Come out of Exit A of Huaqiang North Metro Station in Shenzhen and walk eastward along Zhenhua Road. Its a short distance of 500 meters. You will pass through 4 or 5 cosmetics wholesale cities. Yuanwang Digital City Phase II, Mingtong Digital City, Hualian Fa Square, Bauhinia City and Manhattan Square have quietly transformed into an imported cosmetics business before they can change the signs of Digital City.
Mingtong is the most lively one. Shops are densely packed in shops, most of which are combined with Hongkong and Japan and South Korea elements, such as Zhuo Sha trade, Tokyo life and so on. Most of the display are the explosions you bought from friends circle, Fan Bingbings same wine lees mask, sun cream, Yan Yans high moisturizing cream, Estee Lauder small brown bottle...
Printed with the words of genuine goods, one for distribution and online shopping, it looks a little shabby and small advertisement, which is posted in a prominent position in the shop. Businessmen are busy with division of labour, the noise of tearing up the sealant, the rattling of trailers on the ground, and the constant whispering of reminders.
In the noise, its easy to forget that it was once the First Street of China Electronics which was as famous as Zhongguancun.
In the 1990s, Huaqiang was the most brilliant time in North China. When business was good, it was making millions. Huaqiangbei is not only the largest electronic component distribution center in the world, but also the holy place for national electronic retailers to get goods. It is also the first stop for many young people to go southward for gold. According to statistics, over the past 30 years, Huaqiang North has produced 50 billionaires.
However, due to the impact of e-commerce and the closure of Metro construction, Huaqiangbei has suffered a sharp drop in passenger traffic in the past few years, and the symbolic labels of South Chinas electronics manufacturing industry are fading.
At the moment, it and its gold diggers are still undergoing a long transformation, and cosmetics are the direction they are heading for.
Buy imported cosmetics and go to Huaqiang North
Even though some shopping malls are transforming into cosmetics, Huaqiang North still wakes up at 12 noon every day. As before, from noon to 11 p.m., the later, the busier. Li Xiaomin said.
Last year, through the introduction of Chaoshan villagers, Li Xiaomin in his early thirties sold only about 15 square meters of daily makeup in this shop. If there is no sign on the genuine cosmetics and other Chinese words reminder, at first glance, it is a bit like Japan Matsumoto Qing Pharmaceutical Cosmetics Shops reduced version.
Only the checkout counter and a narrow passage were left. The floor was filled with brown cardboard boxes, some of which had been cut open for guests to choose from, and some of them were placed in a corner in disorder.
In Huaqiangbei, more and more beauty wholesalers like Li Xiaomin. Among them, 80% are from Chaoshan, Guangdong Province. They always have the tradition of holding a group to do business.
Sophomore Wang Ran and her aunt were among them. My aunt sold digital products and electronic spare parts in Huaqiang North before, but gradually mobile phones could not be sold. Huaqiang North market declined. Since last year, it has changed to wholesale imported skin care products in Mingtong. Wang Ran said.
In addition to Mingtong, this summer, they expanded their store to hualianfa square next door. At present, there are three stores and six warehouses, all of which are imported cosmetics. Basically, every day is shipped, and the mask is sold in a hundred boxes a day.
Before the new semester, Wang Ran sometimes helps in the shop. But more often than not, they advertise through circles of friends. The college students who are planted by Xiaohong book and have pursuit for imported skin care products but have little income are the most accessible and stable customers.
Here, the business model of the era of electronic commodities is continued, and the price difference is the absolute advantage of cosmetics wholesalers.
For example, Freiforms face cleanser costs 150 yuan in Tiancat flagship store, Mingtong quotes 80-90 yuan; DHC lipstick in other micro-businesses where more than 40 yuan, we are 25 yuan; Liquor grains face mask Tiancat international sales 140 yuan, where you will set at 60-80 yuan, floating with the season. Li Xiaomin said.
Boss, are your goods authentic?
The price difference comes from the different channels of purchase.
As for the channel of purchase, Li Xiaomin answered lightly, We are all looking for our own channel to send cosmetics imported from Japan to the Mainland. But Wang Ran seemed to be a little secretive. Its a little hard to explain. Anyway, there is such a way.
Ling Xiaojian, a merchant of Hualian Development, confirmed this conjecture to some extent. At the beginning of this year, he and his friends decided to start a business in Huaqiangbei, which currently operates more than 300 foreign brands, mostly from duty-free stores in Japan and South Korea.
Ling Xiaojian is familiar with the rules of this circle. He can not only get discounts, get profit points back, but also refund the price difference in duty-free shops. He says rebates are usually given to the swifters to earn discounts on their own.
The complexity of purchasing channels is clearly reflected in the inventory of different wholesalers.
You will find that the situation is different in each store. In some stores, one brand has only about ten bottles of products, but when you go to another store, you will find a lot of stock. Lin Fengping said.
However, waterborne goods are not necessarily fake, referring to the source of goods that have not passed the formal customs declaration procedure. However, no one can determine the authenticity and quality of goods bought outside the counter. In Hong Kong, China, laws and regulations allow the sale of water goods, but in mainland China, the sale of water goods is still a sideball business.
At present, there are strict regulations for imported cosmetics and skin care products to enter the mainland market of China. In short, there are two regular channels to get goods. One is through the brand (i.e. the manufacturer), such as Estee Lauder, Clinique, Chanel, Dior, etc. in China, they are directly operated; the other is through the brands general agent or general authorization in China. Lin Fengping said.
Most of the people who get goods from Li Xiaomin are those who work in the cosmetics franchise of CS channel, not chain brands such as Watsons and Wanning. They usually open their own stores in the suburbs of first-and second-tier cities or in the suburbs of third, fourth and fifth-tier cities, which are small couple stores. She said.
Last year, the introduction of e-commerce law, as well as the increase of customs inspection, limited the profit space of purchasing human flesh on behalf of others, while turning to agency can save a lot of costs. Li Xiaomin believes that this job is suitable for housewives and some freelancers.
Li Xiaomins teaching of selling goods in the circle of friends is quite skilled. When Kerun face cream takes goods in her shop, it costs 114 yuan. Agents bid about 130 yuan in the circle of friends. Li Xiaomin will help send express delivery. The sender writes the name of the agent and the address of the sender according to the request of the other party. In Huaqiang North, express delivery can still be delivered at 11 p.m.
Ling Xiaojian said that the question he was asked most was: Boss, do you have any certificates or authorizations for your goods? Then he wrote a long paragraph on his online store page, and named it the insides of a bad-tempered owner who sells genuine goods.
In the face of doubts, Li Xiaomin has no good way to prove it. She usually opens the package and gives it a look. This facial cleanser, the international version is relatively light, the local version is relatively strong, the cap is big and small, you know what you have used.
If the customer still has doubts, she will use her finger to point to the wall genuine guarantee false 10 sticker, and next to the sticker cosmetics business requirements notice issued by Futian Bureau of Shenzhen Market Supervision and Administration.
Why Beauty Makeup Becomes the New Direction of Huaqiang North
After opening in Huaqiangbei, Ling Xiaojian soon registered in Alibaba 1688 to display some hot-selling products.
If you search the keywordShenzhen imported cosmeticsin 1688, you will find that many of them come from Huaqiang North. Ling Xiaojian said. In a short year, Shenzhen cosmetics wholesale distribution center from the original Longgang, Baoan and other places to Huaqiang North.
This shift dates back to 2013. This year is the turning point of Huaqiang North from prosperity to decline.
Due to the construction of Shenzhen Metro Line 7, Huaqiang North Main Road was blocked. Traffic is inconvenient and dust is flying. The four-year renovation period has greatly reduced the flow of people here. On the other hand, in the meantime, online component stores sprang up like mushrooms, and the impact of e-commerce made the real giant a little caught off guard.
The emergence of home-made mobile phones and the growing branding of mobile phones have also made businessmen a bit panicky.
Huaqiangbei was bustling in the past, but in recent years it has encountered the tide of empty shops. During the peak period, there are about three or four thousand departures. The rest are looking for new ways out. Some have opened snack shops, some sell fruit and milk tea, and others do electronic cigarette business.
Digital products are one of luxury goods, with increasingly transparent profit margins, and high requirements for technology and services. In addition, in recent years, the competition has been very fierce, and the purchase of a mobile phone at a cost of 34,000 yuan has been on the upper middle level of consumption.
But some female consumers spend hundreds or thousands of dollars on cosmetics, and they run out of time in two or three months. Beauty makeup is not only a fast-moving product, but also a high profit product, or even a huge profit. Zhang Honghui, general manager of Guangzhou Shangduo Cosmetics Company, said.
At that time, the Chinese market was fertile ground for importing cosmetics.
According to the data of China Business Industry Research Institute, Chinas cosmetics consumption in 2018 has exceeded 400 billion yuan. According to the data of China Customs, the proportion of imports in the total retail sales of cosmetics in China has increased from 10.8% to 34.8% in the past 10 years.
This gives hope to Huaqiang North businessmen who have fallen behind in electronic products. According to Wang Rans description, Huaqiangbei has gathered more than 1000 businesses engaged in importing cosmetics, many of which were originally mobile phone digital merchants.
Past experience and geographic advantages also provide the possibility for the transformation of Huaqiang North.
The same product of cosmetics brand has obvious price difference all over the world. Some cosmetics merchants can make profits by using the exchange rate difference to purchase large quantities of cosmetics products at a price lower than that at the counter in Hong Kong, a free trade port. This mode of seafood has been adopted by Hong Kong cosmetics chains such as Sasha, Zhuoyue and Caramel.
Lin Fengping told Interface News that in the Mainland, about 90% of the water cargo comes from Hong Kong. Shenzhen is close to Hong Kong. It has convenient circulation of goods and can save logistics costs. Huaqiang North enjoys these conveniences.
In the past, when people mentioned Huaqiangbei, they immediately thought of waterborne mobile phones and Shanzhai mobile phones. In Zhang Honghuis opinion, Huaqiang North Businessmenoriginal unique purchasing channels from all over the world are becoming a shortcut for them to transform their cosmetics.
And the traffic flow that Huaqiangbei used to rely on for a living is probably not the most important now.
Yuanwang Phase 2 began to change to cosmetics last year. Pan Jiandong said that people who rent shops have transformed from various industries. It is difficult to count how many mobile phones were originally sold here. There are also some who used to make cosmetics and wholesale clothing. The shop is rented to you, but the business depends on individuals.
Li Xiaomin also worked as a cosmetics retailer for three years before he opened his shop in Qiangbei, China. Mainly do local brands, but feel that we do not trust the products of micro-merchants, think it is marketing, fake, do not do very well.
Li Xiaomin didnt disclose the sales and profit situation after entering Huaqiangbei, but simply took it with the business is better now than before. With the growing development of the Internet, she felt that everyones acceptance of cosmetics is becoming stronger. Compared with the cost-effective Korean cosmetics, the daily cosmetics are gaining momentum.
Businessmen have piled in this year, and the rent of berths in Mingtong Digital City has also risen.
Mingtong has undergone a comprehensive transformation since last year. Liu Ming, a staff member of the Ministry of Investment Promotion, said that the investment promotion was nearing the end. Now there are only a few five-square-metre stores on the fourth floor, 600 yuan per square metre. The capital construction fee is 30000-80000 yuan, and 6 yuan will be charged for 2 yuan, and the electricity and water fees will be paid separately.
The second phase of Yuanwang, which is one street away, is now inviting rent warmly because of the late start of the transformation. Pan Jiandong and his colleagues set up tables and chairs on the first floor, while presenting business cards to the prospective consultants.
In order to attract merchants, Pan Jiandong said they had waived management fees and entrance fees. There are dozens of remaining bunks of 5 or 6 square meters, ranging from 2,000 yuan to 9,500 yuan per month, depending on the location.
Perhaps it is uncertain about the transformation. Looking forward to the first and second floors of the second phase as the cosmetic area, the third and fourth floors are still positioned for digital electronics, but the vacancy rate is more than 50%. Pan Jiandong admits that it will take time for Huaqiang to grow up after its transformation, and it will take longer to become a household name throughout the country.
After a long transformation, the underground space of Huaqiang North has shown its embryonic form. In the near future, electronic shopping malls will extend from the ground to the underground, and will also introduce catering, department stores and other items.
On the main street of Huaqiang North Ground, there are still Saige Electronic Market and Huaqiang Electronic World on the one hand, and Maoye World, a cosmetics shopping mall, on the other.
Not far behind the main street, Hualian Fair, Bauhinia City and Manhattan Square are attracting businessmen. Some cross-border beauty shops have just entered, and the flowers to celebrate the opening have not withered.
(At the request of the respondents, Li Xiaomin, Wang Ran, Ling Xiaojian and Liu Ming are aliased names; besides tagging, the pictures of the articles are taken by journalists.)
Source: Responsible Editor of Interface News: Wang Fengzhi_NT2541