Summary of the Conference Call on the Beauty Product Innovation Framework Industry Overview - The discussion centers around the beauty industry, specifically focusing on the innovation framework for beauty products and the competitive dynamics within the sector [1][2]. Core Points and Arguments 1. **Organizational Capability**: Organizational ability is identified as the core of competitive strength in the beauty industry. Companies that prioritize consumer insights and maintain high operational efficiency are more likely to succeed [1][2][7]. 2. **Consumer Insights**: Understanding consumer needs and providing differentiated solutions is crucial for product success. This is particularly important in the beauty sector, where demand is often artificially created [2][5]. 3. **Marketing and Channel Strategy**: Strong marketing departments are essential for brand strategy, product development, and marketing planning. Companies like Procter & Gamble and L'Oréal exemplify effective marketing strategies that integrate consumer needs into their overall approach [2][5][8]. 4. **Data Feedback Mechanism**: Effective data collection and feedback mechanisms enhance the success rate of new product launches. Companies should integrate data from various departments to support innovation decisions [3][5]. 5. **Product Iteration and Innovation**: Continuous product improvement is vital for market performance. For instance, the Ruby Cream achieved significant sales growth during the Double Eleven shopping festival due to iterative enhancements in its formulation and texture [6][18]. 6. **Short-term Sales Drivers**: In the short term, channel and marketing strategies have the most significant impact on product sales. As channel advantages diminish, refined operations become increasingly important [8][9]. 7. **Brand Building in Content E-commerce**: The shift to content-driven e-commerce necessitates a focus on influencer marketing. Brands must evaluate their ability to select and structure influencer partnerships effectively [10][11]. 8. **KOL Matrix**: Establishing an effective Key Opinion Leader (KOL) matrix is crucial for enhancing brand influence. This involves identifying rising influencers and ensuring a balanced representation across different tiers of influencers [11][13]. 9. **Content Capability**: The ability to create engaging content that resonates with target consumers is essential for attracting and converting sales. Brands must align their content with consumer profiles and current trends [14][15]. 10. **Sustained Investment in Innovation**: Continuous investment in innovative products is necessary for long-term success. For example, the early C and late A series from Proya saw sales growth due to sustained marketing efforts [16][17]. 11. **Competitive Dimensions in Skincare**: The skincare market is primarily competitive in terms of price, category, and efficacy. Successful products must excel in all three dimensions to meet diverse consumer needs [18][19]. 12. **Types of Innovation**: Innovation in the beauty industry can be categorized into form innovation and sensory experience innovation. Form innovation attracts consumers through packaging changes, while sensory experience innovation enhances user satisfaction [20][21]. 13. **Efficacy Innovation**: Efficacy-driven innovation is critical for brand competitiveness. This includes innovations in active ingredients and new mechanisms for skincare benefits, such as anti-aging solutions [22][23]. Other Important Insights - Companies with a background in professional channels or raw materials tend to succeed more easily due to their resource accumulation and credibility [15]. - The competitive landscape varies significantly across different price segments, with the 200-300 RMB range being particularly competitive, while the 0-100 RMB segment remains relatively untapped [19]. - Brands can leverage successful high-value products to extend their product lines, thereby increasing market reach and sales [24].

Core Insights - Tmall International's Double 11 and 618 promotions are critical for overseas brands to capture the Chinese market, with successful brands leveraging "pre-sale accumulation, influencer matrix, and data-driven strategies" [1] Group 1: Pre-sale Accumulation - The explosive growth during Double 11/618 is driven by precise pre-sale accumulation strategies, with a three-phase approach leading to a 300% year-on-year GMV increase for a skincare brand in 2025 [3] - Phase one involves user segmentation and awakening, targeting "anti-aging" demographics (women aged 30-45) with tailored content, increasing search traffic share from 12% to 45% [3] - Phase two focuses on a pre-sale customer locking mechanism, offering a deposit discount and limited-time gifts, resulting in a 35% increase in pre-sale add-to-cart rates [4] - Phase three activates private domain growth through referral incentives, boosting the proportion of repeat customers during the pre-sale period from 18% to 42% [5] Group 2: Influencer Matrix - Relying solely on top-tier influencers is insufficient for capturing long-tail traffic; a pyramid-shaped influencer matrix is emerging as a mainstream strategy [6] - The top-tier influencer layer collaborates with leading Douyin hosts to create content that resonates emotionally, achieving single-session GMV exceeding 8 million yuan [6] - The mid-tier influencer layer focuses on scenario-based content, enhancing viewer engagement with an average live stream duration of 8 minutes [7] - The KOC (Key Opinion Consumer) layer initiates challenges that generate significant user engagement, with topic views surpassing 100 million and tripling private domain user growth [8] Group 3: Data-Driven Strategies - A comprehensive data monitoring system tracks over 200 key metrics, enabling brands to swiftly adapt to market changes, such as a 65% week-on-week sales increase for a health product brand through timely content adjustments [9] Group 4: Supply Chain Optimization - An intelligent warehousing system allows for dynamic inventory management and regional distribution, reducing shipping times from 72 hours to 24 hours for a food brand, which in turn improved store ratings to 4.9 and increased conversion rates by 40% [10] Group 5: Systemic Capability - The essence of the traffic dividend during Double 11/618 is a competition of systemic capabilities, where brands that integrate pre-sale accumulation, influencer strategies, data optimization, and supply chain upgrades can transform promotional uncertainties into predictable growth [11]