law and the Advertising Law. According to the “Administrative Measures for Retailers’ Promotional Behavior” of the Ministry of Commerce, retailers are not allowed to change the promotion content within the specified time limit after carrying out the promotion activities.

You Yunting emphasized, “Because the lowest price was promised to consumers before, a new price was released afterwards. L’Oréal promoted the’full year’s maximum intensity’ and then launched a more vigorous promotion. As a result, the previous publicity constituted false publicity. , It may also be subject to administrative penalties.”

He analyzed that, as far as consumers are concerned, if the investigation proves that L’Oréal’s “full year’s largest” publicity in early October was deliberate fraud, L’Oréal should refund consumers three. If L’Oréal provides sufficient evidence to prove that it was caused by negligence, it will not necessarily constitute a fraud, but the refund of the difference to the consumer must be borne, because “market supervision is generally based on the results of the investigation.”

According to the screenshots provided by consumers, “L’Oréal Paris” released Li Jiaqi’s live broadcast room “Maximum Strength of the Year” and other related information on October 20, but the reporter checked the Weibo of the day and could not find this Weibo.

“The content posted by L’Oréal’s official Weibo is a commercial advertisement. This slogan can be punished by the Advertising Law.” You Yunting believes.

You Yunting said, “This incident may be due to the lack of coordination between the internal departments of large companies, so the legal affairs have no way to supervise it.” Many industry insiders also agree with this statement, saying that the personnel who docked with the anchor and the promoters who docked with their own live broadcast rooms were not The same department, and the brand’s own “Double 11” promotional activities may not go through legal affairs.

Massive information, accurate interpretation, all in Sina Finance APP

Editor in charge: Jiang Xiaotong

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